Kulicke & Soffa Reports Revenue of $181.7 Million

Kulicke & Soffa Industries Inc. (KLIC) has announced its fiscal third-quarter results for 2024, reporting a robust performance with $181.7 million in revenue and a gross margin of 46.6%. The company is making notable strides in Advanced Packaging and Advanced Dispense qualifications, alongside increased adoption of its innovative ball bonding solutions.

With its involvement in the U.S.-Joint semiconductor consortium and a partnership with a subsidiary of a major semiconductor conglomerate, Kulicke & Soffa remains optimistic about the future, especially regarding its thermocompression bonding (TCB) segment. The company anticipates commencing higher volume production in advanced packaging formats for the memory market by late 2025 or early 2026 and predicts a strong industry recovery with a projected 17% growth rate in semiconductor revenue through 2025.

Key Takeaways

• Kulicke & Soffa achieved $181.7 million in revenue with a 46.6% gross margin for the fiscal third quarter of 2024.
• The company is advancing in Advanced Packaging and Advanced Dispense qualifications while seeing greater adoption of its ball bonding solutions.
• Membership in the U.S.-Joint semiconductor consortium and collaboration for chip-to-wafer hybrid bonding are significant milestones.
• Kulicke & Soffa aims to establish new market positions in AI, high-performance computing (HPC), and mobility, anticipating a broader cyclical recovery.
• The firm plans to initiate higher volume production in advanced packaging formats for the memory market by late 2025 or early 2026.
• A strong industry growth forecast of 17% in semiconductor revenues through 2025 is expected.
• For the upcoming September quarter, the company estimates revenue around $180 million with a gross margin of approximately 47%.

Company Outlook

• Kulicke & Soffa anticipates $200 million in dedicated advanced packaging revenue for fiscal year ’25.
• The company projects a steady September quarter compared to the third quarter, with an expected uptick in the December quarter for fiscal year 2025.
• The gross margin is expected to stay around 47% for the remainder of the year, with a goal to reach 50% in 2025 through cost reductions and higher-margin products.

Market Sentiment

Bearish Highlights:

• The company acknowledges potential seasonality that may influence the December quarter of fiscal year 2025.

Bullish Highlights:

• Improvements are being witnessed in key end markets such as General Semiconductor, LED, Automotive, Industrial, and Memory.
• Increased share repurchase activity indicates confidence in the company’s long-term growth potential.

Performance Summary

Kulicke & Soffa’s strategic advancements and strong quarterly performance underscore a favorable position within the semiconductor equipment sector. The focus on innovation and market expansion, along with a positive outlook for the semiconductor industry, positions the company for future growth. Investors are likely to monitor Kulicke & Soffa’s progress as it seeks to leverage anticipated industry growth and recovery.

Financial Insights

Despite facing challenges with a -26.91% revenue growth rate over the past year, Kulicke & Soffa maintains a healthy gross profit margin of 46.49%, similar to its recent quarterly performance. The company has been active in share repurchases, reinforcing management’s confidence in its value and growth prospects.

Conclusion

Kulicke & Soffa’s third-quarter achievements and ongoing strategic initiatives suggest a robust outlook in the semiconductor equipment industry. With continued focus on innovation and growth, the company is well-positioned to benefit from an anticipated market recovery in the coming years. Investors may find interest in its potential for capitalizing on the expected industry dynamics ahead.