Kulicke & Soffa (NASDAQ: KLIC) Q3 revenue hits $330M as EPS reaches $1.07
Rhea-AI Filing Summary
Kulicke & Soffa Industries reported results for its third fiscal quarter ended July 4, 2026. Net revenue was $330.4 million, compared with $148.4 million a year earlier and $242.6 million in the prior quarter. GAAP net income was $57.4 million, or $1.07 per diluted share, versus a net loss of $3.3 million, while non-GAAP net income was $64.2 million, or $1.20 per diluted share. Gross margin was 47.8%, and income from operations was $68.3 million.
For the first nine months of fiscal 2026, net revenue was $772.7 million and net income was $109.4 million, compared with a net loss in the prior-year period. Third-quarter cash provided by operations was $45.2 million, with adjusted free cash flow of $41.0 million, and cash and cash equivalents were $368.6 million. The company repurchased 5.0 thousand shares for $0.5 million and reported shareholders’ equity of about $912.0 million.
Management cited “strong sequential growth” and improving demand across all end markets. For the fourth quarter of fiscal 2026, Kulicke & Soffa expects net revenue of about $375 million +/- $20 million, GAAP diluted EPS of about $1.29 +/- 10%, and non-GAAP diluted EPS of about $1.42 +/- 10%. An expanded Advanced Solutions facility is anticipated to be completed in the second half of fiscal 2027.
Positive
- Q3 2026 performance improved sharply year over year, with net revenue rising to $330.4 million from $148.4 million and a swing from a $3.3 million net loss to $57.4 million of net income and $1.07 diluted EPS.
- Guidance signals continued growth, with Q4 fiscal 2026 net revenue expected around $375 million +/- $20 million and GAAP diluted EPS about $1.29, alongside non-GAAP diluted EPS of about $1.42.
Negative
- None.
Insights
Analyzing...
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q3 2026 Net Revenue: $330,409 (in thousands)
Q3 2026 Net Income: $57,416 (in thousands)
Q3 2026 Diluted EPS: $1.07
+5 more
8 metrics
Q3 2026 Net Revenue
$330,409 (in thousands)
Three months ended July 4, 2026 net revenue
Q3 2026 Net Income
$57,416 (in thousands)
GAAP net income for the three months ended July 4, 2026
Q3 2026 Diluted EPS
$1.07
GAAP diluted net income per share for Q3 2026
Q3 2026 Non-GAAP Diluted EPS
$1.20
Non-GAAP diluted net income per share for Q3 2026
Q3 2026 Gross Margin
47.8%
Gross margin highlighted in third quarter fiscal 2026 financial highlights
GAAP Cash Flow from Operations Q3 2026
$45,216 (in thousands)
Net cash provided by operating activities for three months ended July 4, 2026
Cash and Cash Equivalents
$368,573 (in thousands)
Cash and cash equivalents as of July 4, 2026
Q4 2026 Revenue Outlook
$375 million +/- $20 million
Expected net revenue for the fourth quarter of fiscal 2026
Key Terms
non-GAAP financial results, adjusted free cash flow, operating margin, equity-based compensation, +2 more
6 terms
non-GAAP financial results financial
"this press release also contains the following non-GAAP financial results"
adjusted free cash flow financial
"GAAP cash flow from operations of $45.2 million; Adjusted free cash flow of $41.0 million"
Adjusted free cash flow is the amount of money a company generates from its operations after accounting for essential expenses and investments, like maintaining or upgrading equipment. It shows how much cash is truly available to grow the business, pay debts, or return to shareholders, helping investors see the company's financial health more clearly.
operating margin financial
"Reconciliation of U.S. GAAP to Non-GAAP Income from Operations and Operating Margin"
Operating margin shows how much profit a company makes from its core business activities after paying for costs like wages and materials. It’s useful because it tells you how efficiently a company is running—higher margins mean it keeps more money from each dollar of sales, which can indicate better management or stronger products.
equity-based compensation financial
"costs associated with restructuring and severance, equity-based compensation, acquisition and integration costs"
Equity-based compensation is pay given to employees or contractors in the form of company ownership—such as stock, stock options, or restricted shares—instead of or in addition to cash. It matters to investors because it aligns workers’ interests with shareholders (like giving employees a slice of the company pie), but can also dilute existing owners and appears as a real cost on financial statements, affecting earnings and share value.
