KULICKE & SOFFA INDUSTRIES INC0000056978falseSingapore00000569782023-11-152023-11-150000056978dei:OtherAddressMember2023-11-152023-11-15

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549 
____________________________________________________
 
FORM 8-K
 
____________________________________________________
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
 
Date of report (Date of earliest event reported): November 15, 2023  
____________________________________________________
KULICKE AND SOFFA INDUSTRIES, INC.
(Exact name of registrant as specified in its charter) 
 ____________________________________________________ 
Pennsylvania 000-00121 23-1498399
(State or Other Jurisdiction
of Incorporation)		 (Commission File Number) (I.R.S. Employer
Identification No.)

 
 23A Serangoon North Avenue 5, #01-01, Singapore 554369
1005 Virginia Dr., Fort Washington, PA 19034
(Address of Principal Executive Offices and Zip Code)

Registrant’s telephone number, including area code: (215) 784-6000  
N/A
(Former Name or Former Address, if Changed Since Last Report)
____________________________________________________
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, Without Par ValueKLICThe Nasdaq Global Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02     Results of Operations and Financial Condition.
On November 15, 2023, Kulicke and Soffa Industries, Inc. (the “Company”) issued a press release with respect to its financial results for its fourth fiscal quarter ended September 30, 2023. A copy of this press release is furnished as Exhibit 99.1 to this report, and is incorporated by reference into this Item 2.02 as if fully set forth herein.
The information in this report, furnished under “Item 2.02 Results of Operations and Financial Condition,” shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01
Financial Statements and Exhibits.
(d)Exhibits.
Exhibit No.Description
99.1
104Inline XBRL for the cover page of this Current Report on Form 8‑K.



SIGNATURE
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
KULICKE AND SOFFA INDUSTRIES, INC.
    
Date: November 15, 2023By:/s/ LESTER WONG 
 Name:Lester Wong 
 Title:Executive Vice President and Chief Financial Officer
(principal financial officer and principal accounting
officer)
   



Exhibit 99.1
logoa02a01a01a40a.jpg
Kulicke & Soffa Pte. Ltd.
23A Serangoon North Ave 5
Singapore 554369
+65 6880-9600 main
Co. Regn. No. 199902120H
Kulicke and Soffa Industries, Inc.
1005 Virginia Drive
Fort Washington, PA 19034 USA
+1-215-784-6000 main
www.kns.com
 
Kulicke & Soffa Reports Fourth Quarter 2023 Results
Singapore – November 15, 2023 – Kulicke and Soffa Industries, Inc. (NASDAQ: KLIC) (“Kulicke & Soffa,” “K&S,” “our,” or the “Company”), today announced the financial results of its fourth fiscal quarter ended September 30, 2023. The Company reported fourth quarter net revenue of $202.3 million and net income of $23.4 million, representing EPS of $0.41 per fully diluted shares, and non-GAAP net income of $29.4 million, representing non-GAAP EPS of $0.51 per fully diluted share.

Quarterly Results - U.S. GAAP
 
Fiscal Q4 2023
 		Change vs.
Fiscal Q4 2022		Change vs.
Fiscal Q3 2023
Net Revenue$202.3 milliondown 29.3%up 6%
Gross Margin47.4%up 110 bpsup 20 bps
Operating Margin9.6%down 1400 bpsup 1200 bps
Net Income$23.4 milliondown 64%up 461.3%
Net Margin11.5%down 1120 bpsup 930 bps
EPS – Diluted$0.41down 62.7%up 485.7%
Quarterly Results - Non-GAAP
Fiscal Q4 2023Change vs.
Fiscal Q4 2022		Change vs.
Fiscal Q3 2023
Income from Operations$26.3 milliondown 64.3%up 8.2%
Operating Margin13.0%down 1270 bpsup 30 bps
Net Income$29.4 milliondown 58.1%down 7.8%
Net Margin14.5%down 1000 bpsdown 220 bps
EPS - Diluted$0.51down 57.1%down 7.3%
A reconciliation of the GAAP and non-GAAP adjusted results is provided in the financial tables included in this release. See also “Use of non-GAAP Financial Results” section.

