KULICKE & SOFFA INDUSTRIES INC
For the period ended Jan 3, 2026. Filed Feb 5, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jan 3, 2026 · Filed Feb 5, 2026
KLIC$64.01+7.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-28; filed 2025-08-06.
0000056978-25-000071
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2026-01-03; filed 2026-02-05.
0000056978-26-000012
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 146 previous paragraphs and 127 current paragraphs.
67 unchanged; 48 reworded; 11 added; 29 removed; 2 previous and 1 current paragraphs rearranged.
Tables are not compared: 16 previous and 10 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (11)
Current report
Senior Leadership Changes
Current report
On October 28, 2025, the Company announced that Dr. Fusen Chen retired as President and Chief Executive Officer of the Company and as a member of the Board, effective December 1, 2025. Also, on October 28, 2025, the Board appointed Lester Wong, the Company’s current Executive Vice President and Chief Financial Officer, as the Company’s Interim Chief Executive Officer. A search for a permanent successor among external and internal candidates is underway.
Current report
Separately, on October 14, 2025, Mr Chan Pin Chong, Executive Vice President & General Manager, K&S Products & Solutions of the Company, retired from his position effective December 1, 2025.
Current report
As discussed in Note 15: Segment Information, the segment-related information within Management's Discussion and Analysis of Financial Condition and Results of Operations for the three months ended January 3, 2026 now excludes a certain product line from the APS segment and reports it as part of “All Others”. This change in composition of the reportable segments has been retrospectively applied to the corresponding results for the three months ended December 28, 2024.
Current report
For the three months ended January 3, 2026, the decrease in Wedge Bonding Equipment net revenue as compared to the prior year period was primarily due to a lower volume of customer purchases in industrial and automotive markets.
Current report
For the three months ended January 3, 2026, the higher R&D expenses as compared to the prior year period were primarily due to a $2.5 million consortium participation fee and $0.7 million higher staff costs. This was partially offset by $0.5 million lower spending on prototype materials.
Current report
Income from Operations
Current report
For the three months ended January 3, 2026, the decrease in provision for income taxes and the increase in the effective tax rate was primarily due to the reimbursement from the cancellation of the Project which was recorded as a discrete item in the first quarter of the prior fiscal year, partially offset by an increase in profitability.
Current report
For the three months ended January 3, 2026, the effective tax rate is higher than the U.S. federal statutory tax rate primarily due to nondeductible expenses, deemed income, and taxes on undistributed foreign earnings, partially offset by tax credits.
Current report
Three months ended January 3, 2026
Current report
Three months ended December 28, 2024
Removed paragraphs (29)
Previous report
Israel-Iran War
Previous report
The Israel–Iran war began on June 13, 2025 with Israel's preemptive attacks on Iran’s nuclear facilities, military sites, and other infrastructure. Iran retaliated with missile attacks on Israeli cities, including Haifa and Tel Aviv, and military targets. The conflict also drew in the United States, which defended Israel and later conducted its own precision strikes on Iranian nuclear sites. A ceasefire was reached on June 24, 2025.
Previous report
The Company has a manufacturing facility and a business office in Haifa, and our capillaries are manufactured at our facilities in Israel and China. As of the date of this report, our business and manufacturing operations in Israel have not been impacted and no material damage or utilities interruptions have been noted at our Israeli facility. Trade routes remain open, and our suppliers and business partners in Israel remain operational. Furthermore, disruption to our workforce has been minimal.
Previous report
Given that any further escalation or other hostilities cannot be excluded, we continue to monitor the situation and remain ready to activate our Business Continuity Plan (“BCP”) if necessary.
Previous report
Intended Cessation of EA Equipment Business
Previous report
On March 25, 2025, the Board of Directors of the Company approved a strategic plan related to the intended cessation of its Electronics Assembly ("EA") equipment business. The plan includes an intention to wind down the EA equipment business in an effort to prioritize core semiconductor assembly business opportunities and enhance overall through-cycle financial performance. The intended cessation of the EA equipment business is subject to a consultation process with the applicable works council and union representatives, which the Company has initiated in the third fiscal quarter of 2025. The wind down activities are ongoing and are expected to be substantially completed by the first half of fiscal 2026, after which there will be some service support activities to serve out the remaining customer obligations. For additional information, see Note 16: Cessation of Business in our Notes to the Consolidated Condensed Financial Statements.
