SINGAPORE - Kulicke and Soffa (NASDAQ:KLIC) Industries, Inc. (NASDAQ: KLIC), a global provider of semiconductor and electronics assembly solutions, has increased its quarterly dividend to $0.205 per share, up from $0.20. The raised dividend, announced today, marks the fifth consecutive year of annual dividend increases for the company. The upcoming dividend is payable on January 7, 2025, to shareholders on record as of December 19, 2024.
Alongside the dividend increase, the company has also unveiled a new $300 million share repurchase program. This program is set to commence following the completion of the current $800 million repurchase initiative, which is expected to conclude in the fiscal first quarter of 2025, by December 28, 2024. As of the end of the fiscal year 2024, the existing buyback program had $30.3 million remaining authorized for share repurchases.
Since its initial share repurchase program began on August 27, 2014, K&S has bought back 30.2 million shares at an average price of around $28.75 per share through open market transactions. These moves are part of the company's broader strategy to deliver consistent returns to its shareholders.
Kulicke & Soffa, established in 1951, is known for its contributions to the semiconductor and electronics assembly sectors, offering products and services that support technological advancements across various markets including automotive, communications, and consumer electronics.
The information in this article is based on a press release statement from Kulicke & Soffa Industries, Inc.
In other recent news, Kulicke & Soffa Industries, Inc. has declared a quarterly dividend of $0.20 per share, set to be distributed on October 8, 2024, to those recorded as shareholders by September 19, 2024. This announcement continues the company's tradition of returning profits to its investors. In addition to this financial update, Kulicke & Soffa reported a robust fiscal third-quarter performance for 2024, noting revenues of $181.7 million and a gross margin of 46.6%.
The company also highlighted significant progress in Advanced Packaging (NYSE:PKG) and Advanced Dispense qualifications, coupled with increased adoption of its new ball bonding solutions. As a member of the U.S.-Joint semiconductor consortium, and in collaboration with a semiconductor conglomerate subsidiary, Kulicke & Soffa anticipates a 17% semiconductor revenue growth rate through 2025.
In terms of future expectations, the company forecasts a $200 million dedicated advanced packaging revenue for FY '25 and a gross margin of around 47% for the rest of the calendar year. Furthermore, it expects a flat September quarter compared to the third quarter, with an uptick anticipated in the December quarter for fiscal year 2025. These recent developments underscore Kulicke & Soffa's evolving strategic position within the semiconductor equipment industry.
InvestingPro Insights
Kulicke and Soffa Industries' recent dividend increase and share repurchase program announcement align with several key insights from InvestingPro. According to InvestingPro Tips, the company has been aggressively buying back shares, which is consistent with the new $300 million repurchase program mentioned in the article. Additionally, the tip indicating that K&S has raised its dividend for 6 consecutive years further supports the company's commitment to shareholder returns.
The company's financial health appears robust, with InvestingPro Data showing a Market Cap of $2.57 billion and a strong cash position. An InvestingPro Tip highlights that K&S holds more cash than debt on its balance sheet, suggesting financial stability to support its dividend and buyback initiatives.
Despite these positive indicators, it's worth noting that InvestingPro Data reveals a Revenue Growth of -12.01% over the last twelve months, and an Operating Income Margin of -4.3%. This context adds depth to the company's decision to focus on shareholder returns in the face of potential operational challenges.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Kulicke and Soffa Industries, providing a broader perspective on the company's financial outlook and market position.
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