Fusen Chen, Kulicke & Soffa’s President and Chief Executive Officer, stated, “The General Semiconductor and LED end markets have shown clear improvements in the September quarter. As we execute on a broad range of technology-driven initiatives throughout 2024, we expect industry conditions, and also unique K&S opportunities, to strengthen.”
Kulicke & Soffa’s broadening portfolio of solutions are becoming increasingly technology driven due to a growing industry need for more capable semiconductor and display solutions.
1

Fiscal Year 2023 Financial Highlights
•Net revenue of $742.5 million.    
•Gross margin of 48.3%.
•Net income of $57.1 million or $0.99 per fully diluted share; non-GAAP net income of $105.0 million or $1.82 per fully diluted share.
•GAAP cash from operations of $173.4 million; Adjusted free cash flow of $129.6 million.
•The Company repurchased a total of 1.5 million shares of common stock at a cost of $68.1 million.
•Cash, cash equivalents, and short-term investments were $759.4 million as of September 30, 2023.

Fourth Quarter Fiscal 2023 Financial Highlights 
•Net revenue of $202.3 million.    
•Gross margin of 47.4%.
•Net income of $23.4 million or $0.41 per fully diluted share; non-GAAP net income of $29.4 million or $0.51 per fully diluted share.
•GAAP cash from operations of $77.5 million; Adjusted free cash flow of $68.5 million.
•The Company repurchased a total of 0.2 million shares of common stock at a cost of $9.2 million.

First Quarter Fiscal 2024 Outlook
While broader cyclical improvements have benefited the utilization rates and demand for Ball Bonding systems, near-term headwinds persist in memory and automotive markets. The Company currently expects net revenue in the first fiscal quarter of 2024, ending December 30, 2023, to be approximately $170.0 million, +/- $10 million, GAAP diluted EPS to be approximately $0.15 +/- 10%, and non-GAAP diluted EPS to be approximately $0.25, +/- 10%.
Management anticipates demand to sequentially improve in the second fiscal quarter 2024 followed by broader demand improvements in the second fiscal half due to both strengthening industry conditions and ongoing execution of several K&S-specific opportunities.

Earnings Conference Call Details
A conference call to discuss these results will be held tomorrow, November 16, 2023, beginning at 8:00am EST. To access the conference call, interested parties may call +1-877-407-8037 or internationally +1-201-689-8037. A live webcast and supplemental earnings presentation will also be available at investor.kns.com.
A replay will be available from approximately one hour after the completion of the call through November 23, 2023 by calling toll-free +1-877-660-6853 or internationally +1-201-612-7415 and using the replay ID number of 13734623. A webcast replay will also be available at investor.kns.com.

Use of Non-GAAP Financial Results
In addition to U.S. GAAP results, this press release also contains the following non-GAAP financial results: income from operations, operating margin, net income, net margin, net income per fully diluted share and adjusted free cash flow. The Company's non-GAAP results exclude amortization related to intangible assets acquired through business combinations, costs associated with restructuring and severance, equity-based compensation, acquisition and integration cost, impairment relating to assets acquired through business combinations, impairment relating to equity investments, income tax expense arising from discrete tax items triggered by acquisition, restructuring and significant changes in tax laws, gain/loss on disposal of business, as well as tax benefits or expenses associated with the foregoing non-GAAP items. The non-GAAP adjustments may or may not be infrequent or nonrecurring in nature, but are a result of periodic or non-core operating activities. These non-GAAP measures are consistent with the way management analyzes and assesses the Company’s operating results. The Company believes these non-GAAP measures enhance investors’ understanding of the Company’s underlying operational performance, as well as their ability to compare the Company’s period-to-period financial results and the Company’s overall performance to that of its competitors.

