Kulicke and Soffa’s fourth quarter was marked by a positive market response, as the company delivered both revenue and non-GAAP profit above Wall Street’s expectations. Management attributed this outperformance to robust order activity across the general semiconductor and memory markets, as well as a resurgence in demand from data center applications. Interim CEO and CFO Lester Wong highlighted, “Customer sentiment has strengthened meaningfully, and utilization across our most significant markets and regions remain favorable,” pointing to improved operational execution and strong customer engagement. The company also noted sequential improvements in automotive and industrial end markets, though headwinds persist there.
Is now the time to buy KLIC? Find out in our full research report (it’s free for active Edge members).
Kulicke and Soffa (KLIC) Q4 CY2025 Highlights:
- Revenue: $199.6 million vs analyst estimates of $190 million (20.2% year-on-year growth, 5% beat)
- Adjusted EPS: $0.44 vs analyst estimates of $0.33 (33.3% beat)
- Adjusted EBITDA: $29.11 million vs analyst estimates of $22 million (14.6% margin, 32.3% beat)
- Revenue Guidance for Q1 CY2026 is $230 million at the midpoint, above analyst estimates of $187.6 million
- Adjusted EPS guidance for Q1 CY2026 is $0.67 at the midpoint, above analyst estimates of $0.35
- Operating Margin: 8.9%, down from 52.2% in the same quarter last year
- Inventory Days Outstanding: 160, up from 152 in the previous quarter
- Market Capitalization: $3.92 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Kulicke and Soffa’s Q4 Earnings Call
- Yu Shi (Needham & Company) asked about visibility into demand for the remainder of the year. Interim CEO and CFO Lester Wong said utilization rates are high and visibility has improved, but noted, “there is still a lot of uncertainty in terms of some of the macros.”
- Yu Shi (Needham & Company) inquired about high-bandwidth flash (HBF) opportunities. Wong clarified that HBF is an early-stage opportunity for thermocompression bonding, with ongoing customer engagements but commercialization likely several years away.
- Sreekrishnan Sankarnarayanan (Cowen) pressed on whether second-half growth guidance was conservative. Wong replied that current projections reflect existing visibility, but upside is possible if market conditions further improve.
- Sreekrishnan Sankarnarayanan (Cowen) asked for details on advanced packaging revenue and product qualification. Wong stated TCB revenue should exceed $100 million for the year and highlighted ongoing qualification for the company’s plasma solution at major foundries.
- Craig Ellis (B. Riley Securities) questioned the commercialization timeline for HBF and HBM. Wong said volume production for both is expected in 2027, with initial system shipments and qualifications occurring in the near term.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will monitor (1) the pace of customer adoption and qualification milestones for advanced packaging solutions, particularly in AI and data center applications; (2) sustained high utilization rates and production ramp-up in core semiconductor markets; and (3) progress on commercialization timelines for emerging memory technologies like HBM and HBF. Continued cost discipline and operational efficiency will also be important markers.
Kulicke and Soffa currently trades at $74.95, up from $55.67 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free).
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