restructuring financial
"costs associated with restructuring and severance, equity-based compensation"
Restructuring is a deliberate rearrangement of a company’s operations, finances, or ownership—like reorganizing a cluttered house to run more efficiently—often involving cost cuts, asset sales, debt changes, or staff moves. Investors pay attention because restructuring can improve profitability and free up cash, but it can also signal distress, incur one-time costs, or dilute shareholder value; its success affects future earnings and stock performance.
forward-looking statements regulatory
"these statements are “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act"
Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.
Earnings Snapshot
Q3 2026 net revenue: $330.4 million · Guidance included
Third fiscal quarter ended July 4, 2026
Q3 2026 net revenue
$330.4 million
up from $148.4 million in Q3 2025
Q3 2026 GAAP diluted EPS
$1.07
from $(0.06) in Q3 2025
Q3 2026 non-GAAP diluted EPS
$1.20
from $0.07 in Q3 2025
Guidance
For Q4 fiscal 2026, expected net revenue is about $375 million +/- $20 million, with GAAP diluted EPS about $1.29 +/- 10% and non-GAAP diluted EPS about $1.42 +/- 10%.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
What were Kulicke & Soffa (KLIC) net revenue and EPS for Q3 2026?
Kulicke & Soffa reported Q3 2026 net revenue of $330.4 million and GAAP net income of $57.4 million, or $1.07 diluted EPS. Non-GAAP net income was $64.2 million, or $1.20 per fully diluted share, reflecting significantly higher profitability than a year earlier.
How did Kulicke & Soffa (KLIC) Q3 2026 results compare with Q3 2025?
In Q3 2026, net revenue was $330.4 million versus $148.4 million in Q3 2025. GAAP results shifted from a $3.3 million net loss and $(0.06) diluted EPS to $57.4 million net income and $1.07 diluted EPS, showing a strong turnaround year over year.
What guidance did Kulicke & Soffa (KLIC) give for Q4 fiscal 2026?
For Q4 fiscal 2026 ending October 3, 2026, Kulicke & Soffa expects net revenue of about $375 million +/- $20 million. The company projects GAAP diluted EPS around $1.29 +/- 10% and non-GAAP diluted EPS around $1.42 +/- 10%, based on roughly 53.0 million diluted shares.
What is Kulicke & Soffa’s (KLIC) cash and balance sheet position as of July 4, 2026?
As of July 4, 2026, Kulicke & Soffa held $368,573 thousand in cash and cash equivalents and $148,000 thousand in short-term investments. Total assets were $1,319,086 thousand, total liabilities were $407,129 thousand, and shareholders’ equity was $911,957 thousand.
Which non-GAAP measures does Kulicke & Soffa (KLIC) emphasize and why?
Kulicke & Soffa highlights non-GAAP income from operations, operating margin, net income, EPS and adjusted free cash flow. These exclude items such as amortization, restructuring, equity-based compensation, certain impairments and related tax effects to help investors assess underlying operational performance alongside GAAP results.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
____________________________________________________
FORM 8-K
____________________________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported): August 5, 2026
____________________________________________________
KULICKE AND SOFFA INDUSTRIES, INC.
(Exact name of registrant as specified in its charter)
____________________________________________________
| (State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||||||||
(Address of Principal Executive Offices and Zip Code)
Registrant’s telephone number, including area code: (215 ) 784-6000
N/A
(Former Name or Former Address, if Changed Since Last Report)
____________________________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On August 5, 2026, Kulicke and Soffa Industries, Inc. (the “Company”) issued a press release with respect to its financial results for its third fiscal quarter ended July 4, 2026. A copy of this press release is furnished as Exhibit 99.1 to this report, and is incorporated by reference into this Item 2.02 as if fully set forth herein.
