DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - shares | 9 Months Ended | |
Jul. 01, 2023 | Aug. 04, 2023 | |
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 | 56,473,297 | |
Amendment Flag | false | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2023 | |
Current Fiscal Year End Date | --09-30 | |
Entity Registrant Name | KULICKE AND SOFFA INDUSTRIES, INC. | |
Entity Address, City or Town | Singapore | |
Document Period End Date | Jul. 01, 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 | Jul. 01, 2023 | Oct. 01, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 401,806 | $ 555,537 |
Short-term investments | 310,000 | 220,000 |
Accounts and other receivable, net of allowance for doubtful accounts of $49 and $0, respectively | 198,107 | 309,323 |
Inventories, net | 227,991 | 184,986 |
Prepaid expenses and other current assets | 45,144 | 62,200 |
Total current assets | 1,183,048 | 1,332,046 |
Property, plant and equipment, net | 113,567 | 80,908 |
Operating right-of-use assets | 46,351 | 41,767 |
Goodwill | 89,291 | 68,096 |
Intangible assets, net | 31,418 | 31,939 |
Deferred tax assets | 40,926 | 25,572 |
Equity investments | 433 | 5,397 |
Other assets | 3,088 | 2,874 |
TOTAL ASSETS | 1,508,122 | 1,588,599 |
Current liabilities: | ||
Accounts payable | 52,857 | 67,311 |
Operating lease liabilities | 6,569 | 6,766 |
Income taxes payable | 16,844 | 40,063 |
Accrued expenses and other current liabilities | 120,506 | 134,541 |
Total current liabilities | 196,776 | 248,681 |
Deferred tax liabilities | 36,735 | 34,037 |
Income taxes payable | 50,673 | 64,634 |
Operating lease liabilities | 41,390 | 34,927 |
Other liabilities | 12,836 | 11,670 |
TOTAL LIABILITIES | 338,410 | 393,949 |
Commitments and contingent liabilities (Note 16) | ||
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 56,488 and 57,128 shares, respectively | 572,338 | 561,684 |
Treasury stock, at cost, 28,875 and 28,237 shares, respectively | (728,064) | (675,800) |
Retained earnings | 1,343,163 | 1,341,666 |
Accumulated other comprehensive loss | (17,725) | (32,900) |
TOTAL SHAREHOLDERS’ EQUITY | 1,169,712 | 1,194,650 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 1,508,122 | $ 1,588,599 |
CONSOLIDATED CONDENSED BALANCE
CONSOLIDATED CONDENSED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jul. 01, 2023 | Oct. 01, 2022 |
Consolidated Balance Sheets Parenthetical [Abstract] | ||
Allowance for doubtful accounts and notes receivable | $ 49 | $ 0 |
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 |
Common Stock, Shares Authorized | 200,000,000 | 200,000,000 |
Common Stock, Shares, Issued | 85,364,000 | 85,364,000 |
Common Stock, Shares, Outstanding | 56,488,000 | 57,128,000 |
Treasury Stock, Common, Shares | 28,875,000 | 28,237,000 |
Preferred Stock, Shares Issued | 0 | 0 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 01, 2023 | Jul. 02, 2022 | Jul. 01, 2023 | Jul. 02, 2022 | |
Income Statement [Abstract] | ||||
Revenues | $ 190,917 | $ 372,137 | $ 540,171 | $ 1,217,307 |
Cost of sales | 100,899 | 181,452 | 277,355 | 601,674 |
Gross profit | 90,018 | 190,685 | 262,816 | 615,633 |
Selling, general and administrative | 36,393 | 33,216 | 114,233 | 107,263 |
Research and development | 36,578 | 34,046 | 107,085 | 104,496 |
Impairment charges | 21,535 | 1,346 | 21,535 | 1,346 |
Operating expenses | 94,506 | 68,608 | 242,853 | 213,105 |
(Loss)/income from operations | (4,488) | 122,077 | 19,963 | 402,528 |
Interest income | 8,847 | 2,158 | 23,406 | 3,099 |
Interest expense | (50) | (36) | (116) | (173) |
Income before income taxes | 4,309 | 124,199 | 43,253 | 405,454 |
Provision for income taxes | 148 | 5,165 | 9,462 | 36,813 |
Net income | $ 4,161 | $ 119,034 | $ 33,791 | $ 368,641 |
Net income per share: | ||||
Basic (in dollars per share) | $ 0.07 | $ 2.02 | $ 0.60 | $ 6.05 |
Diluted (in dollars per share) | $ 0.07 | $ 1.99 | $ 0.59 | $ 5.95 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 56,553 | 58,985 | 56,763 | 60,951 |
Diluted (in shares) | 57,519 | 59,955 | 57,684 | 61,940 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 01, 2023 | Jul. 02, 2022 | Jul. 01, 2023 | Jul. 02, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 4,161 | $ 119,034 | $ 33,791 | $ 368,641 |
Other comprehensive income: | ||||
Foreign currency translation adjustment | (2,459) | (12,009) | 13,514 | (18,025) |
Unrecognized actuarial (gain)/loss on pension plan, net of tax | (17) | 122 | (73) | 103 |
Foreign currency translation and pension plan, net of tax | (2,476) | (11,887) | 13,441 | (17,922) |
Derivatives designated as hedging instruments: | ||||
Unrealized (loss)/gain on derivative instruments, net of tax | (1,280) | (1,233) | 2,550 | (1,168) |
Reclassification adjustment for (gain)/loss on derivative instruments recognized, net of tax | 518 | (170) | 816 | (793) |
Net (decrease)/increase from derivatives designated as hedging instruments, net of tax | (1,798) | (1,063) | 1,734 | (375) |
Other comprehensive income | (4,274) | (12,950) | 15,175 | (18,297) |
Comprehensive (loss)/income | $ (113) | $ 106,084 | $ 48,966 | $ 350,344 |
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. 02, 2021 | 61,931 | ||||
Beginning balance at Oct. 02, 2021 | $ 1,095,237 | $ 550,117 | $ (400,412) | $ 948,554 | $ (3,022) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of stock for services rendered (shares) | 4 | ||||
Issuance of stock for services rendered | 238 | $ 197 | 41 | ||
Repurchase of common stock (shares) | (276) | ||||
Repurchase of common stock | (15,380) | (15,380) | |||
Issuance of shares for equity based compensation (shares) | 725 | ||||
Issuance of shares for equity-based compensation | 0 | $ (6,963) | 6,963 | ||
Equity-based compensation | 5,074 | $ 5,074 | |||
Cash dividend declared | (10,610) | (10,610) | |||
Net income | 133,606 | 133,606 | |||
Other comprehensive income | (989) | (989) | |||
Total comprehensive income | 132,617 | 133,606 | (989) | ||
Ending balance (shares) at Jan. 01, 2022 | 62,384 | ||||
Ending balance at Jan. 01, 2022 | 1,207,176 | $ 548,425 | (408,788) | 1,071,550 | (4,011) |
Beginning balance (shares) at Oct. 02, 2021 | 61,931 | ||||
Beginning balance at Oct. 02, 2021 | 1,095,237 | $ 550,117 | (400,412) | 948,554 | (3,022) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 368,641 | ||||
Other comprehensive income | (18,297) | ||||
Total comprehensive income | 350,344 | ||||
Ending balance (shares) at Jul. 02, 2022 | 58,480 | ||||
Ending balance at Jul. 02, 2022 | 1,206,733 | $ 557,236 | (615,689) | 1,286,505 | (21,319) |
Beginning balance (shares) at Jan. 01, 2022 | 62,384 | ||||
Beginning balance at Jan. 01, 2022 | 1,207,176 | $ 548,425 | (408,788) | 1,071,550 | (4,011) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of stock for services rendered (shares) | 4 | ||||
Issuance of stock for services rendered | 237 | $ 202 | 35 | ||
Repurchase of common stock (shares) | (2,944) | ||||
Repurchase of common stock | (176,153) | $ (30,000) | (146,153) | ||
Issuance of shares for equity based compensation (shares) | 24 | ||||
Issuance of shares for equity-based compensation | 0 | $ (222) | 222 | ||
Equity-based compensation | 4,459 | $ 4,459 | |||
Cash dividend declared | (10,110) | (10,110) | |||
Net income | 116,001 | 116,001 | |||
Other comprehensive income | (4,358) | (4,358) | |||
Total comprehensive income | 111,643 | 116,001 | (4,358) | ||
Ending balance (shares) at Apr. 02, 2022 | 59,468 | ||||
Ending balance at Apr. 02, 2022 | 1,137,252 | $ 522,864 | (554,684) | 1,177,441 | (8,369) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of stock for services rendered (shares) | 4 | ||||
Issuance of stock for services rendered | 237 | $ 196 | 41 | ||
Repurchase of common stock (shares) | (997) | ||||
Repurchase of common stock | (31,098) | (61,098) | |||
Issuance of shares for equity based compensation (shares) | 5 | ||||
Issuance of shares for equity-based compensation | 0 | $ (52) | 52 | ||
Equity-based compensation | 4,228 | $ 4,228 | |||
Cash dividend declared | (9,970) | (9,970) | |||
Net income | 119,034 | 119,034 | |||
Other comprehensive income | (12,950) | (12,950) | |||
Total comprehensive income | 106,084 | 119,034 | (12,950) | ||
Ending balance (shares) at Jul. 02, 2022 | 58,480 | ||||
Ending balance at Jul. 02, 2022 | 1,206,733 | $ 557,236 | (615,689) | 1,286,505 | (21,319) |
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 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] | |||||
Net income | 33,791 | ||||
Other comprehensive income | 15,175 | ||||
Total comprehensive income | 48,966 | ||||
Ending balance (shares) at Jul. 01, 2023 | 56,488 | ||||
Ending balance at Jul. 01, 2023 | 1,169,712 | $ 572,338 | (728,064) | 1,343,163 | (17,725) |
Beginning balance (shares) at Dec. 31, 2022 | 56,747 | ||||
Beginning balance at Dec. 31, 2022 | 1,177,229 | $ 561,736 | (714,713) | 1,345,461 | (15,255) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of stock for services rendered (shares) | 5 | ||||
Issuance of stock for services rendered | 237 | $ 184 | 53 | ||
Repurchase of common stock (shares) | (102) | ||||
Repurchase of common stock | (4,990) | $ 0 | (4,990) | ||
Issuance of shares for equity based compensation (shares) | 3 | ||||
Issuance of shares for equity-based compensation | 0 | $ (31) | 31 | ||
Equity-based compensation | 5,142 | $ 5,142 | |||
Cash dividend declared | (10,766) | (10,766) | |||
Net income | 15,041 | 15,041 | |||
Other comprehensive income | 1,804 | 1,804 | |||
Total comprehensive income | 16,845 | 15,041 | 1,804 | ||
Ending balance (shares) at Apr. 01, 2023 | 56,653 | ||||
Ending balance at Apr. 01, 2023 | 1,183,697 | $ 567,031 | (719,619) | 1,349,736 | (13,451) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of stock for services rendered (shares) | 5 | ||||
Issuance of stock for services rendered | 237 | $ 194 | 43 | ||
Repurchase of common stock (shares) | (175) | ||||
Repurchase of common stock | (8,541) | $ 0 | (8,541) | ||
Issuance of shares for equity based compensation (shares) | 5 | ||||
Issuance of shares for equity-based compensation | 0 | $ (53) | 53 | ||
Equity-based compensation | 5,166 | $ 5,166 | |||
Cash dividend declared | (10,734) | (10,734) | |||
Net income | 4,161 | 4,161 | |||
Other comprehensive income | (4,274) | (4,274) | |||
Total comprehensive income | (113) | 4,161 | (4,274) | ||
Ending balance (shares) at Jul. 01, 2023 | 56,488 | ||||
Ending balance at Jul. 01, 2023 | $ 1,169,712 | $ 572,338 | $ (728,064) | $ 1,343,163 | $ (17,725) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Jul. 01, 2023 | Jul. 02, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 33,791 | $ 368,641 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 20,746 | 15,773 |
Impairment charges | 21,535 | 1,346 |
Equity-based compensation and employee benefits | 17,303 | 14,473 |
Adjustment for doubtful accounts | 49 | (245) |
Adjustment for inventory valuation | 2,598 | 1,110 |
Deferred taxes | (14,441) | (3,675) |
Gain on disposal of property, plant and equipment | (539) | (129) |
Unrealized foreign currency translation | 2,610 | (3,806) |
Changes in operating assets and liabilities, net of assets and liabilities assumed in businesses combinations: | ||
Accounts and other receivable | 112,881 | 71,825 |
Inventories | (44,106) | (49,230) |
Prepaid expenses and other current assets | 17,165 | (50,725) |
Accounts payable, accrued expenses and other current liabilities | (35,461) | (84,017) |
Income taxes payable | (37,028) | (6,663) |
Other, net | (1,191) | (1,053) |
Net cash provided by operating activities | 95,912 | 273,625 |
Acquisition of business, net of cash acquired | (36,881) | 0 |
Proceeds from sales of property, plant and equipment | 318 | 119 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Acquisition of business, net of cash acquired | 36,881 | 0 |
Purchases of property, plant and equipment | (35,125) | (10,380) |
Proceeds from sales of property, plant and equipment | 318 | 119 |
Investment in private equity fund | (36) | (397) |
Purchase of short-term investments | (465,000) | (389,000) |
Maturity of short-term investments | 375,000 | 466,000 |
Net cash (used in)/provided by investing activities | (161,724) | 66,342 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Payment on short-term debt | 0 | (54,500) |
