# EDGAR Filing Document

**Accession Number:** 0000056978
**File Stem:** 0000056978-23-000024
**Filing Date:** 2023-2
**Character Count:** 26037
**Document Hash:** 7cd93749f13a8e64fbccd58e0c41eea7
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000056978-23-000024.hdr.sgml**: 20230201

**ACCESSION NUMBER**: 0000056978-23-000024

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 15

**CONFORMED PERIOD OF REPORT**: 20230201

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230201

**DATE AS OF CHANGE**: 20230201

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** KULICKE & SOFFA INDUSTRIES INC
- **CENTRAL INDEX KEY:** 0000056978
- **STANDARD INDUSTRIAL CLASSIFICATION:** SEMICONDUCTORS & RELATED DEVICES [3674]
- **IRS NUMBER:** 231498399
- **STATE OF INCORPORATION:** PA
- **FISCAL YEAR END:** 1001

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-00121
- **FILM NUMBER:** 23576780

**BUSINESS ADDRESS:**
- **STREET 1:** 23A SERANGOON NORTH AVENUE 5, #01-01
- **CITY:** SINGAPORE
- **STATE:** U0
- **ZIP:** 554369
- **BUSINESS PHONE:** 2157846000

**MAIL ADDRESS:**
- **STREET 1:** 23A SERANGOON NORTH AVENUE 5, #01-01
- **CITY:** SINGAPORE
- **STATE:** U0
- **ZIP:** 554369

?xml version="1.0" ? klic-20230201

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549** 

____________________________________________________

**FORM 8-K** 

____________________________________________________

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the**

**Securities Exchange Act of 1934**

**Date of report (Date of earliest event reported): February 1, 2023** 

____________________________________________________

**KULICKE AND SOFFA INDUSTRIES, INC.**

**(Exact name of registrant as specified in its charter)** 

____________________________________________________

---

| | | |
|:---|:---|:---|
| **Pennsylvania** | **000-00121** | **23-1498399** |
| **(State or Other Jurisdiction<br>of Incorporation)** | **(Commission File Number)** | **(I.R.S. Employer<br>Identification No.)** |

---

**23A Serangoon North Avenue 5, #01-01, Singapore 554369** 

**1005 Virginia Dr., Fort Washington, PA 19034**

**(Address of Principal Executive Offices and Zip Code)**

**Registrant's telephone number, including area code: (215) 784-6000** 

**N/A**

**(Former Name or Former Address, if Changed Since Last Report)**

____________________________________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (*see* General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading Symbol(s) Name of each exchange on which registered <br> <u>Common Stock, Without Par Value</u> <u>KLIC</u> <u>The Nasdaq Global Market</u>

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

------

**Item 2.02&nbsp;&nbsp;&nbsp;&nbsp; Results of Operations and Financial Condition.**

On February 1, 2023, Kulicke and Soffa Industries, Inc. (the "Company") issued a press release with respect to its financial results for its first fiscal quarter ended December 31, 2022. A copy of this press release is furnished as Exhibit 99.1 to this report, and is incorporated by reference into this Item 2.02 as if fully set forth herein.

The information in this report, furnished under "Item 2.02 Results of Operations and Financial Condition," shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

---

| | |
|:---|:---|
| **Item 9.01** | **Financial Statements and Exhibits.** |
| (d) | Exhibits. |
| <u>Exhibit No.</u> | <u>Description</u> |
| 99.1 | <u>[Press Release dated February 1, 2023](ex991q12023.htm)</u> |
| 104 | Inline XBRL for the cover page of this Current Report on Form 8-K. |

---

------

**SIGNATURE**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
| | KULICKE AND SOFFA INDUSTRIES, INC. | KULICKE AND SOFFA INDUSTRIES, INC. |
| Date: February 1, 2023 | By: | /s/ LESTER WONG |
|  | Name: | Lester Wong |
|  | Title: | Executive Vice President and Chief Financial Officer<br>(principal financial officer and principal accounting<br>officer) |