Previous report
Cancellation of Project W
Previous report
The Company was engaged by one of its customers (the "Customer") to support the Customer with the development and future mass production of certain technologies relating to advanced display (the "Project"), previously referred to as Project W. As previously disclosed in fiscal 2024, in connection with the Customer's strategic review of its business, the Customer informed the Company that it cancelled the Project.
Previous report
On November 4, 2024, the Company and the Customer entered into a written agreement pursuant to which the Customer had agreed to reimburse the Company for certain costs and expenses that the Company incurred in connection with the Project. Pursuant to the agreement, the Customer agreed to pay $86.2 million to the Company. In the quarter ended December 28, 2024, $15.1 million was included within "Net Revenue" for delivered products and the remaining $71.1 million was included in "Gain relating to cessation of business" in the Consolidated Condensed Statements of Operations. In the previous quarter ended March 29, 2025, the Company has received the reimbursement amount from the Customer.
Previous report
During fiscal years 2021 and 2022, semiconductor suppliers rapidly increased production output in response to increases in end-consumer demand. Concerns surrounding supply availability spurred defensive inventory purchases, which led to a heightened demand for our products.
Previous report
The current macroeconomic conditions and declining consumer sentiment during fiscal years 2023 and 2024 have persisted, which continues to exacerbate inventory buildup in the semiconductor industry. Many of our customers who accumulated our products in the past three years continue to reduce their order rates as a result of inventory adjustment.
Previous report
Due to general inflationary pressures, existing and future tariffs, declining consumer sentiment, and an economic downturn caused, directly or indirectly, by various macroeconomic factors, including the ongoing tensions in the Middle East and the prolonged Ukraine/Russia conflict, the sector continues to experience volatility and disruption. However, we believe that the long-term semiconductor industry macroeconomics have not changed and we anticipate that the industry’s growth projections will normalize.
Previous report
For the three months ended June 28, 2025, the decrease in Wedge Bonding Equipment net revenue as compared to the prior year period was primarily due to lower volume of customer purchases primarily in the automotive markets and partially offset by higher customer purchase in the general semiconductor.
Previous report
For the nine months ended June 28, 2025, the increase in Wedge Bonding Equipment net revenue as compared to the prior year period was primarily due to higher volume of customer purchases primarily in the general semiconductor and partially offset by lower customer purchases in the automotive markets.
Previous report
For the three months ended June 28, 2025, the increase in Advanced Solutions gross profit margin as compared to the prior year period was primarily due to favorable product mix, including higher sales of higher margin products.
Previous report
For the nine months ended June 28, 2025, the higher SG&A expenses as compared to the prior year period were primarily due to $7.2 million higher severance expenses and $2.3 million higher staff cost. This was partially offset by $2.6 million net favourable variance in foreign exchange.
Previous report
For the three months ended June 28, 2025, the lower R&D expenses as compared to the prior year period were primarily due to $1.5 million lower prototype materials and $0.6 million lower staff cost.
Previous report
For the nine months ended June 28, 2025, the lower R&D expenses as compared to the prior year period were primarily due to $4.0 million lower prototype materials. This was partially offset by $2.8 million higher staff cost.
Previous report
Impairment Charges
Previous report
For the nine months ended June 28, 2025, the impairment charges in the current period were due to $39.8 million impairment charges on long-lived assets, intangible assets and goodwill related to the intended cessation of the EA equipment business. The impairment charges in the prior year period were due to $44.5 million impairment charges on long-lived assets related to the cancellation of Project W.
Previous report
Loss from Operations
Previous report
For the three and nine months ended June 28, 2025, as compared to the same period ended June 29, 2024, the change in provision for income taxes and effective tax rate was primarily due to the tax effects of the intended cessation of the Company's EA equipment business and the reimbursement from the cancellation of Project W which were recorded as discrete items during fiscal 2025 as well as the one-time charge for the cancellation of Project W and the increase in valuation allowance recorded against certain deferred tax assets, which were recorded as discrete items during fiscal 2024.
