KULICKE & SOFFA INDUSTRIES INC

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 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 and related aftermarket spares and services.

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 92.8% and 86.3% of our net revenue for the three months ended April 4, 2026 and March 29, 2025, respectively, were for shipments to customer locations outside of the U.S., primarily in the Asia/Pacific region. Approximately 54.6% and 45.8% of our net revenue for the three months ended April 4, 2026 and March 29, 2025, 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 95.6% and 92.1% of our net revenue for the three months ended July 4, 2026 and June 28, 2025, respectively, were for shipments to customer locations outside of the U.S., primarily in the Asia/Pacific region. Approximately 56.1% and 60.0% of our net revenue for the three months ended July 4, 2026 and June 28, 2025, respectively, were for shipments to customers headquartered in China.

Previous wording

Similarly, approximately 93.5% and 86.8% of our net revenue for the six months ended April 4, 2026 and March 29, 2025, respectively, were for shipments to customer locations outside of the U.S., primarily in the Asia/Pacific region. Approximately 56.6% and 47.3% of our net revenue for the six months ended April 4, 2026 and March 29, 2025, respectively, were for shipments to customers headquartered in China.

Current wording

Similarly, approximately 94.4% and 88.4% of our net revenue for the nine months ended July 4, 2026 and June 28, 2025, respectively, were for shipments to customer locations outside of the U.S., primarily in the Asia/Pacific region. Approximately 56.4% and 51.3% of our net revenue for the nine months ended July 4, 2026 and June 28, 2025, 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 April 4, 2026, our total cash, cash equivalents and short-term investments were $487.9 million, a $22.8 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 July 4, 2026, our total cash, cash equivalents and short-term investments were $516.6 million, a $5.9 million increase 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

As of the date of this report, our business and capillary manufacturing operations in Israel have not been impacted and no material damage or utilities interruptions have been noted at our Israeli facility. Furthermore, disruption to our workforce and operations have been immaterial. Given that any further escalation or other hostilities cannot be excluded, we continue to monitor the situation and refine our business contingency measures.

Current wording

As of the date of this report, our business and operations in Israel have not been impacted and no material damage or utilities interruptions have been noted at our Israeli facility. Furthermore, disruption to our workforce and operations have been immaterial. Given that any further escalation or other hostilities cannot be excluded, we continue to monitor the situation and refine our business contingency measures.

Previous wording

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.

Current wording

As the macroeconomic situation remains highly volatile and the geopolitical situation remains uncertain, there is uncertainty surrounding 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.

Previous wording

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 and six months ended April 4, 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 and six months ended March 29, 2025.

Current wording

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 and nine months ended July 4, 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 and nine months ended June 28, 2025.

Previous wording

The following tables reflect our income from operations for the three and six months ended April 4, 2026 and March 29, 2025:

Current wording

The following tables reflect our income from operations for the three and nine months ended July 4, 2026 and June 28, 2025:

Previous wording

Our net revenue for the three and six months ended April 4, 2026 increased as compared to our net revenue for the three and six months ended March 29, 2025. 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.

Current wording

Our net revenue for the three and nine months ended July 4, 2026 increased as compared to our net revenue for the three and nine months ended June 28, 2025. For the three months ended July 4, 2026, the increase in net revenue was driven by higher volume across all of our reportable segments and the All Others category. For the nine months ended July 4, 2026, the increase in net revenue was primarily driven by higher volume in Ball Bonding Equipment, APS and Advanced Solutions, as well as in All Others, partially offset by lower volume in Wedge Bonding Equipment.

Previous wording

The following tables reflect net revenue for the three and six months ended April 4, 2026 and March 29, 2025:

Current wording

The following tables reflect net revenue for the three and nine months ended July 4, 2026 and June 28, 2025:

Previous wording

For the three months ended April 4, 2026, Ball Bonding Equipment net revenue increased by $93.9 million as compared to the prior year period. This increase was primarily due to an increase in sales volume of approximately $58.5 million in general semiconductor, $29.8 million in memory and $5.6 million in automotive and industrial end markets driven by customer technology transitions and improved demand conditions.

Current wording

For the three months ended July 4, 2026, Ball Bonding Equipment net revenue increased by $150.1 million as compared to the prior year period. This increase was primarily due to an increase in sales volume of approximately $126.6 million in general semiconductor, $19.4 million in memory and $4.1 million in automotive and industrial end markets driven by customer technology transitions and improved demand conditions.

