KULICKE & SOFFA INDUSTRIES INC (KLIC): Results of Operations and Financial Condition
KULICKE & SOFFA INDUSTRIES INC (KLIC) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 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 Third Quarte
How this was made
The 30-second read
Why it matters
Traders can reprice expectations based on the new Q4 revenue and EPS ranges, and assess quality of earnings via GAAP versus non-GAAP EPS, gross margin, and free cash flow.
Market read
Company-specific earnings and guidance typically drive the highest near-term trading activity, especially with explicit revenue and EPS ranges and a scheduled webcast the next morning.
What to watch
The release highlights completion timing for an Advanced Solutions production facility in H2 FY2027; investors may underweight execution risk and customer production ramp timing beyond the next quarter.
Kulicke & Soffa reported third-quarter net revenue of $330.4 million, GAAP net income of $57.4 million, and GAAP diluted EPS of $1.07, while guiding fiscal Q4 revenue to approximately $375 million +/- $20 million.
Revenue, GAAP profitability, non-GAAP profitability, operating cash flow, and adjusted free cash flow were all positive in fiscal Q3 2026. Management also described strong sequential growth and improving demand conditions across all end markets, and issued fiscal Q4 revenue and EPS guidance above the reported fiscal Q3 levels.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net revenue (in thousands)GAAP | $330,409 | – | – |
| Cost of sales (in thousands)GAAP | 172,460 | – | – |
| Gross profit (in thousands)GAAP | 157,949 | – | – |
| Gross marginGAAP | 47.8% | – | – |
| Selling, general and administrative (in thousands)GAAP | 45,769 | – | – |
| Research and development (in thousands)GAAP | 43,914 | – | – |
| Gain relating to cessation of business (in thousands)GAAP | — | – | – |
| Impairment charges (in thousands)GAAP | — | – | – |
| Operating expenses (in thousands)GAAP | 89,683 | – | – |
| Income / (Loss) from operations (in thousands)GAAP | 68,266 | – | – |
| Interest income (in thousands)GAAP | 4,529 | – | – |
| Interest expense (in thousands)GAAP | (34) | – | – |
| Income / (Loss) before income taxes (in thousands)GAAP | 72,761 | – | – |
| Provision for income taxes (in thousands)GAAP | 15,345 | – | – |
| Net income / (loss) (in thousands)GAAP | $57,416 | – | – |
| GAAP EPS - BasicGAAP | $1.10 | – | – |
| GAAP EPS - DilutedGAAP | $1.07 | – | – |
| Non GAAP EPS - Dilutednon-GAAP | $1.20 | – | – |
| Non-GAAP net incomenon-GAAP | $64.2 million | – | – |
| Cash dividends declared per shareGAAP | $0.205 | – | – |
| Weighted average shares outstanding - BasicGAAP | 52,333 | – | – |
| Weighted average shares outstanding - DilutedGAAP | 53,429 | – | – |
| Net cash provided by operating activities (in thousands)GAAP | $45,216 | – | – |
| Adjusted free cash flownon-GAAP | $41.0 million | – | – |
| Net cash (used in)/provided by investing activities (in thousands)GAAP | (3,711) | – | – |
| Net cash used in financing activities (in thousands)GAAP | (11,361) | – | – |
| Effect of exchange rate changes on cash and cash equivalents (in thousands)GAAP | 565 | – | – |
| Changes in cash and cash equivalents (in thousands)GAAP | 30,709 | – | – |
| Cash and cash equivalents, end of period (in thousands)GAAP | $368,573 | – | – |
| Net revenue, nine months ended July 4, 2026 (in thousands)GAAP | $772,655 | – | – |
| Gross profit, nine months ended July 4, 2026 (in thousands)GAAP | 376,608 | – | – |
| Income / (Loss) from operations, nine months ended July 4, 2026 (in thousands)GAAP | 124,652 | – | – |
| Net income / (loss), nine months ended July 4, 2026 (in thousands)GAAP | $109,360 | – | – |
| GAAP EPS - Diluted, nine months ended July 4, 2026GAAP | $2.06 | – | – |
| Net cash provided by operating activities, nine months ended July 4, 2026 (in thousands)GAAP | $46,554 | – | – |
Fourth quarter of fiscal 2026 ending October 3, 2026 outlook
- Revenueapproximately $375 million +/- $20 million
- NoteGAAP diluted EPS to be approximately $1.29 +/- 10%
- Notenon-GAAP diluted EPS to be approximately $1.42 +/- 10%
Capital returns
- The Company repurchased a total of 5.0 thousand shares of common stock at a cost of $0.5 million.
- Cash dividends declared per share: $0.205.
What drove it
- Management stated that demand conditions continue to improve across all end markets.
- Management cited strong sequential growth in the third quarter.
- The Company is supporting evolving technology requirements and customers' immediate and long-term production needs.
- The expanded Advanced Solutions production facility is anticipated to be completed, as scheduled, within the second half of fiscal 2027.
Concerns
- The Company identified persistent macroeconomic headwinds, inflationary pressures, interest-rate and risk-premium adjustments, falling customer sentiment, and potential economic recession among its risks.
- The Company identified risks related to completing the cessation of its Electronics Assembly equipment business.
- Accounts and other receivable, net was 329,498 (in thousands) and inventories, net was 227,118 (in thousands) as of July 4, 2026.
- The Company identified risks associated with developing, manufacturing, and gaining market acceptance of new products, and with expanding, consolidating, or relocating manufacturing and other facilities.
What to watch
- Fiscal Q4 2026 net revenue guidance of approximately $375 million +/- $20 million.
