Kulicke and Soffa reported a solid QQ1 2025 with revenue of $166.1 million and a gross margin of 52.4%, supported by non-GAAP earnings of $0.37 per share and GAAP EPS of $1.51 driven in part by customer reimbursements related to a prior impairment charge (Project W). Management conveyed that the core market remains in a late-stage downturn, but signs of a broader recovery are taking hold in general semiconductor and automotive end markets, with a more favorable second half anticipated for fiscal 2025. The company is increasingly focused on high-growth advanced packaging opportunities (TCP/FTC, vertical wire, HBM-frictionless TCP) and expects the TCP market to grow 20-25% CAGR over the coming years, with FTC growth outpacing TCP in magnitude. Cash generation remains robust, as evidenced by a net cash position and ongoing buyback activity, though near-term quarterly upside remains tied to a broader upcycle in core markets. Management provided March-quarter guidance that imply a trough-to-recovery trajectory, with revenue around $165 million and gross margins near 47%, underscoring the sensitivity of results to industry cycles. Overall, KLIC combines a strong balance sheet and structural TCP/FTC leadership with material cyclicality, implying an attractive long-term upside tempered by near-term execution risk in a continued downturn.