DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - shares | 3 Months Ended | |
Dec. 30, 2023 | Jan. 26, 2024 | |
Entity Addresses [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 0-121 | |
Entity Central Index Key | 0000056978 | |
Entity Incorporation, State or Country Code | PA | |
Entity Tax Identification Number | 23-1498399 | |
Entity Address, Address Line One | 23A Serangoon North Avenue 5 | |
Entity Address, Address Line Two | #01-01, | |
Entity Address, Country | SG | |
Entity Address, Postal Zip Code | 554369 | |
City Area Code | 215 | |
Local Phone Number | 784-6000 | |
Title of 12(b) Security | Common Stock, Without Par Value | |
Trading Symbol | KLIC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 56,341,107 | |
Amendment Flag | false | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2024 | |
Current Fiscal Year End Date | --09-28 | |
Entity Registrant Name | KULICKE AND SOFFA INDUSTRIES, INC. | |
Entity Address, City or Town | Singapore | |
Document Period End Date | Dec. 30, 2023 | |
Principal Executive Offices | ||
Entity Addresses [Line Items] | ||
Entity Address, Address Line One | 1005 Virginia Dr. | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 19034 | |
Entity Address, City or Town | Fort Washington |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 30, 2023 | Sep. 30, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 424,660 | $ 529,402 |
Short-term investments | 285,000 | 230,000 |
Accounts and other receivable, net of allowance for doubtful accounts of $49 and $49, respectively | 184,400 | 158,601 |
Inventories, net | 236,558 | 217,304 |
Prepaid expenses and other current assets | 47,035 | 53,751 |
Total current assets | 1,177,653 | 1,189,058 |
Property, plant and equipment, net | 107,273 | 110,051 |
Operating right-of-use assets | 45,797 | 47,148 |
Goodwill | 89,516 | 88,673 |
Intangible assets, net | 28,916 | 29,357 |
Deferred tax assets | 32,139 | 31,551 |
Equity investments | 2,042 | 716 |
Other assets | 3,390 | 3,223 |
TOTAL ASSETS | 1,486,726 | 1,499,777 |
Current liabilities: | ||
Accounts payable | 58,682 | 49,302 |
Operating lease liabilities | 6,697 | 6,574 |
Income taxes payable | 24,716 | 22,670 |
Accrued expenses and other current liabilities | 91,193 | 103,005 |
Total current liabilities | 181,288 | 181,551 |
Deferred tax liabilities | 37,174 | 37,264 |
Income taxes payable | 53,145 | 52,793 |
Operating lease liabilities | 41,720 | 41,839 |
Other liabilities | 12,148 | 11,769 |
TOTAL LIABILITIES | 325,475 | 325,216 |
Commitments and contingent liabilities (Note 15) | ||
Shareholders’ equity: | ||
Preferred stock, without par value: Authorized 5,000 shares; issued - none | 0 | 0 |
Common stock, without par value: Authorized 200,000 shares; issued 85,364 and 85,364, respectively; outstanding 56,495 and 56,310 shares, respectively | 578,479 | 577,727 |
Treasury stock, at cost, 28,869 and 29,054 shares, respectively | (756,949) | (737,214) |
Retained earnings | 1,353,800 | 1,355,810 |
Accumulated other comprehensive loss | (14,079) | (21,762) |
TOTAL SHAREHOLDERS’ EQUITY | 1,161,251 | 1,174,561 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 1,486,726 | $ 1,499,777 |
CONSOLIDATED CONDENSED BALANCE
CONSOLIDATED CONDENSED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 30, 2023 | Sep. 30, 2023 |
Consolidated Balance Sheets Parenthetical [Abstract] | ||
Allowance for doubtful accounts and notes receivable | $ 49 | $ 49 |
Preferred Stock, Shares Authorized (in shares) | 5,000,000 | 5,000,000 |
Common Stock, Shares Authorized (in shares) | 200,000,000 | 200,000,000 |
Common Stock, Shares, Issued (in shares) | 85,364,000 | 85,364,000 |
Common Stock, Shares, Outstanding (in shares) | 56,495,000 | 56,310,000 |
Treasury Stock, Common, Shares (in shares) | 28,869,000 | 29,054,000 |
Preferred Stock, Shares Issued (in shares) | 0 | 0 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
Income Statement [Abstract] | ||
Net revenue | $ 171,189 | $ 176,233 |
Cost of sales | 91,293 | 87,527 |
Gross profit | 79,896 | 88,706 |
Selling, general and administrative | 41,393 | 42,376 |
Research and development | 36,810 | 34,508 |
Operating expenses | 78,203 | 76,884 |
Income from operations | 1,693 | 11,822 |
Interest income | 9,899 | 6,559 |
Interest expense | (22) | (34) |
Income before income taxes | 11,570 | 18,347 |
Provision for income taxes | 2,277 | 3,758 |
Net income | $ 9,293 | $ 14,589 |
Net income per share: | ||
Basic (in dollars per share) | $ 0.16 | $ 0.26 |
Diluted (in dollars per share) | $ 0.16 | $ 0.25 |
Weighted average shares outstanding: | ||
Basic (in shares) | 56,650 | 57,051 |
Diluted (in shares) | 57,023 | 57,729 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 9,293 | $ 14,589 |
Other comprehensive income: | ||
Foreign currency translation adjustment | 6,280 | 14,319 |
Unrecognized actuarial gain on pension plan, net of tax | (67) | (47) |
Foreign currency translation and pension plan, net of tax | 6,213 | 14,272 |
Derivatives designated as hedging instruments: | ||
Unrealized gain on derivative instruments, net of tax | 1,255 | 3,093 |
Reclassification adjustment for loss on derivative instruments recognized, net of tax | (215) | (280) |
Net increase from derivatives designated as hedging instruments, net of tax | 1,470 | 3,373 |
Other comprehensive income | 7,683 | 17,645 |
Comprehensive income | $ 16,976 | $ 32,234 |
CONSOLIDATED CONDENSED STATEMEN
CONSOLIDATED CONDENSED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive (Loss)/Income |
Beginning balance (shares) at Oct. 01, 2022 | 57,128 | ||||
Beginning balance at Oct. 01, 2022 | $ 1,194,650 | $ 561,684 | $ (675,800) | $ 1,341,666 | $ (32,900) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of stock for services rendered (shares) | 6 | ||||
Issuance of stock for services rendered | 237 | $ 180 | 57 | ||
Repurchase of common stock (shares) | (1,054) | ||||
Repurchase of common stock | (45,382) | (45,382) | |||
Issuance of shares for equity based compensation (shares) | 667 | ||||
Issuance of shares for equity-based compensation | 0 | $ (6,412) | 6,412 | ||
Equity-based compensation | 6,284 | $ 6,284 | |||
Cash dividend declared | (10,794) | (10,794) | |||
Net income | 14,589 | 14,589 | |||
Other comprehensive income | 17,645 | 17,645 | |||
Total comprehensive income | 32,234 | 14,589 | 17,645 | ||
Ending balance (shares) at Dec. 31, 2022 | 56,747 | ||||
Ending balance at Dec. 31, 2022 | 1,177,229 | $ 561,736 | (714,713) | 1,345,461 | (15,255) |
Beginning balance (shares) at Sep. 30, 2023 | 56,310 | ||||
Beginning balance at Sep. 30, 2023 | 1,174,561 | $ 577,727 | (737,214) | 1,355,810 | (21,762) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of stock for services rendered (shares) | 7 | ||||
Issuance of stock for services rendered | 315 | $ 253 | 62 | ||
Repurchase of common stock (shares) | (556) | ||||
Repurchase of common stock | (26,840) | (26,840) | |||
Issuance of shares for equity based compensation (shares) | 734 | ||||
Issuance of shares for equity-based compensation | 0 | $ (7,043) | 7,043 | ||
Equity-based compensation | 7,542 | $ 7,542 | |||
Cash dividend declared | (11,303) | (11,303) | |||
Net income | 9,293 | 9,293 | |||
Other comprehensive income | 7,683 | 7,683 | |||
Total comprehensive income | 16,976 | 9,293 | 7,683 | ||
Ending balance (shares) at Dec. 30, 2023 | 56,495 | ||||
Ending balance at Dec. 30, 2023 | $ 1,161,251 | $ 578,479 | $ (756,949) | $ 1,353,800 | $ (14,079) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 9,293 | $ 14,589 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 7,985 | 5,613 |
Equity-based compensation and employee benefits | 7,857 | 6,521 |
Adjustment for inventory valuation | 2,789 | 809 |
Deferred taxes | (678) | (2,740) |
Loss/(Gain) on disposal of property, plant and equipment | 43 | (256) |
Unrealized fair value changes on equity investment | (211) | 0 |
Unrealized foreign currency translation | 2,565 | 3,588 |
Changes in operating assets and liabilities, net of assets and liabilities assumed in businesses combinations: | ||
Accounts and other receivable | (25,619) | 108,754 |
Inventories | (22,083) | (27,229) |
Prepaid expenses and other current assets | 7,547 | 252 |
Accounts payable, accrued expenses and other current liabilities | (819) | (32,763) |
Income taxes payable | 2,396 | 5,745 |
Other, net | 1,604 | 2,233 |
Net cash (used in)/provided by operating activities | (7,331) | 85,116 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property, plant and equipment | (4,426) | (13,878) |
Investment in private equity fund | (1,115) | (36) |
Purchase of short-term investments | (215,000) | (85,000) |
Maturity of short-term investments | 160,000 | 60,000 |
Net cash used in investing activities | (60,541) | (38,914) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Payment for finance lease | (173) | (159) |
Repurchase of common stock/treasury stock | (27,241) | (46,328) |
Common stock cash dividends paid | (10,710) | (9,743) |
Net cash used in financing activities | (38,124) | (56,230) |
Effect of exchange rate changes on cash and cash equivalents | 1,254 | 5,104 |
Changes in cash and cash equivalents | (104,742) | (4,924) |
Cash and cash equivalents at beginning of period | 529,402 | 555,537 |
Cash and cash equivalents at end of period | 424,660 | 550,613 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING ACTIVITIES: | ||
Property, plant and equipment included in accounts payable and accrued expenses | 893 | 1,588 |
CASH PAID/(REFUNDED) FOR: | ||
Interest | 22 | 34 |
Income taxes, net of refunds | $ 264 | $ (4,702) |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Dec. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | 1. BASIS OF PRESENTATION These consolidated condensed financial statements include the accounts of Kulicke and Soffa Industries, Inc. and its subsidiaries (“we,” “us,” “our,” or the “Company”), with appropriate elimination of intercompany balances and transactions. The interim consolidated condensed financial statements are unaudited and, in management’s opinion, include all adjustments (consisting only of normal and recurring adjustments) necessary for a fair statement of results for these interim periods. The interim consolidated condensed financial statements do not include all of the information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2023 (the “2023 Annual Report”) filed with the Securities and Exchange Commission on November 16, 2023, which includes the Consolidated Balance Sheets as of September 30, 2023 and October 1, 2022, and the related Consolidated Statements of Operations, Statements of Comprehensive Income, Changes in Shareholders’ Equity and Cash Flows for each of the years in the three-year period ended September 30, 2023. The results of operations for any interim period are not necessarily indicative of the results of operations for any other interim period or for a full year. Fiscal Year Each of the Company’s first three fiscal quarters end on the Saturday that is 13 weeks after the end of the immediately preceding fiscal quarter. The fourth quarter of each fiscal year ends on the Saturday closest to September 30. Fiscal 2024 quarters end on December 30, 2023, March 30, 2024, June 29, 2024 and September 28, 2024. In fiscal years consisting of 53 weeks, the fourth quarter will consist of 14 weeks. Fiscal 2023 quarters ended on December 31, 2022, April 1, 2023, July 1, 2023 and September 30, 2023. Nature of Business The Company designs, develops, manufactures and sells capital equipment and tools as well as services, maintains, repairs and upgrades equipment, all used to assemble semiconductor devices. The Company’s operating results depend upon the capital and operating expenditures of integrated device manufacturers (“IDMs”), outsourced semiconductor assembly and test providers (“OSATs”), foundry service providers, and other electronics manufacturers and automotive electronics suppliers worldwide which, in turn, depend on the current and anticipated market demand for semiconductors and products utilizing semiconductors. The semiconductor industry is highly volatile and experiences downturns and slowdowns which can have a severe negative effect on the semiconductor industry’s demand for semiconductor capital equipment, including assembly equipment manufactured and sold by the Company and, to a lesser extent, tools, solutions and services, including those sold or provided by the Company. These downturns and slowdowns have in the past adversely affected the Company’s operating results. The Company believes such volatility will continue to characterize the industry and the Company’s operations in the future. Use of Estimates The preparation of consolidated condensed financial statements requires management to make assumptions, estimates