KULICKE & SOFFA INDUSTRIES INCKLIC
KULICKE & SOFFA INDUSTRIES INC Segments Disclosure
. SEGMENT INFORMATION
Reportable segments are defined as components of an enterprise that engage in business activities for which discrete financial information is available and regularly reviewed by the chief operating decision maker (the “CODM”) in deciding how to allocate resources and assess performance. The Company’s Chief Executive Officer is the CODM. Our CODM evaluates performance and allocates resources primarily based on income from operations. This measure is regularly provided to and reviewed by our CODM to support budgeting, forecasting, and decisions regarding resource allocation for strategic initiatives across segments, capital investments, and workforce planning. While income from operations is the primary measure used by our CODM to allocate resources, our CODM regularly reviews materials that present revenue, cost of sales and significant operating expenses. Accordingly, we have disclosed these segment items in the tables below. The CODM does not review discrete asset information.
Segment information is disclosed based upon our management organization structure as of the fiscal year ended October 4, 2025. Future changes to this internal financial structure may result in changes to our reportable segments. The Company has four reportable segments consisting of: (1) Ball Bonding Equipment, (2) Wedge Bonding Equipment, (3) Advanced Solutions, and (4) Aftermarket Products and Services (“APS”). The four reportable segments are disclosed below:
Ball Bonding Equipment: Reflects the results of the Company from the design, development, manufacture and sale of ball bonding equipment and wafer level bonding equipment.
Wedge Bonding Equipment: Reflects the results of the Company from the design, development, manufacture and sale of wedge and wedge-related bonding equipment.
Advanced Solutions: Reflects the results of the Company from the design, development, manufacture and sale of certain advanced display, die-attach and thermocompression systems and solutions.
APS: Reflects the results of the Company from the design, development, manufacture and sale of a variety of tools, spares and services for our equipment.
Any other operating segments that have not been aggregated within the reportable segments described above which 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. Results for the “All Others” category and other corporate expenses are included as a reconciling item between the Company’s reportable segments and its consolidated results of operations.
The unallocated corporate expenses category includes certain operating expenses that are not allocated to our reportable segments and are managed separately at the corporate level. These operating expenses include costs related to certain management, finance, legal, human resources, and research and development functions provided at the corporate level. In addition, we do not allocate to our reportable segments severance cost related to restructuring actions. Segment operating income also excludes interest income/expenses, other financial charges and income taxes. Our CODM does not consider the unallocated costs in measuring the performance of the reportable segments.
The following table reflects operating information by segment for the fiscal years ended October 4, 2025, September 28, 2024 and September 30, 2023:
| (in thousands) | Fiscal 2025 | ||||||||||||||||||||||||||||||||||||||||
| Reportable segments | Reconciling items | ||||||||||||||||||||||||||||||||||||||||
| Ball Bonding Equipment | Wedge Bonding Equipment | Advanced Solutions | APS | All Others | Unallocated Corporate Expenses | Total Company | |||||||||||||||||||||||||||||||||||
| Net Revenue | $ | 292,951 | $ | 110,593 | $ | 72,737 | $ | 156,129 | $ | 21,671 | $ | — | $ | 654,081 | |||||||||||||||||||||||||||
| Cost of sales | 146,553 | 60,763 | 30,549 | 80,789 | 57,307 | 199 | 376,160 | ||||||||||||||||||||||||||||||||||
| Selling, general and administrative | 23,132 | 8,757 | (57,519) | 28,289 | 41,339 | 87,531 | 131,529 | ||||||||||||||||||||||||||||||||||
| Research and development | 38,836 | 22,686 | 50,296 | 18,186 | 12,325 | 7,287 | 149,616 | ||||||||||||||||||||||||||||||||||
| Total operating expenses | 61,968 | 31,443 | (7,223) | 46,475 | 53,664 | 94,818 | 281,145 | ||||||||||||||||||||||||||||||||||
