Kulicke and Soffa’s second quarter was marked by a positive market reaction, as management attributed the outperformance to improvements in general semiconductor and memory demand, even as automotive and industrial end markets remained weak. CEO Fusen Chen pointed to “steady core market improvement” supported by technology transition initiatives, highlighting stronger utilization rates and product development in areas like advanced dispense and vertical wire. Management also cited ongoing cost control efforts and execution on customer engagement as key contributors to the quarter’s results.
Is now the time to buy KLIC? Find out in our full research report (it’s free).
Kulicke and Soffa (KLIC) Q2 CY2025 Highlights:
- Revenue: $148.4 million vs analyst estimates of $145.8 million (18.3% year-on-year decline, 1.8% beat)
- Adjusted EPS: $0.07 vs analyst estimates of $0.06 (27.3% beat)
- Adjusted EBITDA: $5.51 million vs analyst estimates of -$1.8 million (3.7% margin, significant beat)
- Revenue Guidance for Q3 CY2025 is $170 million at the midpoint, above analyst estimates of $158.3 million
- Adjusted EPS guidance for Q3 CY2025 is $0.22 at the midpoint, above analyst estimates of $0.19
- Operating Margin: -4.1%, down from 4.6% in the same quarter last year
- Inventory Days Outstanding: 190, up from 171 in the previous quarter
- Market Capitalization: $1.94 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 Q2 Earnings Call
- Krish Sankar (TD Cowen) asked about expectations for revenue trends into next year. CEO Fusen Chen replied that the first half of next year is likely to be flat, with stronger growth anticipated in the second half as industry utilization improves and new products scale.
- Krish Sankar (TD Cowen) inquired about the impact of Intel’s capital expenditure cuts on the company’s Fluxless TCB business. Chen responded that engagements remain healthy, though revenue from this segment is lower versus the prior year.
- Krish Sankar (TD Cowen) sought clarity on the timeline for TCB shipments in HBM applications. Chen confirmed shipments to two customers, with the first system expected to ship by the end of 2025.
- Thomas Robert Diffely (D.A. Davidson) questioned what’s driving higher utilization rates and sequential growth. CFO Lester Wong pointed to general semiconductor and memory as the main contributors, while automotive remains soft.
- Yu Shi (Needham & Company) asked about management’s confidence in flat guidance for the December quarter. CFO Lester Wong attributed the outlook to higher order intake, increased customer activity, and ongoing recovery in previously slow regions, but noted that seasonality and tariffs remain factors.
Catalysts in Upcoming Quarters
In the quarters ahead, the StockStory team will be watching (1) the pace of adoption for advanced dispense and vertical wire technologies, (2) sustained improvement in general semiconductor and memory utilization rates, and (3) any signs of recovery in automotive and industrial end markets. Execution on Thermo-Compression Bonding shipments and the impact of trade policy changes will also be closely monitored.
Kulicke and Soffa currently trades at $37.10, up from $32.08 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free).
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