The information in this report, furnished under “Item 2.02 Results of Operations and Financial Condition,” shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 | Financial Statements and Exhibits. | |||||||
| (d) | Exhibits. | |||||||
| Exhibit No. | Description | |||||||
| 99.1 | Press Release dated August 5, 2026 | |||||||
| 104 | Inline XBRL for the cover page of this Current Report on Form 8‑K. | |||||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| KULICKE AND SOFFA INDUSTRIES, INC. | |||||||||||
| Date: August 5, 2026 | By: | /s/ LESTER WONG | |||||||||
| Name: | Lester Wong | ||||||||||
| Title: | Executive Vice President, Interim Chief Executive Officer and Chief Financial Officer (principal executive officer, principal financial officer and principal accounting officer) | ||||||||||
Exhibit 99.1
 | Kulicke & Soffa Pte. Ltd. 23A Serangoon North Ave 5 Singapore 554369 +65 6880-9600 main Co. Regn. No. 199902120H | ||||
Kulicke and Soffa Industries, Inc. 1005 Virginia Drive Fort Washington, PA 19034 USA +1-215-784-6000 main www.kns.com | |||||
Kulicke & Soffa Reports Third Quarter 2026 Results
Singapore – August 5, 2026 – Kulicke and Soffa Industries, Inc. (NASDAQ: KLIC) (“Kulicke & Soffa,” “K&S,” “our,” or the “Company”), today announced financial results of its third fiscal quarter ended July 4, 2026. The Company reported third quarter net revenue of $330.4 million, net income of $57.4 million, representing EPS of $1.07 per fully diluted share, and non-GAAP net income of $64.2 million, representing non-GAAP EPS of $1.20 per fully diluted share.
| Quarterly Results | |||||||||||
| Fiscal Q3 2026 | Fiscal Q3 2025 | Fiscal Q2 2026 | |||||||||
| Net Revenue (in thousands) | $330,409 | $148,413 | $242,621 | ||||||||
| GAAP EPS – Diluted | $1.07 | $(0.06) | $0.66 | ||||||||
| Non GAAP EPS - Diluted | $1.20 | $0.07 | $0.79 | ||||||||
A reconciliation between the GAAP and non-GAAP adjusted results is provided in the financial tables included at the end of this press release. See also the “Use of non-GAAP Financial Results” section of this press release.
Lester Wong, Kulicke & Soffa’s Interim Chief Executive Officer and Chief Financial Officer, stated, “We see strong sequential growth in the third quarter and demand conditions continue to improve across all end markets. We remain closely engaged to support the evolving technology requirements of our industry, and remain committed to address the immediate and long-term production needs of our customers."
Kulicke & Soffa anticipates its expanded Advanced Solutions production facility will be completed, as scheduled, within the second half of fiscal 2027.
Third Quarter Fiscal 2026 Financial Highlights
•Net revenue of $330.4 million.
•Gross margin of 47.8%.
•Net income of $57.4 million or $1.07 per share; non-GAAP net income of $64.2 million or $1.20 per fully diluted share.
•GAAP cash flow from operations of $45.2 million; Adjusted free cash flow of $41.0 million.
•The Company repurchased a total of 5.0 thousand shares of common stock at a cost of $0.5 million.
Fourth Quarter Fiscal 2026 Outlook
K&S currently expects net revenue in the fourth quarter of fiscal 2026 ending October 3, 2026 to be approximately $375 million +/- $20 million, GAAP diluted EPS to be approximately $1.29 +/- 10%, and non-GAAP diluted EPS to be approximately $1.42 +/- 10%.
A reconciliation between the GAAP and non-GAAP financial outlook is provided in the financial tables included at the end of this press release.
1
Earnings Conference Webcast
A webcast to discuss these results will be held on August 6, 2026, beginning at 8:00 am ET. The live webcast link, supplemental earnings presentation, and archived webcast will be available at investor.kns.com. To access the audio-only portion of the live webcast, parties may call +1-877-407-8037, or internationally, +1-201-689-8037.
An audio-only replay of the webcast will also be available approximately one hour after the completion of the live call by calling +1-877-660-6853, or internationally, +1-201-612-7415 and referencing access code 13757798.