| Income / (Loss) from operations | $ | 84,430 | $ | 18,387 | $ | 49,411 | $ | 28,865 | $ | (89,300) | $ | (95,017) | $ | (3,224) | |||||||||||||||||||||||||||
| (in thousands) | Fiscal 2024 | ||||||||||||||||||||||||||||||||||||||||
| Reportable segments | Reconciling items | ||||||||||||||||||||||||||||||||||||||||
| Ball Bonding Equipment | Wedge Bonding Equipment | Advanced Solutions | APS | All Others | Unallocated Corporate Expenses | Total Company | |||||||||||||||||||||||||||||||||||
| Net Revenue | $ | 357,833 | $ | 105,826 | $ | 52,876 | $ | 160,009 | $ | 29,688 | $ | — | $ | 706,232 | |||||||||||||||||||||||||||
| Cost of sales | 187,018 | 56,439 | 96,133 | 71,114 | 26,957 | (183) | 437,478 | ||||||||||||||||||||||||||||||||||
| Selling, general and administrative | 23,435 | 9,720 | 61,657 | 18,187 | 16,373 | 80,664 | 210,036 | ||||||||||||||||||||||||||||||||||
| Research and development | 34,380 | 20,092 | 50,436 | 20,964 | 19,885 | 5,457 | 151,214 | ||||||||||||||||||||||||||||||||||
| Total operating expenses | 57,815 | 29,812 | 112,093 | 39,151 | 36,258 | 86,121 | 361,250 | ||||||||||||||||||||||||||||||||||
| Income / (Loss) from operations | $ | 113,000 | $ | 19,575 | $ | (155,350) | $ | 49,744 | $ | (33,527) | $ | (85,938) | $ | (92,496) | |||||||||||||||||||||||||||
| (in thousands) | Fiscal 2023 | ||||||||||||||||||||||||||||||||||||||||
| Reportable segments | Reconciling items | ||||||||||||||||||||||||||||||||||||||||
| Ball Bonding Equipment | Wedge Bonding Equipment | Advanced Solutions | APS | All Others | Unallocated Corporate Expenses | Total Company | |||||||||||||||||||||||||||||||||||
| Net Revenue | $ | 287,465 | $ | 175,550 | $ | 72,256 | $ | 160,718 | $ | 46,502 | $ | — | $ | 742,491 | |||||||||||||||||||||||||||
| Cost of sales | 156,424 | 84,173 | 45,262 | 72,076 | 25,855 | 46 | 383,836 | ||||||||||||||||||||||||||||||||||
| Selling, general and administrative | 17,392 | 10,070 | 13,261 | 18,564 | 36,102 | 79,129 | 174,518 | ||||||||||||||||||||||||||||||||||
| Research and development | 31,720 | 18,219 | 46,263 | 22,424 | 21,342 | 4,732 | 144,700 | ||||||||||||||||||||||||||||||||||
| Total operating expenses | 49,112 | 28,289 | 59,524 | 40,988 | 57,444 | 83,861 | 319,218 | ||||||||||||||||||||||||||||||||||
| Income / (Loss) from operations | $ | 81,929 | $ | 63,088 | $ | (32,530) | $ | 47,654 | $ | (36,797) | $ | (83,907) | $ | 39,437 | |||||||||||||||||||||||||||
The following table reconciles total segment profit to total income / (loss) before income taxes for the fiscal years ended October 4, 2025, September 28, 2024 and September 30, 2023:
| Fiscal | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Total income from reportable segments | $ | 181,093 | $ | 26,969 | $ | 160,141 | |||||||||||
| All Others | (89,300) | (33,527) | (36,797) | ||||||||||||||
| Unallocated corporate expenses | (95,017) | (85,938) | (83,907) | ||||||||||||||
| Net interest income | 23,700 | 34,141 | 32,764 | ||||||||||||||
| Income / (loss) before income taxes | $ | 20,476 | $ | (58,355) | $ | 72,201 | |||||||||||
We have considered: (1) information that is regularly provided to our CODM in evaluating financial performance and how to allocate resources; and (2) other financial data, including information that we include in our earnings releases but which is not included in our financial statements, to disaggregate revenues by end markets served. The principal category we use to disaggregate revenues is by the end markets served.
The following table reflects net revenue by end markets served for the fiscal years ended October 4, 2025, September 28, 2024 and September 30, 2023:
| Fiscal | |||||||||||||||||
| (in thousands) | 2025 | 2024 | 2023 | ||||||||||||||
| General Semiconductor | $ | 334,181 | $ | 333,788 | $ | 333,937 | |||||||||||
Automotive & Industrial (1) | 110,351 | 138,845 | 225,415 | ||||||||||||||
| Memory | 53,420 | 73,590 | 22,421 | ||||||||||||||
| APS | 156,129 | 160,009 | 160,718 | ||||||||||||||
| Total revenue | $ | 654,081 | $ | 706,232 | $ | 742,491 | |||||||||||
(1) In view of the cessation of EA equipment business, the Company has simplified its end market disclosures by consolidating LED revenue within Automotive & Industrial revenue. As a result, the net revenue recorded within the previously-defined LED end market for prior periods has been consolidated within the Automotive & Industrial end market to conform to the current period presentation. These changes have no impact to the consolidated financial statements.
