# EDGAR Filing Document

**Accession Number:** 0000056978
**File Stem:** 0000056978-26-000010
**Filing Date:** 2026-2
**Character Count:** 24487
**Document Hash:** f07e955ad0cd5b1179777589be69c714
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000056978-26-000010.hdr.sgml**: 20260204

**ACCESSION NUMBER**: 0000056978-26-000010

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 15

**CONFORMED PERIOD OF REPORT**: 20260204

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

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20260204

**DATE AS OF CHANGE**: 20260204

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** KULICKE & SOFFA INDUSTRIES INC
- **CENTRAL INDEX KEY:** 0000056978
- **STANDARD INDUSTRIAL CLASSIFICATION:** SEMICONDUCTORS & RELATED DEVICES [3674]
- **ORGANIZATION NAME:** 04 Manufacturing
- **EIN:** 231498399
- **STATE OF INCORPORATION:** PA
- **FISCAL YEAR END:** 1004

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-00121
- **FILM NUMBER:** 26598203

**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' encoding='ASCII'? klic-20260204

**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 4, 2026**

____________________________________________________

**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 4, 2026, Kulicke and Soffa Industries, Inc. (the "Company") issued a press release with respect to its financial results for its first fiscal quarter ended January 3, 2026. 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 4, 2026](ex991liveq12026.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 4, 2026 | By: | /s/ LESTER WONG |
|  | Name: | Lester Wong |
|  | Title: | Executive Vice President, Interim Chief Executive Officer and Chief Financial Officer <br>(principal executive officer, principal financial officer and principal accounting officer) |

---

## Exhibit 99.1

 **Exhibit 99.1**

---

| | |
|:---|:---|
| ![logoa02a01a01a48.jpg](logoa02a01a01a48.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 2026 Results**

***Singapore – February 4, 2026*** – <u>Kulicke and Soffa Industries, Inc.</u> (NASDAQ: KLIC) ("Kulicke & Soffa," "K&S," "our," or the "Company"), today announced financial results of its first fiscal quarter ended January 3, 2026. The Company reported first quarter net revenue of $199.6 million, net income of $16.8 million, representing EPS of $0.32 per fully diluted share, and non-GAAP net income of $23.1 million, representing non-GAAP EPS of $0.44 per fully diluted share.

---

| | | | |
|:---|:---|:---|:---|
| **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** |
| | **Fiscal Q1 2026** | **Fiscal Q1 2025** | **Fiscal Q4 2025** |
| Net Revenue (in thousands) | $199625 | $166124 | $177558 |
| GAAP EPS – Diluted | $0.32 | $1.51 | $0.12 |
| Non GAAP EPS - Diluted | $0.44 | $0.37 | $0.28 |

---

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

Lester Wong, Kulicke & Soffa's Interim Chief Executive Officer and Chief Financial Officer, stated, "As we continue preparing to support customers' higher near-term capacity requirements, we remain committed to broadening our market reach in parallel. Our prior investments in Power Semiconductor, Advanced Dispense, and Advanced Packaging, both Vertical Wire and Fluxless Thermo-Compression, strategically position us to further expand our market access over the long-term."

**<u>First Quarter Fiscal 2026 Financial Highlights</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net revenue of $199.6 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Gross margin of 49.6%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*•* Net income of $16.8 million or $0.32 per share; non-GAAP net income of $23.1 million or $0.44 per fully diluted share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• GAAP cash flow from operations of $(8.9) million; Adjusted free cash flow of $(11.6) million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company repurchased a total of 0.2 million shares of common stock at a cost of $6.7 million.

**<u>Second Quarter Fiscal 2026 Outlook</u>**

K&S currently expects net revenue in the second quarter of fiscal 2026 ending April 4, 2026 to be approximately $230 million +/- $10 million, GAAP diluted EPS to be approximately $0.53 +/- 10%, and non-GAAP diluted EPS to be approximately $0.67 +/- 10%.