---

## Exhibit 99.1

**Exhibit 99.1**

---

| | |
|:---|:---|
| ![logoa02a01a01a48a.jpg](logoa02a01a01a48a.jpg) | Kulicke & Soffa Pte. Ltd.<br>23A Serangoon North Ave 5<br>Singapore 554369<br>+65 6880-9600 main<br>Co. Regn. No. 199902120H |
|  | Kulicke and Soffa Industries, Inc.<br>1005 Virginia Drive<br>Fort Washington, PA 19034 USA<br>+1-215-784-6000 main<br>www.kns.com |

---

**Kulicke & Soffa Reports First Quarter 2023 Results**

*Recognizes Revenue for Initial Fluxless Thermocompression and LUMINEX*<sup>TM</sup> *Advanced Display Systems*

*Resilient Demand for Automotive & Advanced Packaging Solutions Continues*

***Singapore – February 1, 2023*** – <u>Kulicke and Soffa Industries, Inc.</u> (NASDAQ: KLIC) ("Kulicke & Soffa," "K&S" or the "Company"), today announced financial results of its first fiscal quarter ended December 31, 2022. The Company reported first quarter net revenue of $176.2 million, net income of $14.6 million, representing EPS of $0.25 per fully diluted share, and non-GAAP net income of $21.8 million, representing non-GAAP EPS of $0.37 per fully diluted share.

---

| | | | |
|:---|:---|:---|:---|
| **Quarterly Results - U.S. GAAP** | **Quarterly Results - U.S. GAAP** | **Quarterly Results - U.S. GAAP** | **Quarterly Results - U.S. GAAP** |
| | **<br>Fiscal Q1 2023** | **Change vs.<br>Fiscal Q1 2022** | **Change vs.<br>Fiscal Q4 2022** |
| Net Revenue | $176.2 million | down 61.8% | down 38.5% |
| Gross Profit | $88.7 million | down 60.3% | down 33.2% |
| Gross Margin | 50.3% | up 190 bps | up 400 bps |
| Income from Operations | $11.8 million | down 92.2% | down 82.5% |
| Operating Margin | 6.7% | down 2610 bps | down 1690 bps |
| Net Income | $14.6 million | down 89.1% | down 77.5% |
| Net Margin | 8.3% | down 2070 bps | down 1440 bps |
| EPS – Diluted | $0.25 | down 88.2% | down 77.3% |

---

---

| | | | |
|:---|:---|:---|:---|
| **Quarterly Results - Non-GAAP** | **Quarterly Results - Non-GAAP** | **Quarterly Results - Non-GAAP** | **Quarterly Results - Non-GAAP** |
| | **<br>Fiscal Q1 2023** | **Change vs.<br>Fiscal Q1 2022** | **Change vs.<br>Fiscal Q4 2022** |
| Income from Operations | $20.2 million | down 87.2% | down 72.6% |
| Operating Margin | 11.5% | down 2270 bps | down 1420 bps |
| Net Income | $21.8 million | down 84.3% | down 68.9% |
| Net Margin | 12.4% | down 1770 bps | down 1210 bps |
| EPS – Diluted | $0.37 | down 83.1% | down 68.9% |

---

*A reconciliation between the GAAP and non-GAAP adjusted results is provided in the financial tables included in this release. See also the "Use of non-GAAP Financial Results" section.*

------

Fusen Chen, Kulicke & Soffa's President and Chief Executive Officer, stated, "We continued to make ongoing progress to support long-term technology change within the semiconductor, advanced packaging and automotive markets. Recognizing revenue on our latest fluxless advanced packaging in addition to our laser-enabled LUMINEX<sup>TM</sup> advanced display systems are testaments to this performance."

In addition to ongoing market adoption of its new products, the Company achieved a new record level of quarterly revenue for its wedge bonding systems which support the broad power semiconductor market, in addition to emerging compound semiconductor opportunities.

