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Kulicke and Soffa (KLIC) Q4 Earnings & Revenues Top Estimates

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Kulicke and Soffa Industries (KLIC - Free Report) reported fourth-quarter fiscal 2023 non-GAAP earnings of 51 cents per share, which beat the Zacks Consensus Estimate by 21.43%. The bottom line dropped 57.1% year over year.

Revenues decreased 29.3% year over year to $202.3 million but beat the consensus mark by 1.06%.

In terms of end-market, revenues from general semiconductor increased 50% sequentially, thanks to robust performance from the POWERCOMM and POWERNEXX systems. It witnessed higher demand for the RAPID Series Ball Bonder platform.

Kulicke and Soffa also witnessed sequential improvement in the LED market.

Quarter in Detail

In the fiscal fourth quarter, gross margin expanded 100 basis points year over year to 47.4%.

Operating expenses were $76.4 million, up 17.2% year over year, driven by 19.5% growth in selling, general and administrative, while research and development expenses increased 16.3%.

Non-GAAP operating income fell 64.3% year over year to $26.3 million.

Balance Sheet and Cash Flow

As of Sep 30, 2023, Kulicke and Soffa’s cash & cash equivalents and short-term investments were $759.4 million.

Cash flow from operating activities was $77.5 million compared with $9 million reported in the previous quarter.

Adjusted free cash flow was $104.02 million against free cash outflow of $1.6 million reported in the previous quarter.

Guidance

For first-quarter fiscal 2024, revenues are expected to be $170 million (+/- $10 million). The Zacks Consensus Estimate for revenues is pegged at $180 million.

It expects a gross margin of 47% and non-GAAP operating expenses are anticipated to increase slightly to $71 million (+/- 2%).

Non-GAAP earnings are anticipated to be 25 cents per share (+/-10%). The Zacks Consensus Estimate is currently pegged at 34 cents per share, unchanged over the past 30 days.

Zacks Rank & Upcoming Earnings to Watch

Kulicke & Soffa currently carries a Zacks Rank #3 (Hold).

NVIDIA (NVDA - Free Report) , ASANA (ASAN - Free Report) and Snowflake (SNOW - Free Report) are some better-ranked stocks that investors can consider in the broader sector.

While NVIDIA sports a Zacks Rank #1 (Strong Buy), ASANA and Snowflake carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

NVIDIA shares have jumped 238.6% year to date. NVDA is set to report its third-quarter fiscal 2024 results on Nov 21.

ASANA shares have gained 52.4% year to date. ASAN is set to report its third-quarter fiscal 2024 results on Dec 5.

Snowflake shares have returned 12.1% year to date. SNOW is set to report its third-quarter fiscal 2024 results on Nov 29.

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