Payment for finance lease | (447) | (373) |
Repurchase of common stock/treasury stock | (60,608) | (221,139) |
Common stock cash dividends paid | (31,303) | (29,393) |
Proceeds from short-term debt | 0 | 54,500 |
Net cash used in financing activities | (92,358) | (250,905) |
Effect of exchange rate changes on cash and cash equivalents | 4,439 | (6,069) |
Changes in cash and cash equivalents | (153,731) | 82,993 |
Cash and cash equivalents at beginning of period | 555,537 | 362,788 |
Cash and cash equivalents at end of period | 401,806 | 445,781 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING ACTIVITIES: | ||
Other Significant Noncash Transaction, Value of Consideration Given | 8,098 | 660 |
CASH PAID FOR: | ||
Interest | 116 | 173 |
Income taxes, net of refunds | $ 55,998 | $ 50,059 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Jul. 01, 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/A for the fiscal year ended October 1, 2022 (the “2022 Annual Report”) filed with the Securities and Exchange Commission on August 8, 2023, which includes the Consolidated Balance Sheets as of October 1, 2022 and October 2, 2021, 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 October 1, 2022. 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 2023 quarters end on December 31, 2022, April 1, 2023, July 1, 2023 and September 30, 2023. In fiscal years consisting of 53 weeks, the fourth quarter will consist of 14 weeks. Fiscal 2022 quarters ended on January 1, 2022, April 2, 2022, July 2, 2022 and October 1, 2022. 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, 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. Due to the persistent 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 July 1, 2023. While there was no material impact to our consolidated condensed financial statements as of and for the quarter ended July 1, 2023, these estimates may change, as new events occur and additional information is obtained, including macroeconomic 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 2022 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 and ongoing discussions with the staff of 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 4: Goodwill and Intangible Assets and Note 15: 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 Government Assistance In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832): Disclosure by Business Entities about Government Assistance which aims at increasing the transparency of government assistance received by most business entities. The standard requires business entities to make annual disclosures about the nature of the transactions and the related accounting policy used to account for the transactions, the line items and applicable amounts on the balance sheet and income statement that are affected by the transactions, and significant terms and conditions of the transactions, including commitments and contingencies. If an entity omits any required disclosures because it is legally prohibited, it must describe the general nature of the information and indicate that the omitted disclosures are legally prohibited from being disclosed. This ASU is effective for fiscal years beginning after December 15, 2021, which for the Company is in fiscal 2023. The Company will include disclosures for material items with the filing of its Annual Report on Form 10-K for the year ending on September 30, 2023. Business Combinations In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which clarifies that an acquirer of a business should recognize and measure contract assets and contract liabilities in a business combination in accordance with Topic 606: Revenue from Contracts with Customers |
BALANCE SHEET COMPONENTS
BALANCE SHEET COMPONENTS | 9 Months Ended |
Jul. 01, 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 July 1, 2023 and October 1, 2022: As of (in thousands) July 1, 2023 October 1, 2022 Short-term investments, available-for-sale (1) $ 310,000 $ 220,000 Inventories, net: Raw materials and supplies $ 127,216 $ 118,833 Work in process 71,052 40,114 Finished goods 49,155 45,277 247,423 204,224 Inventory reserves (19,432) (19,238) $ 227,991 $ 184,986 Property, plant and equipment, net: Land $ 2,182 $ 2,182 Buildings and building improvements 22,929 22,783 Leasehold improvements 83,785 32,400 Data processing equipment and software 37,483 38,223 Machinery, equipment, furniture and fixtures 93,192 90,151 Construction in progress 11,910 25,004 251,481 210,743 Accumulated depreciation (137,914) (129,835) $ 113,567 $ 80,908 Accrued expenses and other current liabilities: Accrued customer obligations (2) $ 52,268 $ 58,916 Wages and benefits 31,735 50,279 Dividends payable 10,734 9,743 Commissions and professional fees 3,825 5,019 Accrued leasehold renovations 13,378 — Severance — 19 Other 8,566 10,565 $ 120,506 $ 134,541 (1) 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 and nine months ended July 1, 2023 and July 2, 2022. (2) Represents customer advance payments, customer credit program, accrued warranty expense and accrued retrofit obligations. |
BUSINESS COMBINATION
BUSINESS COMBINATION | 9 Months Ended |
Jul. 01, 2023 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATION | 3. BUSINESS COMBINATION Acquisition of Advanced Jet Automation Co., Ltd. (“AJA”) On September 8, 2022, the Company through one of its subsidiaries, Kulicke and Soffa Luxembourg S.À R.L, entered into a definitive agreement (the “Definitive Agreement”) for the acquisition of Advanced Jet Automation Co., Ltd. (“AJA”), a technology company headquartered in Taiwan. Subsequent to the acquisition, AJA has been renamed to Kulicke and Soffa Hi-Tech Co., Ltd. On February 22, 2023 (the “Closing Date”), pursuant to the Definitive Agreement, the Company completed its acquisition of AJA, including the material business and assets formerly owned by AJA’s affiliate, Samurai Spirit Inc., a leading developer and manufacturer of high-precision micro-dispensing equipment and solutions in Taiwan. AJA became a wholly-owned subsidiary of the Company and will operate as a business unit (the “dispensing business unit”), deemed a separate operating segment (advanced dispensing) which is reported under the "All Others" category. The acquisition broadens the Company’s existing semiconductor, electronic assembly and advanced display portfolio, increasing opportunities across several exciting growth areas including mini and micro LED, which support both backlighting and direct-emissive approaches. The purchase price consisted of $38.1 million in cash paid at closing (the “Purchase Price”) and additional potential earn-out payments based on certain revenue and earnings before interest, tax, depreciation and amortization (“EBITDA”) benchmarks established for the dispensing business unit. As at July 1, 2023, the Company held $4.0 million in escrow and will continue to hold such sums for a period of twenty-four (24) months from the Closing Date, as security pending the completion of Ruo Chuan Inc.’s obligations as the seller under the Definitive Agreement. The Company has estimated the preliminary fair value of acquired assets and liabilities as of the date of acquisition based on current information available. The valuation of these tangible and identifiable intangible assets and liabilities is subject to further management review and may change materially between the preliminary allocation and end of the purchase price allocation period of February 21, 2024. Any changes in these estimates may have a material impact on our Consolidated Condensed Statements of Operations or Consolidated Condensed Balance Sheets. The acquisition of AJA was accounted for in accordance with ASC No. 805, Business Combinations , using the acquisition method. The following table summarizes the allocation of the assets acquired and liabilities assumed based on the fair values as of the Closing Date: (in thousands) February 22, 2023 Cash and cash equivalents $ 1,238 Account and other receivables, net 1,156 Inventory 1,581 Property, plant and equipment, net 1,462 Right-of-use assets 989 Other assets 127 Goodwill 27,975 Intangible assets 7,768 Accounts and other payables (965) Accrued expenses and other liabilities (251) Contract liabilities (187) Lease liability (989) Deferred tax liabilities (1,785) Total purchase price $ 38,119 Excluding inventory and property, plant and equipment, all other tangible net assets (liabilities) were valued at their respective carrying amounts, which the Company believes approximate their current fair values at the Closing Date. In connection with the acquisition of AJA, the Company recorded deferred tax liabilities primarily relating to the acquired intangible assets. Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired and includes the value of expected future cash flows of AJA from expected synergies with our other affiliates and other unidentifiable intangible assets. None of the goodwill recorded as part of the acquisition will be deductible for income tax purposes. The following table summarizes the fair value, useful life and valuation methodology of each identifiable intangible asset. (in thousands) Fair Value Useful Lives Developed technology (1) $ 4,261 8 Customer relationships (2) 2,131 8 In-process research and development (“IPR&D”) (3) 459 N.A. Patents (3) 524 8 Order Backlog (4) 393 1 Total identifiable intangible assets $ 7,768 (1) The fair value of developed technology was determined using the Relief-from-Royalty Method under the income approach. (2) Customer relationships represent the fair value of the existing relationships using the Multi-Period Excess Earnings Method under the income approach. (3) The fair value of IPR&D and Patents were determined using the Replacement Cost Method, a form of the cost approach. (4) Order backlog represents primarily the fair value of purchase arrangements with customers using the Multi-Period Excess Earnings Method under the income approach. IPR&D is recorded as an indefinite-lived intangible asset and not amortized, but rather is reviewed for impairment on an annual basis or more frequently if indicators of impairment are present, until the project is completed, abandoned, or transferred to a third party. Developed technology, customer relationships, patents and order backlog are amortized using a straight-line method, representing the Company’s best estimate of the distribution of the economic value of the identifiable intangible assets. For the three and nine months ended July 1, 2023, the acquired dispensing business unit contributed to a net loss of $0.9 million and $1.3 million respectively. For the three and nine months ended July 1, 2023, the Company incurred $0.1 million and $0.5 million of expenses related to the acquisition, respectively, which is included within selling, general and administrative expense in the Consolidated Condensed Statements of Operations. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 9 Months Ended |