Use of Non-GAAP Financial Results
In addition to U.S. GAAP ("GAAP") results, this press release also contains the following non-GAAP financial results: income from operations, operating margin, net income, net margin, net income per fully diluted share and adjusted free cash flow. The Company's non-GAAP results exclude amortization related to intangible assets acquired through business combinations, costs associated with restructuring and severance, equity-based compensation, acquisition and integration costs, impairment relating to assets acquired through business combinations, long-lived asset impairment relating to business cessation or disposal, impairment relating to equity investments, income tax expense/benefit arising from discrete tax items triggered by acquisition, disposal of business (both via a sale or an abandonment), restructuring and significant changes in tax laws, gain/loss on disposal of business, as well as tax benefits or expenses associated with the foregoing non-GAAP items. The non-GAAP adjustments may or may not be infrequent or nonrecurring in nature, but are a result of periodic or non-core operating activities. These non-GAAP measures are consistent with the way management analyzes and assesses the Company’s operating results. The Company believes these non-GAAP measures enhance investors’ understanding of the Company’s underlying operational performance, as well as their ability to compare the Company’s period-to-period financial results and the Company’s overall performance to that of its competitors.
Management uses both GAAP metrics as well as these non-GAAP metrics to evaluate the Company's operating and financial results. Non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in the Company’s industry, as other companies in the industry may calculate non-GAAP financial results differently. In addition, there are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with GAAP, may be different from non-GAAP financial measures used by other companies and exclude expenses that may have a material impact on the Company’s reported financial results. The presentation of non-GAAP items is meant to supplement, but not substitute for, GAAP financial measures or information. The Company believes the presentation of non-GAAP results in combination with GAAP results provides better transparency to the investment community when analyzing business trends, providing meaningful comparisons with prior period performance and enhancing investors' ability to view the Company's results from management's perspective. A reconciliation of each non-GAAP financial measure to the most directly comparable GAAP measure discussed in this press release is contained in the financial tables at the end of this press release.
About Kulicke & Soffa
Kulicke & Soffa is a global leader in semiconductor assembly technology, advancing device performance across automotive, compute, industrial, memory and communications markets. Founded on innovation in 1951, K&S is uniquely positioned to overcome increasingly dynamic process challenges – creating and delivering long-term value by aligning technology with opportunity.
2
Caution Concerning Results, Forward-Looking Statements and Certain Risks Related to our Business
In addition to historical statements, this press release contains statements relating to future events and our future results. These statements are “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. While these forward-looking statements represent our judgments and future expectations concerning our business, including the importance and competitiveness of our products and other emerging technology transitions, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from our expectations. These factors include, but are not limited to, failures or delays in completing the Company's cessation of its Electronics Assembly equipment business, the persistent macroeconomic headwinds on our business, actual or potential inflationary pressures, interest rate and risk premium adjustments, falling customer sentiment, or economic recession caused directly or indirectly by geopolitical tensions, our ability to develop, manufacture and gain market acceptance of new products, our ability to expand, consolidate or relocate manufacturing and other facilities, our ability to operate our business in accordance with our business plan and the other factors listed or discussed in our Annual Report on Form 10-K for the fiscal year ended October 4, 2025, filed on November 20, 2025, and our other filings with the Securities and Exchange Commission. Kulicke and Soffa Industries, Inc. is under no obligation to (and expressly disclaims any obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.