*A reconciliation between the GAAP and non-GAAP financial outlook is provided in the financial tables included at the end of this press release.* 

------

**<u>Earnings Conference Webcast</u>**

A webcast to discuss these results will be held on February 5, 2026, beginning at 8:00 am ET. The live webcast link, supplemental earnings presentation, and archived webcast will be available at *<u>investor.kns.com</u>*. To access the audio-only portion of the live webcast, parties may call +1-877-407-8037, or internationally, +1-201-689-8037.

An audio-only replay of the webcast will also be available approximately one hour after the completion of the live call by calling +1-877-660-6853, or internationally, +1-201-612-7415 and referencing access code 13757796.

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

In addition to U.S. GAAP ("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 fully 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, long-lived asset impairment relating to business cessation or disposal, impairment relating to equity investments, income tax expense/benefit arising from discrete tax items triggered by acquisition, disposal of business (both via a sale or an abandonment), 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 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 non-GAAP financial measure to the most directly comparable GAAP measure discussed in this press release is contained in the financial tables at the end of this press release.

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

Kulicke & Soffa is a global leader in semiconductor assembly technology, advancing device performance across automotive, compute, industrial, memory and communications markets. Founded on innovation in 1951, K&S is uniquely positioned to overcome increasingly dynamic process challenges – creating and delivering long-term value by aligning technology with opportunity.

------

***Caution Concerning Results, Forward-Looking Statements and Certain Risks Related to our Business***

*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 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, failures or delays in completing the Company's cessation of its Electronics Assembly equipment business, the persistent macroeconomic headwinds on our business, actual or potential inflationary pressures, interest rate and risk premium adjustments, falling customer sentiment, or economic recession caused directly or indirectly by geopolitical tensions, our ability to develop, manufacture and gain market acceptance of new products, our ability to operate our business in accordance with our business plan and the other factors listed or discussed in our Annual Report on Form 10-K for the fiscal year ended October 4, 2025, filed on November 20, 2025, 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.*

**Contact:**

---

| |
|:---|
| **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 data)***

***(Unaudited)***

---

| | | |
|:---|:---|:---|
| | Three months ended | Three months ended |
| | January 3, 2026 | December 28, 2024 |
| Net revenue | $199625 | $166124 |
| Cost of sales | 100670 | 79040 |
| Gross profit | 98955 | 87084 |
| Selling, general and administrative | 40759 | 38614 |
| Research and development | 40376 | 37808 |
| Gain relating to cessation of business |  | (75987) |
| Operating expenses | 81135 | 435 |
| Income from operations | 17820 | 86649 |
| Interest income | 4759 | 6352 |
| Interest expense | (40) | (27) |
| Income before income taxes | 22539 | 92974 |
| Provision for income taxes | 5743 | 11332 |
| Net income | $16796 | $81642 |
| Net No conditions met per share: |  |  |
| Basic | $0.32 | $1.52 |
| Diluted | $0.32 | $1.51 |
| Cash dividends declared per share | $0.205 | $0.205 |
| Weighted average shares outstanding: |  |  |
| Basic | 52319 | 53791 |
| Diluted | 52521 | 54212 |