Jul. 01, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | 4. 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 2022 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. In each interim period, 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. During the three months ended July 1, 2023, the Company concluded that a triggering event had occurred in connection with the Lithography reporting unit. The triggering event occurred based on the long-term financial and business outlook for the Lithography reporting unit updated as part of the Company’s annual strategic planning process performed during the third quarter. This updated outlook projected that the near-term projected cash flows are expected to be lower than previously forecasted due to a shift in market penetration timeline and increase in cost of materials being purchased. Under ASC 350, the Company is required to test its goodwill and other intangible assets for impairment annually or when a triggering event has occurred that would indicate it is more likely than not that the fair value of the reporting unit is less than the carrying value including goodwill and other intangible assets. Accordingly, the Company has performed the goodwill impairment test for the Lithography reporting unit with reference to the guidance under ASC 350. The Company used a discounted cash flow model to determine the fair value of the Lithography reporting unit. The cash flow projections used within the discounted cash flow model were prepared using the forecasted financial results of the reporting unit, which was based upon underlying estimates of the total market size using independent third party industry reports, and market share data developed using the combination of independent third-party data and our internal data. Significant assumptions used to determine the fair value of the Lithography reporting unit include revenue forecasts, terminal growth rate of 2.5%, working capital, tax rate and a weighted average cost of capital (discount rate) of 11.7%. In accordance with the guidance under ASC 350, the Company’s impairment test is performed by comparing the fair value of a reporting unit with its carrying amount, and recognizing an impairment charge for the amount by which the carrying amount of the reporting unit exceeds its fair value. Based on the calculation, the Company determined that the carrying value exceeded the fair value of this reporting unit which resulted in a goodwill impairment charge of $9.8 million, representing the entire goodwill assigned to this reporting unit. This goodwill impairment charge, which is a non-cash charge, has been reflected in the Company’s Consolidated Condensed Statements of Operations for the three and nine months ended July 1, 2023. While we have concluded that a triggering event for the other reporting units did not occur during the quarter ended July 1, 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. As discussed in Note 1, during the third quarter of fiscal year 2023, the Company reconsidered its reportable segments and has revised the related prior period presentation in its 2022 Annual Report. As a result, its four reportable segments are (1) Ball Bonding Equipment, (2) Wedge Bonding Equipment, (3) Advanced Solutions, and (4) Aftermarket Products and Services (“APS”). All other operating segments that do not meet the quantitative threshold to be disclosed as a separate reportable segment have been grouped within an “All Others” category. Please refer to Note 15 for further information on the revision of the reportable and operating segments. Accordingly, the Company’s goodwill as previously reported under “Capital Equipment” in prior periods has been disaggregated and presented separately into the Wedge Bonding Equipment reportable segment and the “All Others” category. There are no changes to the goodwill reported under the APS reportable segment. While there were no changes in the methodology and level at which the Company provides its goodwill impairment tests, and no resulting amendments to the total carrying amount of the goodwill, the following table shows the allocation of goodwill based on these revised segments. The following table summarizes the Company’s recorded goodwill, where applicable, by reportable segments and the “All Others” category (refer to Note 15 for further information) as of July 1, 2023 and October 1, 2022: (in thousands) Wedge Bonding Equipment APS All Others Total Balance at October 1, 2022 (1) $ 18,280 $ 25,907 23,909 $ 68,096 Acquired in business combination — — 27,975 $ 27,975 Goodwill impairment — — (9,794) $ (9,794) Other — 294 2,720 $ 3,014 Balance at July 1, 2023 $ 18,280 $ 26,201 44,810 $ 89,291 (1) Cumulative goodwill impairment pertaining to the “All Others” category as of October 1, 2022 was $35.2 million. During the quarter ended April 1, 2023, the Company recorded goodwill relating to the acquisition of AJA. For further information on the acquisition of AJA, please refer to Note 3. 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. In connection with the evaluation of the goodwill impairment in the Lithography reporting unit, the Company assessed tangible and intangible assets for impairment prior to performing the first step of the goodwill impairment test. The Company used a discounted cash flow model to determine the fair value of the asset group for the Lithography reporting unit, where significant assumptions include revenue forecasts, terminal growth rate of 2.5%, working capital, tax rate and a weighted average cost of capital (discount rate) of 11.7%. As a result of the analysis, the Company determined an impairment charge of $6.9 million on the developed technology reported within the “All Others” category for the three and nine months ended July 1, 2023. The impairment of intangible assets is a non-cash charge which has been reflected in the Company’s Consolidated Condensed Statements of Operations for the three and nine months ended July 1, 2023. The following table reflects net intangible assets as of July 1, 2023 and October 1, 2022: As of Average estimated (dollar amounts in thousands) July 1, 2023 October 1, 2022 useful lives (in years) Developed technology $ 99,614 $ 89,017 6.0 to 15.0 Accumulated amortization (65,861) (58,636) Impairment charges $ (6,900) $ — Net developed technology $ 26,853 $ 30,381 Customer relationships $ 37,259 $ 33,515 5.0 to 8.0 Accumulated amortization (35,217) (33,515) Net customer relationships $ 2,042 $ — In-process research and development $ 459 $ — N.A Net in-process research and development $ 459 $ — Trade and brand name $ 7,212 $ 6,945 7.0 to 8.0 Accumulated amortization (7,212) (6,945) Net trade and brand name — — Other intangible assets $ 5,634 $ 4,700 1.0 to 8.0 Accumulated amortization (3,570) (3,142) Net other intangible assets $ 2,064 $ 1,558 $ 31,418 $ 31,939 The following table reflects estimated annual amortization expense related to intangible assets as of July 1, 2023: As of (in thousands) July 1, 2023 Remaining fiscal 2023 $ 1,378 Fiscal 2024 5,274 Fiscal 2025 5,110 Fiscal 2026 5,110 Fiscal 2027 4,835 Thereafter 9,711 Total amortization expense $ 31,418 |
CASH, CASH EQUIVALENTS, RESTRIC
CASH, CASH EQUIVALENTS, RESTRICTED CASH AND SHORT-TERM INVESTMENTS | 9 Months Ended |
Jul. 01, 2023 | |
Cash and Cash Equivalents [Abstract] | |
CASH, CASH EQUIVALENTS, RESTRICTED CASH AND SHORT-TERM INVESTMENTS | 5. 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 July 1, 2023: (in thousands) Amortized Unrealized Unrealized Estimated Current assets: Cash $ 31,696 $ — $ — $ 31,696 Cash equivalents: Money market funds (1) 215,114 — (13) 215,101 Time deposits (2) 155,009 — — 155,009 Total cash and cash equivalents $ 401,819 $ — $ (13) $ 401,806 Short-term investments: Time deposits (2) 310,000 — — 310,000 Total short-term investments $ 310,000 $ — $ — $ 310,000 Total cash, cash equivalents and short-term investments $ 711,819 $ — $ (13) $ 711,806 (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) Fair value approximates cost basis. Cash, cash equivalents and short-term investments consisted of the following as of October 1, 2022: (in thousands) Amortized Unrealized Unrealized Estimated Current assets: Cash $ 173,402 $ — $ — $ 173,402 Cash equivalents: Money market funds (1) 157,145 — (20) 157,125 Time deposits (2) 225,010 — — 225,010 Total cash and cash equivalents $ 555,557 $ — $ (20) $ 555,537 Short-term investments: Time deposits (2) 220,000 — — 220,000 Total short-term investments $ 220,000 $ — $ — $ 220,000 Total cash, cash equivalents and short-term investments $ 775,557 $ — $ (20) $ 775,537 (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. |
EQUITY INVESTMENTS
EQUITY INVESTMENTS | 9 Months Ended |
Jul. 01, 2023 | |
Equity Method Investments [Abstract] | |
EQUITY INVESTMENTS | 6. EQUITY INVESTMENTS Equity investments consisted of the following as of July 1, 2023 and October 1, 2022: As of (in thousands) July 1, 2023 October 1, 2022 Non-marketable equity securities $ 433 $ 5,397 During the three and nine months ended July 1, 2023, the Company recorded an impairment of $5.0 million on a non-marketable equity security without a readily determinable fair value. The entire amount of the investment in the non-marketable equity security was impaired due to a significant deterioration in the earnings performance of the equity investee. The impairment amount is recorded in the Company’s Consolidated Condensed Statements of Operations. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Jul. 01, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASURMENTS | 7. 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 and nine months ended July 1, 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) | 9 Months Ended |
Jul. 01, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES FINANCIAL INSTRUMENTS | 8. 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 July 1, 2023 and October 1, 2022 were as follows: As of July 1, 2023 October 1, 2022 (in thousands) Notional Amount Fair Value Liability Derivatives (1) Notional Amount Fair Value Liability Derivatives (1) Derivatives designated as hedging instruments: Foreign exchange forward contracts (2) $ 58,288 $ (500) $ 57,570 $ (2,234) Total derivatives $ 58,288 $ (500) $ 57,570 $ (2,234) (1) 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. (2) 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 and nine months ended July 1, 2023 and July 2, 2022 were as follows: Three months ended Nine months ended (in thousands) July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 Foreign exchange forward contract in cash flow hedging relationships: Net (loss)/gain recognized in OCI, net of tax (1) $ (1,280) $ (1,233) $ 2,550 $ (1,168) Net gain/(loss) reclassified from accumulated OCI into income, net of tax (2) $ 518 $ (170) $ 816 $ (793) (1) Net change in the fair value of the effective portion classified in OCI. |
LEASES
LEASES | 9 Months Ended |
Jul. 01, 2023 | |
Leases [Abstract] | |
Leases | 9. LEASESWe 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 July 1, 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 July 1, 2023 and October 1, 2022, our finance leases are not material. The following table shows the components of lease expense: Three months ended Nine months ended (in thousands) July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 Operating lease expense (1) $ 2,846 $ 2,173 $ 8,119 $ 6,217 (1) Operating lease expense includes short-term lease expense, which is immaterial for the three and nine months ended July 1, 2023 and July 2, 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: Nine months ended (in thousands) July 1, 2023 July 2, 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 6,913 $ 5,715 The following table shows the weighted-average lease terms and discount rates for operating leases: As of July 1, 2023 October 1, 2022 Operating leases: Weighted-average remaining lease term (in years) : 7.7 8.0 Weighted-average discount rate: 6.4 % 5.8 % Future lease payments, excluding short-term leases are detailed as follows: As of (in thousands) July 1, 2023 Remaining fiscal 2023 $ 2,453 Fiscal 2024 9,088 Fiscal 2025 8,817 Fiscal 2026 8,382 Fiscal 2027 6,462 Thereafter 26,168 Total minimum lease payments $ 61,370 Less: Interest $ 13,411 Present value of lease obligations $ 47,959 Less: Current portion $ 6,569 Long-term portion of lease obligations $ 41,390 |
DEBT AND OTHER OBLIGATIONS DEBT
DEBT AND OTHER OBLIGATIONS DEBT AND OTHER OBLIGATIONS (Notes) | 9 Months Ended |
Jul. 01, 2023 | |
Debt Disclosure [Abstract] | |
Debt and Other Obligations | 10. 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 July 1, 2023, the outstanding amount under this facility was $3.2 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 July 1, 2023, there were no outstanding amounts under the Overdraft Facility. |
SHAREHOLDERS' EQUITY AND EMPLOY
SHAREHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS | 9 Months Ended |
Jul. 01, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