and judgments that affect the reported amounts of assets and liabilities, net revenue and expenses during the reporting periods, and disclosures of contingent assets and liabilities as of the date of the consolidated condensed financial statements. On an ongoing basis, management evaluates estimates, including but not limited to, those related to accounts receivable, reserves for excess and obsolete inventory, carrying value and lives of fixed assets, goodwill and intangible assets, accrual for customer credit programs, the valuation estimates and assessment of impairment and observable price adjustments, income taxes, equity-based compensation expense, and warranties. Management bases its estimates on historical experience and on various other assumptions believed to be reasonable. As a result, management makes judgments regarding the carrying values of the Company’s assets and liabilities that are not readily apparent from other sources. Authoritative pronouncements, historical experience and assumptions are used as the basis for making estimates, and on an ongoing basis, management evaluates these estimates. Actual results may differ from these estimates. In light of macroeconomic headwinds, there has been uncertainty and disruption in the global economy and financial markets. The Company is not aware of any specific event or circumstance that would require an update to its estimates or judgments or a revision of the carrying value of its assets or liabilities as of December 30, 2023. While there was no material impact from macroeconomic headwinds to our consolidated condensed financial statements as of and for the quarter ended December 30, 2023, these estimates may change, as new events occur and additional information is obtained, including factors related to these headwinds, that could materially impact our consolidated condensed financial statements in future reporting periods. Significant Accounting Policies There have been no material changes to our significant accounting policies summarized in Note 1: Basis of Presentation to our Consolidated Financial Statements included in our 2023 Annual Report. Revision of Segment-Related Disclosures within the Previously Issued Consolidated Financial Statements During the third quarter of fiscal year 2023, in response to comment letters from the staff of the Securities and Exchange Commission (the "SEC"), the Company reconsidered the guidance under ASC 280, Segment Reporting , and determined that certain prior period conclusions about the Company’s operating and reportable segments were erroneous. As a result, the Company had incorrectly presented certain segment-related disclosures in the notes to our previously issued consolidated financial statements, included in our Annual Report on Form 10-K for the year ended October 1, 2022, originally filed with the SEC on November 17, 2022 (the "Original Form 10-K"). The Company has evaluated the materiality of the incorrect presentation of its segment-related disclosures in the notes to its consolidated financial statements and has concluded that it did not result in a material misstatement of the Company’s previously issued consolidated financial statements. In light of the changes to the Company’s operating and reportable segments, the Company has revised, in this Quarterly Report on Form 10-Q, the segment-related disclosures in Note 14: Segment Information, to update the prior period presentation. The effect of this revision has been reflected in all footnotes impacted by this revision. Recent Accounting Pronouncements Disclosure Improvements In October 2023, the Financial Accounting Standards Board (the "FASB") issued ASU 2023-06, Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative. This ASU aligns the requirements in the FASB Accounting Standards Codification with the SEC’s regulations. The amendments in the ASU are expected to clarify or improve disclosure and presentation requirements of a variety of Codification Topics. They will also allow users to more easily compare entities subject to the SEC’s existing disclosures with those entities that were not previously subject to the requirements, and align the requirements in the Codification with the SEC’s regulations. This ASU will become effective for each amendment on the date on which the SEC removes the related disclosure from its regulations. However, if by June 30, 2027, the SEC has not removed the related disclosure from its regulations, the amendments will be removed from the Codification and not become effective for any entity. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements. Segment Reporting In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosure, which aims to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. In addition, the amendments in the ASU enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment, and contain other disclosure requirements. The purpose of the amendments is to enable investors to better understand an entity's overall performance and assess potential future cash flows. This ASU will be effective for the Company's fiscal year 2025, and interim periods within the fiscal years beginning after the Company’s fiscal year 2026. Early adoption is permitted. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements. Income Taxes In December 2023, the FASB issued ASU 2023-09 Income Taxes |
BALANCE SHEET COMPONENTS
BALANCE SHEET COMPONENTS | 3 Months Ended |
Dec. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BALANCE SHEET COMPONENTS | 2. BALANCE SHEET COMPONENTS The following tables reflect the components of significant balance sheet accounts as of December 30, 2023 and September 30, 2023: As of (in thousands) December 30, 2023 September 30, 2023 Inventories, net: Raw materials and supplies $ 119,077 $ 114,827 Work in process 85,499 74,555 Finished goods 55,463 49,207 260,039 238,589 Inventory reserves (23,481) (21,285) $ 236,558 $ 217,304 Property, plant and equipment, net: Land $ 2,182 $ 2,182 Buildings and building improvements 23,213 23,105 Leasehold improvements 83,586 82,927 Data processing equipment and software 38,267 37,483 Machinery, equipment, furniture and fixtures 98,773 95,692 Construction in progress 11,345 11,099 257,366 252,488 Accumulated depreciation (150,093) (142,437) $ 107,273 $ 110,051 Accrued expenses and other current liabilities: Accrued customer obligations (1) $ 36,287 $ 35,701 Wages and benefits 23,060 33,096 Dividends payable 11,303 10,710 Commissions and professional fees 4,270 4,091 Accrued leasehold renovations 10,013 11,005 Other 6,260 8,402 $ 91,193 $ 103,005 (1) Represents customer advance payments, customer credit program, accrued warranty expense and accrued retrofit obligations. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 3 Months Ended |
Dec. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | 3. GOODWILL AND INTANGIBLE ASSETS Goodwill Intangible assets classified as goodwill are not amortized. The goodwill established in connection with our acquisitions represents the estimated future economic benefits arising from the assets we acquired that did not qualify to be identified and recognized individually. The goodwill also includes the value of expected future cash flows from the acquisitions, expected synergies with our other affiliates and other unidentifiable intangible assets. The Company performs an annual impairment test of its goodwill during the fourth quarter of each fiscal year, which coincides with the completion of its annual forecasting and refreshing of business outlook process. The Company performed its annual impairment test in the fourth quarter of fiscal 2023 and concluded that no impairment charge was required. Any future adverse changes in expected operating results and/or unfavorable changes in other economic factors used to estimate fair values could result in a non-cash impairment in the future. During the three months ended December 30, 2023, the Company reviewed qualitative factors to ascertain if a “triggering” event may have taken place that may have the effect of reducing the fair value of the reporting unit below its carrying value and concluded that no triggering event had occurred. While we have concluded that a triggering event did not occur during the quarter ended December 30, 2023, the persistent macroeconomic headwinds could impact the results of operations due to changes to assumptions utilized in the determination of the estimated fair values of the reporting units that could be significant enough to trigger an impairment. Net sales and earnings growth rates could be negatively impacted by reductions or changes in demand for our products. The discount rate utilized in our valuation model could also be impacted by changes in the underlying interest rates and risk premiums included in the determination of the cost of capital. The following table summarizes the Company’s recorded goodwill, where applicable, by reportable segments and the “All Others” category (refer to Note 14 for further information) as of December 30, 2023 and September 30, 2023: (in thousands) Wedge Bonding Equipment APS All Others Total Balance at September 30, 2023 (1) $ 18,280 $ 26,109 44,284 $ 88,673 Other — 125 718 $ 843 Balance at December 30, 2023 $ 18,280 $ 26,234 45,002 $ 89,516 (1) Cumulative goodwill impairment pertaining to the “All Others” category as of September 30, 2023 was $45.0 million. Intangible Assets Intangible assets with determinable lives are amortized over their estimated useful lives. The Company’s intangible assets consist primarily of developed technology, customer relationships, in-process research and development, and trade and brand names. The following table reflects net intangible assets as of December 30, 2023 and September 30, 2023: As of December 30, 2023 As of September 30, 2023 (dollar amounts in thousands) Average estimated Gross Carrying Amount Accumulated Amortization Net Amount Gross Carrying Amount Accumulated Amortization Net Amount Developed technology 6.0 to 15.0 $ 82,874 $ (57,961) $ 24,913 $ 80,959 $ (55,877) $ 25,082 Customer relationships 5.0 to 8.0 $ 37,439 $ (35,530) $ 1,909 $ 36,764 $ (34,789) $ 1,975 Trade and brand name 7.0 to 8.0 $ 7,241 $ (7,241) $ — $ 7,130 $ (7,130) $ — Other intangible assets 1.0 to 8.0 $ 5,618 $ (3,983) $ 1,635 $ 5,617 $ (3,776) $ 1,841 In-process research and development N.A $ 459 $ — $ 459 $ 459 $ — $ 459 $ 133,631 $ (104,715) $ 28,916 $ 130,929 $ (101,572) $ 29,357 The following table reflects estimated annual amortization expense related to intangible assets as of December 30, 2023: As of (in thousands) December 30, 2023 Remaining fiscal 2024 $ 3,916 Fiscal 2025 5,153 Fiscal 2026 5,153 Fiscal 2027 4,878 Fiscal 2028 4,438 Thereafter 5,378 Total amortization expense $ 28,916 |
CASH, CASH EQUIVALENTS, RESTRIC
CASH, CASH EQUIVALENTS, RESTRICTED CASH AND SHORT-TERM INVESTMENTS | 3 Months Ended |
Dec. 30, 2023 | |
Cash and Cash Equivalents [Abstract] | |
CASH, CASH EQUIVALENTS, RESTRICTED CASH AND SHORT-TERM INVESTMENTS | 4. CASH, CASH EQUIVALENTS, AND SHORT-TERM INVESTMENTS Cash equivalents consist of instruments with remaining maturities of three months or less at the date of purchase. In general, these investments are free of trading restrictions. Cash, cash equivalents, and short-term investments consisted of the following as of December 30, 2023: (in thousands) Amortized Unrealized Unrealized Estimated Current assets: Cash $ 39,229 $ — $ — $ 39,229 Cash equivalents: Money market funds (1) 225,429 2 — 225,431 Time deposits (2) 160,000 — — 160,000 Total cash and cash equivalents $ 424,658 $ 2 $ — $ 424,660 Short-term investments: Time deposits (2) 285,000 — — 285,000 Total short-term investments $ 285,000 $ — $ — $ 285,000 Total cash, cash equivalents and short-term investments $ 709,658 $ 2 $ — $ 709,660 (1) The fair value was determined using unadjusted prices in active, accessible markets for identical assets, and as such they were classified as Level 1 assets in the fair value hierarchy. (2) All short-term investments were classified as available-for-sale and the fair value approximates cost basis. The Company did not recognize any realized gains or losses on the sale of investments during the three months ended December 30, 2023. Cash, cash equivalents and short-term investments consisted of the following as of September 30, 2023: (in thousands) Amortized Unrealized Unrealized Estimated Current assets: Cash $ 37,292 $ — $ — $ 37,292 Cash equivalents: Money market funds (1) 202,113 — (10) 202,103 Time deposits (2) 290,007 — — 290,007 Total cash and cash equivalents $ 529,412 $ — $ (10) $ 529,402 Short-term investments: Time deposits (2) 230,000 — — 230,000 Total short-term investments $ 230,000 $ — $ — $ 230,000 Total cash, cash equivalents and short-term investments $ 759,412 $ — $ (10) $ 759,402 (1) The fair value was determined using unadjusted prices in active, accessible markets for identical assets, and as such they were classified as Level 1 assets in the fair value hierarchy. (2) |