Previous report
For the three and nine months ended June 28, 2025, the effective tax rate is different than the U.S. federal statutory tax rate primarily due to earnings of foreign subsidiaries subject to tax at different rates than the U.S., tax incentives, tax credits, change in valuation allowances, the impact of global intangible low-taxed income, and the tax impact of the discrete items noted above.
Previous report
Nine months ended June 28, 2025
Previous report
Nine months ended June 29, 2024
Previous report
On August 15, 2017, the Company’s Board of Directors authorized a program to repurchase up to $100 million of the Company’s common stock on or before August 1, 2020. In 2018, 2019, 2020 and 2022, the Board of Directors increased the share repurchase authorization to $200 million, $300 million, $400 million and $800 million, respectively, and extended its duration through August 1, 2025 (the "Prior Program").
Previous report
During the three months ended December 28, 2024, the Company repurchased a total of approximately 657.0 thousand shares of common stock under the Prior Program at a cost of approximately $30.3 million. On December 2, 2024, the Company announced that it has completed share repurchases under the Prior Program.
Previous report
On February 15, 2019, the Company entered into a Facility Letter and Overdraft Agreement (collectively, the “Facility Agreements”) with MUFG Bank, Ltd., Singapore Branch (the “Bank”). The Facility Agreements provide the Company and one of its subsidiaries with an overdraft facility of up to $150.0 million (the “Overdraft Facility”) for general corporate purposes.
Previous report
On June 6, 2025, the Company terminated the Facility Agreements with the Bank. As of the date of termination, there were no outstanding amounts under the Overdraft Facility. In addition, the Company did not incur any early termination penalties in connection with the termination of the Facility Agreements.
Reworded paragraphs (48)
Previous wording
•our ability to successfully carry out the intended cessation of our Electronics Assembly ("EA") equipment business, including delays or other problems arising from regulatory or judicial review of the activities concerning the intended cessation;
Current wording
•our ability to successfully complete the cessation of our Electronics Assembly ("EA") equipment business, including delays or other problems arising from regulatory or judicial review of the activities concerning the cessation;
Previous wording
•our expectations regarding the potential impacts on our business of actual or potential inflationary pressures, interest rate and risk premium adjustments, falling consumer sentiment, or economic recession caused, directly or indirectly, by the ongoing tensions in the Middle East, the prolonged Ukraine/Russia conflict, the worsening trade relationship between the U.S. and the world, geopolitical tensions and other macroeconomic factors;
Current wording
•our expectations regarding the potential impacts on our business of actual or potential inflationary pressures, interest rate and risk premium adjustments, falling consumer sentiment, or economic recession caused, directly or indirectly, by the ongoing tensions in the Middle East, the prolonged Ukraine/Russia conflict, global trade relations, geopolitical tensions and other macroeconomic factors;
Previous wording
•unexpected delays and difficulties in executing against our environmental, climate, diversity and inclusion goals or such other environmental, social and governance (“ESG”) targets and commitments.
Current wording
•unexpected delays and difficulties in executing our environmental, social and governance (“ESG”) targets and commitments.
Previous wording
We design, develop, manufacture and sell capital equipment and consumables and provide services used to assemble semiconductor and electronic devices, such as integrated circuits, power discretes, light-emitting diode (“LEDs”), advanced displays and sensors. We also service, maintain, repair and upgrade our equipment and sell consumable aftermarket solutions and services for our and our peer companies’ equipment. Our customers primarily consist of integrated device manufacturers (“IDMs”), outsourced semiconductor assembly and test providers (“OSATs”), foundry service providers, and other electronics manufacturers and automotive electronics suppliers.
Current wording
We design, develop, manufacture and sell capital equipment and consumables and provide services used to assemble semiconductor and electronic devices, such as integrated circuits, power discretes, light-emitting diode (“LEDs”), and sensors. We also service, maintain, repair and upgrade our equipment and sell consumable aftermarket solutions and services for our and our peer companies’ equipment. Our customers primarily consist of integrated device manufacturers (“IDMs”), outsourced semiconductor assembly and test providers (“OSATs”), foundry service providers, and other electronics manufacturers and automotive electronics suppliers.