SHAREHOLDERS’ EQUITY AND EMPLOYEE BENEFIT PLANS | 11. SHAREHOLDERS’ EQUITY AND EMPLOYEE BENEFIT PLANS 401(k) Retirement Income Plans The Company has a 401(k) retirement plan (the “401(k) Plan”) for eligible U.S. employees. The 401(k) Plan allows for employee contributions and matching Company contributions from 4% to 6% based upon terms and conditions of the 401(k) Plan. The following table reflects the Company’s contributions to the 401(k) Plan during the three and nine months ended July 1, 2023 and July 2, 2022: Three months ended Nine months ended (in thousands) July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 Cash $ 463 $ 419 $ 1,477 $ 1,423 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 May 7, 2022, the Company entered into a written trading plan under Rule 10b5-1 of the Exchange Act to facilitate repurchases under the Program. This trading plan was most recently modified on May 29, 2023. 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 and nine months ended July 1, 2023, the Company repurchased a total of approximately 174.9 thousand and 1,331.1 thousand shares of common stock under the Program at a cost of approximately $8.5 million and $58.9 million, respectively. 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 July 1, 2023, our remaining stock repurchase authorization under the Program was approximately $190.2 million. Dividends On November 16, 2022, the Board of Directors declared a quarterly dividend of $0.19 per share of common stock. Dividends paid during the three and nine months ended July 1, 2023 totaled $10.8 million and $31.3 million, respectively. 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 July 1, 2023 and October 1, 2022: As of (in thousands) July 1, 2023 October 1, 2022 Loss from foreign currency translation adjustments $ (16,341) $ (29,854) Unrecognized actuarial loss on pension plan, net of tax (884) (812) Unrealized loss on hedging (500) (2,234) Accumulated other comprehensive loss $ (17,725) $ (32,900) 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 July 1, 2023, 2.5 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 and nine months ended July 1, 2023 and July 2, 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 and nine months ended July 1, 2023 and July 2, 2022: Three months ended Nine months ended (shares in thousands) July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 Time-based RSUs — 1 512 303 Relative TSR PSUs — — 186 154 Growth PSUs — — 92 77 Common stock 5 4 17 12 Equity-based compensation in shares 5 5 807 546 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 and nine months ended July 1, 2023 and July 2, 2022: Three months ended Nine months ended (in thousands) July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 Cost of sales $ 272 $ 193 $ 903 $ 727 Selling, general and administrative 3,800 3,233 12,398 10,485 Research and development 1,331 1,039 4,002 3,261 Total equity-based compensation expense $ 5,403 $ 4,465 $ 17,303 $ 14,473 The following table reflects equity-based compensation expense, by type of award, for the three and nine months ended July 1, 2023 and July 2, 2022: Three months ended Nine months ended (in thousands) July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 Time-based RSUs $ 3,560 $ 2,845 $ 10,758 $ 8,763 Relative TSR PSUs 1,252 1,073 3,697 3,060 Growth PSUs 354 310 2,137 1,938 Common stock 237 237 711 712 Total equity-based compensation expense $ 5,403 $ 4,465 $ 17,303 $ 14,473 |
REVENUE AND CONTRACT BALANCES
REVENUE AND CONTRACT BALANCES | 9 Months Ended |
Jul. 01, 2023 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE AND CONTRACT BALANCES | 12. 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 and nine months ended July 1, 2023, and July 2, 2022, the service revenue was not material. The Company reports revenue based on its reportable segments. The Company believes that reporting revenue on this basis provides information about how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. Please refer to Note 15: Segment Information, for disclosure of revenue by segment. 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 and nine months ended July 1, 2023 and July 2, 2022: Three months ended Nine months ended (in thousands) July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 Contract assets, beginning of period $ 29,210 $ 26,721 $ 26,317 $ — Additions 1,337 18,563 4,230 45,284 Transferred to accounts receivable or collected (20,365) — (20,365) — Contract assets, end of period $ 10,182 $ 45,284 $ 10,182 $ 45,284 The following table shows the changes in contract liability balances during the three and nine months ended July 1, 2023 and July 2, 2022: Three months ended Nine months ended (in thousands) July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 Contract liabilities, beginning of period $ 6,556 $ 17,300 $ 3,160 $ 15,596 Revenue recognized (12,404) (29,612) (28,950) (104,796) Additions 11,832 17,996 31,774 94,884 Contract liabilities, end of period $ 5,984 $ 5,684 $ 5,984 $ 5,684 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Jul. 01, 2023 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | 13. 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 and nine months ended July 1, 2023 and July 2, 2022: Three months ended (in thousands, except per share data) July 1, 2023 July 2, 2022 Basic Diluted Basic Diluted NUMERATOR: Net income $ 4,161 $ 4,161 $ 119,034 $ 119,034 DENOMINATOR: Weighted average shares outstanding - Basic 56,553 56,553 58,985 58,985 Dilutive effect of Equity Plans 966 970 Weighted average shares outstanding - Diluted 57,519 59,955 EPS: Net income per share - Basic $ 0.07 $ 0.07 $ 2.02 $ 2.02 Effect of dilutive shares — (0.03) Net income per share - Diluted $ 0.07 $ 1.99 Anti-dilutive shares (1) 0 19 Nine months ended (in thousands, except per share data) July 1, 2023 July 2, 2022 Basic Diluted Basic Diluted NUMERATOR: Net income $ 33,791 $ 33,791 $ 368,641 $ 368,641 DENOMINATOR: Weighted average shares outstanding - Basic 56,763 56,763 60,951 60,951 Dilutive effect of Equity Plans 921 989 Weighted average shares outstanding - Diluted 57,684 61,940 EPS: Net income per share - Basic $ 0.60 $ 0.60 $ 6.05 $ 6.05 Effect of dilutive shares (0.01) (0.10) Net income per share - Diluted $ 0.59 $ 5.95 Anti-dilutive shares (1) 1 1 |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Jul. 01, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 14. INCOME TAXES The following table reflects the provision for income taxes and the effective tax rate for the three and nine months ended July 1, 2023 and July 2, 2022: Three months ended Nine months ended (dollar amounts in thousands) July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 Provision for income taxes $ 148 $ 5,165 $ 9,462 $ 36,813 Effective tax rate 3.4 % 4.2 % 21.9 % 9.1 % For the three months ended July 1, 2023, the decrease in provision for income taxes as compared to the prior year period was primarily due to a decrease in profitability and the decrease in effective tax rate was primarily related to tax benefits from the reversal of uncertain tax positions partially offset by the increase in global intangible low-taxed income (“GILTI”) resulting from the capitalization of research and development expenditures as mandated by the U.S. Tax Cuts and Jobs Act of 2017. For the three months ended July 1, 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, tax credits, and tax benefits from the reversal of uncertain tax positions, partially offset by GILTI. For the nine months ended July 1, 2023, the decrease in provision for income taxes as compared to the prior year period was primarily due to a decrease in profitability and the increase in effective tax rate was primarily related to the increase in GILTI resulting from the capitalization of research and development expenditures as mandated by the U.S. Tax Cuts and Jobs Act of 2017, partially offset by tax benefits from the reversal of uncertain tax positions. For the nine months ended July 1, 2023, the effective tax rate is higher than the U.S. federal statutory tax rate primarily due to GILTI, partially offset by foreign income earned in lower tax jurisdictions, tax incentives, tax credits, and tax benefits from the reversal of uncertain tax positions. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Jul. 01, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | 15. 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. 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 and nine months ended July 1, 2023 and July 2, 2022: Three months ended Nine months ended (in thousands) July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 Net revenue: Ball Bonding Equipment $ 76,865 $ 217,912 $ 184,049 $ 751,496 Wedge Bonding Equipment 42,563 50,800 145,805 142,284 Advanced Solutions 23,858 34,614 58,997 71,651 APS 39,672 50,191 119,822 152,924 All Others 7,959 18,620 31,498 98,952 Net revenue 190,917 372,137 540,171 1,217,307 Income/(loss) from operations: Ball Bonding Equipment 18,534 93,863 49,337 323,884 Wedge Bonding Equipment 15,974 19,443 $ 53,958 $ 49,599 Advanced Solutions (2,570) 3,134 $ (21,160) $ (7,574) APS 11,510 22,282 34,778 64,651 All Others (23,857) 2,671 (35,025) 28,372 Corporate Expenses (24,079) (19,316) (61,925) (56,404) (Loss)/Income from operations $ (4,488) $ 122,077 $ 19,963 $ 402,528 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 and nine months ended July 1, 2023 and July 2, 2022: Three months ended Nine months ended (in thousands) July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 General Semiconductor $ 77,745 $ 223,034 $ 217,186 $ 670,251 Automotive & Industrial 44,973 51,018 149,608 160,366 LED 17,678 20,203 32,765 128,394 Memory 10,849 27,691 20,790 105,372 APS 39,672 50,191 119,822 152,924 Total revenue $ 190,917 $ 372,137 $ 540,171 $ 1,217,307 The following table reflects capital expenditures, depreciation expense and amortization expense for the three and nine months ended July 1, 2023 and July 2, 2022: Three months ended Nine months ended (in thousands) July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 Capital expenditures: Ball Bonding Equipment $ 316 $ 179 $ 805 $ 855 Wedge Bonding Equipment 83 358 403 780 Advanced Solutions 6,439 1,049 29,425 2,423 APS 1,251 1,151 4,443 2,851 All Others 30 437 279 700 Corporate Expenses 2,332 1,779 8,130 3,604 $ 10,451 $ 4,953 $ 43,485 $ 11,213 Depreciation expense: Ball Bonding Equipment $ 388 $ 346 $ 1,173 $ 1,012 Wedge Bonding Equipment 304 252 878 732 Advanced Solutions 2,989 519 4,821 1,494 APS 1,517 1,681 4,742 4,971 All Others 416 250 1,017 792 Corporate Expenses 1,191 1,053 3,372 3,229 $ 6,805 $ 4,101 $ 16,003 $ 12,230 Amortization expense: Ball Bonding Equipment $ — $ — $ — $ — Wedge Bonding Equipment — — — — Advanced Solutions — — — — APS 380 208 1,116 684 All Others 1,314 809 3,352 2,584 Corporate Expenses 92 92 275 275 $ 1,786 $ 1,109 $ 4,743 $ 3,543 |
COMMITMENTS, CONTINGENCIES AND
COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS (Notes) | 9 Months Ended |
Jul. 01, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS | 16. 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 and nine months ended July 1, 2023 and July 2, 2022: Three months ended Nine months ended (in thousands) July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 Reserve for warranty, beginning of period $ 10,468 $ 15,518 $ 13,443 $ 16,961 Provision for warranty 4,007 2,842 8,989 9,001 Utilization of reserve (3,908) (4,118) (11,865) (11,720) Reserve for warranty, end of period $ 10,567 $ 14,242 $ 10,567 $ 14,242 Other Commitments and Contingencies The following table reflects obligations not reflected on the Consolidated Condensed Balance Sheets as of July 1, 2023: Payments due by fiscal year (in thousands) Total 2023 2024 2025 2026 2027 thereafter Inventory purchase obligation (1) $ 198,566 $ 21,676 $ 176,890 $ — $ — $ — $ — (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 July 1, 2023, the Company also has an obligation to fund uncalled capital commitments of approximately $9.6 million, as and when required, in relation to its investment in a private equity fund. Concentrations The following table reflects significant customer concentrations as a percentage of net revenue for the nine months ended July 1, 2023 and July 2, 2022: Nine months ended July 1, 2023 July 2, 2022 First Technology China Ltd. (1) 10.0 % * * Represents less than 10% of total net revenue (1) Distributor of the Company's products The following table reflects significant customer concentrations as a percentage of total accounts receivable as of July 1, 2023 and July 2, 2022: As of July 1, 2023 July 2, 2022 Intel Corporation 12.2 % * Apple Inc. 10.3 % * Tianshui Huatian Technology Co., Ltd. * 20.6 % * Represents less than 10% of total accounts receivable |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Jul. 01, 2023 | Apr. 01, 2023 | Dec. 31, 2022 | Jul. 02, 2022 | Apr. 02, 2022 | Jan. 01, 2022 | Jul. 01, 2023 | Jul. 02, 2022 | |