EQUITY INVESTMENTS
EQUITY INVESTMENTS | 3 Months Ended |
Dec. 30, 2023 | |
Equity Method Investments [Abstract] | |
EQUITY INVESTMENTS | 5. EQUITY INVESTMENTS Equity investments consisted of the following as of December 30, 2023 and September 30, 2023: As of (in thousands) December 30, 2023 September 30, 2023 Non-marketable equity securities $ 2,042 $ 716 Net Asset Value (“NAV”) (Private Equity Fund): |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Dec. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASURMENTS | 6. FAIR VALUE MEASUREMENTS Accounting standards establish three levels of inputs that may be used to measure fair value: quoted prices in active markets for identical assets or liabilities (referred to as Level 1), inputs other than Level 1 that are observable for the asset or liability either directly or indirectly (referred to as Level 2) and unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities (referred to as Level 3). Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis We measure certain financial assets and liabilities at fair value on a recurring basis. There were no transfers between fair value measurement levels during the three months ended December 30, 2023. Fair Value Measurements on a Nonrecurring Basis Our non-financial assets such as intangible assets and property, plant and equipment are carried at cost unless impairment is deemed to have occurred. Fair Value of Financial Instruments Amounts reported as accounts receivables, prepaid expenses and other current assets, accounts payable and accrued expenses approximate fair value. |
DERIVATIVES FINANCIAL INSTRUMEN
DERIVATIVES FINANCIAL INSTRUMENTS (Notes) | 3 Months Ended |
Dec. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES FINANCIAL INSTRUMENTS | 7. DERIVATIVE FINANCIAL INSTRUMENTS The Company’s international operations are exposed to changes in foreign exchange rates due to transactions denominated in currencies other than U.S. dollars. Most of the Company’s revenue and cost of materials are transacted in U.S. dollars. However, a significant amount of the Company’s operating expenses is denominated in local currencies, primarily in Singapore. The foreign currency exposure of our operating expenses is generally hedged with foreign exchange forward contracts. The Company’s foreign exchange risk management programs include using foreign exchange forward contracts with cash flow hedge accounting designation to hedge exposures to the variability in the U.S. dollar equivalent of forecasted non-U.S. dollar-denominated operating expenses. These instruments generally mature within twelve months. For these derivatives, we report the after-tax gain or loss from the effective portion of the hedge as a component of accumulated other comprehensive income (loss), and we reclassify it into earnings in the same period or periods in which the hedged transaction affects earnings and in the same line item on the Consolidated Condensed Statements of Operations as the impact of the hedged transaction. The fair value of derivative instruments on our Consolidated Condensed Balance Sheets as of December 30, 2023 and September 30, 2023 were as follows: As of December 30, 2023 September 30, 2023 (in thousands) Notional Amount Fair Value Asset Derivatives (1) Notional Amount Fair Value Liability Derivatives (2) Derivatives designated as hedging instruments: Foreign exchange forward contracts (3) $ 42,736 $ 747 $ 54,590 $ (723) Total derivatives $ 42,736 $ 747 $ 54,590 $ (723) (1) The fair value of derivative assets is measured using level 2 fair value inputs and is included in prepaid expenses and other current assets on our Consolidated Condensed Balance Sheets. (2) The fair value of derivative liabilities is measured using level 2 fair value inputs and is included in accrued expenses and other current liabilities on our Consolidated Condensed Balance Sheets. (3) Hedged amounts expected to be recognized to income within the next twelve months. The effects of derivative instruments designated as cash flow hedges in our Consolidated Condensed Statements of Comprehensive Income for the three months ended December 30, 2023 and December 31, 2022 were as follows: Three months ended (in thousands) December 30, 2023 December 31, 2022 Foreign exchange forward contract in cash flow hedging relationships: Net gain recognized in OCI, net of tax (1) $ 1,255 $ 3,093 Net loss reclassified from accumulated OCI into income, net of tax (2) $ (215) $ (280) (1) Net change in the fair value of the effective portion classified in OCI. (2) |
LEASES
LEASES | 3 Months Ended |
Dec. 30, 2023 | |
Leases [Abstract] | |
Leases | 8. LEASES We have entered into various non-cancellable operating and finance lease agreements for certain of our offices, manufacturing, technology, sales support and service centers, equipment, and vehicles. We determine if an arrangement is a lease, or contains a lease, at inception and record the leases in our financial statements upon lease commencement, which is the date when the underlying asset is made available for use by the lessor. Our lease terms may include one or more options to extend the lease terms, for periods from one year to 20 years, when it is reasonably certain that we will exercise that option. As of December 30, 2023, there were four options to extend the lease which was recognized as a right-of-use (“ROU”) asset, or a lease liability. We have lease agreements with lease and non-lease components, and non-lease components are accounted for separately and not included in our leased assets and corresponding liabilities. We have elected not to present short-term leases on the Consolidated Condensed Balance Sheets as these leases have a lease term of 12 months or less at lease inception. Operating leases are included in operating ROU assets, current operating lease liabilities and non-current operating lease liabilities, and finance leases are included in property, plant and equipment, accrued expenses and other current liabilities, and other liabilities on the Consolidated Condensed Balance Sheets. As of December 30, 2023 and September 30, 2023, our finance leases are not material. The following table shows the components of lease expense: Three months ended (in thousands) December 30, 2023 December 31, 2022 Operating lease expense (1) $ 2,857 $ 2,590 (1) Operating lease expense includes short-term lease expense, which is immaterial for the three months ended December 30, 2023 and December 31, 2022. The following table shows the cash flows arising from lease transactions. Cash payments related to short-term leases are not included in the measurement of operating lease liabilities, and, as such, are excluded from the amounts below: Three months ended (in thousands) December 30, 2023 December 31, 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 2,422 $ 2,284 The following table shows the weighted-average lease terms and discount rates for operating leases: As of December 30, 2023 September 30, 2023 Operating leases: Weighted-average remaining lease term (in years) : 7.6 7.7 Weighted-average discount rate: 6.7 % 6.7 % Future lease payments, excluding short-term leases, as of December 30, 2023, are detailed as follows: As of (in thousands) December 30, 2023 Remaining fiscal 2024 $ 7,346 Fiscal 2025 9,632 Fiscal 2026 8,959 Fiscal 2027 7,052 Fiscal 2028 6,590 Thereafter 23,110 Total minimum lease payments $ 62,689 Less: Interest $ 14,272 Present value of lease obligations $ 48,417 Less: Current portion $ 6,697 Long-term portion of lease obligations $ 41,720 |
DEBT AND OTHER OBLIGATIONS DEBT
DEBT AND OTHER OBLIGATIONS DEBT AND OTHER OBLIGATIONS (Notes) | 3 Months Ended |
Dec. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt and Other Obligations | 9. DEBT AND OTHER OBLIGATIONS Bank Guarantees On November 22, 2013, the Company obtained a $5.0 million credit facility with Citibank in connection with the issuance of bank guarantees for operational purposes. As of December 30, 2023, the outstanding amount under this facility was $5.0 million. Credit Facilities 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. Amounts outstanding under the Overdraft Facility, including interest, are payable upon thirty days written demand by the Bank. Interest on the Overdraft Facility is calculated on a daily basis, and the applicable interest rate is calculated at the Secured Overnight Financing Rate (“SOFR”) plus a margin of 1.5% per annum. The Overdraft Facility is an unsecured facility per the terms of the Facility Agreements. The Facility Agreements contain customary non-financial covenants, including, without limitation, covenants that restrict the Company’s ability to sell or dispose of its assets, cease owning at least 51% of two of its subsidiaries (the “Subsidiaries”), or encumber its assets with material security interests (including any pledge of monies in the Subsidiaries' cash deposit account with the Bank). The Facility Agreements also contain typical events of default, including, without limitation, non-payment of financial obligations when due, cross defaults to other material indebtedness of the Company and any breach of a representation or warranty under the Facility Agreements. As of December 30, 2023, there were no outstanding amounts under the Overdraft Facility. |
SHAREHOLDERS' EQUITY AND EMPLOY
SHAREHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS | 3 Months Ended |
Dec. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
SHAREHOLDERS’ EQUITY AND EMPLOYEE BENEFIT PLANS | 10. SHAREHOLDERS’ EQUITY AND EMPLOYEE BENEFIT PLANS Share Repurchase Program On August 15, 2017, the Company’s Board of Directors authorized a program (the “Program”) to repurchase up to $100 million of the Company’s common stock on or before August 1, 2020. In 2018, 2019 and 2020, the Board of Directors increased the share repurchase authorization under the Program to $200 million, $300 million, and $400 million, respectively. On March 3, 2022, the Board of Directors further increased the share repurchase authorization under the Program by an additional $400 million to $800 million, and extended its duration through August 1, 2025. On November 17, 2023, the Company modified its written trading plan under Rule 10b5-1 of the Exchange Act, such plan as first entered into on May 7, 2022 to facilitate repurchases under the Program. The purpose of the modification was to revise the previously established amounts and prices under the plan by providing for the purchase of up to approximately $169 million of the Company’s common stock from November 20, 2023 through August 1, 2025. The Program may be suspended or discontinued at any time and is funded using the Company’s available cash, cash equivalents and short-term investments. Under the Program, shares may be repurchased through open market and/or privately negotiated transactions at prices deemed appropriate by management. The timing and amount of repurchase transactions under the Program depend on market conditions as well as corporate and regulatory considerations. During the three months ended December 30, 2023, the Company repurchased a total of approximately 555.6 thousand shares of common stock under the Program at a cost of approximately $26.8 million. The stock repurchases were recorded in the periods they were delivered and accounted for as treasury stock in the Company’s Consolidated Condensed Balance Sheets. The Company records treasury stock purchases under the cost method using the first-in, first-out (FIFO) method. Upon re-issuance of treasury stock, amounts in excess of the acquisition cost are credited to additional paid-in capital. If the Company reissues treasury stock at an amount below its acquisition cost and additional paid-in capital associated with prior treasury stock transactions is insufficient to cover the difference between acquisition cost and the reissue price, this difference is recorded against retained earnings. As of December 30, 2023, our remaining stock repurchase authorization under the Program was approximately $154.2 million. Dividends On November 15, 2023, the Board of Directors declared a quarterly dividend of $0.20 per share of common stock. Dividends paid during the three months ended December 30, 2023 totaled $10.7 million. The declaration of any future cash dividend is at the discretion of the Board of Directors and will depend on the Company’s financial condition, results of operations, capital requirements, business conditions and other factors, as well as a determination that such dividends