Contact:
| Kulicke and Soffa Industries, Inc. | |||||
| Joseph Elgindy | |||||
| Finance | |||||
| P: +1-215-784-7518 | |||||
3
KULICKE AND SOFFA INDUSTRIES, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
| Three months ended | Nine months ended | ||||||||||||||||||||||
| July 4, 2026 | June 28, 2025 | July 4, 2026 | June 28, 2025 | ||||||||||||||||||||
| Net revenue | $ | 330,409 | $ | 148,413 | $ | 772,655 | $ | 476,523 | |||||||||||||||
| Cost of sales | 172,460 | 79,170 | 396,047 | 279,812 | |||||||||||||||||||
| Gross profit | 157,949 | 69,243 | 376,608 | 196,711 | |||||||||||||||||||
| Selling, general and administrative | 45,769 | 39,596 | 129,270 | 126,224 | |||||||||||||||||||
| Research and development | 43,914 | 35,741 | 122,686 | 110,769 | |||||||||||||||||||
| Gain relating to cessation of business | — | — | — | (75,987) | |||||||||||||||||||
| Impairment charges | — | — | — | 39,817 | |||||||||||||||||||
| Operating expenses | 89,683 | 75,337 | 251,956 | 200,823 | |||||||||||||||||||
| Income / (Loss) from operations | 68,266 | (6,094) | 124,652 | (4,112) | |||||||||||||||||||
| Interest income | 4,529 | 6,008 | 13,268 | 17,982 | |||||||||||||||||||
| Interest expense | (34) | (32) | (111) | (95) | |||||||||||||||||||
| Income / (Loss) before income taxes | 72,761 | (118) | 137,809 | 13,775 | |||||||||||||||||||
| Provision for income taxes | 15,345 | 3,171 | 28,449 | 19,941 | |||||||||||||||||||
| Net income / (loss) | $ | 57,416 | $ | (3,289) | $ | 109,360 | $ | (6,166) | |||||||||||||||
| Net income / (loss) per share: | |||||||||||||||||||||||
| Basic | $ | 1.10 | $ | (0.06) | $ | 2.09 | $ | (0.12) | |||||||||||||||
| Diluted | $ | 1.07 | $ | (0.06) | $ | 2.06 | $ | (0.12) | |||||||||||||||
| Cash dividends declared per share | $ | 0.205 | $ | 0.205 | $ | 0.615 | $ | 0.615 | |||||||||||||||
| Weighted average shares outstanding: | |||||||||||||||||||||||
| Basic | 52,333 | 52,692 | 52,326 | 53,265 | |||||||||||||||||||
| Diluted | 53,429 | 52,692 | 53,190 | 53,265 | |||||||||||||||||||
4
KULICKE AND SOFFA INDUSTRIES, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(In thousands)
(Unaudited)
| As of | |||||||||||
| July 4, 2026 | October 4, 2025 | ||||||||||
| ASSETS | |||||||||||
| Current assets | |||||||||||
| Cash and cash equivalents | $ | 368,573 | $ | 215,708 | |||||||
| Short-term investments | 148,000 | 295,000 | |||||||||
| Accounts and other receivable, net | 329,498 | 183,538 | |||||||||
| Inventories, net | 227,118 | 160,225 | |||||||||
| Prepaid expenses and other current assets | 31,796 | 47,064 | |||||||||
| Total current assets | 1,104,985 | 901,535 | |||||||||
| Property, plant and equipment, net | 66,274 | 58,993 | |||||||||
| Operating right-of-use assets | 32,567 | 32,193 | |||||||||
| Goodwill | 69,522 | 69,522 | |||||||||
| Intangible assets, net | 4,676 | 5,600 | |||||||||
| Deferred tax assets | 16,258 | 16,109 | |||||||||
| Equity investments | 10,789 | 6,978 | |||||||||
| Investment in debt securities | 10,000 | 10,000 | |||||||||
| Other assets | 4,015 | 3,412 | |||||||||
| TOTAL ASSETS | $ | 1,319,086 | $ | 1,104,342 | |||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||
| Current liabilities | |||||||||||
| Accounts payable | $ | 116,887 | $ | 57,178 | |||||||
| Operating lease liabilities | 6,083 | 6,178 | |||||||||
| Accrued expenses and other current liabilities | 159,774 | 97,786 | |||||||||
| Income taxes payable | 38,069 | 27,029 | |||||||||
| Total current liabilities | 320,813 | 188,171 | |||||||||
| Deferred tax liabilities | 34,496 | 35,533 | |||||||||
| Income taxes payable | 10,684 | 16,580 | |||||||||
| Operating lease liabilities | 32,035 | 32,372 | |||||||||
| Other liabilities | 9,101 | 10,195 | |||||||||
| TOTAL LIABILITIES | $ | 407,129 | $ | 282,851 | |||||||
| SHAREHOLDERS' EQUITY | |||||||||||
| Common stock, without par value | 634,232 | 620,043 | |||||||||
| Treasury stock, at cost | (976,708) | (974,202) | |||||||||
| Retained earnings | 1,276,677 | 1,199,500 | |||||||||
| Accumulated other comprehensive loss | (22,244) | (23,850) | |||||||||
| TOTAL SHAREHOLDERS' EQUITY | $ | 911,957 | $ | 821,491 | |||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 1,319,086 | $ | 1,104,342 | |||||||
5
KULICKE AND SOFFA INDUSTRIES, INC.