Pay vs Performance Disclosure | ||||||||
Net income | $ 4,161 | $ 15,041 | $ 14,589 | $ 119,034 | $ 116,001 | $ 133,606 | $ 33,791 | $ 368,641 |
Insider Trading Arrangements
Insider Trading Arrangements | 9 Months Ended |
Jul. 01, 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) | 9 Months Ended |
Jul. 01, 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/A for the fiscal year ended October 1, 2022 (the “2022 Annual Report”) filed with the Securities and Exchange Commission on August 8, 2023, which includes the Consolidated Balance Sheets as of October 1, 2022 and October 2, 2021, 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 October 1, 2022. 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, 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. |
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 and ongoing discussions with the staff of 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 Government Assistance In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832): Disclosure by Business Entities about Government Assistance which aims at increasing the transparency of government assistance received by most business entities. The standard requires business entities to make annual disclosures about the nature of the transactions and the related accounting policy used to account for the transactions, the line items and applicable amounts on the balance sheet and income statement that are affected by the transactions, and significant terms and conditions of the transactions, including commitments and contingencies. If an entity omits any required disclosures because it is legally prohibited, it must describe the general nature of the information and indicate that the omitted disclosures are legally prohibited from being disclosed. This ASU is effective for fiscal years beginning after December 15, 2021, which for the Company is in fiscal 2023. The Company will include disclosures for material items with the filing of its Annual Report on Form 10-K for the year ending on September 30, 2023. Business Combinations In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which clarifies that an acquirer of a business should recognize and measure contract assets and contract liabilities in a business combination in accordance with Topic 606: Revenue from Contracts with Customers |
BALANCE SHEET COMPONENTS (Table
BALANCE SHEET COMPONENTS (Tables) | 9 Months Ended |
Jul. 01, 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 July 1, 2023 and October 1, 2022: As of (in thousands) July 1, 2023 October 1, 2022 Short-term investments, available-for-sale (1) $ 310,000 $ 220,000 Inventories, net: Raw materials and supplies $ 127,216 $ 118,833 Work in process 71,052 40,114 Finished goods 49,155 45,277 247,423 204,224 Inventory reserves (19,432) (19,238) $ 227,991 $ 184,986 Property, plant and equipment, net: Land $ 2,182 $ 2,182 Buildings and building improvements 22,929 22,783 Leasehold improvements 83,785 32,400 Data processing equipment and software 37,483 38,223 Machinery, equipment, furniture and fixtures 93,192 90,151 Construction in progress 11,910 25,004 251,481 210,743 Accumulated depreciation (137,914) (129,835) $ 113,567 $ 80,908 Accrued expenses and other current liabilities: Accrued customer obligations (2) $ 52,268 $ 58,916 Wages and benefits 31,735 50,279 Dividends payable 10,734 9,743 Commissions and professional fees 3,825 5,019 Accrued leasehold renovations 13,378 — Severance — 19 Other 8,566 10,565 $ 120,506 $ 134,541 (1) 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 and nine months ended July 1, 2023 and July 2, 2022. (2) Represents customer advance payments, customer credit program, accrued warranty expense and accrued retrofit obligations. |
BUSINESS COMBINATION (Tables)
BUSINESS COMBINATION (Tables) | 9 Months Ended |
Jul. 01, 2023 | |
Business Combinations [Abstract] | |
Summary of assets acquired and liabilities assumed as of acquisition date | The following table summarizes the allocation of the assets acquired and liabilities assumed based on the fair values as of the Closing Date: (in thousands) February 22, 2023 Cash and cash equivalents $ 1,238 Account and other receivables, net 1,156 Inventory 1,581 Property, plant and equipment, net 1,462 Right-of-use assets 989 Other assets 127 Goodwill 27,975 Intangible assets 7,768 Accounts and other payables (965) Accrued expenses and other liabilities (251) Contract liabilities (187) Lease liability (989) Deferred tax liabilities (1,785) Total purchase price $ 38,119 The following table summarizes the fair value, useful life and valuation methodology of each identifiable intangible asset. (in thousands) Fair Value Useful Lives Developed technology (1) $ 4,261 8 Customer relationships (2) 2,131 8 In-process research and development (“IPR&D”) (3) 459 N.A. Patents (3) 524 8 Order Backlog (4) 393 1 Total identifiable intangible assets $ 7,768 (1) The fair value of developed technology was determined using the Relief-from-Royalty Method under the income approach. (2) Customer relationships represent the fair value of the existing relationships using the Multi-Period Excess Earnings Method under the income approach. (3) The fair value of IPR&D and Patents were determined using the Replacement Cost Method, a form of the cost approach. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Jul. 01, 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 15 for further information) as of July 1, 2023 and October 1, 2022: (in thousands) Wedge Bonding Equipment APS All Others Total Balance at October 1, 2022 (1) $ 18,280 $ 25,907 23,909 $ 68,096 Acquired in business combination — — 27,975 $ 27,975 Goodwill impairment — — (9,794) $ (9,794) Other — 294 2,720 $ 3,014 Balance at July 1, 2023 $ 18,280 $ 26,201 44,810 $ 89,291 (1) Cumulative goodwill impairment pertaining to the “All Others” category as of October 1, 2022 was $35.2 million. During the quarter ended April 1, 2023, the Company recorded goodwill relating to the acquisition of AJA. For further information on the acquisition of AJA, please refer to Note 3. |
Net intangible assets | The following table reflects net intangible assets as of July 1, 2023 and October 1, 2022: As of Average estimated (dollar amounts in thousands) July 1, 2023 October 1, 2022 useful lives (in years) Developed technology $ 99,614 $ 89,017 6.0 to 15.0 Accumulated amortization (65,861) (58,636) Impairment charges $ (6,900) $ — Net developed technology $ 26,853 $ 30,381 Customer relationships $ 37,259 $ 33,515 5.0 to 8.0 Accumulated amortization (35,217) (33,515) Net customer relationships $ 2,042 $ — In-process research and development $ 459 $ — N.A Net in-process research and development $ 459 $ — Trade and brand name $ 7,212 $ 6,945 7.0 to 8.0 Accumulated amortization (7,212) (6,945) Net trade and brand name — — Other intangible assets $ 5,634 $ 4,700 1.0 to 8.0 Accumulated amortization (3,570) (3,142) Net other intangible assets $ 2,064 $ 1,558 $ 31,418 $ 31,939 |
Estimated annual amortization expense related to intangible assets | The following table reflects estimated annual amortization expense related to intangible assets as of July 1, 2023: As of (in thousands) July 1, 2023 Remaining fiscal 2023 $ 1,378 Fiscal 2024 5,274 Fiscal 2025 5,110 Fiscal 2026 5,110 Fiscal 2027 4,835 Thereafter 9,711 Total amortization expense $ 31,418 |
CASH, CASH EQUIVALENTS, RESTR_2
CASH, CASH EQUIVALENTS, RESTRICTED CASH AND SHORT-TERM INVESTMENTS (Tables) | 9 Months Ended |
Jul. 01, 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 July 1, 2023: (in thousands) Amortized Unrealized Unrealized Estimated Current assets: Cash $ 31,696 $ — $ — $ 31,696 Cash equivalents: Money market funds (1) 215,114 — (13) 215,101 Time deposits (2) 155,009 — — 155,009 Total cash and cash equivalents $ 401,819 $ — $ (13) $ 401,806 Short-term investments: Time deposits (2) 310,000 — — 310,000 Total short-term investments $ 310,000 $ — $ — $ 310,000 Total cash, cash equivalents and short-term investments $ 711,819 $ — $ (13) $ 711,806 (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) Fair value approximates cost basis. Cash, cash equivalents and short-term investments consisted of the following as of October 1, 2022: (in thousands) Amortized Unrealized Unrealized Estimated Current assets: Cash $ 173,402 $ — $ — $ 173,402 Cash equivalents: Money market funds (1) 157,145 — (20) 157,125 Time deposits (2) 225,010 — — 225,010 Total cash and cash equivalents $ 555,557 $ — $ (20) $ 555,537 Short-term investments: Time deposits (2) 220,000 — — 220,000 Total short-term investments $ 220,000 $ — $ — $ 220,000 Total cash, cash equivalents and short-term investments $ 775,557 $ — $ (20) $ 775,537 (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. |
EQUITY INVESTMENTS (Tables)
EQUITY INVESTMENTS (Tables) | 9 Months Ended |
Jul. 01, 2023 | |
Equity Method Investments [Abstract] | |
Equity investments | Equity investments consisted of the following as of July 1, 2023 and October 1, 2022: As of (in thousands) July 1, 2023 October 1, 2022 Non-marketable equity securities $ 433 $ 5,397 During the three and nine months ended July 1, 2023, the Company recorded an impairment of $5.0 million on a non-marketable equity security without a readily determinable fair value. The entire amount of the investment in the non-marketable equity security was impaired due to a significant deterioration in the earnings performance of the equity investee. The impairment amount is recorded in the Company’s Consolidated Condensed Statements of Operations. |
DERIVATIVES FINANCIAL INSTRUM_2
DERIVATIVES FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Jul. 01, 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 July 1, 2023 and October 1, 2022 were as follows: As of July 1, 2023 October 1, 2022 (in thousands) Notional Amount Fair Value Liability Derivatives (1) Notional Amount Fair Value Liability Derivatives (1) Derivatives designated as hedging instruments: Foreign exchange forward contracts (2) $ 58,288 $ (500) $ 57,570 $ (2,234) Total derivatives $ 58,288 $ (500) $ 57,570 $ (2,234) (1) 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. (2) 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 and nine months ended July 1, 2023 and July 2, 2022 were as follows: Three months ended Nine months ended (in thousands) July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 Foreign exchange forward contract in cash flow hedging relationships: Net (loss)/gain recognized in OCI, net of tax (1) $ (1,280) $ (1,233) $ 2,550 $ (1,168) Net gain/(loss) reclassified from accumulated OCI into income, net of tax (2) $ 518 $ (170) $ 816 $ (793) (1) Net change in the fair value of the effective portion classified in OCI. |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Jul. 01, 2023 | |
Leases [Abstract] | |
Lease expense and components of lease expense | The following table shows the components of lease expense: Three months ended Nine months ended (in thousands) July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 Operating lease expense (1) $ 2,846 $ 2,173 $ 8,119 $ 6,217 (1) Operating lease expense includes short-term lease expense, which is immaterial for the three and nine months ended July 1, 2023 and July 2, 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: Nine months ended (in thousands) July 1, 2023 July 2, 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 6,913 $ 5,715 |
Weighted-average lease terms and discount rates | The following table shows the weighted-average lease terms and discount rates for operating leases: As of July 1, 2023 October 1, 2022 Operating leases: Weighted-average remaining lease term (in years) : 7.7 8.0 Weighted-average discount rate: 6.4 % 5.8 % |
Future lease payments after ASC 842 adoption | Future lease payments, excluding short-term leases are detailed as follows: As of (in thousands) July 1, 2023 Remaining fiscal 2023 $ 2,453 Fiscal 2024 9,088 Fiscal 2025 8,817 Fiscal 2026 8,382 Fiscal 2027 6,462 Thereafter 26,168 Total minimum lease payments $ 61,370 Less: Interest $ 13,411 Present value of lease obligations $ 47,959 Less: Current portion $ 6,569 Long-term portion of lease obligations $ 41,390 |