are in the best interests of the Company’s shareholders. Accumulated Other Comprehensive Loss The following table reflects accumulated other comprehensive loss reflected on the Consolidated Condensed Balance Sheets as of December 30, 2023 and September 30, 2023: As of (in thousands) December 30, 2023 September 30, 2023 Loss from foreign currency translation adjustments $ (13,899) $ (20,178) Unrecognized actuarial loss on pension plan, net of tax (928) (861) Unrealized gain/(loss) on hedging 748 (723) Accumulated other comprehensive loss $ (14,079) $ (21,762) Equity-Based Compensation The Company has a stockholder-approved equity-based compensation plan, the 2021 Omnibus Incentive Plan (the “Plan”) from which employees and directors receive grants. As of December 30, 2023, 1.7 million shares of common stock are available for grant to the Company’s employees and directors under the Plan. • Relative Total Shareholder Return Performance Share Units (“Relative TSR PSUs”) entitle the employee to receive common stock of the Company on the award vesting date, typically the third anniversary of the grant date (or as soon as administratively practicable if later), if market performance objectives which measure the relative TSR are attained. Relative TSR is calculated based upon the 90-calendar day average price at the end of the performance period of the Company’s stock as compared to specific peer companies that comprise the GICS (45301020) Semiconductor Index. TSR is measured for the Company and each peer company over a performance period, which is generally three years. Vesting percentages range from 0% to 200% of awards granted. The provisions of the Relative TSR PSUs are reflected in the grant date fair value of the award; therefore, compensation expense is recognized regardless of whether the market condition is ultimately satisfied. Compensation expense is reversed if the award is forfeited prior to the vesting date. • Revenue Growth Performance Share Units (“Growth PSUs”) entitle the employee to receive common stock of the Company on the award vesting date, typically the third anniversary of the grant date (or as soon as administratively practicable if later), based on organic revenue growth objectives and relative growth performance against named competitors as set by the Management Development and Compensation Committee (“MDCC”) of the Company’s Board of Directors. Organic revenue growth is calculated by averaging revenue growth (net of revenues from acquisitions) over a performance period, which is generally three years. Revenues from acquisitions will be included in the calculation after four fiscal quarters after acquisition. Any portion of the grant that does not meet the revenue growth objectives and relative growth performance is forfeited. Vesting percentages range from 0% to 200% of awards granted. • In general, Time-based Restricted Share Units (“Time-based RSUs”) awarded to employees vest ratably over a three-year period on the anniversary of the grant date provided the employee remains employed by the Company. Equity-based compensation expense recognized in the Consolidated Condensed Statements of Operations for the three months ended December 30, 2023 and December 31, 2022 was based upon awards ultimately expected to vest, with forfeiture accounted for when they occur. The following table reflects Time-based RSUs, Relative TSR PSUs, Growth PSUs and common stock granted during the three months ended December 30, 2023 and December 31, 2022: Three months ended (shares in thousands) December 30, 2023 December 31, 2022 Time-based RSUs 499 508 Relative TSR PSUs 231 186 Growth PSUs 49 92 Common stock 7 6 Equity-based compensation in shares 786 792 The following table reflects total equity-based compensation expense, which includes Time-based RSUs, Relative TSR PSUs, Growth PSUs and common stock, included in the Consolidated Condensed Statements of Operations during the three months ended December 30, 2023 and December 31, 2022: Three months ended (in thousands) December 30, 2023 December 31, 2022 Cost of sales $ 359 $ 308 Selling, general and administrative 5,680 4,867 Research and development 1,818 1,346 Total equity-based compensation expense $ 7,857 $ 6,521 The following table reflects equity-based compensation expense, by type of award, for the three months ended December 30, 2023 and December 31, 2022: Three months ended (in thousands) December 30, 2023 December 31, 2022 Time-based RSUs $ 4,543 $ 3,587 Relative TSR PSUs 1,560 1,252 Growth PSUs 1,439 1,445 Common stock 315 237 Total equity-based compensation expense $ 7,857 $ 6,521 |
REVENUE AND CONTRACT BALANCES
REVENUE AND CONTRACT BALANCES | 3 Months Ended |
Dec. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE AND CONTRACT BALANCES | 11. REVENUE AND CONTRACT BALANCES The Company recognizes revenue when we satisfy performance obligations as evidenced by the transfer of control of our products or services to customers. In general, the Company generates revenue from product sales, either directly to customers or to distributors. In determining whether a contract exists, we evaluate the terms of the agreement, the relationship with the customer or distributor and their ability to pay. Service revenue is generally recognized over time as the services are performed. For the three months ended December 30, 2023 and December 31, 2022, the service revenue was not material. The Company reports revenue based on its reportable segments and end markets, which provides information about how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. Please refer to Note 14: Segment Information, for disclosure of revenue by segment and end markets. Contract Balances Our contract assets relate to our rights to consideration for revenue with collection dependent on events other than the passage of time, such as the achievement of specified payment milestones. The contract assets will be transferred to net account receivables as our right to consideration for these contract assets become unconditional. Contracts assets are reported in the accompanying Consolidated Condensed Balance Sheets within prepaid expenses and other current assets. Our contract liabilities are primarily related to payments received in advance of satisfying performance obligations, and are reported in the accompanying Consolidated Condensed Balance Sheets within accrued expenses and other current liabilities. Contract liabilities increase as a result of receiving new advance payments from customers and decrease as revenue is recognized from product sales under advance payment arrangements upon satisfying the performance obligations. The following table shows the changes in contract asset balances during the three months ended December 30, 2023 and December 31, 2022: Three months ended (in thousands) December 30, 2023 December 31, 2022 Contract assets, beginning of period $ 10,181 $ 26,317 Additions — 2,670 Transferred to accounts receivable or collected (10,181) — Contract assets, end of period $ — $ 28,987 The following table shows the changes in contract liability balances during the three months ended December 30, 2023 and December 31, 2022: Three months ended (in thousands) December 30, 2023 December 31, 2022 Contract liabilities, beginning of period $ 4,797 $ 3,160 Revenue recognized (8,543) (7,270) Additions 12,325 11,891 Contract liabilities, end of period $ 8,579 $ 7,781 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Dec. 30, 2023 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | 12. EARNINGS PER SHARE Basic income per share is calculated using the weighted average number of shares of common stock outstanding during the period. Restricted stock are included in the calculation of diluted earnings per share, except when their effect would be anti-dilutive. The following table reflects a reconciliation of the shares used in the basic and diluted net income per share computation for the three months ended December 30, 2023 and December 31, 2022: Three months ended (in thousands, except per share data) December 30, 2023 December 31, 2022 Basic Diluted Basic Diluted NUMERATOR: Net income $ 9,293 $ 9,293 $ 14,589 $ 14,589 DENOMINATOR: Weighted average shares outstanding - Basic 56,650 56,650 57,051 57,051 Dilutive effect of Equity Plans 373 678 Weighted average shares outstanding - Diluted 57,023 57,729 EPS: Net income per share - Basic $ 0.16 $ 0.16 $ 0.26 $ 0.26 Effect of dilutive shares — (0.01) Net income per share - Diluted $ 0.16 $ 0.25 Anti-dilutive shares (1) 25 1 |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Dec. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 13. INCOME TAXES The following table reflects the provision for income taxes and the effective tax rate for the three months ended December 30, 2023 and December 31, 2022: Three months ended (dollar amounts in thousands) December 30, 2023 December 31, 2022 Provision for income taxes $ 2,277 $ 3,758 Effective tax rate 19.7 % 20.5 % For the three months ended December 30, 2023, the decrease in provision for income taxes and effective tax rate as compared to the prior year period was primarily due to lower profitability and a decrease in global intangible low-taxed income (“GILTI”). For the three months ended December 30, 2023, the effective tax rate is lower than the U.S. federal statutory tax rate primarily due to foreign income earned in lower tax jurisdictions, tax incentives, and tax credits, partially offset by GILTI. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Dec. 30, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | 14. 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. The CODM does not review discrete asset information. As discussed in Note 1, during the third quarter of fiscal year 2023, the Company reconsidered the guidance under ASC 280, Segment Reporting , and determined that certain prior period conclusions about the Company’s operating and reportable segments were erroneous. As a result, the Company had incorrectly presented certain segment-related disclosures in the notes to our previously issued consolidated financial statements, included in our Original Form 10-K. The Company has revised the prior period presentation to reflect its four reportable segments as follows: (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 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, die-attach and lithography 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 following table reflects operating information by segment for the three months ended December 30, 2023 and December 31, 2022: Three months ended (in thousands) December 30, 2023 December 31, 2022 Net revenue: Ball Bonding Equipment $ 86,270 $ 53,649 Wedge Bonding Equipment 23,459 54,656 Advanced Solutions 11,324 14,707 APS 41,241 40,861 All Others 8,895 12,360 Net revenue 171,189 176,233 Income/(loss) from operations: Ball Bonding Equipment 27,714 17,059 Wedge Bonding Equipment 4,294 19,427 Advanced Solutions (13,435) (10,735) APS 12,246 11,295 All Others (8,074) (4,463) Corporate Expenses (21,052) (20,761) Income from operations $ 1,693 $ 11,822 We have considered: (1) information that is regularly reviewed by 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 three months ended December 30, 2023 and December 31, 2022: Three months ended (in thousands) December 30, 2023 December 31, 2022 General Semiconductor $ 70,948 $ 68,372 Automotive & Industrial 23,521 53,180 LED 5,732 9,193 Memory 29,747 4,627 APS 41,241 40,861 Total revenue $ 171,189 $ 176,233 The following table reflects capital expenditures, depreciation expense and amortization expense for the three months ended December 30, 2023 and December 31, 2022: Three months ended (in thousands) December 30, 2023 December 31, 2022 Capital expenditures: Ball Bonding Equipment $ 396 $ 184 Wedge Bonding Equipment 14 185 Advanced Solutions 244 11,707 APS 425 1,325 All Others 141 166 Corporate Expenses 2,313 2,084 $ 3,533 $ 15,651 Depreciation expense: Ball Bonding Equipment $ 321 $ 376 Wedge Bonding Equipment 284 275 Advanced Solutions 3,047 618 APS 1,323 1,609 All Others 380 269 Corporate Expenses 1,283 1,072 $ 6,638 $ 4,219 Amortization expense: Ball Bonding Equipment $ — $ — Wedge Bonding Equipment — — Advanced Solutions — — APS 226 359 All Others 1,029 943 Corporate Expenses 92 92 $ 1,347 $ 1,394 |
COMMITMENTS, CONTINGENCIES AND
COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS (Notes) | 3 Months Ended |