Previous wording

For the six months ended April 4, 2026, Ball Bonding Equipment net revenue increased by $144.5 million as compared to the prior year period. This increase was primarily due to an increase in sales volume of approximately $101.1 million in general semiconductor, $37.6 million in memory and $5.8 million in automotive and industrial end markets driven by customer technology transitions and improved demand conditions.

Current wording

For the nine months ended July 4, 2026, Ball Bonding Equipment net revenue increased by $294.6 million as compared to the prior year period. This increase was primarily due to an increase in sales volume of approximately $227.6 million in general semiconductor, $57.0 million in memory and $10.0 million in automotive and industrial end markets driven by customer technology transitions and improved demand conditions.

Previous wording

For the three months ended April 4, 2026, Wedge Bonding Equipment net revenue decreased by $23.1 million, as compared to the prior year period. This decrease was primarily due to a decrease in sales volume of approximately $17.1 million in automotive and industrial due to lower Electric Vehicle (EV) capacity needs and $6.0 million in the general semiconductor end market.

Current wording

For the three months ended July 4, 2026, Wedge Bonding Equipment net revenue increased by $3.7 million, as compared to the prior year period. This increase was primarily due to higher customer purchases in the automotive and industrial end market.

Previous wording

For the six months ended April 4, 2026, Wedge Bonding Equipment net revenue decreased by $34.2 million, as compared to the prior year period. This decrease was primarily due to a decrease in sales volume of approximately $37.5 million in automotive and industrial end markets due to lower EV capacity needs, partially offset by an approximately $3.2 million increase in sales volume due to higher customer purchases in the general semiconductor end market for power discrete products.

Current wording

For the nine months ended July 4, 2026, Wedge Bonding Equipment net revenue decreased by $30.6 million, as compared to the prior year period. This decrease was primarily due to a decrease in sales volume of approximately $33.9 million in the automotive and industrial end market due to lower EV capacity needs, partially offset by an approximately $3.3 million increase in sales volume due to higher customer purchases in the general semiconductor end market for power discrete products.

Previous wording

For the three months ended April 4, 2026, Advanced Solutions net revenue increased by $6.8 million, as compared to the prior year period. This increase was primarily due to an increase in sales volume of approximately $6.2 million in general semiconductor driven by customer technology transitions.

Current wording

For the three months ended July 4, 2026, Advanced Solutions net revenue increased by $18.6 million, as compared to the prior year period. This increase was primarily due to an increase in sales volume of approximately $21.6 million in general semiconductor driven by customer technology transitions, partially offset by an approximately $3.0 million decrease in customer purchase volumes in the automotive and industrial end market.

Previous wording

For the six months ended April 4, 2026, Advanced Solutions net revenue decreased by $4.1 million, as compared to the prior year period. This decrease was primarily due to an approximately $14.5 million decrease in volume of customer purchases in the LED product line, which is reported within the automotive and industrial end market. This decrease was partially offset by an approximately $10.4 million increase in customer purchase volumes in the general semiconductor end market due to customer technology transitions.

Current wording

For the nine months ended July 4, 2026, Advanced Solutions net revenue increased by $14.5 million, as compared to the prior year period. This increase was primarily due to an increase in sales volume of approximately $32.0 million in general semiconductor driven by customer technology transitions, partially offset by an approximately $17.5 million decrease in volume of customer purchases in the LED product line, which is reported within the automotive and industrial end market.

Previous wording

For the three months ended April 4, 2026, APS net revenue increased by $3.1 million, as compared to the prior year period. This increase was primarily due to an increase in sales volume of approximately $1.8 million in bonding tools and $1.7 million in spares and services.

Current wording

For the three months ended July 4, 2026, APS net revenue increased by $4.4 million, as compared to the prior year period. This increase was primarily driven by higher sales volume by an approximately $2.2 million in bonding tools and $1.9 million in spares and services.

Previous wording

For the six months ended April 4, 2026, APS net revenue increased by $10.6 million, as compared to the prior year period. This increase was primarily due to an increase in sales volume of approximately $9.1 million in spares and services and $1.8 million in bonding tools.

Current wording

For the nine months ended July 4, 2026, APS net revenue increased by $15.0 million, as compared to the prior year period. This increase was primarily driven by higher sales volume by an approximately $11.0 million in spares and services and $5.2 million in bonding tools, partially offset by an approximately $1.2 million decrease in customer purchase volumes in dicing blades.

