Latest news with #KulickeandSoffa
Yahoo
20-05-2025
- Business
- Yahoo
KLIC Q1 Earnings Call: Management Restructures Amid Revenue Miss and Macro Uncertainty
Semiconductor production equipment company Kulicke & Soffa (NASDAQ: KLIC) fell short of the market's revenue expectations in Q1 CY2025, with sales falling 5.9% year on year to $162 million. Next quarter's revenue guidance of $145 million underwhelmed, coming in 0.5% below analysts' estimates. Its non-GAAP loss of $0.52 per share was significantly below analysts' consensus estimates. Is now the time to buy KLIC? Find out in our full research report (it's free). Revenue: $162 million vs analyst estimates of $165.1 million (5.9% year-on-year decline, 1.9% miss) Adjusted EPS: -$0.52 vs analyst estimates of $0.19 (significant miss) Adjusted EBITDA: -$22.37 million vs analyst estimates of $8.85 million (-13.8% margin, significant miss) Revenue Guidance for Q2 CY2025 is $145 million at the midpoint, below analyst estimates of $145.8 million Adjusted EPS guidance for Q2 CY2025 is $0.05 at the midpoint, below analyst estimates of $0.35 Operating Margin: -52.3%, up from -61.1% in the same quarter last year Free Cash Flow was $77.92 million, up from -$26.72 million in the same quarter last year Inventory Days Outstanding: 171, down from 213 in the previous quarter Market Capitalization: $1.78 billion Kulicke and Soffa's first quarter results were primarily shaped by a strategic decision to discontinue the electronics assembly equipment business, as well as ongoing macroeconomic and industry uncertainties. Management pointed to reduced demand in Southeast Asia, particularly from automotive and industrial customers, as a significant contributor to the revenue shortfall, while also highlighting gains in Ball Bonding utilization rates in China and Taiwan. CEO Fusen Chen described the EA exit as essential for aligning the business with long-term semiconductor technology trends and improving future profitability. Looking forward, management expects near-term market hesitation to persist, driven by trade dynamics and cautious customer spending, especially in capital equipment. CFO Lester Wong explained that revenue guidance for next quarter reflects continued order weakness in Southeast Asia, but noted improving utilization in other Asian regions could eventually support capacity growth. Management remains focused on advancing its Ball, Wedge, Thermo-Compression, and Advanced Dispense solutions, projecting incremental opportunities as industry demand recovers. Kulicke and Soffa's leadership attributed the quarter's performance to a combination of restructuring actions and evolving industry dynamics. The main factors impacting financial results and operations were: Electronics Assembly Business Exit: Management announced plans to discontinue the electronics assembly equipment business, citing the need to focus on core technologies that align with future semiconductor assembly trends. The company will retain aftermarket support for existing customers but expects the full wind-down to be completed by the first half of next year. Market-Specific Weakness: Revenue declines were most pronounced in Southeast Asia, where automotive and industrial sector hesitation limited anticipated seasonal momentum. CEO Fusen Chen said, 'The slowdown was due to concern regarding the potential and unknown impact for auto and the industrial industry from our customers.' Technology Portfolio Focus: Kulicke and Soffa emphasized ongoing investment in Ball, Wedge, and Thermo-Compression bonding, as well as new Advanced Dispense and Vertical Wire solutions. These areas are positioned to address high-volume and advanced packaging transitions across memory, logic, and power semiconductor applications. Product Launches and Customer Engagement: The company introduced its ATPremier MEM Plus for stacked DRAM packaging and a new Sonotrode-enabled pin welding system for power semiconductors. Management reported increasing customer interest, with some new memory products potentially reaching production in 2026. Macro and Trade Headwinds: Persistent global trade uncertainty, particularly tariffs, led to order delays and more conservative capacity planning among customers, despite high utilization rates in some regions. CFO Lester Wong noted, 'Unique geopolitical and trade dynamics have created near-term order hesitation in certain capital equipment markets.' Management expects the coming quarters to remain challenging as customers navigate trade-related uncertainties and delay capital spending, but highlighted several product segments and regional trends that could influence recovery and growth. Advanced Packaging Demand: Kulicke and Soffa is prioritizing development in Vertical Wire, Thermo-Compression, and Advanced Dispense technologies, which management believes are well-positioned for emerging logic and memory packaging needs, especially as chip complexity increases. Utilization Rates and Capacity Additions: While utilization rates in China and Taiwan have reached levels that could trigger new equipment purchases, management cautioned that customers remain hesitant until there is more clarity on tariffs and macroeconomic conditions. Restructuring and Margin Focus: The exit from the electronics assembly business is expected to improve through-cycle margins and align operating expenses with core growth areas, but there may be residual restructuring costs over the next year as the wind-down is completed. Krish Sankar (TD Cowen): Asked about the drivers behind the Southeast Asia slowdown and outlook beyond the next quarter. CEO Fusen Chen attributed weakness to auto and industrial market uncertainty and expects potential improvement later in the year, depending on clarity in trade policy. Krish Sankar (TD Cowen): Inquired about Thermo-Compression Bonding (TCB) exposure in memory versus logic. Management said TCB progress is focused on logic with growing