KLIC Filings — Kulicke and Soffa Industries, Inc. - FilingSpy
KLIC
Kulicke and Soffa Industries, Inc.
A maker of machines that assemble semiconductors—wire bonding and advanced packaging systems used to connect microchips inside everything from phones to cars. Founded in 1951 by engineers Fred Kulicke and Albert Soffa, who started by building machines together on the side, the company created the world's first wire bonder in 1956. Its name comes simply from its two founders' surnames.
Revenue more than doubled to $330.4M as Ball Bonding Equipment drove a broad recovery, swinging K&S to a $68.3M operating profit.
Kulicke and Soffa returned to a full , driven by a broad demand recovery. rose 122.6% to $330.4 million and operating income swung to $68.3 million from a $6.1 million loss a year ago, as Ball Bonding Equipment volume more than doubled across general semiconductor, memory, and automotive markets. The core business is growing again, but the cash position continues to decline as dividends outpace .
Key takeaways
Ball Bonding Equipment rose 141.7% to $160.2 million, the primary driver of the quarter's growth, as demand from general semiconductor, memory, and automotive customers increased.
Total rose 122.6% to $330.4 million, with all segments contributing to the increase; Advanced Solutions revenue rose 172.1% to $29.4 million on general semiconductor technology transitions.
swung to a $68.3 million profit from a $6.1 million loss a year ago, as the prior-year quarter included $39.8 million in charges and write-downs tied to the Electronics Assembly business exit.
Section summaries
Management's Discussion and Analysis
Revenue more than doubled to $330M in Q3 FY2026, driven by broad volume growth across all segments, swinging to a $68M operating profit.
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Total net surged 122.6% to $330.4 million in Q3 FY2026, with Ball Bonding Equipment contributing the largest dollar increase of $150.1 million due to higher volumes in general semiconductor, memory, and automotive end markets.
rose 1.1 points to 47.8%, helped by a favorable mix in APS spares and services and the absence of prior-year write-downs in the All Others category, partially offset by a 1,210-basis-point decline in Advanced Solutions margin on less favorable product mix.
was $45.2 million for the quarter, up from $8.6 million a year ago, but year-to-date operating cash flow remains thin at $55.5 million as a $72.1 million increase in and a $50.3 million build consumed cash in the first half.
Cash, equivalents, and short-term investments totaled $516.6 million, down from $510.7 million at fiscal year-end, as $21.5 million in dividends and $7.4 million in share repurchases year-to-date outpaced .
What changed
The $245.3 million flagged at fiscal year-end 2025 is converting: Ball Bonding Equipment rose 141.7% in Q2 and the company reported broad volume growth across all segments in Q3, confirming the demand inflection.
Ball Bonding Equipment , which had declined 18.1% in fiscal 2025, has now posted two consecutive quarters of growth exceeding 80%, settling the question of whether the recovery would sustain.
The Electronics Assembly wind-down, which drove $87.5 million in total charges in fiscal 2025, appears complete: the current quarter included no additional or exit charges, and the prior-year comparison has now fully lapped those costs.
has settled at 47.8%, within the pre-cycle range of 46–47% that earlier filings identified as a baseline, as the one-time effects of Project W and the Electronics Assembly exit have washed through.
The cash position continues to erode: at $516.6 million it is down from $577.1 million at fiscal year-end 2024 and $510.7 million at fiscal year-end 2025, as dividends and repurchases consistently outpace .
What to watch
Whether the $72.1 million increase in and $50.3 million build that constrained first-half reverse in the second half, or whether they signal collection or demand issues as scales.
Whether Advanced Solutions , which fell 1,210 on less favorable product mix, stabilizes or continues to decline as the grows.
The pace of share repurchases under the $300 million authorization relative to the $516.6 million cash position, given that year-to-date of $55.5 million has not covered the $21.5 million in dividends and $7.4 million in repurchases.
Whether the broad demand recovery across general semiconductor, memory, and automotive end markets sustains into fiscal 2027, or whether the current growth rate reflects a one-time technology transition pull.
Advanced Solutions rose 172.1% to $29.4 million, driven by general semiconductor technology transitions, though its fell sharply by 1,210 due to a less favorable .
Overall improved 110 to 47.8%, helped by a favorable mix in APS spares and services and the absence of prior-year write-downs in the All Others category.
Operating expenses increased 19.0% to $89.7 million, primarily from higher and R&D prototype material spending, while the prior-year period included no or business cessation gains.
Cash and short-term investments totaled $516.6 million, with $46.6 million in offset by increases; the company repurchased $7.4 million in stock and paid $21.5 million in dividends year-to-date.
Quantitative and Qualitative Disclosures About Market Risk
Foreign currency risk is the primary exposure, with a 10% rate swing potentially impacting results by $6–7 million.
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Interest rate risk is considered limited because available-for-sale securities target an average life under 18 months and are not expected to materially affect financials.
Foreign currency exposure arises from transactions in non-functional currencies, remeasurement of net monetary assets in Israel, Singapore, and Switzerland, and translation of subsidiaries in the Netherlands, China, Taiwan, Japan, and Germany.
A hypothetical 10% adverse fluctuation in foreign exchange rates could impact financial position, results of operations, or cash flows by $6.0 million to $7.0 million.
The company uses foreign exchange forward contracts to hedge a portion of forecasted foreign-currency expenses, with $70.0 million in outstanding as of July 4, 2026.
Hedging attempts may not be successful and could materially and adversely affect financial results and cash flows.
From time to time, we may be a plaintiff or defendant in legal proceedings and cases arising out of our business. We are party to ordinary, routine litigation incidental to our business. We cannot be assured of the results of any pending or future litigation, but we do not belie…
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From time to time, we may be a plaintiff or defendant in legal proceedings and cases arising out of our business. We are party to ordinary, routine litigation incidental to our business. We cannot be assured of the results of any pending or future litigation, but we do not believe resolution of any currently pending matters will have a material adverse effect on our business, financial condition or operating results.
Certain Risks Related to Our Business There have been no material changes from the risk factors discussed in Part I, Item 1A, “Risk Factors”, of our 2025 Annual Report.
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Certain Risks Related to Our Business
There have been no material changes from the risk factors discussed in Part I, Item 1A, “Risk Factors”, of our 2025 Annual Report.