SHAREHOLDERS' EQUITY AND EMPL_2
SHAREHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS (Tables) | 9 Months Ended |
Jul. 01, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Company’s matching contributions to the Plan | The following table reflects the Company’s contributions to the 401(k) Plan during the three and nine months ended July 1, 2023 and July 2, 2022: Three months ended Nine months ended (in thousands) July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 Cash $ 463 $ 419 $ 1,477 $ 1,423 |
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 July 1, 2023 and October 1, 2022: As of (in thousands) July 1, 2023 October 1, 2022 Loss from foreign currency translation adjustments $ (16,341) $ (29,854) Unrecognized actuarial loss on pension plan, net of tax (884) (812) Unrealized loss on hedging (500) (2,234) Accumulated other comprehensive loss $ (17,725) $ (32,900) |
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 and nine months ended July 1, 2023 and July 2, 2022: Three months ended Nine months ended (shares in thousands) July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 Time-based RSUs — 1 512 303 Relative TSR PSUs — — 186 154 Growth PSUs — — 92 77 Common stock 5 4 17 12 Equity-based compensation in shares 5 5 807 546 |
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 and nine months ended July 1, 2023 and July 2, 2022: Three months ended Nine months ended (in thousands) July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 Cost of sales $ 272 $ 193 $ 903 $ 727 Selling, general and administrative 3,800 3,233 12,398 10,485 Research and development 1,331 1,039 4,002 3,261 Total equity-based compensation expense $ 5,403 $ 4,465 $ 17,303 $ 14,473 The following table reflects equity-based compensation expense, by type of award, for the three and nine months ended July 1, 2023 and July 2, 2022: Three months ended Nine months ended (in thousands) July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 Time-based RSUs $ 3,560 $ 2,845 $ 10,758 $ 8,763 Relative TSR PSUs 1,252 1,073 3,697 3,060 Growth PSUs 354 310 2,137 1,938 Common stock 237 237 711 712 Total equity-based compensation expense $ 5,403 $ 4,465 $ 17,303 $ 14,473 |
REVENUE AND CONTRACT BALANCES (
REVENUE AND CONTRACT BALANCES (Tables) | 9 Months Ended |
Jul. 01, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Contract Assets and Liabilities | The following table shows the changes in contract asset balances during the three and nine months ended July 1, 2023 and July 2, 2022: Three months ended Nine months ended (in thousands) July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 Contract assets, beginning of period $ 29,210 $ 26,721 $ 26,317 $ — Additions 1,337 18,563 4,230 45,284 Transferred to accounts receivable or collected (20,365) — (20,365) — Contract assets, end of period $ 10,182 $ 45,284 $ 10,182 $ 45,284 The following table shows the changes in contract liability balances during the three and nine months ended July 1, 2023 and July 2, 2022: Three months ended Nine months ended (in thousands) July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 Contract liabilities, beginning of period $ 6,556 $ 17,300 $ 3,160 $ 15,596 Revenue recognized (12,404) (29,612) (28,950) (104,796) Additions 11,832 17,996 31,774 94,884 Contract liabilities, end of period $ 5,984 $ 5,684 $ 5,984 $ 5,684 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Jul. 01, 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 and nine months ended July 1, 2023 and July 2, 2022: Three months ended (in thousands, except per share data) July 1, 2023 July 2, 2022 Basic Diluted Basic Diluted NUMERATOR: Net income $ 4,161 $ 4,161 $ 119,034 $ 119,034 DENOMINATOR: Weighted average shares outstanding - Basic 56,553 56,553 58,985 58,985 Dilutive effect of Equity Plans 966 970 Weighted average shares outstanding - Diluted 57,519 59,955 EPS: Net income per share - Basic $ 0.07 $ 0.07 $ 2.02 $ 2.02 Effect of dilutive shares — (0.03) Net income per share - Diluted $ 0.07 $ 1.99 Anti-dilutive shares (1) 0 19 Nine months ended (in thousands, except per share data) July 1, 2023 July 2, 2022 Basic Diluted Basic Diluted NUMERATOR: Net income $ 33,791 $ 33,791 $ 368,641 $ 368,641 DENOMINATOR: Weighted average shares outstanding - Basic 56,763 56,763 60,951 60,951 Dilutive effect of Equity Plans 921 989 Weighted average shares outstanding - Diluted 57,684 61,940 EPS: Net income per share - Basic $ 0.60 $ 0.60 $ 6.05 $ 6.05 Effect of dilutive shares (0.01) (0.10) Net income per share - Diluted $ 0.59 $ 5.95 Anti-dilutive shares (1) 1 1 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 9 Months Ended |
Jul. 01, 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 and nine months ended July 1, 2023 and July 2, 2022: Three months ended Nine months ended (dollar amounts in thousands) July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 Provision for income taxes $ 148 $ 5,165 $ 9,462 $ 36,813 Effective tax rate 3.4 % 4.2 % 21.9 % 9.1 % |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Jul. 01, 2023 | |
Segment Reporting [Abstract] | |
Operating information by segment | The following table reflects operating information by segment for the three and nine months ended July 1, 2023 and July 2, 2022: Three months ended Nine months ended (in thousands) July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 Net revenue: Ball Bonding Equipment $ 76,865 $ 217,912 $ 184,049 $ 751,496 Wedge Bonding Equipment 42,563 50,800 145,805 142,284 Advanced Solutions 23,858 34,614 58,997 71,651 APS 39,672 50,191 119,822 152,924 All Others 7,959 18,620 31,498 98,952 Net revenue 190,917 372,137 540,171 1,217,307 Income/(loss) from operations: Ball Bonding Equipment 18,534 93,863 49,337 323,884 Wedge Bonding Equipment 15,974 19,443 $ 53,958 $ 49,599 Advanced Solutions (2,570) 3,134 $ (21,160) $ (7,574) APS 11,510 22,282 34,778 64,651 All Others (23,857) 2,671 (35,025) 28,372 Corporate Expenses (24,079) (19,316) (61,925) (56,404) (Loss)/Income from operations $ (4,488) $ 122,077 $ 19,963 $ 402,528 |
Schedule of net revenue by Capital Equipment end markets | The following table reflects net revenue by end markets served for the three and nine months ended July 1, 2023 and July 2, 2022: Three months ended Nine months ended (in thousands) July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 General Semiconductor $ 77,745 $ 223,034 $ 217,186 $ 670,251 Automotive & Industrial 44,973 51,018 149,608 160,366 LED 17,678 20,203 32,765 128,394 Memory 10,849 27,691 20,790 105,372 APS 39,672 50,191 119,822 152,924 Total revenue $ 190,917 $ 372,137 $ 540,171 $ 1,217,307 |
Capital expenditures, depreciation and amortization expense | The following table reflects capital expenditures, depreciation expense and amortization expense for the three and nine months ended July 1, 2023 and July 2, 2022: Three months ended Nine months ended (in thousands) July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 Capital expenditures: Ball Bonding Equipment $ 316 $ 179 $ 805 $ 855 Wedge Bonding Equipment 83 358 403 780 Advanced Solutions 6,439 1,049 29,425 2,423 APS 1,251 1,151 4,443 2,851 All Others 30 437 279 700 Corporate Expenses 2,332 1,779 8,130 3,604 $ 10,451 $ 4,953 $ 43,485 $ 11,213 Depreciation expense: Ball Bonding Equipment $ 388 $ 346 $ 1,173 $ 1,012 Wedge Bonding Equipment 304 252 878 732 Advanced Solutions 2,989 519 4,821 1,494 APS 1,517 1,681 4,742 4,971 All Others 416 250 1,017 792 Corporate Expenses 1,191 1,053 3,372 3,229 $ 6,805 $ 4,101 $ 16,003 $ 12,230 Amortization expense: Ball Bonding Equipment $ — $ — $ — $ — Wedge Bonding Equipment — — — — Advanced Solutions — — — — APS 380 208 1,116 684 All Others 1,314 809 3,352 2,584 Corporate Expenses 92 92 275 275 $ 1,786 $ 1,109 $ 4,743 $ 3,543 |
COMMITMENTS, CONTINGENCIES AN_2
COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS (Tables) | 9 Months Ended |
Jul. 01, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Reserve for product warranty activity | The following table reflects the reserve for warranty activity for the three and nine months ended July 1, 2023 and July 2, 2022: Three months ended Nine months ended (in thousands) July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 Reserve for warranty, beginning of period $ 10,468 $ 15,518 $ 13,443 $ 16,961 Provision for warranty 4,007 2,842 8,989 9,001 Utilization of reserve (3,908) (4,118) (11,865) (11,720) Reserve for warranty, end of period $ 10,567 $ 14,242 $ 10,567 $ 14,242 |
Obligations not reflected on the Consolidated Balance Sheet | The following table reflects obligations not reflected on the Consolidated Condensed Balance Sheets as of July 1, 2023: Payments due by fiscal year (in thousands) Total 2023 2024 2025 2026 2027 thereafter Inventory purchase obligation (1) $ 198,566 $ 21,676 $ 176,890 $ — $ — $ — $ — |
Schedule of Revenue by Major Customers by Reporting Segments | The following table reflects significant customer concentrations as a percentage of net revenue for the nine months ended July 1, 2023 and July 2, 2022: Nine months ended July 1, 2023 July 2, 2022 First Technology China Ltd. (1) 10.0 % * * 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 July 1, 2023 and July 2, 2022: As of July 1, 2023 July 2, 2022 Intel Corporation 12.2 % * Apple Inc. 10.3 % * Tianshui Huatian Technology Co., Ltd. * 20.6 % * 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 | Jul. 01, 2023 | Oct. 01, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Short-term investments | $ 310,000 | $ 220,000 |
Inventories, net: | ||
Raw materials and supplies | 127,216 | 118,833 |
Work in process | 71,052 | 40,114 |
Finished goods | 49,155 | 45,277 |
Inventory, gross | 247,423 | 204,224 |
Inventory reserves | (19,432) | (19,238) |
Inventories, net | 227,991 | 184,986 |
Property, plant and equipment, net: | ||
Land | 2,182 | 2,182 |
Buildings and building improvements | 22,929 | 22,783 |
Leasehold improvements | 83,785 | 32,400 |
Data processing equipment and software | 37,483 | 38,223 |
Machinery, equipment, furniture and fixtures | 93,192 | 90,151 |
Construction in progress | 11,910 | 25,004 |
Property, plant and equipment, gross | 251,481 | 210,743 |
Accumulated depreciation | (137,914) | (129,835) |
Property, plant and equipment, net | 113,567 | 80,908 |
Accrued expenses and other current liabilities: | ||
Accrued customer obligations | 52,268 | 58,916 |
Wages and benefits | 31,735 | 50,279 |
Dividends payable | 10,734 | 9,743 |
Commissions and professional fees | 3,825 | 5,019 |
Accrued leasehold renovations | 13,378 | 0 |
Severance | 0 | 19 |
Other | 8,566 | 10,565 |
Accrued expenses and other current liabilities | $ 120,506 | $ 134,541 |
BUSINESS COMBINATION (Narrative
BUSINESS COMBINATION (Narrative) (Details) - Advanced Jet Automation Co. Ltd - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Feb. 23, 2023 | Jul. 01, 2023 | Jul. 01, 2023 | |
Business Acquisition [Line Items] | |||
Cash purchase price | $ 38.1 | ||
Amount held in escrow | $ 4 | $ 4 | |
Business acquisition, net income (loss) | (0.9) | (1.3) | |
Expenses incurred related to the acquisition | $ 0.1 | $ 0.5 | |
Amount held in escrow, period from acquisition date | 24 months |
BUSINESS COMBINATION (Assets Ac
BUSINESS COMBINATION (Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Thousands | Jul. 01, 2023 | Feb. 22, 2023 | Oct. 01, 2022 |
Business Acquisition [Line Items] | |||
Goodwill | $ 89,291 | $ 68,096 | |
Advanced Jet Automation Co. Ltd | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | $ 1,238 | ||
Account and other receivables, net | 1,156 | ||
Inventory | 1,581 | ||
Property, plant and equipment, net | 1,462 | ||
Right-of-use assets | 989 | ||
Other assets | 127 | ||
Goodwill | 27,975 | ||
Intangible assets | 7,768 | ||
Accounts and other payables | (965) | ||
Accrued expenses and other liabilities | (251) | ||
Contract liabilities | (187) | ||
Lease liability | (989) | ||
Deferred tax liabilities | (1,785) | ||
Total purchase price | $ 38,119 |
BUSINESS COMBINATION (Intangibl
BUSINESS COMBINATION (Intangible assets acquired) (Details) - Advanced Jet Automation Co. Ltd $ in Thousands | Feb. 22, 2023 USD ($) |
Business Acquisition [Line Items] | |