**<u>First Quarter Fiscal 2023 Financial Highlights</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net revenue of $176.2 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Gross margin of 50.3%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*•* Net income of $14.6 million or $0.25 per share; non-GAAP net income of $21.8 million or $0.37 per share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• GAAP cash from operations of $85.1 million; Adjusted free cash flow of $71.2 million

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Cash, cash equivalents, and short-term investments were $795.6 million as of December 31, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company repurchased a total of 1.1 million shares of common stock at a cost of $45.4 million.

**<u>Second Quarter Fiscal 2023 Outlook</u>**

The Company currently expects net revenue in the second fiscal quarter of 2023 ending April 1, 2023 to be approximately $170 million +/- $20 million, GAAP EPS to be approximately $0.16 +/- 10%, and non-GAAP EPS to be approximately $0.25 +/- 10%.

Fusen Chen commented, "The near-term macro environment remains dynamic, although we continue to anticipate a period of improving demand in our second fiscal half driven by typical seasonal improvements within higher-volume markets, a larger weighting of advanced packaging and advanced display revenue and an improving book-to-bill ratio."

After five sequential quarters of declining bookings, Kulicke and Soffa's quarterly book-to-bill ratio increased to 1.29 during its first fiscal quarter 2023.

**<u>Earnings Conference Call Details</u>**

A conference call to discuss these results will be held on February 2, 2023, beginning at 8:00am EST. To access the conference call, interested parties may call +1-877-407-8037 or internationally +1-201-689-8037. A live webcast link and supplemental earnings presentation will also be available at investor.kns.com.

A replay will be available from approximately one hour after the completion of the call through February 9, 2023 by calling toll-free +1-877-660-6853 or internationally +1-201-612-7415 and using the replay ID number of 13734618. A webcast replay will also be available at investor.kns.com.

**<u>Use of Non-GAAP Financial Results</u>**

In addition to U.S. GAAP results, this press release also contains the following non-GAAP financial results: income from operations, operating margin, net income, net margin, net income per diluted share and adjusted free cash flow. The Company's non-GAAP results exclude amortization related to intangible assets acquired through business combinations, costs associated with restructuring and severance, equity-based compensation, acquisition and integration costs, impairment relating to assets acquired through business combinations, impairment relating to equity investments, income tax expense arising from discrete tax items triggered by acquisition, restructuring and significant changes in tax laws, gain/loss on disposal of business, as well as tax benefits or expenses associated with the foregoing non-GAAP items. The non-GAAP adjustments may or may not be infrequent or nonrecurring in nature, but are a result of periodic or non-core operating activities. These non-GAAP measures are consistent with the way management analyzes and assesses the Company's operating results. The Company believes these non-GAAP measures enhance investors' understanding of the Company's underlying operational performance, as well as their ability to compare the Company's period-to-period financial results and the Company's overall performance to that of its competitors.

------

Management uses both U.S. GAAP metrics as well as these non-GAAP metrics to evaluate the Company's operating and financial results. Non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in the Company's industry, as other companies in the industry may calculate non-GAAP financial results differently. In addition, there are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with GAAP, may be different from non-GAAP financial measures used by other companies and exclude expenses that may have a material impact on the Company's reported financial results. The presentation of non-GAAP items is meant to supplement, but not substitute for, GAAP financial measures or information. The Company believes the presentation of non-GAAP results in combination with GAAP results provides better transparency to the investment community when analyzing business trends, providing meaningful comparisons with prior period performance and enhancing investors' ability to view the Company's results from management's perspective. A reconciliation of each available GAAP to non-GAAP financial measure discussed in this press release is contained in the financial tables at the end of this press release.

Management has not reconciled its outlook for non-GAAP Diluted EPS to Diluted EPS for Q2F23 as it does not provide guidance on the reconciling items between Diluted EPS and non-GAAP Diluted EPS, as a result of the uncertainty regarding, and the potential variability of, these items. The actual amount of such reconciling items could have a significant impact on our non-GAAP Diluted EPS and, accordingly, a reconciliation of Diluted EPS to non-GAAP Diluted EPS for Q2F23 is not available without unreasonable effort.

