On November 15, 2023, Kulicke & Soffa Industries Inc (KLIC, Financial) released its 8-K filing, announcing financial results for the fourth fiscal quarter ended September 30, 2023. The company reported a net revenue of $202.3 million for the quarter, which represents a decrease of 29.3% compared to the same period last year, but a 6% increase from the third fiscal quarter of 2023. The gross margin improved slightly, standing at 47.4%, up from the previous quarter.
Financial Performance Overview
Kulicke & Soffa Industries Inc (KLIC, Financial) experienced a significant year-over-year decline in net income, which dropped by 64% to $23.4 million, or $0.41 per fully diluted share. However, when compared to the third quarter of 2023, net income showed a substantial increase of 461.3%. The non-GAAP net income for the fourth quarter was $29.4 million, or $0.51 per fully diluted share, down 58.1% from the same quarter last year and down 7.8% sequentially.
Annual Financial Highlights and Share Repurchase
For the fiscal year 2023, Kulicke & Soffa Industries Inc (KLIC, Financial) reported a net revenue of $742.5 million with a gross margin of 48.3%. The net income for the year was $57.1 million, or $0.99 per fully diluted share, and non-GAAP net income was $105.0 million, or $1.82 per fully diluted share. The company generated GAAP cash from operations of $173.4 million and adjusted free cash flow of $129.6 million. Additionally, Kulicke & Soffa repurchased 1.5 million shares of common stock at a cost of $68.1 million and ended the year with $759.4 million in cash, cash equivalents, and short-term investments.
Outlook and Industry Conditions
Looking ahead to the first fiscal quarter of 2024, Kulicke & Soffa Industries Inc (KLIC, Financial) expects net revenue to be approximately $170 million, with GAAP diluted EPS of about $0.15 and non-GAAP diluted EPS of around $0.25. The company anticipates demand to improve sequentially in the second fiscal quarter of 2024, followed by broader demand improvements in the second half of the fiscal year due to strengthening industry conditions and the execution of K&S-specific opportunities.
Fusen Chen, Kulicke & Soffa’s President and Chief Executive Officer, commented on the results and outlook, stating,
The General Semiconductor and LED end markets have shown clear improvements in the September quarter. As we execute on a broad range of technology-driven initiatives throughout 2024, we expect industry conditions, and also unique K&S opportunities, to strengthen."
Conference Call and Non-GAAP Measures
A conference call to discuss the fourth quarter and fiscal year 2023 results was scheduled for November 16, 2023. The company also provided a reconciliation of GAAP to non-GAAP financial measures, emphasizing their use for a clearer understanding of operational performance and comparability across periods.
In summary, Kulicke & Soffa Industries Inc (KLIC, Financial) faced challenges in the fourth quarter and fiscal year 2023, with notable declines in net revenue and net income year-over-year. However, the company demonstrated sequential quarterly improvement and remains optimistic about future opportunities and industry conditions. Investors and stakeholders are encouraged to review the full details of the financial results and outlook in the company's 8-K filing.
Explore the complete 8-K earnings release (here) from Kulicke & Soffa Industries Inc for further details.