Previous wording

For the six months ended April 4, 2026, net revenue from All Others decreased by $2.6 million, as compared to the prior year period. This decrease was primarily due to lower sales volumes in the memory end market.

Current wording

For the three months ended July 4, 2026, net revenue from All Others increased by $5.3 million, as compared to the prior year period. This increase was primarily driven by higher sales volumes in the automotive and industrial end market.

Previous wording

The following tables reflect gross profit margin as a percentage of net revenue by reportable segments for the three and six months ended April 4, 2026 and March 29, 2025:

Current wording

The following tables reflect gross profit margin as a percentage of net revenue by reportable segments for the three and nine months ended July 4, 2026 and June 28, 2025:

Previous wording

For the three and six months ended April 4, 2026, the decrease in Wedge Bonding Equipment gross profit margin as compared to the prior year period was primarily due to a less favorable product mix, including higher sales of lower margin products.

Current wording

For the three and nine months ended July 4, 2026, the decrease in Wedge Bonding Equipment gross profit margin as compared to the prior year period was primarily due to a less favorable customer mix, including higher sales to customers where we achieve lower average margins.

Previous wording

For the six months ended April 4, 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.

Current wording

For the nine months ended July 4, 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 six months ended April 4, 2026, the decrease in APS gross profit margin as compared to the prior year period was primarily due to a less favorable product mix from spares and services and less favorable pricing from bonding tools.

Current wording

For the three months ended July 4, 2026, the increase in APS gross profit margin as compared to the prior year period was primarily driven by a favorable product mix from spares and services.

Previous wording

For the three and six months ended April 4, 2026, the increase in gross profit margin for the “All Others” category as compared to the prior year period was primarily due to sales of previously impaired inventory as a result of the cessation of the EA equipment business. In addition, the prior year period included inventory write-down charges incurred as a result of the cessation of the EA equipment business.

Current wording

For the nine months ended July 4, 2026, the increase in gross profit margin for the “All Others” category as compared to the prior year period was primarily due to sales of previously impaired inventory as a result of the cessation of the EA equipment business. In addition, the prior year period included inventory write-down charges incurred as a result of the cessation of the EA equipment business.

Previous wording

The following tables reflect operating expenses for the three and six months ended April 4, 2026 and March 29, 2025:

Current wording

The following tables reflect operating expenses for the three and nine months ended July 4, 2026 and June 28, 2025:

Previous wording

For the six months ended April 4, 2026, the lower SG&A expenses as compared to the prior year period was primarily due to $7.1 million lower severance costs. This was partially offset by $3.7 million higher sales representative commissions.

Current wording

For the three months ended July 4, 2026, the higher SG&A expenses as compared to the prior year period was primarily due to higher staff cost related to an increase in incentive compensation.

Previous wording

For the three months ended April 4, 2026, the lower SG&A expenses as compared to the prior year period was primarily due to $8.3 million lower severance costs. This was partially offset by $2.6 million higher sales representative commissions and $0.6 million higher staff cost.

Current wording

For the nine months ended July 4, 2026, the higher SG&A expenses as compared to the prior year period was primarily due to $7.6 million higher staff cost related to an increase in incentive compensation and $5.2 million higher sales representative commissions. This was partially offset by $7.2 million lower severance costs, $1.8 million lower amortization and $0.6 million higher miscellaneous income.

Previous wording

For the three months ended April 4, 2026, the higher R&D expenses as compared to the prior year period were primarily due to $2.5 million higher spending on prototype materials. This was partially offset by $0.7 million lower professional services and $0.3 million lower staff cost due to a decrease in headcount.

Current wording

For the three months ended July 4, 2026, the higher R&D expenses as compared to the prior year period were primarily due to $5.5 million higher staff cost related to an increase in incentive compensation and $2.9 million higher spending on prototype materials.

Previous wording

For the six months ended April 4, 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 $2.0 million higher spending on prototype materials. This was partially offset by $1.0 million in lower professional services.

Current wording

For the nine months ended July 4, 2026, the higher R&D expenses as compared to the prior year period were primarily due to $6.0 million higher staff cost related to an increase in incentive compensation, $5.0 million higher spending on prototype materials and a $2.5 million consortium participation fee. This was partially offset by $1.0 million lower professional services and $0.5 million lower miscellaneous expenses.