**<u>About Kulicke & Soffa</u>**

Kulicke & Soffa (NASDAQ: KLIC) is a leading provider of semiconductor, LED and electronic assembly solutions serving the global automotive, consumer, communications, computing and industrial markets. Founded in 1951, K&S prides itself on establishing foundations for technological advancement - creating pioneering interconnect solutions that enable performance improvements, power efficiency, form-factor reductions and assembly excellence of current and next-generation semiconductor devices.

Leveraging decades of development proficiency and extensive process technology expertise, Kulicke & Soffa's expanding portfolio provides equipment solutions, aftermarket products and services supporting a comprehensive set of interconnect technologies including wire bonding, advanced packaging, lithography, mini and micro LED transfer and electronics assembly. Dedicated to empowering technological discovery, always, K&S collaborates with customers and technology partners to push the boundaries of possibility, enabling a smarter future.

***Caution Concerning Results and Forward-Looking Statements***

*In addition to historical statements, this press release contains statements relating to future events and our future results. These statements are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. While these forward-looking statements represent our judgments and future expectations concerning our business, including the importance and competitiveness of our advanced display products and other emerging technology transitions, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from our expectations. These factors include, but are not limited to, the effects of the COVID-19 pandemic and macroeconomic headwinds on our business, our ability to develop, manufacture and gain market acceptance of new products, and the other factors listed or discussed in our Annual Report on Form 10-K for the fiscal year ended October 1, 2022, filed on November 17, 2022, and our other filings with the Securities and Exchange Commission. Kulicke and Soffa Industries, Inc. is under no obligation to (and expressly disclaims any obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.*

**Contacts:**

---

| |
|:---|
| **Kulicke and Soffa Industries, Inc.** |
| Joseph Elgindy |
| Finance |
| P: +1-215-784-7518 |

---

------

**KULICKE AND SOFFA INDUSTRIES, INC.**

**CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS**

***(In thousands, except per share and employee data)***

***(Unaudited)***

---

| | | |
|:---|:---|:---|
| | Three months ended | Three months ended |
| | December 31, 2022 | January 1, 2022 |
| Net revenue | $176233 | $460888 |
| Cost of sales | 87527 | 237650 |
| Gross profit | 88706 | 223238 |
| Operating expenses: |  |  |
| &nbsp;&nbsp;&nbsp;Selling, general and administrative | 40500 | 37550 |
| &nbsp;&nbsp;&nbsp;Research and development | 34508 | 33169 |
| &nbsp;&nbsp;&nbsp;Amortization of intangible assets | 1394 | 1283 |
| &nbsp;&nbsp;&nbsp;Acquisition-related costs | 107 |  |
| &nbsp;&nbsp;&nbsp;Restructuring | 375 | 126 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 76884 | 72128 |
| Income from operations | 11822 | 151110 |
| Other income (expense): |  |  |
| &nbsp;&nbsp;&nbsp;Interest income | 6559 | 471 |
| &nbsp;&nbsp;&nbsp;Interest expense | (34) | (40) |
| Income before income taxes | 18347 | 151541 |
| Income tax expense | 3758 | 17935 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income | $14589 | $133606 |
| Net income per share: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | $0.26 | $2.14 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | $0.25 | $2.11 |
| Cash dividends declared per share | $0.19 | $0.17 |
| Weighted average shares outstanding: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | 57051 | 62385 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | 57729 | 63316 |

---

---

| | | |
|:---|:---|:---|
| | Three months ended | Three months ended |
| *Supplemental financial data:* | December 31, 2022 | January 1, 2022 |
| Depreciation and amortization | $5613 | $5339 |
| Capital expenditures | 15651 | 2876 |
| Equity-based compensation expense: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of sales | 308 | 226 |
| &nbsp;&nbsp;&nbsp;&nbsp;Selling, general and administrative | 4867 | 3956 |
| &nbsp;&nbsp;&nbsp;&nbsp;Research and development | 1346 | 1130 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total equity-based compensation expense | $6521 | $5312 |