---

------

**KULICKE AND SOFFA INDUSTRIES, INC.**

**CONSOLIDATED CONDENSED BALANCE SHEETS**

***(In thousands)***

***(Unaudited)***

---

| | | |
|:---|:---|:---|
| | As of | As of |
| | January 3, 2026 | October 4, 2025 |
| **ASSETS** | **ASSETS** | **ASSETS** |
| **Current assets** |  |  |
| Cash and cash equivalents | $282128 | $215708 |
| Short-term investments | 199000 | 295000 |
| Accounts and other receivable, net | 215779 | 183538 |
| Inventories, net | 176507 | 160225 |
| Prepaid expenses and other current assets | 40800 | 47064 |
| **Total current assets** | 914214 | 901535 |
| Property, plant and equipment, net | 57468 | 58993 |
| Operating right-of-use assets | 30827 | 32193 |
| Goodwill | 69522 | 69522 |
| Intangible assets, net | 5292 | 5600 |
| Deferred tax assets | 16460 | 16109 |
| Equity investments | 7660 | 6978 |
| Investment in debt securities | 10000 | 10000 |
| Other assets | 3197 | 3412 |
| **TOTAL ASSETS** | $1114640 | $1104342 |
| **LIABILITIES AND SHAREHOLDERS' EQUITY** | **LIABILITIES AND SHAREHOLDERS' EQUITY** | **LIABILITIES AND SHAREHOLDERS' EQUITY** |
| **Current liabilities** |  |  |
| Accounts payable | $68892 | $57178 |
| Operating lease liabilities | 5893 | 6178 |
| Accrued expenses and other current liabilities | 88409 | 97786 |
| Income taxes payable | 33683 | 27029 |
| **Total current liabilities** | 196877 | 188171 |
| Deferred tax liabilities | 35575 | 35533 |
| Income taxes payable | 16851 | 16580 |
| Operating lease liabilities | 31089 | 32372 |
| Other liabilities | 9213 | 10195 |
| **TOTAL LIABILITIES** | $289605 | $282851 |
| **SHAREHOLDERS' EQUITY** |  |  |
| Common stock, without par value | 620350 | 620043 |
| Treasury stock, at cost | (976177) | (974202) |
| Retained earnings | 1205569 | 1199500 |
| Accumulated other comprehensive loss | (24707) | (23850) |
| **TOTAL SHAREHOLDERS' EQUITY** | $825035 | $821491 |
| **TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY** | $1114640 | $1104342 |

---

------

**KULICKE AND SOFFA INDUSTRIES, INC.**

**CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS**

***(In thousands)***

***(Unaudited)***

---

| | | |
|:---|:---|:---|
| | Three months ended | Three months ended |
| *(in thousands)* | January 3, 2026 | December 28, 2024 |
| Net cash (used in) / provided by operating activities | $(8933) | $18902 |
| Net cash provided by investing activities | 93325 | 82039 |
| Net cash used in financing activities | (17888) | (48452) |
| Effect of exchange rate changes on cash and cash equivalents | (84) | (1311) |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in cash and cash equivalents | 66420 | 51178 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents, beginning of period | 215708 | 227147 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents, end of period | $282128 | $278325 |
| &nbsp;&nbsp;&nbsp;&nbsp;Short-term investments | 199000 | 260000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total cash, cash equivalents and short-term investments | $481128 | $538325 |

---

------

**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 |
| | January 3, 2026 | December 28, 2024 | October 4,<br>2025 |
| Net revenue | $199625 | $166124 | $177558 |
| U.S. GAAP income from operations | 17820 | 86649 | 888 |
| U.S. GAAP operating margin | 8.9% | 52.2% | 0.5% |
| Pre-tax non-GAAP items: |  |  |  |
| &nbsp;&nbsp;Amortization related to intangible assets | 308 | 1246 | 308 |
| &nbsp;&nbsp;Restructuring | 1997 | 829 | 2797 |
| &nbsp;&nbsp;Equity-based compensation | 5330 | 6141 | 7800 |
| &nbsp;&nbsp;Gain relating to cessation of business |  | (75987) |  |
| &nbsp;&nbsp;Other income – escrow release on sale of subsidiary | (304) |  |  |
| Non-GAAP income from operations | $25151 | $18878 | $11793 |
| Non-GAAP operating margin | 12.6% | 11.4% | 6.6% |