The following table reflects capital expenditures, depreciation expense and amortization expense for the fiscal years ended October 4, 2025, September 28, 2024 and September 30, 2023:
| Fiscal | |||||||||||||||||
| (in thousands) | 2025 | 2024 | 2023 | ||||||||||||||
| Capital expenditures: | |||||||||||||||||
| Ball Bonding Equipment | $ | 417 | $ | 1,548 | $ | 1,087 | |||||||||||
| Wedge Bonding Equipment | 618 | 699 | 436 | ||||||||||||||
| Advanced Solutions | 125 | 804 | 30,522 | ||||||||||||||
| APS | 1,690 | 1,177 | 5,298 | ||||||||||||||
| All Others | 1,348 | 891 | 658 | ||||||||||||||
| Corporate Expenses | 6,179 | 8,617 | 9,701 | ||||||||||||||
| $ | 10,377 | $ | 13,736 | $ | 47,702 | ||||||||||||
| Depreciation expense: | |||||||||||||||||
| Ball Bonding Equipment | $ | 1,300 | $ | 1,363 | $ | 1,538 | |||||||||||
| Wedge Bonding Equipment | 892 | 1,003 | 1,169 | ||||||||||||||
| Advanced Solutions | 1,051 | 5,945 | 7,706 | ||||||||||||||
| APS | 5,094 | 5,352 | 6,166 | ||||||||||||||
| All Others | 1,292 | 1,577 | 1,505 | ||||||||||||||
| Corporate Expenses | 5,312 | 4,307 | 4,674 | ||||||||||||||
| $ | 14,941 | $ | 19,547 | $ | 22,758 | ||||||||||||
| Amortization expense: | |||||||||||||||||
| Ball Bonding Equipment | $ | — | $ | — | $ | — | |||||||||||
| Wedge Bonding Equipment | — | — | — | ||||||||||||||
| Advanced Solutions | — | — | — | ||||||||||||||
| APS | 526 | 917 | 896 | ||||||||||||||
| All Others | 2,140 | 3,904 | 4,837 | ||||||||||||||
| Corporate Expenses | 367 | 367 | 366 | ||||||||||||||
| $ | 3,033 | $ | 5,188 | $ | 6,099 | ||||||||||||
Geographical information
The following tables reflect destination sales to unaffiliated customers by country and long-lived assets by country for fiscal 2025, 2024 and 2023:
| Fiscal | |||||||||||||||||
| (in thousands) | 2025 | 2024 | 2023 | ||||||||||||||
| Destination sales to unaffiliated customers: | |||||||||||||||||
| China | $ | 363,598 | $ | 416,695 | $ | 335,393 | |||||||||||
| United States | 62,171 | 66,147 | 65,705 | ||||||||||||||
| Taiwan | 55,034 | 59,288 | 66,358 | ||||||||||||||
| Malaysia | 45,835 | 54,275 | 64,013 | ||||||||||||||
| Japan | 11,029 | 12,778 | 35,849 | ||||||||||||||
| Philippines | 14,841 | 10,585 | 31,527 | ||||||||||||||
| Korea | 27,509 | 11,563 | 17,977 | ||||||||||||||
| Hong Kong | 15,745 | 11,743 | 13,933 | ||||||||||||||
| All other | 58,319 | 63,158 | 111,736 | ||||||||||||||
| Total destination sales to unaffiliated customers | $ | 654,081 | $ | 706,232 | $ | 742,491 | |||||||||||
| Fiscal | |||||||||||
| (in thousands) | 2025 | 2024 | |||||||||
| Long-lived assets: | |||||||||||
| Singapore | $ | 37,307 | $ | 47,035 | |||||||
| United States | 28,502 | 29,166 | |||||||||
| China | 15,472 | 15,635 | |||||||||
| Israel | 4,447 | 7,822 | |||||||||
All others | 5,458 | 12,664 | |||||||||
| Total long-lived assets | $ | 91,186 | $ | 112,322 | |||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Nov 20, 2025 | Showing above |
| 2024 | Nov 14, 2024 | |
| 2023 | Nov 16, 2023 | |
| 2022 | Nov 17, 2022 | |
| 2021 | Nov 18, 2021 | |
| 2020 | Nov 20, 2020 | |
| 2019 | Nov 15, 2019 | |
| 2018 | Nov 20, 2018 | |
| 2017 | Nov 16, 2017 | |
| 2016 | Nov 17, 2016 | |
| 2015 | Nov 18, 2015 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.