Kulicke and Soffa Industries, Inc.

Greetings and welcome to the Q3 2025 quarter results. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Joe Elengie. Thank you. You may begin.

Welcome, everyone, to QLIC's Office Fiscal Third Quarter 2025 Conference Call. Susan Chen, President and Chief Executive Officer, and Lester Wong, Chief Financial Officer, are also joining on today's call. Non-GAAP financial measures referenced today should be considered in addition to, not as a substitute for, or in isolation from, our GAAP financial information. GAAP to non-GAAP reconciliation tables are included within the latest earnings release and earnings presentation. Both are available at investor.kns.com, along with prepared remarks for today's call. 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 and are subject to risks and uncertainties that may cause our actual results and financial condition to differ materially from the statements made today. For complete discussion of the risks associated with fuel consulta that could affect our future results and financial condition, please refer to our latest Form 10-K and upcoming SEC filings for additional information. With that said, I'd now like to turn the call over to Susan Chen for the business overview. Please go ahead, Susan. Thank you, Joe.

Good morning, everyone. Over the coming quarters, we will focus on extending our market access through ongoing technology transition, and we continue to be encouraged by gradual core market improvements. As discussed last quarter, uncertainty around global trade has clouded near-term industry visibility, although we continue to see steady core market improvement as expected. We do not expect near-term trade dynamics to materially affect our global business operation, although they do create additional uncertainty in customers' near-term capacity planning decisions. Despite this near-term headwind, we continue to remain cautiously optimistic as we continue to see broadband utilization improve in key regions We also continue to work very closely with customers to support technology transition within advance expense, vertical wire, and the thermal compression, bounding, or TCP, which I will provide an update on shortly. Fortune quarters, which generated revenue of $148.4 million, gave loss per share of $0.06 and a non-GAAP, ending the shares of $0.07. and the execution has allowed us to exceed expectations. This will provide an update on financial performance and outlook shortly. As expected, the sequential revenue reduction into the June quarter was largely driven by order hesitation within the automotive and industrial markets. We mentioned last quarter, this was focused uniquely with a certain customer production facility in Southeast Asia, and we anticipate it will persist through the September quarters. We anticipate this substance is largely driven by trade uncertainty. It's broadly affecting global automotive and the industrial supply chain, and it will create a slight headwind over the coming quarters. Regardless, this key market is supported by ongoing technology transition and an above-average growth rate. Despite the near-terms, automotive-driven technology transition provides a long-term set of growing opportunities. For example, EV charging infrastructure is driving new equipment opportunities, and we anticipate charging-related infrastructure will exceed a 20% trigger over the next five years. Additionally, This ongoing growth is also driving the need for smarter and more efficient power semiconductor applications, which we are addressing with our growing base of pin welding, advanced dispense, and clip attach. Similar to automotive and industrial, but less pronounced. Order hesitation was also apparent within the general semiconductor end market during the June quarters. More recently, we are encouraged by seasonal and the cyclical dynamic, which are improving more on the evaluation improvement within core region and we anticipate both leading and the high volume market to improve through the September quarters. We remain very focused on both core market recovery and also new product momentum. We also experienced strong sequential demand increase in memory and are encouraged by improving conditions, recent price dynamic, and emerging packaging format. We continue to be focused on driving share gain and expanding our reach into D-RAN applications by enabling new packaging for capabilities in high volume with our vertical wire solution and the wheeling leading edge application in future version of HBM. Next, I would like to provide a brief status update on broader technology transition we are addressing through our advanced dispense, vertical wire, and the TCP portfolio. First, with advanced dispense, we are continuing to seek opportunity across key customers and the end market, while maintaining an aggressive product development pipeline. We have received initial POs from an automotive OEM, several IDMs, and multiple offsets, which highlight the broader diversity of our solutions. The need for higher precision and a more Capable dispense system is broadening across the market. We look forward to expanding our portfolio to support this need, and we plan to introduce new advanced dispense capabilities in September at Semicon Taiwan. Next, within virtual wire, Market expectations remain on track. We continue to plan for initial higher volume productions to begin in fiscal 2026, driven initially by an exciting technology transition within the memory market. Emerging on-device AI applications are demanding higher bandwidth. This market need is driving demand for transistor-dense, vertically-stacked, low-power dynamic memory. We have observed market reference such as mobile HBM, energy-efficient HBM, or low-power Wi-Fi or DRAM applications, which describe this new opportunity. This new format of a low-power HBM is anticipated to increase bandwidth by three to four times over existing low-power DRAMs. Both vertical wire interconnect are enabling an alternative, more cost-effective production process for those lower-power HBM applications. As a reminder, higher-power data center HBMs utilize more costly through silicon via die and thermocompression-based assemblies. We anticipate this new vertical wire-based HBM will be adopted in broader D-RAN applications and eventually support higher transistor density requirements across broader general semiconductor applications. Finally, within TCD, we continue to focus on many different applications for both logic and memory. Our flexible thermal compression or FTC solution continues to be best in class and is increasingly positioned to seamlessly integrate into a variety of applications and the customer's production flow. We have recently demonstrated new physical and chemical-based in-line material preparation capabilities, which further extend our leading FTC process. We are very proud of how our existing chemical-based solutions have performed, which have enabled us to lead the initial market transition to fluxless. This solution has allowed us to be first to high volume production, and we are currently supporting multiple large customers in mass production. With that said, we are now pleased to offer a tailored mix all physical and chemical-based process within one solution to best suit the widest variety of customer process flow and the market applications by adding in light dye and wafer preparation capabilities to our leading chemical-based process. Initial customer feedback has been positive, and we expect this new capability to be a market-enabler, which lower barrier to entries as customers initiate new production or expand their FTC capabilities. In addition to this new FTC solution, we have also made progress within the high-power HBM market. We now expect to ship an initial FTC system by the end of calendar year 2025 to support the anticipated fluxless transition within the HBM space. As we increase focus on emerging memory opportunity, we are confident our proven leadership in driving FTC adoption within leading edge logic application provide a unique advantage pitch to support leading memory application as they transition to final pitch FTC-based assembly. We are confident. We have the most robust and capable solution for leading-edge thermal compression application and remain positive on our engagement, recent progress, and long-term roadmap of this highly capable technology. We expect FTC solution will outpace overall TCP growth, allowing us to extend our market shares over the coming years within both memory and the logic market. In summary, we continue to expand our market presence on multiple fronts and remain cautiously optimistic as key regions and the end market show signs of cyclical improvement. While automotive headwinds are anticipated to linger into the September quarters, general semiconductor capacity digestion and expansion. driven by China and Taiwan, as well as the memory technology transition and the price improvement are increasing our confidence in the outlook. It continues to be a unique time in semiconductor assembly with a wide set of opportunities to be addressed. I look forward to updating our progress over the coming quarters and will now turn the call over to Lester to discuss the financial and outlook. Lester?