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
| Three months ended | Nine months ended | ||||||||||||||||||||||
| (in thousands) | July 4, 2026 | June 28, 2025 | July 4, 2026 | June 28, 2025 | |||||||||||||||||||
| Net cash provided by operating activities | $ | 45,216 | $ | 7,380 | $ | 46,554 | $ | 105,003 | |||||||||||||||
| Net cash (used in)/provided by investing activities | (3,711) | (17,463) | 134,982 | 26,161 | |||||||||||||||||||
| Net cash used in financing activities | (11,361) | (32,606) | (29,532) | (113,408) | |||||||||||||||||||
| Effect of exchange rate changes on cash and cash equivalents | 565 | 2,651 | 861 | 1,578 | |||||||||||||||||||
| Changes in cash and cash equivalents | 30,709 | (40,038) | 152,865 | 19,334 | |||||||||||||||||||
| Cash and cash equivalents, beginning of period | 337,864 | 286,519 | 215,708 | 227,147 | |||||||||||||||||||
| Cash and cash equivalents, end of period | $ | 368,573 | $ | 246,481 | $ | 368,573 | $ | 246,481 | |||||||||||||||
| Short-term investments | 148,000 | 310,000 | 148,000 | 310,000 | |||||||||||||||||||
| Total cash, cash equivalents and short-term investments | $ | 516,573 | $ | 556,481 | $ | 516,573 | $ | 556,481 | |||||||||||||||
6
Reconciliation of U.S. GAAP
to Non-GAAP Income from Operations and Operating Margin
(In thousands, except percentages)
(Unaudited)
| Three months ended | ||||||||||||||||||||
| July 4, 2026 | June 28, 2025 | April 4, 2026 | ||||||||||||||||||
| Net revenue | $ | 330,409 | $ | 148,413 | $ | 242,621 | ||||||||||||||
| U.S. GAAP income / (loss) from operations | 68,266 | (6,094) | 38,566 | |||||||||||||||||
| U.S. GAAP operating margin | 20.7 | % | (4.1) | % | 15.9 | % | ||||||||||||||
| Pre-tax non-GAAP items: | ||||||||||||||||||||
| Amortization related to intangible assets | 308 | 308 | 307 | |||||||||||||||||
| Restructuring | 190 | 287 | 418 | |||||||||||||||||
| Equity-based compensation | 7,044 | 7,092 | 6,991 | |||||||||||||||||
| Non-GAAP income from operations | $ | 75,808 | $ | 1,593 | $ | 46,282 | ||||||||||||||
| Non-GAAP operating margin | 22.9 | % | 1.1 | % | 19.1 | % | ||||||||||||||
7
Reconciliation of U.S. GAAP Net Income to Non-GAAP Net Income and Non-GAAP Net Margin and
U.S. GAAP net income per share to Non-GAAP net income per share
(In thousands, except percentages and per share data)
(Unaudited)
| Three months ended | ||||||||||||||||||||
| July 4, 2026 | June 28, 2025 | April 4, 2026 | ||||||||||||||||||
| Net revenue | $ | 330,409 | $ | 148,413 | $ | 242,621 | ||||||||||||||
| U.S. GAAP net income / (loss) | 57,416 | (3,289) | 35,148 | |||||||||||||||||
| U.S. GAAP net margin | 17.4 | % | (2.2) | % | 14.5 | % | ||||||||||||||
| Non-GAAP adjustments: | ||||||||||||||||||||
| Amortization related to intangible assets | 308 | 308 | 307 | |||||||||||||||||
| Restructuring | 190 | 287 | 418 | |||||||||||||||||
| Equity-based compensation | 7,044 | 7,092 | 6,991 | |||||||||||||||||
| Net income tax benefit on non-GAAP items | (730) | (626) | (728) | |||||||||||||||||
| Total non-GAAP adjustments | $ | 6,812 | $ | 7,061 | $ | 6,988 | ||||||||||||||
| Non-GAAP net income | $ | 64,228 | $ | 3,772 | $ | 42,136 | ||||||||||||||
| Non-GAAP net margin | 19.4 | % | 2.5 | % | 17.4 | % | ||||||||||||||
| U.S. GAAP net income / (loss) per share: | ||||||||||||||||||||
| Basic | $ | 1.10 | $ | (0.06) | $ | 0.67 | ||||||||||||||
Diluted(a) | $ | 1.07 | $ | (0.06) | $ | 0.66 | ||||||||||||||