Previous wording
Our Ball Bonding Equipment, Wedge Bonding Equipment and Advanced Solutions reportable segments engage in the design, development, manufacture and sale of ball bonding equipment, wafer level bonding equipment, wedge and wedge-related bonding equipment, certain advanced display, die-attach and thermocompression systems and solutions to IDMs, OSATs, foundry service providers, and other electronics manufacturers and automotive electronics suppliers.
Current wording
Our Ball Bonding Equipment, Wedge Bonding Equipment and Advanced Solutions reportable segments engage in the design, development, manufacture and sale of ball bonding equipment, wafer level bonding equipment, wedge and wedge-related bonding equipment, die-attach and thermocompression systems and solutions to IDMs, OSATs, foundry service providers, and other electronics manufacturers and automotive electronics suppliers.
Previous wording
All other operating segments that do not meet the quantitative threshold to be disclosed as a separate reportable segment have been grouped within an “All Others” category. This group is reflective of the results of the Company from the design, development, manufacture and sale of certain advanced display, advanced dispense, electronics assembly, and die-attach systems and solutions.
Current wording
All other operating segments that do not meet the quantitative threshold to be disclosed as a separate reportable segment have been grouped within an “All Others” category. This group is reflective of the results of the Company from the design, development, manufacture and sale of advanced dispense, electronics assembly, and die-attach systems and solutions.
Previous wording
From time to time, our customers may request that we deliver our products to countries where they own or operate production facilities or to countries where they utilize third-party subcontractors or warehouses as part of their supply chain. For example, customers headquartered in the U.S. may require us to deliver our products to their back-end production facilities in China. Our customer base in the Asia/Pacific region has become more geographically concentrated over time as a result of general economic and industry conditions and trends. Approximately 92.1% and 92.3% of our net revenue for the three months ended June 28, 2025 and June 29, 2024, respectively, were for shipments to customer locations outside of the U.S., primarily in the Asia/Pacific region. Approximately 60.0% and 54.7% of our net revenue for the three months ended June 28, 2025 and June 29, 2024, respectively, were for shipments to customers headquartered in China.
Current wording
From time to time, our customers may request that we deliver our products to countries where they own or operate production facilities or to countries where they utilize third-party subcontractors or warehouses as part of their supply chain. For example, customers headquartered in the U.S. may require us to deliver our products to their back-end production facilities in China. Our customer base in the Asia/Pacific region has become more geographically concentrated over time as a result of general economic and industry conditions and trends. Approximately 94.4% and 87.2% of our net revenue for the three months ended January 3, 2026 and December 28, 2024, respectively, were for shipments to customer locations outside of the U.S., primarily in the Asia/Pacific region. Approximately 59.0% and 48.9% of our net revenue for the three months ended January 3, 2026 and December 28, 2024, respectively, were for shipments to customers headquartered in China.
Previous wording
To limit potential adverse cyclical, seasonal and macroeconomic effects on our financial position, we have continued our efforts to maintain a strong balance sheet. As of June 28, 2025, our total cash, cash equivalents and short-term investments were $556.5 million, a $20.7 million decrease from the prior fiscal year end. We believe our ability to maintain a strong cash position will allow us to continue to invest in product development, pursue non-organic growth opportunities and return capital to investors through our share repurchase and dividend programs. Please see “Liquidity and Capital Resources” for more information.
Current wording
To limit potential adverse cyclical, seasonal and macroeconomic effects on our financial position, we have continued our efforts to maintain a strong balance sheet. As of January 3, 2026, our total cash, cash equivalents and short-term investments were $481.1 million, a $29.6 million decrease from the prior fiscal year end. We believe our ability to maintain a strong cash position will allow us to continue to invest in product development, pursue non-organic growth opportunities and return capital to investors through our share repurchase and dividend programs. Please see “Liquidity and Capital Resources” for more information.
Previous wording
The cost of logistics remains high as a result of macroeconomic conditions, inflation and labor shortages across layers of the supply chain. The Company’s management continues to monitor for signs of any expansion of economic or supply chain disruptions or broader supply chain inflationary and logistical costs resulting either directly or indirectly from the tensions in the Middle East or between Ukraine and Russia, as well as the imposition of new, increased or retaliatory tariffs.