Dec. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS | 15. COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS Warranty Expense The Company’s equipment is generally shipped with a one-year warranty against manufacturing defects. The Company establishes reserves for estimated warranty expense when revenue for the related equipment is recognized. The reserve for estimated warranty expense is based upon historical experience and management’s estimate of future warranty costs, including product part replacement, freight charges and related labor costs expected to be incurred in correcting manufacturing defects during the warranty period. The following table reflects the reserve for warranty activity for the three months ended December 30, 2023 and December 31, 2022: Three months ended (in thousands) December 30, 2023 December 31, 2022 Reserve for warranty, beginning of period $ 10,457 $ 13,443 Provision for warranty 2,936 2,100 Utilization of reserve (3,226) (4,122) Reserve for warranty, end of period $ 10,167 $ 11,421 Other Commitments and Contingencies The following table reflects obligations not reflected on the Consolidated Condensed Balance Sheets as of December 30, 2023: Payments due by fiscal year (in thousands) Total 2024 2025 2026 2027 2028 Thereafter Inventory purchase obligation (1) $ 167,469 $ 97,313 $ 70,156 $ — $ — $ — $ — (1) The Company orders inventory components in the normal course of its business. A portion of these orders are non-cancelable and a portion may have varying penalties and charges in the event of cancellation. From time to time, the Company is party to or the target of lawsuits, claims, investigations and proceedings, including for personal injury, intellectual property, commercial, contract, and employment matters, which are handled and defended in the ordinary course of business. The Company accrues a contingent loss liability for such matters when it is probable that a liability has been incurred and the amount can be reasonably estimated. When a single amount cannot be reasonably estimated but the cost can be estimated within a range, the Company accrues the minimum amount. The Company expenses legal costs, including those expected to be incurred in connection with a loss contingency, as incurred. Unfunded Capital Commitments As of December 30, 2023, the Company also has an obligation to fund uncalled capital commitments of approximately $7.8 million, as and when required, in relation to its investment in a private equity fund. Concentrations The following table reflects significant customer concentrations as a percentage of net revenue for the three months ended December 30, 2023 and December 31, 2022: Three months ended December 30, 2023 December 31, 2022 STMicroelectronics N.V. * 12.8 % First Technology China Ltd. (1) * 11.2 % Matfron (Shanghai) Semiconductor Technology Co.,Ltd. 10.6 % * * Represents less than 10% of total net revenue (1) Distributor of the Company’s products The following table reflects significant customer concentrations as a percentage of total accounts receivable as of December 30, 2023 and December 31, 2022: As of December 30, 2023 December 31, 2022 Forehope Electronic (Ningbo) Co., Ltd. 10.7 % * Haoseng Industrial Co., Ltd. (1) * 15.7 % * Represents less than 10% of total accounts receivable |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
Pay vs Performance Disclosure | ||
Net income | $ 9,293 | $ 14,589 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Dec. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidation | These consolidated condensed financial statements include the accounts of Kulicke and Soffa Industries, Inc. and its subsidiaries (“we,” “us,” “our,” or the “Company”), with appropriate elimination of intercompany balances and transactions. The interim consolidated condensed financial statements are unaudited and, in management’s opinion, include all adjustments (consisting only of normal and recurring adjustments) necessary for a fair statement of results for these interim periods. The interim consolidated condensed financial statements do not include all of the information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2023 (the “2023 Annual Report”) filed with the Securities and Exchange Commission on November 16, 2023, which includes the Consolidated Balance Sheets as of September 30, 2023 and October 1, 2022, and the related Consolidated Statements of Operations, Statements of Comprehensive Income, Changes in Shareholders’ Equity and Cash Flows for each of the years in the three-year period ended September 30, 2023. The results of operations for any interim period are not necessarily indicative of the results of operations for any other interim period or for a full year. |
Fiscal Year | Fiscal Year |
Nature of business | Nature of Business The Company designs, develops, manufactures and sells capital equipment and tools as well as services, maintains, repairs and upgrades equipment, all used to assemble semiconductor devices. The Company’s operating results depend upon the capital and operating expenditures of integrated device manufacturers (“IDMs”), outsourced semiconductor assembly and test providers (“OSATs”), foundry service providers, and other electronics manufacturers and automotive electronics suppliers worldwide which, in turn, depend on the current and anticipated market demand for semiconductors and products utilizing semiconductors. The semiconductor industry is highly volatile and experiences downturns and slowdowns which can have a severe negative effect on the semiconductor industry’s demand for semiconductor capital equipment, including assembly equipment manufactured and sold by the Company and, to a lesser extent, tools, solutions and services, including those sold or provided by the Company. These downturns and slowdowns have in the past adversely affected the Company’s operating results. The Company believes such volatility will continue to characterize the industry and the Company’s operations in the future. |
Use of Estimates | Use of Estimates The preparation of consolidated condensed financial statements requires management to make assumptions, estimates and judgments that affect the reported amounts of assets and liabilities, net revenue and expenses during the reporting periods, and disclosures of contingent assets and liabilities as of the date of the consolidated condensed financial statements. On an ongoing basis, management evaluates estimates, including but not limited to, those related to accounts receivable, reserves for excess and obsolete inventory, carrying value and lives of fixed assets, goodwill and intangible assets, accrual for customer credit programs, the valuation estimates and assessment of impairment and observable price adjustments, income taxes, equity-based compensation expense, and warranties. Management bases its estimates on historical experience and on various other assumptions believed to be reasonable. As a result, management makes judgments regarding the carrying values of the Company’s assets and liabilities that are not readily apparent from other sources. Authoritative pronouncements, historical experience and assumptions are used as the basis for making estimates, and on an ongoing basis, management evaluates these estimates. Actual results may differ from these estimates. |
Significant Accounting Policies | Significant Accounting Policies |
Revision of Segment-Related Disclosures within the Previously Issued Consolidated Financial Statements | Revision of Segment-Related Disclosures within the Previously Issued Consolidated Financial Statements During the third quarter of fiscal year 2023, in response to comment letters from the staff of the Securities and Exchange Commission (the "SEC"), the Company reconsidered the guidance under ASC 280, Segment Reporting , and determined that certain prior period conclusions about the Company’s operating and reportable segments were erroneous. As a result, the Company had incorrectly presented certain segment-related disclosures in the notes to our previously issued consolidated financial statements, included in our Annual Report on Form 10-K for the year ended October 1, 2022, originally filed with the SEC on November 17, 2022 (the "Original Form 10-K"). The Company has evaluated the materiality of the incorrect presentation of its segment-related disclosures in the notes to its consolidated financial statements and has concluded that it did not result in a material misstatement of the Company’s previously issued consolidated financial statements. |
Recent accounting pronouncements | Recent Accounting Pronouncements Disclosure Improvements In October 2023, the Financial Accounting Standards Board (the "FASB") issued ASU 2023-06, Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative. This ASU aligns the requirements in the FASB Accounting Standards Codification with the SEC’s regulations. The amendments in the ASU are expected to clarify or improve disclosure and presentation requirements of a variety of Codification Topics. They will also allow users to more easily compare entities subject to the SEC’s existing disclosures with those entities that were not previously subject to the requirements, and align the requirements in the Codification with the SEC’s regulations. This ASU will become effective for each amendment on the date on which the SEC removes the related disclosure from its regulations. However, if by June 30, 2027, the SEC has not removed the related disclosure from its regulations, the amendments will be removed from the Codification and not become effective for any entity. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements. Segment Reporting In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosure, which aims to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. In addition, the amendments in the ASU enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment, and contain other disclosure requirements. The purpose of the amendments is to enable investors to better understand an entity's overall performance and assess potential future cash flows. This ASU will be effective for the Company's fiscal year 2025, and interim periods within the fiscal years beginning after the Company’s fiscal year 2026. Early adoption is permitted. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements. Income Taxes In December 2023, the FASB issued ASU 2023-09 Income Taxes |
BALANCE SHEET COMPONENTS (Table
BALANCE SHEET COMPONENTS (Tables) | 3 Months Ended |
Dec. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Components of significant balance sheet accounts | The following tables reflect the components of significant balance sheet accounts as of December 30, 2023 and September 30, 2023: As of (in thousands) December 30, 2023 September 30, 2023 Inventories, net: Raw materials and supplies $ 119,077 $ 114,827 Work in process 85,499 74,555 Finished goods 55,463 49,207 260,039 238,589 Inventory reserves (23,481) (21,285) $ 236,558 $ 217,304 Property, plant and equipment, net: Land $ 2,182 $ 2,182 Buildings and building improvements 23,213 23,105 Leasehold improvements 83,586 82,927 Data processing equipment and software 38,267 37,483 Machinery, equipment, furniture and fixtures 98,773 95,692 Construction in progress 11,345 11,099 257,366 252,488 Accumulated depreciation (150,093) (142,437) $ 107,273 $ 110,051 Accrued expenses and other current liabilities: Accrued customer obligations (1) $ 36,287 $ 35,701 Wages and benefits 23,060 33,096 Dividends payable 11,303 10,710 Commissions and professional fees 4,270 4,091 Accrued leasehold renovations 10,013 11,005 Other 6,260 8,402 $ 91,193 $ 103,005 (1) Represents customer advance payments, customer credit program, accrued warranty expense and accrued retrofit obligations. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Dec. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table summarizes the Company’s recorded goodwill, where applicable, by reportable segments and the “All Others” category (refer to Note 14 for further information) as of December 30, 2023 and September 30, 2023: (in thousands) Wedge Bonding Equipment APS All Others Total Balance at September 30, 2023 (1) $ 18,280 $ 26,109 44,284 $ 88,673 Other — 125 718 $ 843 Balance at December 30, 2023 $ 18,280 $ 26,234 45,002 $ 89,516 (1) Cumulative goodwill impairment pertaining to the “All Others” category as of September 30, 2023 was $45.0 million. |
Net intangible assets | The following table reflects net intangible assets as of December 30, 2023 and September 30, 2023: As of December 30, 2023 As of September 30, 2023 (dollar amounts in thousands) Average estimated Gross Carrying Amount Accumulated Amortization Net Amount Gross Carrying Amount Accumulated Amortization Net Amount Developed technology 6.0 to 15.0 $ 82,874 $ (57,961) $ 24,913 $ 80,959 $ (55,877) $ 25,082 Customer relationships 5.0 to 8.0 $ 37,439 $ (35,530) $ 1,909 $ 36,764 $ (34,789) $ 1,975 Trade and brand name 7.0 to 8.0 $ 7,241 $ (7,241) $ — $ 7,130 $ (7,130) $ — Other intangible assets 1.0 to 8.0 $ 5,618 $ (3,983) $ 1,635 $ 5,617 $ (3,776) $ 1,841 In-process research and development N.A $ 459 $ — $ 459 $ 459 $ — $ 459 $ 133,631 $ (104,715) $ 28,916 $ 130,929 $ (101,572) $ 29,357 |