- Fiscal Q4 2026 GAAP diluted EPS guidance of approximately $1.29 +/- 10% and non-GAAP diluted EPS guidance of approximately $1.42 +/- 10%.
- Demand conditions across automotive, compute, industrial, memory, and communications markets.
- Completion of the expanded Advanced Solutions production facility within the second half of fiscal 2027.
- Progress in the cessation of the Electronics Assembly equipment business.
Balance sheet and cash flow
- Cash and cash equivalents: $368,573 (in thousands) as of July 4, 2026, compared with $215,708 (in thousands) as of October 4, 2025.
- Short-term investments: 148,000 (in thousands) as of July 4, 2026, compared with 295,000 (in thousands) as of October 4, 2025.
- Accounts and other receivable, net: 329,498 (in thousands) as of July 4, 2026, compared with 183,538 (in thousands) as of October 4, 2025.
- Inventories, net: 227,118 (in thousands) as of July 4, 2026, compared with 160,225 (in thousands) as of October 4, 2025.
- Net cash provided by operating activities: $45,216 (in thousands) for the three months ended July 4, 2026.
- Adjusted free cash flow: $41.0 million.
- Net cash used in financing activities: (11,361) (in thousands) for the three months ended July 4, 2026.
Analysis
Kulicke & Soffa delivered a substantially improved fiscal Q3 2026 result. Net revenue was $330.4 million, compared with $148.4 million in fiscal Q3 2025 and $242.6 million in fiscal Q2 2026. GAAP net income was $57.4 million, or $1.07 per diluted share, compared with a GAAP net loss of $(3.3) million, or $(0.06) per diluted share, in fiscal Q3 2025. Non-GAAP net income was $64.2 million and non-GAAP diluted EPS was $1.20, compared with $0.79 in fiscal Q2 2026.
Profitability moved back into positive territory. Gross margin was 47.8%, gross profit was 157,949 (in thousands), and GAAP income from operations was 68,266 (in thousands), compared with a loss from operations of (6,094) (in thousands) in fiscal Q3 2025. Selling, general and administrative expense was 45,769 (in thousands), while research and development expense was 43,914 (in thousands). The third-quarter tax provision was 15,345 (in thousands).
Cash generation was positive during the quarter, with GAAP cash flow from operations of $45.2 million and adjusted free cash flow of $41.0 million. Cash and cash equivalents were $368,573 (in thousands) at July 4, 2026, while short-term investments were 148,000 (in thousands). The Company repurchased 5.0 thousand shares at a cost of $0.5 million and declared a cash dividend of $0.205 per share. Accounts and other receivable, net and inventories, net were 329,498 (in thousands) and 227,118 (in thousands), respectively, at period end.
Management attributed the quarter to strong sequential growth and improving demand conditions across all end markets. The fiscal Q4 outlook calls for net revenue of approximately $375 million +/- $20 million, GAAP diluted EPS of approximately $1.29 +/- 10%, and non-GAAP diluted EPS of approximately $1.42 +/- 10%. Execution against that outlook, working-capital balances, completion of the Electronics Assembly equipment business cessation, and delivery of the expanded Advanced Solutions production facility within the second half of fiscal 2027 are the principal disclosed items to monitor.
Management, verbatim
We see strong sequential growth in the third quarter and demand conditions continue to improve across all end markets. We remain closely engaged to support the evolving technology requirements of our industry, and remain committed to address the immediate and long-term production needs of our customers.
Lester Wong, Interim Chief Executive Officer and Chief Financial Officer
Not in the filing
stated, not guessed- Prior fiscal-period outlook was not provided, so comparison of actual results with prior guidance is unavailable.
- Revenue by operating segment was not reported in the provided filing text.
- Segment profit, segment margins, and segment-level demand metrics were not reported in the provided filing text.
- GAAP operating margin was not reported.
- Non-GAAP income from operations, non-GAAP operating margin, and non-GAAP net margin were not reported in the provided filing text.
- Gross-margin, operating-expense, and tax-rate guidance were not provided.
- Debt balance was not reported in the provided filing text.
- Percentage year-over-year and sequential changes were not reported for the individual metrics.
- The non-GAAP reconciliation tables were referenced but not included in the provided filing text.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is an SEC 8-K filing with Exhibit 99.1 reporting Kulicke & Soffa’s third fiscal quarter ended July 4, 2026 and providing fourth-quarter fiscal 2026 outlook.
Ticker impact
Kulicke & Soffa reported Q3 FY2026 net revenue of $330.4M and guided Q4 revenue to about $375M +/- $20M.
Likely positive near-term bias if investors view the Q4 revenue and EPS ranges as supportive versus expectations, with volatility around the webcast and guidance interpretation.
The article is a primary 8-K earnings release with explicit Q3 financials (revenue, GAAP and non-GAAP EPS, margins, cash flow) and explicit Q4 guidance ranges, which are direct inputs to valuation and positioning.
Market effects
Semiconductor assembly equipment and services demand read-through, with guidance and margin/cash flow details relevant to peers’ sentiment.
Limited direct regional impact stated; company operates globally but the disclosure is company-specific.
Global end-market demand commentary and production-capacity expansion timing can influence broader supply-chain sentiment.
Counterpoint
Guidance ranges may still embed uncertainty, and non-GAAP strength could mask underlying GAAP softness or margin/cash flow variability.
Key entities
- companyKulicke & Soffa Industries, Inc.
NASDAQ-listed semiconductor assembly technology provider reporting Q3 results and issuing Q4 FY2026 guidance.
- executiveLester Wong
Interim CEO and CFO quoted on sequential growth and improving demand conditions.