Current wording
The cost of logistics remains high as a result of macroeconomic conditions, inflation and labor shortages across layers of the supply chain. The Company’s management continues to monitor for signs of any expansion of economic or supply chain disruptions or broader supply chain inflationary and logistical costs resulting either directly or indirectly from the tensions in the Middle East or between Ukraine and Russia, as well as the rapid evolution of global trade policies, such as export controls and tariffs.
Previous wording
The ongoing tensions in the Middle East, including the Israel-Iran war, and the prolonged Ukraine/Russia conflict have not had a material impact on our financial condition and operating results in fiscal 2025 to date. We believe that our existing cash, cash equivalents, short-term investments, and anticipated cash flows from operations will be sufficient to meet our liquidity and capital requirements, notwithstanding the ongoing tensions in the Middle East and the prolonged Ukraine/Russia conflict and other macroeconomic factors, for at least the next twelve months from the date of this Quarterly Report. However, this is a highly dynamic situation. As the macroeconomic situation remains highly volatile and the geopolitical situation remains uncertain, there is uncertainty surrounding the operations of our manufacturing locations, our business, our expectations regarding future demand or supply conditions, our near- and long-term liquidity and our financial condition. Consequentially, our operating results could deteriorate.
Current wording
The ongoing tensions in the Middle East, including the Israel-Iran war, and the prolonged Ukraine/Russia conflict have not had a material impact on our financial condition and operating results in fiscal 2026 to date. We believe that our existing cash, cash equivalents, short-term investments, and anticipated cash flows from operations will be sufficient to meet our liquidity and capital requirements, notwithstanding the ongoing tensions in the Middle East and the prolonged Ukraine/Russia conflict and other macroeconomic factors, for at least the next twelve months from the date of this Quarterly Report.
Previous wording
The following tables reflect our income from operations for the three and nine months ended June 28, 2025 and June 29, 2024:
Current wording
The following tables reflect our income from operations for the three months ended January 3, 2026 and December 28, 2024:
Previous wording
Our net revenue for the three and nine months ended June 28, 2025 decreased as compared to our net revenue for the three and nine months ended June 29, 2024. The decrease in net revenue is primarily due to lower volume in Ball Bonding Equipment, APS and All Others and partially offset by the higher volume in Wedge Bonding Equipment and Advanced Solutions, as further outlined in the following tables presented immediately below.
Current wording
Our net revenue for the three months ended January 3, 2026 increased as compared to our net revenue for the three months ended December 28, 2024. The increase in net revenue is primarily due to higher volume in Ball Bonding Equipment and APS and partially offset by the lower volume in Wedge Bonding Equipment, Advanced Solutions and All Others, as further outlined in the tables presented immediately below.
Previous wording
The following tables reflect net revenue for the three and nine months ended June 28, 2025 and June 29, 2024:
Current wording
The following tables reflect net revenue for the three months ended January 3, 2026 and December 28, 2024:
Previous wording
For the three and nine months ended June 28, 2025, the decrease in Ball Bonding Equipment net revenue as compared to the prior year period was primarily due to lower volume of customer purchases in the general semiconductor and memory end markets as a result of relatively stable factory utilization levels in certain regions.
Current wording
For the three months ended January 3, 2026, the increase in Ball Bonding Equipment net revenue as compared to the prior year period was primarily due to a higher volume of customer purchases from technology transitions and improving market conditions in general semiconductor and memory end markets.
Previous wording
For the nine months ended June 28, 2025, the increase in Advanced Solutions net revenue as compared to the prior year period was primarily due to a higher volume of customer purchases in LED which is included in the industrial end market and partially offset by lower customer purchases in general semiconductor end market.
Current wording
For the three months ended January 3, 2026, the decrease in Advanced Solutions net revenue as compared to the prior year period was primarily due to a lower volume of customer purchases in LED which is included in the industrial end market and partially offset by higher customer purchases in the general semiconductor end market.
Previous wording
For the three and nine months ended June 28, 2025, the decrease in APS net revenue as compared to the prior year period was due to a lower volume of customer purchases primarily in spares and services, and unfavorable pricing from bonding tools.
Current wording
For the three months ended January 3, 2026, the increase in APS net revenue as compared to the prior year period was primarily due to a higher volume of customer purchases primarily in spares and services and partially offset by unfavorable pricing from bonding tools.
Previous wording
For the three and nine months ended June 28, 2025, the decrease in All Others net revenue as compared to the prior year period was primarily due to a lower volume of customer purchases in the general semiconductor end market.