2

Management uses both U.S. GAAP metrics as well as non-GAAP metrics to evaluate the Company’s operating and financial results. Non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in the Company’s industry, as other companies in the industry may calculate non-GAAP financial results differently. In addition, there are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with GAAP, may be different from non-GAAP financial measures used by other companies and exclude expenses that may have a material impact on the Company’s reported financial results. The presentation of non-GAAP items is meant to supplement, but not substitute for, GAAP financial measures or information. The Company believes the presentation of non-GAAP results in combination with GAAP results provides better transparency to the investment community when analyzing business trends, providing meaningful comparisons with prior period performance and enhancing investors’ ability to view the Company's results from management's perspective. A reconciliation of each available GAAP to non-GAAP financial measure discussed in this press release is contained in the financial tables at the end of this press release.
Management has not reconciled its outlook for non-GAAP diluted EPS to diluted EPS for Q1, FY 2024 as it does not provide guidance on the reconciling items between diluted EPS and non-GAAP diluted EPS, as a result of the uncertainty regarding, and the potential variability of, these items. The actual amount of such reconciling items could have a significant impact on our non-GAAP diluted EPS and, accordingly, a reconciliation of diluted EPS to non-GAAP diluted EPS for Q1, FY 2024 is not available without unreasonable effort.

About Kulicke & Soffa
 
Founded in 1951, Kulicke & Soffa specializes in developing cutting-edge semiconductor and electronics assembly solutions enabling a smart and more sustainable future. Our ever-growing range of products and services supports growth and facilitates technology transitions across large-scale markets, such as advanced display, automotive, communications, compute, consumer, data storage, energy storage and industrial.
Caution Concerning Results and Forward Looking Statements
In addition to historical statements, this press release contains statements relating to future events and our future results. These statements are “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. While these forward-looking statements represent our judgments and future expectations concerning our business, including the importance and competitiveness of our advanced display products and other emerging technology transitions, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from our expectations. These factors include, but are not limited to, the persistent macroeconomic headwinds on our business, our ability to develop, manufacture and gain market acceptance of new products, and the other factors listed or discussed in our Annual Report on Form 10-K for the fiscal year ended October 1, 2022, filed on November 17, 2022, and amended on August 8, 2023, and our other filings with the Securities and Exchange Commission. Kulicke and Soffa Industries, Inc. is under no obligation to (and expressly disclaims any obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.


Contacts:
Kulicke and Soffa Industries, Inc.
Joseph Elgindy
Finance
P: +1-215-784-7518
3

KULICKE AND SOFFA INDUSTRIES, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(In thousands, except per share and employee data)
(Unaudited)
 Three months endedTwelve months ended
September 30, 2023October 1, 2022September 30, 2023October 1, 2022
Net revenue$202,320 $286,313 $742,491 $1,503,620 
Cost of sales106,481 153,626 383,836 755,300 
Gross profit95,839 132,687 358,655 748,320 
Operating expenses:
Selling, general and administrative37,380 31,275 145,493 134,869 
Research and development37,616 32,356 144,701 136,852 
Impairment charges— — 21,535 1,346 
Acquisition-related cost13 118 511 118 
Amortization of intangible assets1,356 1,374 6,099 4,917 
Restructuring— 20 879 146 
Total operating expenses76,365 65,143 319,218 278,248 
Income from operations19,474 67,544 39,437 470,072 
Other income / (expense):
Interest income9,500 4,025 32,906 7,124 
Interest expense(26)(35)(142)(208)
Income before income taxes28,948 71,534 72,201 476,988 
Income tax expense5,591 6,630 15,053 43,443 
Net income $23,357 $64,904 $57,148 $433,545 
Net income per share:
Basic$0.41 $1.12 $1.01 $7.21 
Diluted$0.41 $1.10 $0.99 $7.09 
Cash dividends declared per share$0.19 $0.17 $0.76 $0.68 
Weighted average shares outstanding:
Basic56,442 57,804 56,682 60,164 
Diluted57,408 58,816 57,548 61,182 

 Three months endedTwelve months ended
Supplemental financial data:September 30, 2023October 1, 2022September 30, 2023October 1, 2022
Depreciation and amortization$8,111 $5,520 $28,857 $21,293 
Capital expenditures4,217 21,020 47,702 32,233 
Equity-based compensation expense:
Cost of sales289 233 1,192 960 
Selling, general and administrative3,841 3,426 16,239 13,911 
Research and development1,311 854 5,313 4,115 
Total equity-based compensation expense$5,441 $4,513 $22,744 $18,986 