Intangible assets | $ 7,768 |
Developed technology | |
Business Acquisition [Line Items] | |
Intangible assets | $ 4,261 |
Useful Lives | 8 years |
Customer relationships | |
Business Acquisition [Line Items] | |
Intangible assets | $ 2,131 |
Useful Lives | 8 years |
In-process research and development | |
Business Acquisition [Line Items] | |
Intangible assets | $ 459 |
Patents | |
Business Acquisition [Line Items] | |
Intangible assets | $ 524 |
Useful Lives | 8 years |
Order Backlog | |
Business Acquisition [Line Items] | |
Intangible assets | $ 393 |
Useful Lives | 1 year |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS (Goodwill by Reportable Segment) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jul. 01, 2023 | Oct. 01, 2022 | |
Goodwill [Roll Forward] | ||
Balance at October 1, 2022 | $ 68,096 | |
Acquired in business combination | 27,975 | |
Goodwill impairment | 9,794 | |
Other | 3,014 | |
Balance at July 1, 2023 | 89,291 | |
Goodwill, cumulative impairment | $ 35,200 | |
Ball Bonding Equipment | ||
Goodwill [Roll Forward] | ||
Balance at October 1, 2022 | 18,280 | |
Acquired in business combination | 0 | |
Goodwill impairment | 0 | |
Other | 0 | |
Balance at July 1, 2023 | 18,280 | |
APS | ||
Goodwill [Roll Forward] | ||
Balance at October 1, 2022 | 25,907 | |
Acquired in business combination | 0 | |
Goodwill impairment | 0 | |
Other | 294 | |
Balance at July 1, 2023 | 26,201 | |
All Others | ||
Goodwill [Roll Forward] | ||
Balance at October 1, 2022 | 23,909 | |
Acquired in business combination | 27,975 | |
Goodwill impairment | 9,794 | |
Other | 2,720 | |
Balance at July 1, 2023 | $ 44,810 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS (Net intangible assets) (Details) - USD ($) $ in Thousands | Jul. 01, 2023 | Oct. 01, 2022 |
Schedule Of Intangible Assets [Line Items] | ||
Net intangible assets | $ 31,418 | $ 31,939 |
In-process research and development | ||
Schedule Of Intangible Assets [Line Items] | ||
Gross intangible assets | 459 | 0 |
Net intangible assets | 459 | 0 |
Developed technology | ||
Schedule Of Intangible Assets [Line Items] | ||
Gross intangible assets | 99,614 | 89,017 |
Accumulated amortization | (65,861) | (58,636) |
Impairment charges | (6,900) | 0 |
Net intangible assets | $ 26,853 | 30,381 |
Developed technology | Minimum | ||
Schedule Of Intangible Assets [Line Items] | ||
Estimated useful life | 6 years | |
Developed technology | Maximum | ||
Schedule Of Intangible Assets [Line Items] | ||
Estimated useful life | 15 years | |
Customer relationships | ||
Schedule Of Intangible Assets [Line Items] | ||
Gross intangible assets | $ 37,259 | 33,515 |
Accumulated amortization | (35,217) | (33,515) |
Net intangible assets | $ 2,042 | 0 |
Customer relationships | Minimum | ||
Schedule Of Intangible Assets [Line Items] | ||
Estimated useful life | 5 years | |
Customer relationships | Maximum | ||
Schedule Of Intangible Assets [Line Items] | ||
Estimated useful life | 8 years | |
Trade and brand name | ||
Schedule Of Intangible Assets [Line Items] | ||
Gross intangible assets | $ 7,212 | 6,945 |
Accumulated amortization | (7,212) | (6,945) |
Net intangible assets | $ 0 | 0 |
Trade and brand name | Minimum | ||
Schedule Of Intangible Assets [Line Items] | ||
Estimated useful life | 7 years | |
Trade and brand name | Maximum | ||
Schedule Of Intangible Assets [Line Items] | ||
Estimated useful life | 8 years | |
Other intangible assets | ||
Schedule Of Intangible Assets [Line Items] | ||
Gross intangible assets | $ 5,634 | 4,700 |
Accumulated amortization | (3,570) | (3,142) |
Net intangible assets | $ 2,064 | $ 1,558 |
Other intangible assets | Minimum | ||
Schedule Of Intangible Assets [Line Items] | ||
Estimated useful life | 1 year | |
Other intangible assets | Maximum | ||
Schedule Of Intangible Assets [Line Items] | ||
Estimated useful life | 8 years |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS (Estimated annual amortization expense) (Details) $ in Thousands | Jul. 01, 2023 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remaining fiscal 2023 | $ 1,378 |
Fiscal 2024 | 5,274 |
Fiscal 2025 | 5,110 |
Fiscal 2026 | 5,110 |
Fiscal 2027 | 4,835 |
Thereafter | 9,711 |
Total amortization expense | $ 31,418 |
GOODWILL AND INTANGIBLE ASSET_5
GOODWILL AND INTANGIBLE ASSETS (Narrative) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jul. 01, 2023 | Oct. 01, 2022 | |
Goodwill [Line Items] | ||
Goodwill impairment | $ 9,794 | |
Developed technology | ||
Goodwill [Line Items] | ||
Cumulative impairment | 6,900 | $ 0 |
All Others | ||
Goodwill [Line Items] | ||
Goodwill impairment | $ 9,794 | |
Growth rate | ||
Goodwill [Line Items] | ||
Reporting unit, measurement input | 2.50% | |
Discount rate | ||
Goodwill [Line Items] | ||
Reporting unit, measurement input | 11.70% |
CASH, CASH EQUIVALENTS, RESTR_3
CASH, CASH EQUIVALENTS, RESTRICTED CASH AND SHORT-TERM INVESTMENTS (Details) - USD ($) $ in Thousands | Jul. 01, 2023 | Oct. 01, 2022 |
Cash, Cash Equivalents, Restricted Cash and Short-Term Investments [Line Items] | ||
Cash, Amortized Cost | $ 31,696 | $ 173,402 |
Cash, Unrealized Gains | 0 | 0 |
Cash, Unrealized Losses | 0 | 0 |
Cash, Estimated Fair Value | 31,696 | 173,402 |
Cash and Cash Equivalents, Amortized Cost | 401,819 | 555,557 |
Cash and Cash Equivalents, Unrealized Gain | 0 | 0 |
Cash and Cash Equivalents, Unrealized Loss | (13) | (20) |
Cash and Cash Equivalents, Estimated Fair Value | 401,806 | 555,537 |
Short-term investments, Amortized Cost | 310,000 | 220,000 |
Short-term Investments, Unrealized Gain | 0 | 0 |
Short-term Investments, Unrealized Loss | 0 | 0 |
Short-term Investments, Estimated Fair Value | 310,000 | 220,000 |
Cash, Cash Equivalents, Restricted Cash, and Short-Term Investments, Amortized Cost | 711,819 | 775,557 |
Cash, Cash Equivalents, Restricted Cash, and Short-Term Investments, Unrealized Gain | 0 | 0 |
Cash, Cash Equivalents, Restricted Cash, and Short-Term Investments, Unrealized Loss | (13) | (20) |
Cash, Cash Equivalents, Restricted Cash, and Short-Term Investments, Estimated Fair Value | 711,806 | 775,537 |
Money market funds | ||
Cash, Cash Equivalents, Restricted Cash and Short-Term Investments [Line Items] | ||
Cash Equivalents, Amortized Cost | 215,114 | 157,145 |
Cash Equivalents, Unrealized Gain | 0 | 0 |
Cash Equivalents, Unrealized Loss | (13) | (20) |
Cash Equivalents, Estimated Fair Value | 215,101 | 157,125 |
Time deposits | ||
Cash, Cash Equivalents, Restricted Cash and Short-Term Investments [Line Items] | ||
Cash Equivalents, Amortized Cost | 155,009 | 225,010 |
Cash Equivalents, Unrealized Gain | 0 | 0 |
Cash Equivalents, Unrealized Loss | 0 | 0 |
Cash Equivalents, Estimated Fair Value | 155,009 | 225,010 |
Short-term investments, Amortized Cost | 310,000 | 220,000 |
Short-term Investments, Unrealized Gain | 0 | 0 |
Short-term Investments, Unrealized Loss | 0 | 0 |
Short-term Investments, Estimated Fair Value | $ 310,000 | $ 220,000 |
EQUITY INVESTMENTS (Details)
EQUITY INVESTMENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Jul. 01, 2023 | Jul. 01, 2023 | Oct. 01, 2022 | |
Equity Method Investments [Abstract] | |||
Non-marketable equity securities | $ 433 | $ 433 | $ 5,397 |
Impairment charges | $ 5,000 | $ 5,000 |
DERIVATIVES FINANCIAL INSTRUM_3
DERIVATIVES FINANCIAL INSTRUMENTS (Fair value of derivative instruments) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jul. 01, 2023 | Oct. 01, 2022 | |
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 58,288 | $ 57,570 |
Fair value liability, derivates | $ (500) | (2,234) |
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 | $ 58,288 | 57,570 |
Accrued Expenses and Other Current Liabilities | Derivatives designated as hedging instruments: | Foreign exchange forward contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair value liability, derivates | $ (500) | $ (2,234) |
DERIVATIVES FINANCIAL INSTRUM_4
DERIVATIVES FINANCIAL INSTRUMENTS (Gain (loss) of derivative instruments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 01, 2023 | Jul. 02, 2022 | Jul. 01, 2023 | Jul. 02, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized (loss)/gain on derivative instruments, net of tax | $ (1,280) | $ (1,233) | $ 2,550 | $ (1,168) |
Reclassification adjustment for (gain)/loss on derivative instruments recognized, net of tax | 518 | (170) | 816 | (793) |
Unrealized loss on hedging | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized (loss)/gain on derivative instruments, net of tax | (1,280) | (1,233) | 2,550 | (1,168) |
Reclassification adjustment for (gain)/loss on derivative instruments recognized, net of tax | $ 518 | $ (170) | $ 816 | $ (793) |
LEASES - Narrative (Details)
LEASES - Narrative (Details) | 9 Months Ended |
Jul. 01, 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 | 9 Months Ended | ||
Jul. 01, 2023 | Jul. 02, 2022 | Jul. 01, 2023 | Jul. 02, 2022 | |
Lease, Cost [Abstract] | ||||
Operating lease expense | $ 2,846 | $ 2,173 | $ 8,119 | $ 6,217 |
Cash paid for amounts included in the measurement of lease liabilities: | ||||
Operating cash outflows from operating leases | $ 6,913 | $ 5,715 |
LEASES - Lease Terms and Discou
LEASES - Lease Terms and Discount Rates (Details) | Jul. 01, 2023 | Oct. 01, 2022 |
Leases [Abstract] | ||
Weighted-average remaining lease term (in years): | 7 years 8 months 12 days | 8 years |
Weighted-average discount rate: | 6.40% | 5.80% |
LEASES - Future Lease Payments
LEASES - Future Lease Payments After Adoption ASC 842 (Details) - USD ($) $ in Thousands | Jul. 01, 2023 | Oct. 01, 2022 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
Remaining fiscal 2023 | $ 2,453 | |
Fiscal 2024 | 9,088 | |
Fiscal 2025 | 8,817 | |
Fiscal 2026 | 8,382 | |
Fiscal 2027 | 6,462 | |
Thereafter | 26,168 | |
Total minimum lease payments | 61,370 | |
Less: Interest | 13,411 | |
Present value of lease obligations | 47,959 | |
Less: Current portion | 6,569 | $ 6,766 |
Long-term portion of lease obligations | $ 41,390 | $ 34,927 |
DEBT AND OTHER OBLIGATIONS DE_2
DEBT AND OTHER OBLIGATIONS DEBT AND OTHER OBLIGATIONS (Details) - USD ($) | 3 Months Ended | ||
Jul. 01, 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 | $ 3,200,000 | ||
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 | 9 Months Ended | ||||||||||||
Oct. 18, 2021 | Jul. 01, 2023 | Apr. 01, 2023 | Dec. 31, 2022 | Jul. 02, 2022 | Apr. 02, 2022 | Jan. 01, 2022 | Jul. 01, 2023 | Jul. 02, 2022 | Mar. 03, 2022 | Oct. 03, 2020 | 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 | $ 8,541 | $ 4,990 | $ 45,382 | $ 31,098 | $ 176,153 | $ 15,380 | ||||||||
Cash dividends declared (in dollars per share) | $ 0.19 | |||||||||||||
Common stock cash dividends paid | $ (10,800) | $ (31,303) | $ (29,393) | |||||||||||
Relative TSR calculation period | 90 days | |||||||||||||
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) | 2,500,000 | 2,500,000 | ||||||||||||
the Program | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Shares repurchased in period (shares) | 174,900 | 1,331,100 | ||||||||||||
Value of shares acquired | $ 8,500 | $ 58,900 | ||||||||||||
Remaining repurchase authorized amount | $ 190,200 | $ 190,200 | ||||||||||||
Minimum | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Company contributions | 4% | |||||||||||||
Minimum | Relative TSR Performance Share Units | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Vesting percentage | 0% | 0% | ||||||||||||
Minimum | Revenue Growth Performance Share Units | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Vesting percentage | 0% | 0% | ||||||||||||
Maximum | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Company contributions | 6% | |||||||||||||
Maximum | Relative TSR Performance Share Units | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Vesting percentage | 200% | 200% | ||||||||||||
Maximum | Revenue Growth Performance Share Units | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Vesting percentage | 200% | 200% |
SHAREHOLDERS' EQUITY AND EMPL_4
SHAREHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS (Matching contributions to the Plan) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 01, 2023 | Jul. 02, 2022 | Jul. 01, 2023 | Jul. 02, 2022 | |
401(k) Cash Contributions | ||||
Cash | $ 463 | $ 419 | $ 1,477 | $ 1,423 |