Current wording
For the three months ended January 3, 2026, the decrease in All Others net revenue as compared to the prior year period was primarily due to a lower volume of customer purchases in the general semiconductor end market.
Previous wording
The following tables reflect gross profit margin as a percentage of net revenue by reportable segments for the three and nine months ended June 28, 2025 and June 29, 2024:
Current wording
The following tables reflect gross profit margin as a percentage of net revenue by reportable segments for the three months ended January 3, 2026 and December 28, 2024:
Previous wording
For the three and nine months ended June 28, 2025, the increase in Ball Bonding Equipment gross profit margin as compared to the prior year period was primarily driven by a favorable product mix, including lower sales of lower margin products and a shift in customer mix, including higher sales to customers where we achieve higher average margins.
Current wording
For the three months ended January 3, 2026, the increase in Ball Bonding Equipment gross profit margin as compared to the prior year period was primarily driven by a favorable product mix, including higher sales of higher margin products and a shift in customer mix, including higher sales to customers where we achieve higher average margins.
Previous wording
For the three and nine months ended June 28, 2025, the decrease in Wedge Bonding Equipment gross profit margin as compared to the prior year period was primarily driven by a less favorable product mix, including higher sales of lower margin products and a shift in customer mix, including higher sales to customers where we achieve lower average margins.
Current wording
For the three months ended January 3, 2026, the decrease in Wedge Bonding Equipment gross profit margin as compared to the prior year period was primarily driven by a less favorable product mix, including higher sales of lower margin products.
Previous wording
For the nine months ended June 28, 2025, the increase in Advanced Solutions gross profit margin as compared to the prior year period was primarily due to the inventory write-down charges in the prior year as a result of the cancellation of Project W and favorable product mix, including higher sales of higher margin products.
Current wording
For the three months ended January 3, 2026, the decrease in Advanced Solutions gross profit margin as compared to the prior year period was primarily due to a less favorable product mix. In addition, the prior year period included revenue recognized from delivered products relating to the cancellation of the Project.
Previous wording
For the three and nine months ended June 28, 2025, the decrease in APS gross profit margin as compared to the prior year period was primarily driven by lower volume from spares and services, and unfavorable pricing from bonding tools, and the spares related inventory write-down charges incurred as a result of the intended cessation of the EA equipment business.
Current wording
For the three months ended January 3, 2026, the decrease in APS gross profit margin as compared to the prior year period was primarily driven by unfavorable product mix from spares and services and unfavorable pricing from bonding tools.
Previous wording
For the three and nine months ended June 28, 2025, the decrease in gross profit margin for the “All Others” category as compared to the prior year period was primarily driven by the inventory write-down charges incurred as a result of the intended cessation of the EA equipment business.
Current wording
For the three months ended January 3, 2026, the increase in gross profit margin for the “All Others” category as compared to the prior year period was primarily driven by sales of previously impaired inventory as a result of the cessation of the EA equipment business.
Previous wording
The following tables reflect operating expenses for the three and nine months ended June 28, 2025 and June 29, 2024:
Current wording
The following tables reflect operating expenses for the three months ended January 3, 2026 and December 28, 2024:
Previous wording
For the three months ended June 28, 2025, the higher SG&A expenses as compared to the prior year period were primarily due to $1.0 million net unfavourable variance in foreign exchange and $0.5 million higher staff cost. This was partially offset by $0.5 million lower professional services .
Current wording
For the three months ended January 3, 2026, the higher SG&A expenses as compared to the prior year period were primarily due to $1 million net unfavorable variance in foreign exchange and $1 million higher staff costs.
Previous wording
For the nine months ended June 28, 2025, the gain relating to cessation of business was primarily due to the $71.1 million reimbursement for certain costs and expenses from the cancellation of Project W, a $3.2 million gain on the disposal of a subsidiary and a $1.7 million gain from the supplier settlement.
Current wording
For the three months ended December 28, 2024, the gain relating to cessation of business was primarily due to the $71.1 million reimbursement for certain costs and expenses from the cancellation of the Project, a $3.2 million gain on the disposal of a subsidiary and a $1.7 million gain from the supplier settlement.