---

---

| | | |
|:---|:---|:---|
| | As of | As of |
| | December 31, 2022 | January 1, 2022 |
| Number of employees | 3,176 | 3,602 |

---

------

**KULICKE AND SOFFA INDUSTRIES, INC.**

**CONSOLIDATED CONDENSED BALANCE SHEETS**

***(In thousands)***

***(Unaudited)***

---

| | | |
|:---|:---|:---|
| | As of | As of |
| | December 31, 2022 | October 1, 2022 |
| **ASSETS** | **ASSETS** | **ASSETS** |
| **CURRENT ASSETS** |  |  |
| Cash and cash equivalents | $550613 | $555537 |
| Short-term investments | 245000 | 220000 |
| Accounts and other receivable, net of allowance for doubtful accounts of $0 and $0, respectively | 200337 | 309323 |
| Inventories, net | 211637 | 184986 |
| Prepaid expenses and other current assets | 63122 | 62200 |
| **TOTAL CURRENT ASSETS** | 1270709 | 1332046 |
| Property, plant and equipment, net | 92819 | 80908 |
| Operating right-of-use assets | 45377 | 41767 |
| Goodwill | 70536 | 68096 |
| Intangible assets, net | 33281 | 31939 |
| Deferred tax assets | 28414 | 25572 |
| Equity investments | 5433 | 5397 |
| Other assets | 3249 | 2874 |
| **TOTAL ASSETS** | $1549818 | $1588599 |
| **LIABILITIES AND SHAREHOLDERS' EQUITY** | **LIABILITIES AND SHAREHOLDERS' EQUITY** | **LIABILITIES AND SHAREHOLDERS' EQUITY** |
| **CURRENT LIABILITIES** |  |  |
| Accounts payable | 57482 | 67311 |
| Operating lease liabilities | 6841 | 6766 |
| Accrued expenses and other current liabilities | 110933 | 134541 |
| Income taxes payable | 45799 | 40063 |
| **TOTAL CURRENT LIABILITIES** | 221055 | 248681 |
| Deferred tax liabilities | 34139 | 34037 |
| Income taxes payable | 64641 | 64634 |
| Operating lease liabilities | 40325 | 34927 |
| Other liabilities | 12429 | 11670 |
| **TOTAL LIABILITIES** | 372589 | 393949 |
| **SHAREHOLDERS' EQUITY** |  |  |
| Common stock, no par value | 561736 | 561684 |
| Treasury stock, at cost | (714713) | (675800) |
| Retained earnings | 1345461 | 1341666 |
| Accumulated other comprehensive loss | (15255) | (32900) |
| **TOTAL SHAREHOLDERS' EQUITY** | $1177229 | $1194650 |
| **TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY** | $1549818 | $1588599 |

---

------

**KULICKE AND SOFFA INDUSTRIES, INC.**

**CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS**

***(In thousands)***

***(Unaudited)***

---

| | | |
|:---|:---|:---|
| | Three months ended | Three months ended |
| | December 31, 2022 | January 1, 2022 |
| Net cash provided by operating activities | $85116 | $95874 |
| Net cash (used in) / provided by investing activities | (38914) | 7289 |
| Net cash used in financing activities | (56230) | (24077) |
| Effect of exchange rate changes on cash and cash equivalents | 5104 | (384) |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in cash and cash equivalents | (4924) | 78702 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents, beginning of period | 555537 | 362788 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents, end of period | $550613 | $441490 |
| &nbsp;&nbsp;&nbsp;&nbsp;Short-term investments | 245000 | 367000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total cash, cash equivalents and short-term investments | $795613 | $808490 |