Previous wording

For the six months ended March 29, 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 the Project, 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 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 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

For the three and six months ended March 29, 2025, we incurred $39.8 million in impairment charges on long-lived assets, intangible assets and goodwill related to the cessation of the EA equipment business.

Current wording

For the nine months ended June 28, 2025, we incurred $39.8 million in impairment charges on long-lived assets, intangible assets and goodwill related to the cessation of the EA equipment business.

Previous wording

The following tables reflect income / (loss) from operations by reportable segments for the three and six months ended April 4, 2026 and March 29, 2025.

Current wording

The following tables reflect income / (loss) from operations by reportable segments for the three and nine months ended July 4, 2026 and June 28, 2025.

Previous wording

For the three and six months ended April 4, 2026, the change in Ball Bonding Equipment income / (loss) from operations as compared to the prior year period was primarily due to the increase in revenue as explained under “Net Revenue” above, partially offset by an increase in operating expenses related to higher sales representative commissions as explained under "Operating Expenses" above.

Current wording

For the three and nine months ended July 4, 2026, the change in Ball Bonding Equipment income/loss from operations as compared to the prior year period was primarily due to the increase in revenue and consistent gross margin as explained under “Net Revenue” and "Gross Profit Margin" above, partially offset by increase in operating expenses related to higher staff cost and higher sales representative commissions as explained under "Operating Expenses" above.

Previous wording

For the three and six months ended April 4, 2026, the change in Wedge Bonding Equipment income / (loss) from operations as compared to the prior year period was primarily due to the decrease in revenue and gross margin as explained under “Net Revenue” and "Gross Profit Margin" above.

Current wording

For the nine months ended July 4, 2026, the change in Wedge Bonding Equipment income/loss from operations as compared to the prior year period was primarily due to the decrease in revenue and gross margin as explained under “Net Revenue” and "Gross Profit Margin" above and increase in operating expenses related to higher staff cost as explained under "Operating Expenses" above.

Previous wording

For the six months ended April 4, 2026, the change in Advanced Solutions income / (loss) from operations as compared to the prior year period was primarily due to the decrease in revenue as explained under "Net Revenue" and the reimbursement from the cancellation of the Project in the prior year period, as explained under “Operating Expenses” above.

Current wording

For the nine months ended July 4, 2026, the change in Advanced Solutions income/loss from operations as compared to the prior year period was primarily due to the decrease in gross margin as explained under "Gross Profit Margin" above and the reimbursement from the cancellation of the Project in the prior year period, as explained under “Operating Expenses” above.

Previous wording

For the three months ended April 4, 2026, the change in Advanced Solutions income / (loss) from operations as compared to the prior year period was primarily due to the increase in revenue as explained under “Net Revenue” above, partially offset by an increase in operating expenses related to higher R&D expenses as explained under "Operating Expenses" above.

Current wording

For the three and nine months ended July 4, 2026, the change in Aftermarket Product & Services income/loss from operations as compared to the prior year period was primarily due to the increase in revenue as explained under “Net Revenue” above, partially offset by higher operating expenses from higher staff cost as explained under "Operating Expenses" above.

Previous wording

For the three and six months ended April 4, 2026, the change in All Others income / (loss) from operations as compared to the prior year period was primarily due to inventory write-down and impairment charges incurred as a result of the cessation of the EA equipment business in the prior year period as explained under "Gross Profit Margin" and "Operating Expenses" above.

Current wording

For the three and nine months ended July 4, 2026, the change in All Others income/loss from operations as compared to the prior year period was primarily due to the increase in revenue as explained under “Net Revenue” above, and inventory write-down and impairment charges incurred as a result of the cessation of the EA equipment business in the prior year period as explained under "Gross Profit Margin" and "Operating Expenses" above.

Previous wording

The following tables reflect interest income and interest expense for the three and six months ended April 4, 2026 and March 29, 2025:

Current wording

The following tables reflect interest income and interest expense for the three and nine months ended July 4, 2026 and June 28, 2025:

Previous wording

For the three and six months ended April 4, 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.

Current wording

For the three and nine months ended July 4, 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 six months ended April 4, 2026 and March 29, 2025:

Current wording

The following table reflects the provision for income taxes and the effective tax rate for the three and nine months ended July 4, 2026 and June 28, 2025: