Kulicke and Soffa Industries, Inc.

Greetings and welcome to the CULIC and SOFA 2022 third fiscal quarter results call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone requires operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It's now my pleasure to introduce your host, Joseph Alcindy. Senior Vice President and Senior Director, Investor Relations for Kuehl & Salfa. Joseph, you may begin.

Thank you. Welcome, everyone, to Kuehl & Salfa's fiscal third quarter 2022 conference call. Fu Xinchen, President and Chief Executive Officer, and Lester Wong, Chief Financial Officer, are both also joining on today's call. For those of you who have not received a copy of today's results, the release as well as our supplemental earnings presentation are both available in the investor relations section of our website at investor.kns.com. In addition to historical statements, today's remarks will contain statements relating to future events and our future results. These statements are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Our actual results and financial condition may differ materially from what is indicated in those forward-looking statements. For a complete discussion of the risks associated with Kuehl-Gonzalfa that could affect our future results and financial condition, please refer to our recent SEC filings, specifically the 10-K for the year ended October 2nd, 2021, and the 8-K filed yesterday. With that said, I would now like to turn the call over to Fuzan Chen for the business overview. Please go ahead, Fuzan.

Thank you, Joe. Today, I would like to provide an update on the progress and the status of our key growth initiatives. along advanced packaging, advanced display, electronic assembly, and automotive. These initiatives are progressing well and provide upside potential to our long-term financial targets. Before discussing these growth-specific opportunities, I wanted to step back and discuss the broader medical and the industry environment. As we have discussed last quarter, the industry continues to be constrained by supply chain challenges, largely around wafer capacity, which soften the near-term rate of semiconductor assembly expansion. In addition to these known industry challenges, which we have explained on previous quote, we also face an increasingly dynamic medical environment. Regional COVID lockdowns and the logistical challenge are continuing. Brother inflation, consumer confidence trend, and the wafer fabrication equipment forecast are now also impacting our near-term outlook. Although not unique to KNS, consumption of consumer goods such as smartphones, PCs, and general electronics play a significant role in impacting semiconductor growth rate in the near term. While we do not yet have clear visibility into fiscal 2023, we intend on providing additional detail and a longer-term outlook during our upcoming November earning call. However, during today's call, Dexter will provide additional commentary that highlights our cash flow and the profitability improvement over the past few years and the expectation over the coming quarters. At this point, I would like to provide an update to our strategic execution and progress supporting the broader trend in advanced packaging, advanced display, electronic assembly, and automotive. At the high level, our global research, development, procurement, and the business team continue to be very engaged supporting several exciting opportunities with top customers. We have developed several enabling systems, and our growing base of customer engagement serves as a testament to our competitiveness, which implies upside to our long-term financial expectations. Within Advanced Packaging, our dedicated solutions are currently running 35% higher for FY 2022 than expectations during our investor day. Specifically, our thermal completion systems are very unique and future-rich relative to alternatives. I am pleased to announce we have secured purchase orders totaling approximately $80 million with delivery dates over the coming 18 months. And it is important to note that our leading thermal completion solutions are being adopted by a broad set of customers, including integrated device manufacturers, OSETs, and also OEMs. As explained in detail last quarter, market opportunities go beyond next-generation heterogeneous applications. Thermal compilation is also being adopted in key markets such as mobile sensing, mobile application processor, and silicon photonics. We remain very focused and continue to aggressively take shares and increase our presence within this growing opportunity set. Additionally, a material portion of our high-volume assembly solutions are also benefiting from broadening adoption of multi-chain modules and system-in-package applications. These applications, which provide greater transistor density at the package level, are increasing the capital intensity of assembly positively impacting long-term growth rate of the board, wedge, and the APS businesses. As a reminder, board and wedge bonding continue to represent nearly 80% of total semiconductor packages and offer compelling production benefits that support an increasing value of the assembly process. We have clear leadership position across these sizable growing market, especially within the most complex applications. Ultimately, this growing capital intensity has added a new layer of technology-driven growth and also increased the need for new product features and capabilities, which will continue to enhance profitability. Our progress, strategy, and ability to enhance growth margin highlight our value contribution within this evolving semiconductor market. Next, I wanted to also provide an update to our growing opportunity within the emerging advanced display market. Since 2017, we have developed enabling innovation which extends the power efficiency, performance, and the manufacturing cost of these key emerging display technologies. Advanced display is a meaningful high-growth market opportunity where we continue to be very engaged with several key customers and continue to pursue a multi-pronged approach supporting new applications within big lighting, but also within the direct view and the micro-LED opportunity. We continue to expand our advanced display install base, pursue multiple Luminex engagements, while making ongoing progress across several customer development initiatives. We have already demonstrated a clear leadership and the first mobile pollution in advanced display. I engage with approximately 10 high potential customers and look forward to outperforming our long-term target. Ongoing customer engagement, qualification, and acceptance remain our key priority area over the next couple of 12 months. In addition to intimate involvement in this long-term technology transition, which expand our semiconductor and the display opportunity. We are also extending our presence in both electronic assembly and the automotive market. Turning to electronic assembly, our largest total addressable market opportunity. Our competitive solution currently support high readability automotive. System in package and the memory application wear alone represent only a small portion of our total addressable market. This creates a fairly significant prospective market opportunity, which we have been pursuing through development of a disruptive SMT system, which is expected to ramp toward the end of fiscal 2023 and will accelerate share gain over the coming years. Finally, Boeing Automotive, we continue to expand our solution supporting the electric and autonomous vehicle transition. across our growing base of OEM customers. KNF has a long established position within several automotive markets, and we remain very involved in this exciting long-term market evolution. The auto-transition driving electric and autonomous adoption are demanding more power control, power distribution, and power storage applications, which directly benefit our competitive wage, electronic assembly, and the battery assembly solution. Turning to GIN Quarters business results, we generate a revenue of $372.1 million and a non-GAAP earning per share of $2.09. Capital equipment remains flat at 87% of total revenue. We experienced strong demand across the market during the GIN Quarters. General semiconductor increased roughly 12% sequentially due to strengths in both and which applications. Also, demand strengthened sequentially for our dedicated advanced packaging solution, including thermal completion, wafer-label bonding, and the discography system. Within LED, similar to last quarter, over 80% of LED sales supported our growing advanced display opportunity. At this point, we are comfortably within our four years' expectation on advanced display contribution and look forward to growing this business over the coming years. Auto and industrial remain very strong across our product line and has sequentially strengthened within our growing power semiconductor application. As mentioned earlier, we remain very focused on the pollution well to support the long-term growth opportunity of the automotive market. Finally, memory comes in strong for our core name-based solution, which we support across all major memory customers. We are also very focused on delivering new theorem assembly solution over the coming years. In summary, our progress on new growth initiatives and customer engagement remain on track and provide upside to our long-term financial target. Efforts to expand our self-market while directly participating in fundamental technology change remain a high priority throughout the organization. As stated earlier, there are additional macro and industry risks we did not previously anticipate. and expect to provide greater detail to our outlook over the coming quarters. Our ability to succeed in development and customer engagement near-term will enhance our visibility into fiscal 2023 while providing upside potential to our existing long-term financial target. We look forward to demonstrating this progress over the coming quarters. With that said, I will now turn the call over to Lester, who will discuss our financial performance. Lester?