Previous wording
The changes in loss from operations for the respective segments are due to the changes in net revenue, gross profit margin and operating expenses as explained in the respective sections above.
Current wording
The changes in income from operations for the respective segments are due to the changes in net revenue, gross profit margin and operating expenses as explained in the respective sections above.
Previous wording
The following tables reflect loss from operations by reportable segments for the three and nine months ended June 28, 2025 and June 29, 2024.
Current wording
The following tables reflect income from operations by reportable segments for the three months ended January 3, 2026 and December 28, 2024.
Previous wording
The following tables reflect interest income and interest expense for the three and nine months ended June 28, 2025 and June 29, 2024:
Current wording
The following tables reflect interest income and interest expense for the three months ended January 3, 2026 and December 28, 2024:
Previous wording
For the three and nine months ended June 28, 2025, interest income decreased as compared to the prior year period primarily due to a lower weighted interest rate on cash, cash equivalents and short-term investments.
Current wording
For the three months ended January 3, 2026, interest income decreased as compared to the prior year period primarily due to a lower weighted interest rate on cash, cash equivalents and short-term investments, and lower short-term investments balances.
Previous wording
The following table reflects the provision for income taxes and the effective tax rate for the three and nine months ended June 28, 2025 and June 29, 2024:
Current wording
The following table reflects the provision for income taxes and the effective tax rate for the three months ended January 3, 2026 and December 28, 2024:
Previous wording
The following table reflects a summary of the Consolidated Condensed Statements of Cash Flow information for the nine months ended June 28, 2025 and June 29, 2024:
Current wording
The following table reflects a summary of the Consolidated Condensed Statements of Cash Flow information for the three months ended January 3, 2026 and December 28, 2024:
Previous wording
The increase in net cash provided by operating activities was primarily due to non-cash adjustments to net loss of $105.8 million and a net favourable change in operating assets and liabilities of $6.5 million, partially offset by a net loss of $6.2 million. The non-cash adjustments were primarily due to impairment charges of $39.8 million and an inventory write-down of $31.6 million as a result of the intended cessation of the EA equipment business. The net change in operating assets and liabilities was primarily driven by a decrease in accounts and other receivable of $20.0 million, a decrease in prepaid expenses and other current assets of $4.7 million, and a net increase in accounts payable, accrued expenses and other liabilities of $10.5 million. This was partially offset by an increase in inventories of $21.4 million after excluding the impact of the inventory write-down as shown above, and a decrease in income tax payable of $7.5 million.
Current wording
The net cash used in operating activities was primarily due to a net unfavourable change in operating assets and liabilities of $37.7 million, partially offset by a net income of $16.8 million and non-cash adjustments to net income of $11.9 million. The net change in operating assets and liabilities was primarily driven by an increase in accounts and other receivable of $32.2 million, an increase in inventories of $20.3 million This was partially offset by a decrease in prepaid expenses and other current assets of $6.2 million, and an increase in income tax payable of $6.9 million.
Previous wording
The decrease in accounts and other receivable in the nine months ended June 28, 2025 was mainly due to lower sales for the period. The decrease in prepaid expenses and other current assets was mainly due to the receipt of tax refunds. The net increase in accounts payable, accrued expenses and other liabilities was primarily due to higher accrued employee termination benefits and adverse purchase commitments, partially offset by overall lower purchases. The increase in inventories was due to the buildup of long lead time materials to fulfill certain customer purchase orders. The decrease in income tax payable was primarily due to lower profitability which included the net impact from the intended cessation of EA equipment business and reimbursement from the cancellation of Project W which were treated as discrete items.
Current wording
The increase in accounts and other receivable in the three months ended January 3, 2026 was mainly due to higher sales for the period. The increase in inventories was due to the higher material purchases. The decrease in prepaid expenses and other current assets was mainly due to the reduction in supplier prepayments. The increase in income tax payable was primarily due timing of tax payments and higher profitability.
Previous wording
Net cash used in investing activities was due to net purchase of short-term investments of $5.0 million, capital expenditures of $13.7 million and investment in a private equity fund of $1.8 million.
Current wording
Net cash provided by investing activities was due to net maturity of short-term investments of $96.0 million partially offset by capital expenditures of $2.7 million.