---

------

**Reconciliation of U.S. GAAP** 

**to Non-GAAP Income from Operations and Operating Margin**

***(In thousands, except percentages)***

***(Unaudited)***

---

| | | | |
|:---|:---|:---|:---|
| | Three months ended | Three months ended | Three months ended |
| | December 31, 2022 | January 1, 2022 | October 1, 2022 |
| Net revenue | $176233 | $460888 | $286313 |
| U.S. GAAP income from operations | 11822 | 151110 | 67544 |
| U.S. GAAP operating margin | 6.7% | 32.8% | 23.6% |
| Pre-tax non-GAAP items: |  |  |  |
| Amortization related to intangible assets acquired through business combination- selling, general and administrative | 1394 | 1283 | 1374 |
| Restructuring | 375 | 126 | 20 |
| Equity-based compensation | 6521 | 5312 | 4513 |
| Acquisition-related costs  | 107 |  | 118 |
| Non-GAAP income from operations | $20219 | $157831 | $73569 |
| Non-GAAP operating margin | 11.5% | 34.2% | 25.7% |

---

------

**Reconciliation of U.S. GAAP Net Income to Non-GAAP Net Income and** 

**U.S. GAAP net income per share to Non-GAAP net income per share**

***(In thousands, except percentages and per share data)***

***(Unaudited)***

---

| | | | |
|:---|:---|:---|:---|
| | Three months ended | Three months ended | Three months ended |
| | December 31, 2022 | January 1, 2022 | October 1, 2022 |
| Net revenue | $176233 | $460888 | $286313 |
| U.S. GAAP net income | 14589 | 133606 | 64904 |
| U.S. GAAP net margin | 8.3% | 29.0% | 22.7% |
| Non-GAAP adjustments: |  |  |  |
| Amortization related to intangible assets acquired through business combination- selling, general and administrative | 1394 | 1283 | 1374 |
| Restructuring | 375 | 126 | 20 |
| Equity-based compensation | 6521 | 5312 | 4513 |
| Acquisition-related costs | 107 |  | 118 |
| Net income tax benefit on non-GAAP items | (1218) | (1508) | (689) |
| Total non-GAAP adjustments | $7179 | $5213 | $5336 |
| Non-GAAP net income | $21768 | $138819 | $70240 |
| Non-GAAP net margin | 12.4% | 30.1% | 24.5% |
| U.S. GAAP net income per share: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | 0.26 | 2.14 | 1.12 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted<sup>(a)</sup> | 0.25 | 2.11 | 1.10 |
| Non-GAAP adjustments per share:<sup>(b)</sup> |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | 0.13 | 0.08 | 0.10 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | 0.12 | 0.08 | 0.09 |
| Non-GAAP net income per share: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | $0.39 | $2.22 | $1.22 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted<sup>(c)</sup> | $0.37 | $2.19 | $1.19 |
| Weighted average shares outstanding: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | 57051 | 62385 | 57804 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | 57729 | 63316 | 58816 |

---

(a)GAAP diluted net earnings per share reflects any dilutive effect of outstanding restricted stock, but that effect is excluded when calculating GAAP diluted net loss per share because it would be anti-dilutive.

(b)Non-GAAP adjustments per share include amortization related to intangible assets acquired through business combinations, costs associated with restructuring and severance, acquisition and integration costs, equity-based compensation expenses, and income tax effects associated with the foregoing non-GAAP items.

(c)Non-GAAP diluted net earnings per share reflects any dilutive effect of outstanding restricted stock.

------

**Reconciliation of U.S. GAAP Cash provided by Operating Activities** 

**to Non-GAAP Adjusted Free Cash Flow**

**(In thousands, except percentages)**

**(unaudited)**

---

| | | | |
|:---|:---|:---|:---|
| | Three months ended | Three months ended | Three months ended |
| | December 31, 2022 | January 1, 2022 | October 1, 2022 |
| U.S. GAAP net cash provided by operating activities | $85116 | $95874 | $116563 |
| Expenditures for property, plant and equipment | (13878) | (2711) | (12605) |
| Proceeds from sales of property, plant and equipment |  |  | 62 |
| Non-GAAP adjusted free cash flow | 71238 | 93163 | 104020 |

---

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