---

------

**Reconciliation of U.S. GAAP Net Income to Non-GAAP Net Income and Non-GAAP Net Margin 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 |
| | January 3, 2026 | December 28, 2024 | October 4,<br>2025 |
| Net revenue | $199625 | $166124 | $177558 |
| U.S. GAAP net income | 16796 | 81642 | 6379 |
| U.S. GAAP net margin | 8.4% | 49.1% | 3.6% |
| Non-GAAP adjustments: |  |  |  |
| &nbsp;&nbsp;Amortization related to intangible assets | 308 | 1246 | 308 |
| &nbsp;&nbsp;Restructuring | 1997 | 829 | 2797 |
| &nbsp;&nbsp;Equity-based compensation | 5330 | 6141 | 7800 |
| &nbsp;&nbsp;Gain relating to cessation of business |  | (75987) |  |
| &nbsp;&nbsp;Other income – escrow release on sale of subsidiary | (304) |  |  |
| &nbsp;&nbsp;Net income tax (benefit) / expense on non-GAAP items | (986) | 6349 | (2411) |
| Total non-GAAP adjustments | $6345 | $(61422) | $8494 |
| Non-GAAP net income | $23141 | $20220 | $14873 |
| Non-GAAP net margin | 11.6% | 12.2% | 8.4% |
| U.S. GAAP net income per share: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | $0.32 | $1.52 | $0.12 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted<sup>(a)</sup> | $0.32 | $1.51 | $0.12 |
| Non-GAAP adjustments per share:<sup>(b)</sup> |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | $0.12 | $(1.14) | $0.16 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | $0.12 | $(1.14) | $0.16 |
| Non-GAAP net income per share: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | $**0.44** | $**0.38** | $**0.28** |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted<sup>(c)</sup> | $**0.44** | $**0.37** | $**0.28** |
| Weighted average shares outstanding: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | 52319 | 53791 | 52093 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | 52464 | 54212 | 52464 |

---

(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, equity-based compensation expenses, gain relating to disposal or cessation of a business, 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, but that effect is excluded when calculating Non-GAAP diluted net loss per share because it would be anti-dilutive.

------

**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 |
| | January 3, 2026 | December 28, 2024 | October 4,<br>2025 |
| U.S. GAAP net cash (used in) / provided by operating activities | $(8933) | $18902 | $7406 |
| Purchases of property, plant and equipment | (2676) | (10202) | (2957) |
| Proceeds from sales of property, plant and equipment | 1 |  |  |
| Non-GAAP adjusted free cash flow | $(11608) | $8700 | $4449 |

---

------

**Reconciliation of U.S. GAAP to Non-GAAP Outlook**

***(In millions, except per share data)***

***(Unaudited)***

---

| | | | |
|:---|:---|:---|:---|
| | Second quarter of fiscal 2026 ending April 4, 2026 | Second quarter of fiscal 2026 ending April 4, 2026 | Second quarter of fiscal 2026 ending April 4, 2026 |
| | GAAP Outlook | Adjustments | Non-GAAP Outlook |
| Net revenue | $230 million <br>+/- $10 million |  | $230 million <br>+/- $10 million |
| Operating expenses | $80.4 million<br>+/- 2% | $7.4 million <sup>B,C,D</sup> | $73.0 million<br>+/- 2% |
| Diluted EPS<sup>(1)</sup> | $0.53<br>+/- 10%% | $0.14 <sup>A - E</sup> | $0.67<br>+/- 10% |

---

---

| | |
|:---|:---|
| **Non-GAAP Adjustments** | |
| A. Equity-based compensation - Cost of sales | 0.4 |
| B. Equity-based compensation - Selling, general and administrative and Research and development | 6.4 |
| C. Amortization related to intangible assets | 0.3 |
| D. Restructuring expenses | 0.7 |
| E. Net income tax effect of the above items | (0.7) |

---

(1) GAAP and non-GAAP diluted EPS based on approximately 52.0 million diluted weighted average shares outstanding.

The tables above reconcile our GAAP to non-GAAP guidance based on the current outlook. The guidance does not incorporate the impact of any potential business combinations, divestitures, unannounced restructuring activities, strategic investments and other significant transactions. The timing and impact of such items are dependent on future events that may be uncertain or outside of our control.

<br>