Previous wording
Net cash used in financing activities was primarily due to common stock repurchases of $80.1 million and dividend payments of $32.7 million.
Current wording
Net cash used in financing activities was primarily due to common stock repurchases of $6.7 million and dividend payments of $10.7 million.
Previous wording
The increase in net cash used in operating activities was primarily due to a net loss of $81.1 million and a net unfavourable change in operating assets and liabilities of $87.8 million, partially offset by non-cash adjustments to net income of $168.3 million. The non-cash adjustments were primarily due to impairment charges of $44.5 million and inventory write-down of $57.3 million as a result of the cancellation of the Project. The net change in operating assets and liabilities was primarily driven by an increase in accounts and other receivable of $42.4 million, an increase in inventories of $27.0 million after excluding the impact of the inventory write-down as shown above, a decrease in income tax payable of $23.1 million and a decrease in accounts payable and accrued expenses and other current liabilities of $7.8 million. This was partially offset by a decrease in prepaid expenses and other current assets of $18.4 million.
Current wording
The increase in net cash used in operating activities was primarily due to a net income of $81.6 million and non-cash adjustments to net income of $6.4 million, partially offset by a net unfavourable change in operating assets and liabilities of $69.1 million. The net change in operating assets and liabilities was primarily driven by an increase in accounts and other receivable of $53.9 million, an increase in inventories of $9.1 million, and a decrease in accounts payable and accrued expenses and other current liabilities of $15.8 million . This was partially offset by an increase in income tax payable of $9.8 million and a decrease in prepaid expenses and other current assets of $1.9 million.
Previous wording
The increase in accounts and other receivable in the nine months ended June 29, 2024 was mainly due to the timing of payments due. The increase in inventories was due to the buildup of long lead time materials to fulfill certain customer purchase orders. The decrease in income tax payable was primarily due to lower profitability. The decrease in accounts payable and accrued expenses and other current liabilities was primarily due to the payment of back loaded purchases and lower accrued employee compensation. The decrease in prepaid expenses was mainly due the transfer of contract assets to net account receivables.
Current wording
The increase in accounts and other receivable in the three months ended December 28, 2024 was mainly due to the timing of payments due. The increase in inventories was due to the buildup of long lead time materials to fulfill certain customer purchase orders. The decrease in accounts payable and accrued expenses and other current liabilities was primarily due to lower customer advances, accrued employee compensation and lower material purchases. The increase in income tax payable was primarily due to higher profitability which included the reimbursement from the cancellation of the Project which was recorded as a discrete item in the quarter.
Previous wording
Net cash provided by investing activities was due to net maturity of short-term investments of $40.0 million and net cash received from the disposal of a subsidiary of $2.5 million, partially offset by capital expenditures of $14.2 million and investment in a private equity fund of $2.3 million.
Current wording
Net cash provided by investing activities was due to net maturity of short-term investments of $90.0 million and net cash received from the disposal of a subsidiary of $2.6 million, and offset by capital expenditures of $10.2 million and investment in a private equity fund of $0.4 million.
Previous wording
Net cash used in financing activities was primarily due to common stock repurchases of $108.1 million and dividend payments of $33.2 million.
Current wording
Net cash used in financing activities was primarily due to common stock repurchases of $37.2 million and dividend payments of $10.8 million.
Showing the first 40 of 48 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
As the macroeconomic situation remains highly volatile and the geopolitical situation remains uncertain, our business, our expectations regarding future demand or supply conditions, our near- and long-term liquidity and our financial condition. Consequentially, our operating results could deteriorate. However, we believe that the long-term semiconductor industry macroeconomics have not changed and we anticipate that the industry’s growth projections will normalize.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
Similarly, approximately 88.4% and 89.5% of our net revenue for the nine months ended June 28, 2025 and June 29, 2024, respectively, were for shipments to customer locations outside of the U.S., primarily in the Asia/Pacific region. Approximately 51.3% and 49.9% of our net revenue for the nine months ended June 28, 2025 and June 29, 2024, respectively, were for shipments to customers headquartered in China.
Previous report — wording carried elsewhere
For the three months ended June 28, 2025, the decrease in Advanced Solutions net revenue as compared to the prior year period was primarily due to a lower volume of customer purchases in the general semiconductor end markets.