Kulicke & Soffa Industries reported first fiscal quarter net revenue of $199.6 million, up 20% from $166.1 million in Q1 2025. GAAP net income was $16.8 million, or $0.32 per diluted share, compared with $81.6 million, or $1.51 per share, in the year-ago period (which included a business-cessation gain). On a non-GAAP basis, net income rose to $23.1 million, or $0.44 per share, versus $19.9 million, or $0.37 per share, in Q1 2025, driven by expanded Power Semiconductor and Advanced Packaging sales.

The company delivered a gross margin of 49.6%, compared with 52.4% in Q1 2025, reflecting higher volume in capital-intensive segments. Operating expenses totalled $81.1 million, up 19% year-over-year, as R&D spend increased 7% to $40.4 million to support new dispense and fluxless thermo-compression equipment. Income from operations was $17.8 million, versus $86.6 million in Q1 2025 when including the prior-year one-time gain.

GAAP cash flow from operations was a use of $8.9 million, while adjusted free cash flow was negative $11.6 million, reflecting inventory build to meet anticipated customer demand. Cash and short-term investments totalled $481.1 million at quarter end. The board authorized repurchase of 0.2 million shares at a cost of $6.7 million, returning capital to shareholders and offsetting dilution from equity-based compensation.

For the second quarter ending April 4, 2026, the company forecasts net revenue of $230 million ± $10 million, GAAP diluted EPS of $0.53 ± 10%, and non-GAAP diluted EPS of $0.67 ± 10%. Interim CEO and CFO Lester Wong highlighted prior investments in Power Semiconductor, Advanced Dispense and Advanced Packaging as key drivers for near-term capacity expansion and longer-term market penetration across automotive, compute and memory end markets.