 As of
September 30, 2023October 1, 2022
Number of employees3,025 3,167 

4

KULICKE AND SOFFA INDUSTRIES, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(In thousands)
(Unaudited)
As of
September 30, 2023October 1, 2022
ASSETS
CURRENT ASSETS
Cash and cash equivalents$529,402 $555,537 
Short-term investments230,000 220,000 
Accounts and notes receivable, net of allowance for doubtful accounts of $49 and $0 respectively158,601 309,323 
Inventories, net217,304 184,986 
Prepaid expenses and other current assets53,751 62,200 
TOTAL CURRENT ASSETS1,189,058 1,332,046 
Property, plant and equipment, net110,051 80,908 
Operating right-of-use assets47,148 41,767 
Goodwill88,673 68,096 
Intangible assets, net29,357 31,939 
Deferred tax assets31,551 25,572 
Equity investments716 5,397 
Other assets3,223 2,874 
TOTAL ASSETS$1,499,777 $1,588,599 
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES  
Accounts payable49,302 67,311 
Operating lease liabilities6,574 6,766 
Accrued expenses and other current liabilities103,005 134,541 
Income taxes payable22,670 40,063 
TOTAL CURRENT LIABILITIES181,551 248,681 
Deferred tax liabilities37,264 34,037 
Income taxes payable52,793 64,634 
Operating lease liabilities41,839 34,927 
Other liabilities11,769 11,670 
TOTAL LIABILITIES$325,216 $393,949 
SHAREHOLDERS' EQUITY  
Common stock, no par value577,727 561,684 
Treasury stock, at cost(737,214)(675,800)
Retained earnings1,355,810 1,341,666 
Accumulated other comprehensive loss(21,762)(32,900)
TOTAL SHAREHOLDERS' EQUITY$1,174,561 $1,194,650 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY$1,499,777 $1,588,599 
 
5


KULICKE AND SOFFA INDUSTRIES, INC.
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
 Three months endedTwelve months ended
 September 30, 2023October 1, 2022September 30, 2023October 1, 2022
Net cash provided by operating activities$77,492 $116,563 $173,404 $390,188 
Net cash provided by / (used in) investing activities, continuing operations70,386 67,457 (91,338)133,799 
Net cash used in financing activities, continuing operations(19,518)(70,286)(111,876)(321,191)
Effect of exchange rate changes on cash and cash equivalents(764)(3,978)3,675 (10,047)
Changes in cash and cash equivalents 127,596 109,756 (26,135)192,749 
Cash and cash equivalents, beginning of period401,806 445,781 555,537 362,788 
Cash and cash equivalents, end of period $529,402 $555,537 $529,402 $555,537 
Short-term investments230,000 220,000 230,000 220,000 
Total cash, cash equivalents, and short-term investments$759,402 $775,537 $759,402 $775,537 

6

Reconciliation of U.S. GAAP Income from Operating
to Non-GAAP Income from Operation and Operating Margin
(In thousands, except percentages)
(unaudited)
 Three months ended
September 30, 2023October 1,
2022		July 1,
2023
Net revenue$202,320 $286,313 $190,917 
U.S. GAAP income from operations19,474 67,544 (4,488)
U.S. GAAP operating margin9.6 %23.6 %(2.4)%
Pre-tax non-GAAP items:
Amortization related to intangible assets
$1,356 $1,374 1,786 
Acquisition-related costs13 118 57 
Equity-based compensation5,441 4,513 5,403 
Restructuring— 20 — 
Impairment charges— — 21,535 
Non-GAAP income from operations$26,284 $73,569 $24,293 
Non-GAAP operating margin13.0 %25.7 %12.7 %