emphasis on memory, anticipating more tangible results by 2026. Tom Diffely (D.A. Davidson): Requested details on the revenue and profitability of the discontinued EA business. CFO Lester Wong provided figures showing annual revenue of $25–30 million and gross profit of $7–11 million, with the wind-down expected to conclude by the first half of next year. Charles Shi (Needham & Co.): Questioned the apparent difference in utilization and order trends between Taiwan and Southeast Asia. Management explained that higher utilization in Taiwan is offset by customer caution, while Southeast Asia's auto-oriented customer base is more directly affected by trade uncertainty. Dave Duley (Steelhead Securities): Sought clarification on utilization rates and the timing and impact of new memory packaging products. Management reported China utilization above 80%, and expects Vertical Wire and TCB technologies to generate meaningful contributions starting in 2026. Going forward, the StockStory team will monitor (1) the pace of recovery in Southeast Asia's automotive and industrial demand, (2) progress on new product adoption—especially in Vertical Wire and Thermo-Compression for next-generation memory and logic packaging, and (3) early signs of customer order normalization as trade dynamics and tariff clarity improve. The successful wind-down of the electronics assembly business and realization of restructuring benefits will also be closely watched as indicators of margin improvement. Kulicke and Soffa currently trades at a forward P/E ratio of 20×. In the wake of earnings, is it a buy or sell? The answer lies in our free research report. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
08-05-2025
- Business
- Yahoo
Nova (NVMI) To Report Earnings Tomorrow: Here Is What To Expect
Semiconductor quality control company Nova (NASDAQ:NVMI) will be reporting results tomorrow before the bell. Here's what you need to know. Nova beat analysts' revenue expectations by 2.3% last quarter, reporting revenues of $194.8 million, up 45.1% year on year. It was a very strong quarter for the company, with a significant improvement in its inventory levels and a solid beat of analysts' adjusted operating income estimates. Is Nova a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting Nova's revenue to grow 48.2% year on year to $210.2 million, improving from the 7.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.09 per share. Nova Total Revenue Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Nova has a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 3% on average. Looking at Nova's peers in the semiconductor manufacturing segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Kulicke and Soffa's revenues decreased 5.9% year on year, missing analysts' expectations by 1.9%, and IPG Photonics reported a revenue decline of 9.6%, topping estimates by 1.2%. Read our full analysis of Kulicke and Soffa's results here and IPG Photonics's results here. There has been positive sentiment among investors in the semiconductor manufacturing segment, with share prices up 22.4% on average over the last month. Nova is up 17% during the same time and is heading into earnings with an average analyst price target of $279.59 (compared to the current share price of $195). When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we've found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.
Yahoo
05-05-2025
- Business
- Yahoo
Earnings To Watch: Kulicke and Soffa (KLIC) Reports Q1 Results Tomorrow
Semiconductor production equipment company Kulicke & Soffa (NASDAQ: KLIC) will be reporting results tomorrow afternoon. Here's what to expect. Kulicke and Soffa beat analysts' revenue expectations by 0.7% last quarter, reporting revenues of $166.1 million, down 3% year on year. It was a very strong quarter for the company, with a significant improvement in its inventory levels and a solid beat of analysts' EPS estimates. Is Kulicke and Soffa a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting Kulicke and Soffa's revenue to decline 4.1% year on year to $165.1 million, a deceleration from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $0.19 per share. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Kulicke and Soffa has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 0.6% on average. Looking at Kulicke and Soffa's peers in the semiconductor manufacturing segment, some have already reported their Q1 results, giving us a hint as to what we can expect. FormFactor delivered year-on-year revenue growth of 1.6%, beating analysts' expectations by 0.9%, and Amkor reported a revenue decline of 3.2%, topping estimates by 3%. FormFactor traded up 3.1% following the results while Amkor was down 2.7%. Read our full analysis of FormFactor's results here and Amkor's results here. There has been positive sentiment among investors in the semiconductor manufacturing segment, with share prices up 18.7% on average over the last month. Kulicke and Soffa is up 13.7% during the same time and is heading into earnings with an average analyst price target of $49 (compared to the current share price of $33.22). Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
Yahoo
05-05-2025
- Business
- Yahoo
Kulicke and Soffa (KLIC) Reports Earnings Tomorrow: What To Expect
