Kulicke and Soffa Industries, Inc.

Kulicke & Soffa reported third-quarter revenue up 36.2% sequentially and 123% year over year, with gross margin of 47.8%, GAAP EPS of $1.07, and non-GAAP EPS of $1.20. Operating expenses were $89.7 million on a GAAP basis and $82.6 million on a non-GAAP basis, and tax expense was $15.3 million. For the September quarter, the company expects revenue to increase 13.5% sequentially to $375 million, gross margin to be 48%, GAAP EPS to be $1.29, and non-GAAP EPS to be $1.42. Management also said Advanced Solutions revenue exceeded the prior quarter’s record by 20% and reaffirmed a fiscal 2026 target of over $100 million for that segment.

Lester Wong said demand is improving faster than previously expected and that the company is ramping production to meet customer needs while keeping its Singapore capacity expansion on track. He framed the demand outlook as being led by AI-driven data center growth, with broader recovery also visible in general semiconductor, memory, automotive, and industrial markets. His tone was confident on both near-term execution and the longer-term shift toward heterogeneous integration, advanced packaging, and panel/hybrid bonding.

Wong highlighted that gross margin came in at 47.8% and that the quarter delivered $1.07 GAAP EPS and $1.20 non-GAAP EPS. He noted operating expenses of $89.7 million GAAP and $82.6 million non-GAAP, with the sequential increase tied mainly to variable incentive compensation accruals and some added fixed resources to support growth. For the next quarter, he guided to $375 million revenue, 48% gross margin, about $87.5 million of non-GAAP operating expenses, and EPS of $1.29 GAAP and $1.42 non-GAAP; he also said the effective tax rate should remain slightly above 20% near term.

Analysts pressed on whether growth is broad-based or concentrated, and management said general semiconductor and memory are leading while automotive and industrial are improving but still behind. Questions also focused on how long the strength can last; Wong said utilization is very high, inbound POs are extending into Q2, and the company expects the traditional business to stay strong into the first half of fiscal 2027. On advanced packaging, he said TCB should grow significantly next year, with FY2027 TCB revenue seen around $150 million to $200 million, while hybrid bonding tools are slated for delivery in the first half of fiscal 2027.