Estimated annual amortization expense related to intangible assets | The following table reflects estimated annual amortization expense related to intangible assets as of December 30, 2023: As of (in thousands) December 30, 2023 Remaining fiscal 2024 $ 3,916 Fiscal 2025 5,153 Fiscal 2026 5,153 Fiscal 2027 4,878 Fiscal 2028 4,438 Thereafter 5,378 Total amortization expense $ 28,916 |
CASH, CASH EQUIVALENTS, RESTR_2
CASH, CASH EQUIVALENTS, RESTRICTED CASH AND SHORT-TERM INVESTMENTS (Tables) | 3 Months Ended |
Dec. 30, 2023 | |
Cash and Cash Equivalents [Abstract] | |
Cash, cash equivalents, restricted cash and short-term investments | Cash, cash equivalents, and short-term investments consisted of the following as of December 30, 2023: (in thousands) Amortized Unrealized Unrealized Estimated Current assets: Cash $ 39,229 $ — $ — $ 39,229 Cash equivalents: Money market funds (1) 225,429 2 — 225,431 Time deposits (2) 160,000 — — 160,000 Total cash and cash equivalents $ 424,658 $ 2 $ — $ 424,660 Short-term investments: Time deposits (2) 285,000 — — 285,000 Total short-term investments $ 285,000 $ — $ — $ 285,000 Total cash, cash equivalents and short-term investments $ 709,658 $ 2 $ — $ 709,660 (1) The fair value was determined using unadjusted prices in active, accessible markets for identical assets, and as such they were classified as Level 1 assets in the fair value hierarchy. (2) All short-term investments were classified as available-for-sale and the fair value approximates cost basis. The Company did not recognize any realized gains or losses on the sale of investments during the three months ended December 30, 2023. Cash, cash equivalents and short-term investments consisted of the following as of September 30, 2023: (in thousands) Amortized Unrealized Unrealized Estimated Current assets: Cash $ 37,292 $ — $ — $ 37,292 Cash equivalents: Money market funds (1) 202,113 — (10) 202,103 Time deposits (2) 290,007 — — 290,007 Total cash and cash equivalents $ 529,412 $ — $ (10) $ 529,402 Short-term investments: Time deposits (2) 230,000 — — 230,000 Total short-term investments $ 230,000 $ — $ — $ 230,000 Total cash, cash equivalents and short-term investments $ 759,412 $ — $ (10) $ 759,402 (1) The fair value was determined using unadjusted prices in active, accessible markets for identical assets, and as such they were classified as Level 1 assets in the fair value hierarchy. (2) |
EQUITY INVESTMENTS (Tables)
EQUITY INVESTMENTS (Tables) | 3 Months Ended |
Dec. 30, 2023 | |
Equity Method Investments [Abstract] | |
Equity investments | Equity investments consisted of the following as of December 30, 2023 and September 30, 2023: As of (in thousands) December 30, 2023 September 30, 2023 Non-marketable equity securities $ 2,042 $ 716 |
DERIVATIVES FINANCIAL INSTRUM_2
DERIVATIVES FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Dec. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The fair value of derivative instruments on our Consolidated Condensed Balance Sheets as of December 30, 2023 and September 30, 2023 were as follows: As of December 30, 2023 September 30, 2023 (in thousands) Notional Amount Fair Value Asset Derivatives (1) Notional Amount Fair Value Liability Derivatives (2) Derivatives designated as hedging instruments: Foreign exchange forward contracts (3) $ 42,736 $ 747 $ 54,590 $ (723) Total derivatives $ 42,736 $ 747 $ 54,590 $ (723) (1) The fair value of derivative assets is measured using level 2 fair value inputs and is included in prepaid expenses and other current assets on our Consolidated Condensed Balance Sheets. (2) The fair value of derivative liabilities is measured using level 2 fair value inputs and is included in accrued expenses and other current liabilities on our Consolidated Condensed Balance Sheets. (3) Hedged amounts expected to be recognized to income within the next twelve months. |
Derivative Instruments, Gain (Loss) | The effects of derivative instruments designated as cash flow hedges in our Consolidated Condensed Statements of Comprehensive Income for the three months ended December 30, 2023 and December 31, 2022 were as follows: Three months ended (in thousands) December 30, 2023 December 31, 2022 Foreign exchange forward contract in cash flow hedging relationships: Net gain recognized in OCI, net of tax (1) $ 1,255 $ 3,093 Net loss reclassified from accumulated OCI into income, net of tax (2) $ (215) $ (280) (1) Net change in the fair value of the effective portion classified in OCI. (2) |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Dec. 30, 2023 | |
Leases [Abstract] | |
Lease expense and components of lease expense | The following table shows the components of lease expense: Three months ended (in thousands) December 30, 2023 December 31, 2022 Operating lease expense (1) $ 2,857 $ 2,590 (1) Operating lease expense includes short-term lease expense, which is immaterial for the three months ended December 30, 2023 and December 31, 2022. The following table shows the cash flows arising from lease transactions. Cash payments related to short-term leases are not included in the measurement of operating lease liabilities, and, as such, are excluded from the amounts below: Three months ended (in thousands) December 30, 2023 December 31, 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 2,422 $ 2,284 |
Weighted-average lease terms and discount rates | The following table shows the weighted-average lease terms and discount rates for operating leases: As of December 30, 2023 September 30, 2023 Operating leases: Weighted-average remaining lease term (in years) : 7.6 7.7 Weighted-average discount rate: 6.7 % 6.7 % |
Future lease payments after ASC 842 adoption | Future lease payments, excluding short-term leases, as of December 30, 2023, are detailed as follows: As of (in thousands) December 30, 2023 Remaining fiscal 2024 $ 7,346 Fiscal 2025 9,632 Fiscal 2026 8,959 Fiscal 2027 7,052 Fiscal 2028 6,590 Thereafter 23,110 Total minimum lease payments $ 62,689 Less: Interest $ 14,272 Present value of lease obligations $ 48,417 Less: Current portion $ 6,697 Long-term portion of lease obligations $ 41,720 |
SHAREHOLDERS' EQUITY AND EMPL_2
SHAREHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS (Tables) | 3 Months Ended |
Dec. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Accumulated other comprehensive income reflected on the Consolidated Balance Sheets | The following table reflects accumulated other comprehensive loss reflected on the Consolidated Condensed Balance Sheets as of December 30, 2023 and September 30, 2023: As of (in thousands) December 30, 2023 September 30, 2023 Loss from foreign currency translation adjustments $ (13,899) $ (20,178) Unrecognized actuarial loss on pension plan, net of tax (928) (861) Unrealized gain/(loss) on hedging 748 (723) Accumulated other comprehensive loss $ (14,079) $ (21,762) |
Restricted stock and common stock granted | The following table reflects Time-based RSUs, Relative TSR PSUs, Growth PSUs and common stock granted during the three months ended December 30, 2023 and December 31, 2022: Three months ended (shares in thousands) December 30, 2023 December 31, 2022 Time-based RSUs 499 508 Relative TSR PSUs 231 186 Growth PSUs 49 92 Common stock 7 6 Equity-based compensation in shares 786 792 |
Equity-based compensation expense | The following table reflects total equity-based compensation expense, which includes Time-based RSUs, Relative TSR PSUs, Growth PSUs and common stock, included in the Consolidated Condensed Statements of Operations during the three months ended December 30, 2023 and December 31, 2022: Three months ended (in thousands) December 30, 2023 December 31, 2022 Cost of sales $ 359 $ 308 Selling, general and administrative 5,680 4,867 Research and development 1,818 1,346 Total equity-based compensation expense $ 7,857 $ 6,521 The following table reflects equity-based compensation expense, by type of award, for the three months ended December 30, 2023 and December 31, 2022: Three months ended (in thousands) December 30, 2023 December 31, 2022 Time-based RSUs $ 4,543 $ 3,587 Relative TSR PSUs 1,560 1,252 Growth PSUs 1,439 1,445 Common stock 315 237 Total equity-based compensation expense $ 7,857 $ 6,521 |
REVENUE AND CONTRACT BALANCES (
REVENUE AND CONTRACT BALANCES (Tables) | 3 Months Ended |
Dec. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Contract Assets and Liabilities | The following table shows the changes in contract asset balances during the three months ended December 30, 2023 and December 31, 2022: Three months ended (in thousands) December 30, 2023 December 31, 2022 Contract assets, beginning of period $ 10,181 $ 26,317 Additions — 2,670 Transferred to accounts receivable or collected (10,181) — Contract assets, end of period $ — $ 28,987 The following table shows the changes in contract liability balances during the three months ended December 30, 2023 and December 31, 2022: Three months ended (in thousands) December 30, 2023 December 31, 2022 Contract liabilities, beginning of period $ 4,797 $ 3,160 Revenue recognized (8,543) (7,270) Additions 12,325 11,891 Contract liabilities, end of period $ 8,579 $ 7,781 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Dec. 30, 2023 | |
Earnings Per Share [Abstract] | |
Reconciliation of shares used in the basic and diluted net income per share computation | The following table reflects a reconciliation of the shares used in the basic and diluted net income per share computation for the three months ended December 30, 2023 and December 31, 2022: Three months ended (in thousands, except per share data) December 30, 2023 December 31, 2022 Basic Diluted Basic Diluted NUMERATOR: Net income $ 9,293 $ 9,293 $ 14,589 $ 14,589 DENOMINATOR: Weighted average shares outstanding - Basic 56,650 56,650 57,051 57,051 Dilutive effect of Equity Plans 373 678 Weighted average shares outstanding - Diluted 57,023 57,729 EPS: Net income per share - Basic $ 0.16 $ 0.16 $ 0.26 $ 0.26 Effect of dilutive shares — (0.01) Net income per share - Diluted $ 0.16 $ 0.25 Anti-dilutive shares (1) 25 1 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 3 Months Ended |
Dec. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Provision for income taxes and the effective tax rate | The following table reflects the provision for income taxes and the effective tax rate for the three months ended December 30, 2023 and December 31, 2022: Three months ended (dollar amounts in thousands) December 30, 2023 December 31, 2022 Provision for income taxes $ 2,277 $ 3,758 Effective tax rate 19.7 % 20.5 % |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Dec. 30, 2023 | |
Segment Reporting [Abstract] | |
Operating information by segment | The following table reflects operating information by segment for the three months ended December 30, 2023 and December 31, 2022: Three months ended (in thousands) December 30, 2023 December 31, 2022 Net revenue: Ball Bonding Equipment $ 86,270 $ 53,649 Wedge Bonding Equipment 23,459 54,656 Advanced Solutions 11,324 14,707 APS 41,241 40,861 All Others 8,895 12,360 Net revenue 171,189 176,233 Income/(loss) from operations: Ball Bonding Equipment 27,714 17,059 Wedge Bonding Equipment 4,294 19,427 Advanced Solutions (13,435) (10,735) APS 12,246 11,295 All Others (8,074) (4,463) Corporate Expenses (21,052) (20,761) Income from operations $ 1,693 $ 11,822 |
Schedule of net revenue by Capital Equipment end markets | The following table reflects net revenue by end markets served for the three months ended December 30, 2023 and December 31, 2022: Three months ended (in thousands) December 30, 2023 December 31, 2022 General Semiconductor $ 70,948 $ 68,372 Automotive & Industrial 23,521 53,180 LED 5,732 9,193 Memory 29,747 4,627 APS 41,241 40,861 Total revenue $ 171,189 $ 176,233 |
Capital expenditures, depreciation and amortization expense | The following table reflects capital expenditures, depreciation expense and amortization expense for the three months ended December 30, 2023 and December 31, 2022: Three months ended (in thousands) December 30, 2023 December 31, 2022 Capital expenditures: Ball Bonding Equipment $ 396 $ 184 Wedge Bonding Equipment 14 185 Advanced Solutions 244 11,707 APS 425 1,325 All Others 141 166 Corporate Expenses 2,313 2,084 $ 3,533 $ 15,651 Depreciation expense: Ball Bonding Equipment $ 321 $ 376 Wedge Bonding Equipment 284 275 Advanced Solutions 3,047 618 APS 1,323 1,609 All Others 380 269 Corporate Expenses 1,283 1,072 $ 6,638 $ 4,219 Amortization expense: Ball Bonding Equipment $ — $ — Wedge Bonding Equipment — — Advanced Solutions — — APS 226 359 All Others 1,029 943 Corporate Expenses 92 92 $ 1,347 $ 1,394 |