Semiconductor production equipment company Kulicke & Soffa (NASDAQ: KLIC) will be reporting earnings tomorrow after market close. Here's what to expect. Kulicke and Soffa beat analysts' revenue expectations by 0.7% last quarter, reporting revenues of $166.1 million, down 3% year on year. It was a very strong quarter for the company, with a significant improvement in its inventory levels and an impressive beat of analysts' EPS estimates. Is Kulicke and Soffa a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting Kulicke and Soffa's revenue to decline 4.1% year on year to $165.1 million, a deceleration from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $0.19 per share. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Kulicke and Soffa has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 0.6% on average. Looking at Kulicke and Soffa's peers in the semiconductor manufacturing segment, some have already reported their Q1 results, giving us a hint as to what we can expect. FormFactor delivered year-on-year revenue growth of 1.6%, beating analysts' expectations by 0.9%, and Amkor reported a revenue decline of 3.2%, topping estimates by 3%. FormFactor traded up 3.1% following the results while Amkor was down 2.7%. Read our full analysis of FormFactor's results here and Amkor's results here. There has been positive sentiment among investors in the semiconductor manufacturing segment, with share prices up 17.6% on average over the last month. Kulicke and Soffa is up 13.5% during the same time and is heading into earnings with an average analyst price target of $49 (compared to the current share price of $33.17). Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Sign in to access your portfolio
Yahoo
15-04-2025
- Business
- Yahoo
Winners And Losers Of Q4: KLA Corporation (NASDAQ:KLAC) Vs The Rest Of The Semiconductor Manufacturing Stocks
Earnings results often indicate what direction a company will take in the months ahead. With Q4 behind us, let's have a look at KLA Corporation (NASDAQ:KLAC) and its peers. The semiconductor industry is driven by demand for advanced electronic products like smartphones, PCs, servers, and data storage. The need for technologies like artificial intelligence, 5G networks, and smart cars is also creating the next wave of growth for the industry. Keeping up with this dynamism requires new tools that can design, fabricate, and test chips at ever smaller sizes and more complex architectures, creating a dire need for semiconductor capital manufacturing equipment. The 14 semiconductor manufacturing stocks we track reported a satisfactory Q4. As a group, revenues beat analysts' consensus estimates by 1.6% while next quarter's revenue guidance was 1.7% below. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 25.2% since the latest earnings results. Formed by the 1997 merger of the two leading semiconductor yield management companies, KLA Corporation (NASDAQ:KLAC) is the leading supplier of equipment used to measure and inspect semiconductor chips. KLA Corporation reported revenues of $3.08 billion, up 23.7% year on year. This print exceeded analysts' expectations by 4.5%. Overall, it was a very strong quarter for the company with a significant improvement in its inventory levels and a solid beat of analysts' adjusted operating income estimates. "KLA's December quarter results were above the midpoint of our guidance ranges despite navigating through the business impact of new U.S. government export controls released late in the quarter. These results supported a strong finish to calendar 2024 for KLA highlighted by relative revenue growth outperformance and strong profitability," said Rick Wallace, president and CEO, KLA Corporation. The stock is down 9.9% since reporting and currently trades at $669.96. Read why we think that KLA Corporation is one of the best semiconductor manufacturing stocks, our full report is free. Headquartered in Singapore, Kulicke & Soffa (NASDAQ: KLIC) is a provider of production equipment and tools used to assemble semiconductor devices Kulicke and Soffa reported revenues of $166.1 million, down 3% year on year, outperforming analysts' expectations by 0.7%. The business had a very strong quarter with a significant improvement in its inventory levels and an impressive beat of analysts' EPS estimates. The stock is down 34.6% since reporting. It currently trades at $28.39. Is now the time to buy Kulicke and Soffa? Access our full analysis of the earnings results here, it's free. With customers across the foundry and fabless markets, FormFactor (NASDAQ:FORM) is a US-based provider of test and measurement technologies for semiconductors. FormFactor reported revenues of $189.5 million, up 12.7% year on year, in line with analysts' expectations. It was a softer quarter as it posted a significant miss of analysts' adjusted operating income and EPS estimates. As expected, the stock is down 33.8% since the results and currently trades at $27.22. Read our full analysis of FormFactor's results here. A public company since the late 1960s, Semtech (NASDAQ:SMTC) is a provider of analog and mixed-signal semiconductors used for Internet of Things systems and cloud connectivity. Semtech reported revenues of $251 million, up 30.1% year on year. This print was in line with analysts' expectations. It was a strong quarter as it also logged an impressive beat of analysts' EPS estimates and a solid beat of analysts' adjusted operating income estimates. The stock is down 15.2% since reporting and currently trades at $27.66. Read our full, actionable report on Semtech here, it's free. Sporting most major chip manufacturers as its customers, Teradyne (NASDAQ:TER) is a US-based supplier of automated test equipment for semiconductors as well as other technologies and devices. Teradyne reported revenues of $752.9 million, up 12.3% year on year. This result surpassed analysts' expectations by 1.4%. Zooming out, it was a mixed quarter as it also produced an impressive beat of analysts' EPS estimates but a miss of analysts' adjusted operating income estimates. The stock is down 39.1% since reporting and currently trades at $74.32. Read our full, actionable report on Teradyne here, it's free. As a result of the Fed's rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed's 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump's victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025. Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Join Paid Stock Investor Research Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here. Sign in to access your portfolio