SHAREHOLDERS' EQUITY AND EMPL_5
SHAREHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS (Accumulated other comprehensive income) (Details) - USD ($) $ in Thousands | Jul. 01, 2023 | Oct. 01, 2022 |
Loss from foreign currency translation adjustments | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity | $ (16,341) | $ (29,854) |
Unrecognized actuarial loss on pension plan, net of tax | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity | (884) | (812) |
Unrealized loss on hedging | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity | (500) | (2,234) |
Accumulated Other Comprehensive (Loss)/Income | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity | $ (17,725) | $ (32,900) |
SHAREHOLDERS' EQUITY AND EMPL_6
SHAREHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS (Restricted stock and common stock granted) (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 01, 2023 | Jul. 02, 2022 | Jul. 01, 2023 | Jul. 02, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity-based compensation in shares | 5 | 5 | 807 | 546 |
Time-based RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity-based compensation in shares | 0 | 1 | 512 | 303 |
Relative TSR PSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity-based compensation in shares | 0 | 0 | 186 | 154 |
Growth PSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity-based compensation in shares | 0 | 0 | 92 | 77 |
Common Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity-based compensation in shares | 5 | 4 | 17 | 12 |
SHAREHOLDERS' EQUITY AND EMPL_7
SHAREHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS (Total equity-based compensation expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 01, 2023 | Jul. 02, 2022 | Jul. 01, 2023 | Jul. 02, 2022 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total equity-based compensation expense | $ 5,403 | $ 4,465 | $ 17,303 | $ 14,473 |
Time-based RSUs | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total equity-based compensation expense | 3,560 | 2,845 | 10,758 | 8,763 |
Relative TSR PSUs | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total equity-based compensation expense | 1,252 | 1,073 | 3,697 | 3,060 |
Growth PSUs | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total equity-based compensation expense | 354 | 310 | 2,137 | 1,938 |
Common Stock | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total equity-based compensation expense | 237 | 237 | 711 | 712 |
Cost of sales | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total equity-based compensation expense | 272 | 193 | 903 | 727 |
Selling, general and administrative | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total equity-based compensation expense | 3,800 | 3,233 | 12,398 | 10,485 |
Research and development | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total equity-based compensation expense | $ 1,331 | $ 1,039 | $ 4,002 | $ 3,261 |
REVENUE AND CONTRACT BALANCES -
REVENUE AND CONTRACT BALANCES - Contract Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 01, 2023 | Jul. 02, 2022 | Jul. 01, 2023 | Jul. 02, 2022 | |
Contract with Customer, Asset, Allowance for Credit Loss [Roll Forward] | ||||
Contract assets, beginning of period | $ 29,210 | $ 26,721 | $ 26,317 | $ 0 |
Additions | 1,337 | 18,563 | 4,230 | 45,284 |
Transferred to accounts receivable or collected | (20,365) | 0 | (20,365) | 0 |
Contract assets, end of period | $ 10,182 | $ 45,284 | $ 10,182 | $ 45,284 |
REVENUE AND CONTRACT BALANCES_2
REVENUE AND CONTRACT BALANCES - Contract Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 01, 2023 | Jul. 02, 2022 | Jul. 01, 2023 | Jul. 02, 2022 | |
Change in Contract with Customer, Liability [Roll Forward] | ||||
Contract liabilities, beginning of period | $ 6,556 | $ 17,300 | $ 3,160 | $ 15,596 |
Revenue recognized | (12,404) | (29,612) | (28,950) | (104,796) |
Additions | 11,832 | 17,996 | 31,774 | 94,884 |
Contract liabilities, end of period | $ 5,984 | $ 5,684 | $ 5,984 | $ 5,684 |
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 | 9 Months Ended | ||||||
Jul. 01, 2023 | Apr. 01, 2023 | Dec. 31, 2022 | Jul. 02, 2022 | Apr. 02, 2022 | Jan. 01, 2022 | Jul. 01, 2023 | Jul. 02, 2022 | |
NUMERATOR: | ||||||||
Net income | $ 4,161 | $ 15,041 | $ 14,589 | $ 119,034 | $ 116,001 | $ 133,606 | $ 33,791 | $ 368,641 |
DENOMINATOR: | ||||||||
Weighted average shares outstanding - Basic (in shares) | 56,553,000 | 58,985,000 | 56,763,000 | 60,951,000 | ||||
Dilutive effect of Equity Plans (in shares) | 966,000 | 970,000 | 921,000 | 989,000 | ||||
Weighted average shares outstanding - Diluted (in shares) | 57,519,000 | 59,955,000 | 57,684,000 | 61,940,000 | ||||
EPS: | ||||||||
Net income per share - Basic (in dollars per share) | $ 0.07 | $ 2.02 | $ 0.60 | $ 6.05 | ||||
Effect of dilutive shares (in dollars per share) | 0 | 0.03 | 0.01 | 0.10 | ||||
Net income per share - Diluted (in dollars per share) | $ 0.07 | $ 1.99 | $ 0.59 | $ 5.95 | ||||
Anti-dilutive shares (in shares) | 0 | 19,000 | 1,000 | 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 | 9 Months Ended | ||
Jul. 01, 2023 | Jul. 02, 2022 | Jul. 01, 2023 | Jul. 02, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Provision for income taxes | $ 148 | $ 5,165 | $ 9,462 | $ 36,813 |
Effective tax rate | 3.40% | 4.20% | 21.90% | 9.10% |
SEGMENT INFORMATION (Narrative)
SEGMENT INFORMATION (Narrative) (Details) | 9 Months Ended |
Jul. 01, 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 | 9 Months Ended | ||
Jul. 01, 2023 | Jul. 02, 2022 | Jul. 01, 2023 | Jul. 02, 2022 | |
Net revenue: | ||||
Net revenue | $ 190,917 | $ 372,137 | $ 540,171 | $ 1,217,307 |
Income/(loss) from operations: | ||||
(Loss)/Income from operations | (4,488) | 122,077 | 19,963 | 402,528 |
Ball Bonding Equipment | ||||
Net revenue: | ||||
Net revenue | 76,865 | 217,912 | 184,049 | 751,496 |
Income/(loss) from operations: | ||||
(Loss)/Income from operations | 18,534 | 93,863 | 49,337 | 323,884 |
Wedge Bonding Equipment | ||||
Net revenue: | ||||
Net revenue | 42,563 | 50,800 | 145,805 | 142,284 |
Income/(loss) from operations: | ||||
(Loss)/Income from operations | 15,974 | 19,443 | 53,958 | 49,599 |
Advanced Solutions | ||||
Net revenue: | ||||
Net revenue | 23,858 | 34,614 | 58,997 | 71,651 |
Income/(loss) from operations: | ||||
(Loss)/Income from operations | (2,570) | 3,134 | (21,160) | (7,574) |
APS | ||||
Net revenue: | ||||
Net revenue | 39,672 | 50,191 | 119,822 | 152,924 |
Income/(loss) from operations: | ||||
(Loss)/Income from operations | 11,510 | 22,282 | 34,778 | 64,651 |
All Others | ||||
Net revenue: | ||||
Net revenue | 7,959 | 18,620 | 31,498 | 98,952 |
Income/(loss) from operations: | ||||
(Loss)/Income from operations | (23,857) | 2,671 | (35,025) | 28,372 |
Corporate Expenses | ||||
Income/(loss) from operations: | ||||
(Loss)/Income from operations | $ (24,079) | $ (19,316) | $ (61,925) | $ (56,404) |
SEGMENT INFORMATION (Schedule o
SEGMENT INFORMATION (Schedule of net revenue by Capital Equipment end markets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 01, 2023 | Jul. 02, 2022 | Jul. 01, 2023 | Jul. 02, 2022 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | $ 190,917 | $ 372,137 | $ 540,171 | $ 1,217,307 |
Ball Bonding Equipment | General Semiconductor | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 77,745 | 223,034 | 217,186 | 670,251 |
Ball Bonding Equipment | Automotive & Industrial | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 44,973 | 51,018 | 149,608 | 160,366 |
Ball Bonding Equipment | LED | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 17,678 | 20,203 | 32,765 | 128,394 |
Ball Bonding Equipment | Memory | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 10,849 | 27,691 | 20,790 | 105,372 |
APS | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | $ 39,672 | $ 50,191 | $ 119,822 | $ 152,924 |
SEGMENT INFORMATION (Capital ex
SEGMENT INFORMATION (Capital expenditures, depreciation and amortization expense by segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 01, 2023 | Jul. 02, 2022 | Jul. 01, 2023 | Jul. 02, 2022 | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Capital expenditures: | $ 10,451 | $ 4,953 | $ 43,485 | $ 11,213 |
Depreciation and amortization expense: | ||||
Depreciation expense: | 6,805 | 4,101 | 16,003 | 12,230 |
Amortization expense: | 1,786 | 1,109 | 4,743 | 3,543 |
Ball Bonding Equipment | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Capital expenditures: | 316 | 179 | 805 | 855 |
Depreciation and amortization expense: | ||||
Depreciation expense: | 388 | 346 | 1,173 | 1,012 |
Amortization expense: | 0 | 0 | 0 | 0 |
Wedge Bonding Equipment | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Capital expenditures: | 83 | 358 | 403 | 780 |
Depreciation and amortization expense: | ||||
Depreciation expense: | 304 | 252 | 878 | 732 |
Amortization expense: | 0 | 0 | 0 | 0 |
Advanced Solutions | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Capital expenditures: | 6,439 | 1,049 | 29,425 | 2,423 |
Depreciation and amortization expense: | ||||
Depreciation expense: | 2,989 | 519 | 4,821 | 1,494 |
Amortization expense: | 0 | 0 | 0 | 0 |
APS | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Capital expenditures: | 1,251 | 1,151 | 4,443 | 2,851 |
Depreciation and amortization expense: | ||||
Depreciation expense: | 1,517 | 1,681 | 4,742 | 4,971 |
Amortization expense: | 380 | 208 | 1,116 | 684 |
All Others | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Capital expenditures: | 30 | 437 | 279 | 700 |
Depreciation and amortization expense: | ||||
Depreciation expense: | 416 | 250 | 1,017 | 792 |
Amortization expense: | 1,314 | 809 | 3,352 | 2,584 |
Corporate Expenses | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Capital expenditures: | 2,332 | 1,779 | 8,130 | 3,604 |
Depreciation and amortization expense: | ||||
Depreciation expense: | 1,191 | 1,053 | 3,372 | 3,229 |
Amortization expense: | $ 92 | $ 92 | $ 275 | $ 275 |
COMMITMENTS, CONTINGENCIES AN_3
COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS (Reserve for product warranty activity) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 01, 2023 | Jul. 02, 2022 | Jul. 01, 2023 | Jul. 02, 2022 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ||||
Reserve for warranty, beginning of period | $ 10,468 | $ 15,518 | $ 13,443 | $ 16,961 |
Provision for warranty | 4,007 | 2,842 | 8,989 | 9,001 |
Utilization of reserve | (3,908) | (4,118) | (11,865) | (11,720) |
Reserve for warranty, end of period | $ 10,567 | $ 14,242 | $ 10,567 | $ 14,242 |
COMMITMENTS, CONTINGENCIES AN_4
COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS (Obligations not reflected on the Consolidated Balance Sheet) (Details) $ in Thousands | Jul. 01, 2023 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Total | $ 198,566 |
2023 | 21,676 |
2024 | 176,890 |
2025 | 0 |
2026 | 0 |
2027 | 0 |
thereafter | $ 0 |
COMMITMENTS, CONTINGENCIES AN_5
COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS (Significant customer concentrations as a percentage of net revenue) (Details) | 9 Months Ended |
Jul. 01, 2023 | |
First Technology China Ltd.(1) | Revenue Benchmark | Customer Concentration Risk | |
Concentration Risk [Line Items] | |
Customer concentrations risk percentage | 10% |
COMMITMENTS, CONTINGENCIES AN_6
COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS (Significant customer concentrations as a percentage of total accounts receivable) (Details) - Accounts Receivable - Customer Concentration Risk | 9 Months Ended | |
Jul. 01, 2023 | Jul. 02, 2022 | |
Intel Corporation | ||
Concentration Risk [Line Items] | ||
Customer concentrations risk percentage | 12.20% | |
Tianshui Huatian Technology Co., Ltd. | ||
Concentration Risk [Line Items] | ||
Customer concentrations risk percentage | 20.60% | |
Apple Inc. | ||
Concentration Risk [Line Items] | ||
Customer concentrations risk percentage | 10.30% |
COMMITMENTS, CONTINGENCIES AN_7
COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS - Narrative (Details) $ in Thousands | 9 Months Ended |
Jul. 01, 2023 USD ($) | |
Other Commitments [Line Items] | |
Period of warranty for manufacturing defects | 1 year |
Unfunded Capital Commitment | |
Other Commitments [Line Items] | |
Other Commitment | $ 9,600 |