Liquidation: KULICKE & SOFFA INDUSTRIES INC
Form Type: 8-K
Filing Date: 2025-03-31
Corporate Action: Liquidation
Type: New
Accession Number: 000005697825000038
Filing Summary: On March 25, 2025, Kulicke and Soffa Industries Inc. approved a strategic plan to wind down its Electronics Assembly (EA) equipment business. This decision is aimed at reallocating focus towards core semiconductor assembly opportunities in response to the EA business's declining financial performance and slow product development. The cessation involves consulting with the applicable works council and unions, expected to commence in the third fiscal quarter of 2025. The company anticipates incurring pre-tax charges between $86 million and $100 million related to this winding down, including severance, contract termination, and impairments of goodwill and inventory. The majority of the winding down activities are projected to be completed in the first half of fiscal 2026, and the company will leverage its resources on growth-centric initiatives in other technology areas. The long-term financial model of the company will also be adjusted post-cessation, reflecting expected revenue and profit declines.
Additional details:
Cost Associated With Exit Disposal Activities: Total pre-tax charges expected between $86 million and $100 million.
Expected Revenue Reduction: Approximately $25 million to $29 million.
Expected Gross Profit Reduction: Approximately $7 million to $11 million.
Expected Operating Expenses Reduction: Approximately $24 million to $28 million.
Consultation Process Start Date: Third fiscal quarter of 2025.
Completion Of Wind Down Activities: Projected to be in the first half of fiscal 2026.
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