7

Reconciliation of U.S. GAAP Net Income to Non-GAAP Net Income and
U.S. GAAP net income per share to Non-GAAP net income per share
(in thousands, except per share data)
(unaudited)
 Twelve months endedThree months ended
September 30, 2023September 30, 2023October 1, 2022July 1,
2023
Net revenue$742,491 $202,320 $286,313 $190,917 
U.S. GAAP net income57,148 23,357 64,904 4,161 
U.S. GAAP net margin7.7 %11.5 %22.7 %2.2 %
Non-GAAP adjustments:
Amortization related to intangible assets
$6,099 $1,356 $1,374 1,786 
Restructuring879 — 20 — 
Acquisition-related costs511 13 118 57 
Equity-based compensation22,744 5,441 4,513 5,403 
Impairment charges21,535 — — 21,535 
Net income tax benefit on non-GAAP items(3,928)(758)(689)(1,060)
Total non-GAAP adjustments47,840 6,052 5,336 27,721 
Non-GAAP net income104,988 29,409 70,240 31,882 
Non-GAAP net margin14.1 %14.5 %24.5 %16.7 %
U.S. GAAP net income per share:
Basic1.01 0.41 1.12 0.07 
Diluted(a)
0.99 0.41 1.10 0.07 
Non-GAAP adjustments per share:(b)
Basic0.84 0.11 0.10 0.49 
Diluted0.83 0.10 0.09 0.48 
Non-GAAP net income per share:
Basic$1.85 $0.52 $1.22 $0.56 
Diluted(c)
$1.82 $0.51 $1.19 $0.55 
Weighted average shares outstanding:
Basic56,682 56,442 57,804 56,553 
Diluted57,548 57,408 58,816 57,519 
(a)GAAP diluted net earnings per share reflects any dilutive effect of outstanding restricted stock, but that effect is excluded when calculating GAAP diluted net loss per share because it would be anti-dilutive.
(b)Non-GAAP adjustments per share includes amortization related to intangible assets acquired through business combinations, costs associated with restructuring and severance, acquisition and integration cost, equity-based compensation expenses, impairment relating to assets acquired through business combinations, impairment relating to equity investments, and income tax effects associated with the foregoing non-GAAP items.
(c)Non-GAAP diluted net earnings per share reflects any dilutive effect of outstanding restricted stock.







8

Reconciliation of U.S. GAAP Cash provided by Operating Activities
to Non-GAAP Adjusted Free Cash Flow
(In thousands, except percentages)
(unaudited)



 Twelve months endedThree months ended
September 30, 2023September 30, 2023October 1, 2022July 1,
2023
U.S. GAAP net cash provided by operating activities$173,404 $77,492 $116,563 $8,976 
Expenditures for property, plant and equipment(44,406)(9,281)(12,605)(10,610)
Proceeds from sales of property, plant and equipment591 273 62 83 
Non-GAAP adjusted free cash flow129,589 68,484 104,020 (1,551)
9
v3.23.3
Document and Entity Information
Nov. 15, 2023
Cover [Abstract]  
Document Type 8-K
Document Period End Date Nov. 15, 2023
Entity Registrant Name KULICKE & SOFFA INDUSTRIES INC
Entity Central Index Key 0000056978
Amendment Flag false
Entity Incorporation, State or Country Code PA
Entity File Number 000-00121
Entity Tax Identification Number 23-1498399
Entity Addresses [Line Items]  
Entity Address, Address Line One 23A Serangoon North Avenue 5
Entity Address, Address Line Two #01-01
Entity Address, Country SG
Entity Address, City or Town Singapore
Entity Address, Postal Zip Code 554369
Title of 12(b) Security Common Stock, Without Par Value
Trading Symbol KLIC
Security Exchange Name NASDAQ
City Area Code 215
Local Phone Number 784-6000
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Title of 12(b) Security Common Stock, Without Par Value
Trading Symbol KLIC
Security Exchange Name NASDAQ
Principal Executive Offices  
Entity Addresses [Line Items]  
Entity Address, Address Line One 1005 Virginia Dr.
Entity Address, City or Town Fort Washington
Entity Address, Postal Zip Code 19034
Entity Address, State or Province PA
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