KULICKE & SOFFA INDUSTRIES INC (KLIC): restructuring charge — Kulicke & Soffa expects $110M-$130M in pre-tax charges after customer cancels Project W

KULICKE & SOFFA INDUSTRIES INC

Strategic customer cancels advanced display project; company ceases operations and begins wind-down.
Total pre-tax charges $110M-$130M: $49M-$53M inventory write-down, $44M-$48M long-lived asset impairments.
Cash costs include $3M-$5M termination benefits, $8M-$13M contract termination, $6M-$11M other.
Q2 FY2024 revenue guidance reaffirmed at $170M +/- $10M; cancellation reduces FY2024 revenue by ~$15M.
Company refocusing R&D on Thermo-compression, Vertical Fan-Out, Automotive, and Dispense markets.

Key facts

Extracted from this filing and checked against the source text.

Restructurings & Charges SEC 8-K Item 2.05/2.06 confidence 0.9

KULICKE & SOFFA INDUSTRIES INC announced a restructuring with charges of $110 million and $130 million affecting advanced display market, Project W.

Type: restructuring
Charge: $110 million and $130 million
Affected area: advanced display market, Project W

Exact text from the filing

on March 11, 2024, the Company committed to a plan to cease operational activities and commence wind down activities concerning various aspects of the Project, as a result of which the Company expects to incur pre-tax charges, including impairments, in the range of $110 million and $130 million

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20 restructurings & charges filed in the last 30 days. Browse all restructurings & charges →

KULICKE & SOFFA INDUSTRIES INC filing history →

Source: SEC EDGAR

accession 0000056978-24-000042

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