Non-GAAP adjustments per share:(b) | ||||||||||||||||||||
| Basic | $ | 0.13 | $ | 0.13 | $ | 0.14 | ||||||||||||||
| Diluted | $ | 0.13 | $ | 0.13 | $ | 0.13 | ||||||||||||||
| Non-GAAP net income per share: | ||||||||||||||||||||
| Basic | $ | 1.23 | $ | 0.07 | $ | 0.81 | ||||||||||||||
Diluted(c) | $ | 1.20 | $ | 0.07 | $ | 0.79 | ||||||||||||||
| Weighted average shares outstanding: | ||||||||||||||||||||
| Basic | 52,333 | 52,692 | 52,327 | |||||||||||||||||
| Diluted | 53,429 | 52,866 | 53,121 | |||||||||||||||||
(a)GAAP diluted net earnings per share reflects any dilutive effect of outstanding restricted stock, but that effect is excluded when calculating GAAP diluted net loss per share because it would be anti-dilutive.
(b)Non-GAAP adjustments per share include amortization related to intangible assets acquired through business combinations, costs associated with restructuring and severance, equity-based compensation expenses, and income tax effects associated with the foregoing non-GAAP items.
(c)Non-GAAP diluted net earnings per share reflects any dilutive effect of outstanding restricted stock, but that effect is excluded when calculating Non-GAAP diluted net loss per share because it would be anti-dilutive.
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Reconciliation of U.S. GAAP Cash provided by Operating Activities
to Non-GAAP Adjusted Free Cash Flow
(In thousands, except percentages)
(unaudited)
| Three months ended | ||||||||||||||||||||
| July 4, 2026 | June 28, 2025 | April 4, 2026 | ||||||||||||||||||
| U.S. GAAP net cash provided by operating activities | $ | 45,216 | $ | 7,380 | $ | 10,271 | ||||||||||||||
| Purchases of property, plant and equipment | (4,277) | (2,090) | (4,077) | |||||||||||||||||
| Proceeds from sales of property, plant and equipment | 18 | 147 | 74 | |||||||||||||||||
| Non-GAAP adjusted free cash flow | $ | 40,957 | $ | 5,437 | $ | 6,268 | ||||||||||||||
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Reconciliation of U.S. GAAP to Non-GAAP Outlook
(In millions, except per share data)
(Unaudited)
Fourth quarter of fiscal 2026 ending October 3, 2026 | ||||||||||||||||||||
| GAAP Outlook | Adjustments | Non-GAAP Outlook | ||||||||||||||||||
| Net revenue | $375 million +/- $20 million | — | $375 million +/- $20 million | |||||||||||||||||
| Operating expenses | $95.1 million +/- 2% | $7.6 million B,C,D | $87.5 million +/- 2% | |||||||||||||||||
Diluted EPS(1) | $1.29 +/- 10% | $0.13 A - E | $1.42 +/- 10% | |||||||||||||||||
| Non-GAAP Adjustments | ||||||||
| A. Equity-based compensation - Cost of sales | 0.4 | |||||||
| B. Equity-based compensation - Selling, general and administrative and Research and development | 6.6 | |||||||
| C. Amortization related to intangible assets | 0.3 | |||||||
| D. Restructuring expenses | 0.7 | |||||||
| E. Net income tax effect of the above items | (0.8) | |||||||
(1) GAAP and non-GAAP diluted EPS based on approximately 53.0 million diluted weighted average shares outstanding.
The tables above reconcile our GAAP to non-GAAP guidance based on the current outlook. The guidance does not incorporate the impact of any potential business combinations, divestitures, unannounced restructuring activities, strategic investments and other significant transactions. The timing and impact of such items are dependent on future events that may be uncertain or outside of our control.
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