Kulicke and Soffa Industries (KLIC) investor relations material

Executive summary

• Q2 2026 revenue reached $242.6M, up 21.5% sequentially and 49.8% year-over-year, driven by strong demand in general semiconductor, memory, automotive, and industrial markets.

• Net income was $35.1M (GAAP) and $42.1M (non-GAAP), with diluted EPS of $0.66 (GAAP) and $0.79 (non-GAAP); prior year was a net loss.

• Gross margin improved to 49.3%, reflecting higher sales volumes and favorable product mix.

• Operational focus on scaling production, supporting technology transitions, and launching new products in advanced packaging, power semiconductor, and memory.

• Substantial completion of the Electronics Assembly (EA) equipment business wind-down, with related restructuring charges nearly finalized.

Financial highlights

• Gross margin for Q2 2026 was 49.3%; operating margin improved to 15.9% GAAP and 19.1% non-GAAP.

• Operating income was $38.6M, up from a loss of $84.7M year-over-year.

• Six-month net revenue rose 34.8% year-over-year to $442.2M; six-month net income was $51.9M.

• Adjusted free cash flow was $6.3M for the quarter; cash, cash equivalents, and short-term investments totaled $487.9M.

• Diluted share count was 53.1M; basic and diluted EPS for Q2 2026 were $0.67 and $0.66 GAAP, $0.81 and $0.79 non-GAAP.

Outlook and guidance

• Q3 2026 revenue expected at $310M +/- $20M, with gross margin projected at 48% and non-GAAP EPS at $1.00 +/- 10%.

• Non-GAAP operating expenses guided at $85M, reflecting higher variable compensation and increased R&D headcount.

• Capital expenditures for FY 2026 projected at $20–24M, supporting advanced packaging and TCB system sales.

• Fiscal Q4 expected to see 5–10% sequential revenue growth; strong visibility and strength anticipated through FY2026.

• Guidance excludes impacts from potential M&A or restructuring.