COMMITMENTS, CONTINGENCIES AN_2
COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS (Tables) | 3 Months Ended |
Dec. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Reserve for product warranty activity | The following table reflects the reserve for warranty activity for the three months ended December 30, 2023 and December 31, 2022: Three months ended (in thousands) December 30, 2023 December 31, 2022 Reserve for warranty, beginning of period $ 10,457 $ 13,443 Provision for warranty 2,936 2,100 Utilization of reserve (3,226) (4,122) Reserve for warranty, end of period $ 10,167 $ 11,421 |
Obligations not reflected on the Consolidated Balance Sheet | The following table reflects obligations not reflected on the Consolidated Condensed Balance Sheets as of December 30, 2023: Payments due by fiscal year (in thousands) Total 2024 2025 2026 2027 2028 Thereafter Inventory purchase obligation (1) $ 167,469 $ 97,313 $ 70,156 $ — $ — $ — $ — (1) |
Schedule of Revenue by Major Customers by Reporting Segments | The following table reflects significant customer concentrations as a percentage of net revenue for the three months ended December 30, 2023 and December 31, 2022: Three months ended December 30, 2023 December 31, 2022 STMicroelectronics N.V. * 12.8 % First Technology China Ltd. (1) * 11.2 % Matfron (Shanghai) Semiconductor Technology Co.,Ltd. 10.6 % * * Represents less than 10% of total net revenue (1) Distributor of the Company’s products |
Significant customer concentrations as a percentage of total accounts receivable | The following table reflects significant customer concentrations as a percentage of total accounts receivable as of December 30, 2023 and December 31, 2022: As of December 30, 2023 December 31, 2022 Forehope Electronic (Ningbo) Co., Ltd. 10.7 % * Haoseng Industrial Co., Ltd. (1) * 15.7 % * Represents less than 10% of total accounts receivable |
BALANCE SHEET COMPONENTS (Compo
BALANCE SHEET COMPONENTS (Components of significant balance sheet accounts) (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Sep. 30, 2023 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Short-term investments | $ 285,000 | $ 230,000 |
Inventories, net: | ||
Raw materials and supplies | 119,077 | 114,827 |
Work in process | 85,499 | 74,555 |
Finished goods | 55,463 | 49,207 |
Inventory, gross | 260,039 | 238,589 |
Inventory reserves | (23,481) | (21,285) |
Inventories, net | 236,558 | 217,304 |
Property, plant and equipment, net: | ||
Land | 2,182 | 2,182 |
Buildings and building improvements | 23,213 | 23,105 |
Leasehold improvements | 83,586 | 82,927 |
Data processing equipment and software | 38,267 | 37,483 |
Machinery, equipment, furniture and fixtures | 98,773 | 95,692 |
Construction in progress | 11,345 | 11,099 |
Property, plant and equipment, gross | 257,366 | 252,488 |
Accumulated depreciation | (150,093) | (142,437) |
Property, plant and equipment, net | 107,273 | 110,051 |
Accrued expenses and other current liabilities: | ||
Accrued customer obligations | 36,287 | 35,701 |
Wages and benefits | 23,060 | 33,096 |
Dividends payable | 11,303 | 10,710 |
Commissions and professional fees | 4,270 | 4,091 |
Accrued leasehold renovations | 10,013 | 11,005 |
Other | 6,260 | 8,402 |
Accrued expenses and other current liabilities | $ 91,193 | $ 103,005 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS (Goodwill by Reportable Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 30, 2023 | Sep. 30, 2023 | |
Goodwill [Roll Forward] | ||
Balance at October 1, 2022 | $ 88,673 | |
Other | 843 | |
Balance at December 30, 2023 | 89,516 | |
Goodwill, cumulative impairment | $ 45,000 | |
Ball Bonding Equipment | ||
Goodwill [Roll Forward] | ||
Balance at October 1, 2022 | 18,280 | |
Other | 0 | |
Balance at December 30, 2023 | 18,280 | |
APS | ||
Goodwill [Roll Forward] | ||
Balance at October 1, 2022 | 26,109 | |
Other | 125 | |
Balance at December 30, 2023 | 26,234 | |
All Others | ||
Goodwill [Roll Forward] | ||
Balance at October 1, 2022 | 44,284 | |
Other | 718 | |
Balance at December 30, 2023 | $ 45,002 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS (Net intangible assets) (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Sep. 30, 2023 |
Schedule Of Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 133,631 | $ 130,929 |
Accumulated Amortization | (104,715) | (101,572) |
Net Amount | 28,916 | 29,357 |
In-process research and development | ||
Schedule Of Intangible Assets [Line Items] | ||
Gross Carrying Amount | 459 | 459 |
Accumulated Amortization | 0 | 0 |
Net Amount | 459 | 459 |
Developed technology | ||
Schedule Of Intangible Assets [Line Items] | ||
Gross Carrying Amount | 82,874 | 80,959 |
Accumulated Amortization | (57,961) | (55,877) |
Net Amount | $ 24,913 | 25,082 |
Developed technology | Minimum | ||
Schedule Of Intangible Assets [Line Items] | ||
Average estimated useful lives (in years) | 6 years | |
Developed technology | Maximum | ||
Schedule Of Intangible Assets [Line Items] | ||
Average estimated useful lives (in years) | 15 years | |
Customer relationships | ||
Schedule Of Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 37,439 | 36,764 |
Accumulated Amortization | (35,530) | (34,789) |
Net Amount | $ 1,909 | 1,975 |
Customer relationships | Minimum | ||
Schedule Of Intangible Assets [Line Items] | ||
Average estimated useful lives (in years) | 5 years | |
Customer relationships | Maximum | ||
Schedule Of Intangible Assets [Line Items] | ||
Average estimated useful lives (in years) | 8 years | |
Trade and brand name | ||
Schedule Of Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 7,241 | 7,130 |
Accumulated Amortization | (7,241) | (7,130) |
Net Amount | $ 0 | 0 |
Trade and brand name | Minimum | ||
Schedule Of Intangible Assets [Line Items] | ||
Average estimated useful lives (in years) | 7 years | |
Trade and brand name | Maximum | ||
Schedule Of Intangible Assets [Line Items] | ||
Average estimated useful lives (in years) | 8 years | |
Other intangible assets | ||
Schedule Of Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 5,618 | 5,617 |
Accumulated Amortization | (3,983) | (3,776) |
Net Amount | $ 1,635 | $ 1,841 |
Other intangible assets | Minimum | ||
Schedule Of Intangible Assets [Line Items] | ||
Average estimated useful lives (in years) | 1 year | |
Other intangible assets | Maximum | ||
Schedule Of Intangible Assets [Line Items] | ||
Average estimated useful lives (in years) | 8 years |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS (Estimated annual amortization expense) (Details) $ in Thousands | Dec. 30, 2023 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remaining fiscal 2024 | $ 3,916 |
Fiscal 2025 | 5,153 |
Fiscal 2026 | 5,153 |
Fiscal 2027 | 4,878 |
Fiscal 2028 | 4,438 |
Thereafter | 5,378 |
Total amortization expense | $ 28,916 |
CASH, CASH EQUIVALENTS, RESTR_3
CASH, CASH EQUIVALENTS, RESTRICTED CASH AND SHORT-TERM INVESTMENTS (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Sep. 30, 2023 |
Cash, Cash Equivalents, Restricted Cash and Short-Term Investments [Line Items] | ||
Cash, Amortized Cost | $ 39,229 | $ 37,292 |
Cash, Unrealized Gains | 0 | 0 |
Cash, Unrealized Losses | 0 | 0 |
Cash, Estimated Fair Value | 39,229 | 37,292 |
Cash and Cash Equivalents, Amortized Cost | 424,658 | 529,412 |
Cash and Cash Equivalents, Unrealized Gain | 2 | 0 |
Cash and Cash Equivalents, Unrealized Loss | 0 | (10) |
Cash and Cash Equivalents, Estimated Fair Value | 424,660 | 529,402 |
Short-term investments, Amortized Cost | 285,000 | 230,000 |
Short-term Investments, Unrealized Gain | 0 | 0 |
Short-term Investments, Unrealized Loss | 0 | 0 |
Short-term Investments, Estimated Fair Value | 285,000 | 230,000 |
Cash, Cash Equivalents, Restricted Cash, and Short-Term Investments, Amortized Cost | 709,658 | 759,412 |
Cash, Cash Equivalents, Restricted Cash, and Short-Term Investments, Unrealized Gain | 2 | 0 |
Cash, Cash Equivalents, Restricted Cash, and Short-Term Investments, Unrealized Loss | 0 | (10) |
Cash, Cash Equivalents, Restricted Cash, and Short-Term Investments, Estimated Fair Value | 709,660 | 759,402 |
Money market funds | ||
Cash, Cash Equivalents, Restricted Cash and Short-Term Investments [Line Items] | ||
Cash Equivalents, Amortized Cost | 225,429 | 202,113 |
Cash Equivalents, Unrealized Gain | 2 | 0 |
Cash Equivalents, Unrealized Loss | 0 | (10) |
Cash Equivalents, Estimated Fair Value | 225,431 | 202,103 |
Time deposits | ||
Cash, Cash Equivalents, Restricted Cash and Short-Term Investments [Line Items] | ||
Cash Equivalents, Amortized Cost | 160,000 | 290,007 |
Cash Equivalents, Unrealized Gain | 0 | 0 |
Cash Equivalents, Unrealized Loss | 0 | 0 |
Cash Equivalents, Estimated Fair Value | 160,000 | 290,007 |
Short-term investments, Amortized Cost | 285,000 | 230,000 |
Short-term Investments, Unrealized Gain | 0 | 0 |
Short-term Investments, Unrealized Loss | 0 | 0 |
Short-term Investments, Estimated Fair Value | $ 285,000 | $ 230,000 |
EQUITY INVESTMENTS (Details)
EQUITY INVESTMENTS (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Sep. 30, 2023 |
Equity Method Investments [Abstract] | ||
Non-marketable equity securities | $ 2,042 | $ 716 |
Equity securities funded | 2,200 | |
Cumulative fair value loss | $ 100 |
DERIVATIVES FINANCIAL INSTRUM_3
DERIVATIVES FINANCIAL INSTRUMENTS (Fair value of derivative instruments) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 30, 2023 | Sep. 30, 2023 | |
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 42,736 | $ 54,590 |
Fair value asset, derivatives | $ 747 | |
Fair value liability, derivates | (723) | |
Gain (loss) reclassification, estimate of time to transfer | 12 months | |
Derivatives designated as hedging instruments: | Foreign exchange forward contracts | ||
Derivatives, Fair Value [Line Items] | ||
Foreign exchange forward contract, term of contract | 12 months | |
Notional Amount | $ 42,736 | 54,590 |
Accrued Expenses and Other Current Liabilities | Derivatives designated as hedging instruments: | Foreign exchange forward contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair value asset, derivatives | $ 747 | |
Fair value liability, derivates | $ (723) |
DERIVATIVES FINANCIAL INSTRUM_4
DERIVATIVES FINANCIAL INSTRUMENTS (Gain (loss) of derivative instruments) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Unrealized gain on derivative instruments, net of tax | $ 1,255 | $ 3,093 |
Reclassification adjustment for loss on derivative instruments recognized, net of tax | (215) | (280) |
Unrealized gain/(loss) on hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Unrealized gain on derivative instruments, net of tax | 1,255 | 3,093 |
Reclassification adjustment for loss on derivative instruments recognized, net of tax | $ (215) | $ (280) |
LEASES - Narrative (Details)
LEASES - Narrative (Details) | 3 Months Ended |
Dec. 30, 2023 extend_options | |
Lessee, Lease, Description [Line Items] | |
Options to extend | 4 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Operating lease, term of contract | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Operating lease, term of contract | 20 years |
LEASES - Lease Expense (Details
LEASES - Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
Lease, Cost [Abstract] | ||
Operating lease expense | $ 2,857 | $ 2,590 |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash outflows from operating leases | $ 2,422 | $ 2,284 |
LEASES - Lease Terms and Discou
LEASES - Lease Terms and Discount Rates (Details) | Dec. 30, 2023 | Sep. 30, 2023 |
Leases [Abstract] | ||
Weighted-average remaining lease term (in years): | 7 years 7 months 6 days | 7 years 8 months 12 days |
Weighted-average discount rate: | 6.70% | 6.70% |
LEASES - Future Lease Payments
LEASES - Future Lease Payments After Adoption ASC 842 (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Sep. 30, 2023 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
Remaining fiscal 2024 | $ 7,346 | |
Fiscal 2025 | 9,632 | |
Fiscal 2026 | 8,959 | |
Fiscal 2027 | 7,052 | |
Fiscal 2028 | 6,590 | |
Thereafter | 23,110 | |
Total minimum lease payments | 62,689 | |
Less: Interest | 14,272 | |
Present value of lease obligations | 48,417 | |
Less: Current portion | 6,697 | $ 6,574 |
Long-term portion of lease obligations | $ 41,720 | $ 41,839 |
DEBT AND OTHER OBLIGATIONS DE_2
DEBT AND OTHER OBLIGATIONS DEBT AND OTHER OBLIGATIONS (Details) - USD ($) | 3 Months Ended | ||
Dec. 30, 2023 | Feb. 15, 2019 | Nov. 22, 2013 | |
Citibank | |||
Capital Leased Assets [Line Items] | |||
Capacity under credit facility | $ 5,000,000 | ||
Outstanding amounts under credit facility | $ 5,000,000 | ||
Facility agreements | MUFG Bank, Ltd., Singapore Branch | |||
Capital Leased Assets [Line Items] | |||
Capacity under credit facility | $ 150,000,000 | ||
Outstanding amounts under credit facility | $ 0 | ||
Secured Overnight Financing Rate (SOFR) | Facility agreements | MUFG Bank, Ltd., Singapore Branch | |||
Capital Leased Assets [Line Items] | |||
Debt instrument, basis spread on variable rate | 1.50% |
SHAREHOLDERS' EQUITY AND EMPL_3
SHAREHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 20 Months Ended | |||||||
Oct. 18, 2021 | Dec. 30, 2023 | Dec. 31, 2022 | Aug. 01, 2025 | Mar. 03, 2022 | Oct. 02, 2021 | Jan. 31, 2019 | Jul. 10, 2018 | Aug. 15, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock repurchase program, authorized amount | $ 800,000 | $ 400,000 | $ 300,000 | $ 200,000 | $ 100,000 | ||||
Authorized amount, additional amount | $ 400,000 | ||||||||
Value of shares acquired | $ 26,840 | $ 45,382 | |||||||
Cash dividends declared (in dollars per share) | $ 0.20 | ||||||||
Common stock cash dividends paid | $ (10,710) | $ (9,743) | |||||||
Relative TSR calculation period | 90 days | ||||||||
Forecast | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Value of shares acquired | $ 169,000 | ||||||||
Relative TSR Performance Share Units | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Total shareholder return award performance measurement period | 3 years | ||||||||
Revenue Growth Performance Share Units | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Total shareholder return award performance measurement period | 3 years | ||||||||
Time-based Restricted Share Units | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Total shareholder return award performance measurement period | 3 years | ||||||||
Omnibus Incentive Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares available for grant (in shares) | 1,700,000 | ||||||||
the Program | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Value of shares acquired | $ 26,800 | ||||||||
Shares repurchased in period (shares) | 555,600 | ||||||||
Remaining repurchase authorized amount | $ 154,200 | ||||||||
Minimum | Relative TSR Performance Share Units | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 0% | ||||||||
Minimum | Revenue Growth Performance Share Units | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 0% | ||||||||
Maximum | Relative TSR Performance Share Units | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 200% | ||||||||
Maximum | Revenue Growth Performance Share Units | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 200% |
SHAREHOLDERS' EQUITY AND EMPL_4
SHAREHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS (Accumulated other comprehensive income) (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Sep. 30, 2023 |
Loss from foreign currency translation adjustments | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity | $ (13,899) | $ (20,178) |
Unrecognized actuarial loss on pension plan, net of tax | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity | (928) | (861) |
Unrealized gain/(loss) on hedging | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity | 748 | (723) |
Accumulated Other Comprehensive (Loss)/Income | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity | $ (14,079) | $ (21,762) |
SHAREHOLDERS' EQUITY AND EMPL_5
SHAREHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS (Restricted stock and common stock granted) (Details) - shares shares in Thousands | 3 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity-based compensation in shares | 786 | 792 |
Time-based RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity-based compensation in shares | 499 | 508 |
Relative TSR PSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity-based compensation in shares | 231 | 186 |
Growth PSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity-based compensation in shares | 49 | 92 |
Common Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity-based compensation in shares | 7 | 6 |
SHAREHOLDERS' EQUITY AND EMPL_6
SHAREHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS (Total equity-based compensation expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total equity-based compensation expense | $ 7,857 | $ 6,521 |
Time-based RSUs | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total equity-based compensation expense | 4,543 | 3,587 |
Relative TSR PSUs | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total equity-based compensation expense | 1,560 | 1,252 |
Growth PSUs | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total equity-based compensation expense | 1,439 | 1,445 |
Common Stock | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total equity-based compensation expense | 315 | 237 |
Cost of sales | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total equity-based compensation expense | 359 | 308 |
Selling, general and administrative | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total equity-based compensation expense | 5,680 | 4,867 |
Research and development | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total equity-based compensation expense | $ 1,818 | $ 1,346 |
REVENUE AND CONTRACT BALANCES -
REVENUE AND CONTRACT BALANCES - Contract Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
Contract with Customer, Asset, Allowance for Credit Loss [Roll Forward] | ||
Contract assets, beginning of period | $ 10,181 | $ 26,317 |
Additions | 0 | 2,670 |
Transferred to accounts receivable or collected | (10,181) | 0 |
Contract assets, end of period | $ 0 | $ 28,987 |
REVENUE AND CONTRACT BALANCES_2
REVENUE AND CONTRACT BALANCES - Contract Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
Change in Contract with Customer, Liability [Roll Forward] | ||
Contract liabilities, beginning of period | $ 4,797 | $ 3,160 |
Revenue recognized | (8,543) | (7,270) |
Additions | 12,325 | 11,891 |
Contract liabilities, end of period | $ 8,579 | $ 7,781 |
EARNINGS PER SHARE (Reconciliat
EARNINGS PER SHARE (Reconciliation of the shares used in the basic and diluted net income per share computation) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
NUMERATOR: | ||
Net income | $ 9,293 | $ 14,589 |
DENOMINATOR: | ||
Weighted average shares outstanding - Basic (in shares) | 56,650,000 | 57,051,000 |
Dilutive effect of Equity Plans (in shares) | 373,000 | 678,000 |
Weighted average shares outstanding - Diluted (in shares) | 57,023,000 | 57,729,000 |
EPS: | ||
Net income per share - Basic (in dollars per share) | $ 0.16 | $ 0.26 |
Effect of dilutive shares (in dollars per share) | 0 | 0.01 |
Net income per share - Diluted (in dollars per share) | $ 0.16 | $ 0.25 |
Anti-dilutive shares (in shares) | 25,000 | 1,000 |
INCOME TAXES (Provision for inc
INCOME TAXES (Provision for income taxes and the effective tax rate) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Provision for income taxes | $ 2,277 | $ 3,758 |
Effective tax rate | 19.70% | 20.50% |
SEGMENT INFORMATION (Narrative)
SEGMENT INFORMATION (Narrative) (Details) | 3 Months Ended |
Dec. 30, 2023 segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 4 |
SEGMENT INFORMATION (Operating
SEGMENT INFORMATION (Operating information by segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
Net revenue: | ||
Net revenue | $ 171,189 | $ 176,233 |
Income/(loss) from operations: | ||
Income from operations | 1,693 | 11,822 |
Ball Bonding Equipment | ||
Net revenue: | ||
Net revenue | 86,270 | 53,649 |
Income/(loss) from operations: | ||
Income from operations | 27,714 | 17,059 |
Wedge Bonding Equipment | ||
Net revenue: | ||
Net revenue | 23,459 | 54,656 |
Income/(loss) from operations: | ||
Income from operations | 4,294 | 19,427 |
Advanced Solutions | ||
Net revenue: | ||
Net revenue | 11,324 | 14,707 |
Income/(loss) from operations: | ||
Income from operations | (13,435) | (10,735) |
APS | ||
Net revenue: | ||
Net revenue | 41,241 | 40,861 |
Income/(loss) from operations: | ||
Income from operations | 12,246 | 11,295 |
All Others | ||
Net revenue: | ||
Net revenue | 8,895 | 12,360 |
Income/(loss) from operations: | ||
Income from operations | (8,074) | (4,463) |
Corporate Expenses | ||
Income/(loss) from operations: | ||
Income from operations | $ (21,052) | $ (20,761) |
SEGMENT INFORMATION (Schedule o
SEGMENT INFORMATION (Schedule of net revenue by Capital Equipment end markets (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total revenue | $ 171,189 | $ 176,233 |
Ball Bonding Equipment | General Semiconductor | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total revenue | 70,948 | 68,372 |
Ball Bonding Equipment | Automotive & Industrial | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total revenue | 23,521 | 53,180 |
Ball Bonding Equipment | LED | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total revenue | 5,732 | 9,193 |
Ball Bonding Equipment | Memory | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total revenue | 29,747 | 4,627 |
APS | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total revenue | $ 41,241 | $ 40,861 |
SEGMENT INFORMATION (Capital ex
SEGMENT INFORMATION (Capital expenditures, depreciation and amortization expense by segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Capital expenditures: | $ 3,533 | $ 15,651 |
Depreciation and amortization expense: | ||
Depreciation expense: | 6,638 | 4,219 |
Amortization expense: | 1,347 | 1,394 |
Ball Bonding Equipment | ||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Capital expenditures: | 396 | 184 |
Depreciation and amortization expense: | ||
Depreciation expense: | 321 | 376 |
Amortization expense: | 0 | 0 |
Wedge Bonding Equipment | ||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Capital expenditures: | 14 | 185 |
Depreciation and amortization expense: | ||
Depreciation expense: | 284 | 275 |
Amortization expense: | 0 | 0 |
Advanced Solutions | ||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Capital expenditures: | 244 | 11,707 |
Depreciation and amortization expense: | ||
Depreciation expense: | 3,047 | 618 |
Amortization expense: | 0 | 0 |
APS | ||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Capital expenditures: | 425 | 1,325 |
Depreciation and amortization expense: | ||
Depreciation expense: | 1,323 | 1,609 |
Amortization expense: | 226 | 359 |
All Others | ||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Capital expenditures: | 141 | 166 |
Depreciation and amortization expense: | ||
Depreciation expense: | 380 | 269 |
Amortization expense: | 1,029 | 943 |
Corporate Expenses | ||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Capital expenditures: | 2,313 | 2,084 |
Depreciation and amortization expense: | ||
Depreciation expense: | 1,283 | 1,072 |
Amortization expense: | $ 92 | $ 92 |
COMMITMENTS, CONTINGENCIES AN_3
COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS (Reserve for product warranty activity) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ||
Reserve for warranty, beginning of period | $ 10,457 | $ 13,443 |
Provision for warranty | 2,936 | 2,100 |
Utilization of reserve | (3,226) | (4,122) |
Reserve for warranty, end of period | $ 10,167 | $ 11,421 |
COMMITMENTS, CONTINGENCIES AN_4
COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS (Obligations not reflected on the Consolidated Balance Sheet) (Details) $ in Thousands | Dec. 30, 2023 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Total | $ 167,469 |
2024 | 97,313 |
2025 | 70,156 |
2026 | 0 |
2027 | 0 |
2028 | 0 |
Thereafter | $ 0 |
COMMITMENTS, CONTINGENCIES AN_5
COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS (Significant customer concentrations as a percentage of net revenue) (Details) - Revenue Benchmark - Customer Concentration Risk | 3 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
STMicroelectronics N.V. | ||
Concentration Risk [Line Items] | ||
Customer concentrations risk percentage | 12.80% | |
First Technology China Ltd. | ||
Concentration Risk [Line Items] | ||
Customer concentrations risk percentage | 11.20% | |
Matfron (Shanghai) Semiconductor Technology Co.,Ltd. | ||
Concentration Risk [Line Items] | ||
Customer concentrations risk percentage | 10.60% |
COMMITMENTS, CONTINGENCIES AN_6
COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS (Significant customer concentrations as a percentage of total accounts receivable) (Details) - Accounts Receivable - Customer Concentration Risk | 3 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
Forehope Electronic (Ningbo) Co., Ltd. | ||
Concentration Risk [Line Items] | ||
Customer concentrations risk percentage | 10.70% | |
Haoseng Industrial Co., Ltd. (1) | ||
Concentration Risk [Line Items] | ||
Customer concentrations risk percentage | 15.70% |
COMMITMENTS, CONTINGENCIES AN_7
COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS - Narrative (Details) | 3 Months Ended |
Dec. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Period of warranty for manufacturing defects | 1 year |