Financial Analysis

. DEBT AND OTHER OBLIGATIONS Bank Guarantees On November 22, 2013, the Company obtained a $5.0 million credit facility with Citibank in connection with the issuance of bank guarantees for operational purposes. As of October 4, 2025, the credit facility remains unutilized and no liability has been recognized on the Consolidated Balance Sheets. Credit Facilities On February 15, 2019, the Company entered into a Facility Letter and Overdraft Agreement (collectively, the Facility Agreements) with MUFG Bank, Ltd., Singapore Branch (the Bank). The Facility Agreements provide the Company and one of its subsidiaries with an overdraft facility of up to $150.0 million (the Overdraft Facility) for general corporate purposes. On June 6, 2025, the Company terminated the Facility Agreements with the Bank. As of the date of termination, there were no outstanding amounts under the Overdraft Facility. In addition, the Company did not incur any early termination penalties in connection with the termination of the Facility Agreements. …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

. FAIR VALUE MEASUREMENTS Accounting standards establish three levels of inputs that may be used to measure fair value: quoted prices in active markets for identical assets or liabilities (referred to as Level 1), inputs other than Level 1 that are observable for the asset or liability either directly or indirectly (referred to as Level 2) and unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities (referred to as Level 3). Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis We measure certain financial assets and liabilities as described in Note 4: Cash, Cash Equivalents, And Short-term Investments, Note 5: Equity Investments on a recurring basis. There were no transfers between fair value measurement levels during the fiscal years ended October 4, 2025 and September 28, 2024. Fair Value Measurements on a Nonrecurring Basis Our non-financial assets such as intangible assets and property, plant and equipment are carried at cost unless impairment is deemed to have occurred. Please refer to Note 3: Goodwill and Intangible Assets for further information on the fair value measurement of assets relating to the cessation of the EA equipment business. Fair Value of Financial Instruments Amounts reported as accounts receivables, prepaid expenses and other current assets, investment in debt securities, accounts payable and accrued expenses approximate fair value.

FairValueDisclosuresTextBlock

"GOODWILL AND INTANGIBLE ASSETS Goodwill Intangible assets classified as goodwill are not amortized. The goodwill established in connection with our acquisitions represents the estimated future economic benefits arising from the assets we acquired that did not qualify to be identified and recognized individually. The goodwill also includes expected synergies with our other affiliates and other unidentifiable intangible assets. The Company performs an annual impairment test of its goodwill during the fourth quarter of each fiscal year, which coincides with the completion of its annual forecasting and refreshing of business outlook process. Impairment pertaining to the Lithography reporting unit in fiscal 2023 During the fiscal year ended September 30, 2023, the Company reviewed qualitative factors to ascertain if a ""triggering"" event may have taken place that may have the effect of reducing the fair value of the reporting unit below its carrying value. The Company concluded that a triggering event had occurred during the third quarter in the fiscal year ended September 30, 2023 in connection with the Lithography reporting unit, which is grouped within the All Others category. The triggering event occurred based on the long-term financial and business outlook for the Lithography reporting unit updated as part of the Companys annual strategic planning process performed during the third quarter. This updated outlook projected that the near-term projected cash flows are expected …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

INCOME TAXES The following table reflects the U.S. and foreign (loss) / income before income taxes for fiscal 2025, 2024 and 2023: Fiscal (in thousands) 2025 2024 2023 United States operations $ (8,095) $ (8,522) $ (5,635) Foreign operations 28,571 (49,833) 77,836 Income / (loss) from operations before tax $ 20,476 $ (58,355) $ 72,201 The following table reflects the current and deferred components of provision for income taxes for fiscal 2025, 2024 and 2023: Fiscal (in thousands) 2025 2024 2023 Federal $ 2,873 $ (1,881) $ 10,412 State 75 232 (128) Foreign 14,305 2,616 8,830 Deferred: Federal $ 4,207 $ 101 $ 1,304 State Foreign (1,197) 9,583 (5,365) Provision for income taxes $ 20,263 $ 10,651 $ 15,053 The following table reconciles the provision for income taxes with the expected income tax provision computed based on the applicable U.S. federal statutory tax rate for fiscal 2025, 2024 and 2023: Fiscal (in thousands) 2025 2024 2023 Expected income tax provision based on the U.S. federal statutory tax rate $ 4,270 $ (12,255) $ 15,162 Effect of earnings of foreign subsidiaries subject to different tax rates (8,827) (3,619) (8,448) Benefit from tax incentives (10,740) 980 (11,198) Benefit from research and development tax credits (4,369) (4,132) (4,038) Benefit from foreign tax credits (8,660) (1,505) (7,834) Valuation allowance 26,725 18,543 3,127 Foreign operations (Deemed income, taxes on undistributed foreign earnings, and withholding taxes) 23,487 7,268 24,450 Unrecognized …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

LEASES We have entered into various non-cancellable operating and finance lease agreements for certain of our offices, manufacturing, technology, sales support and service centers, equipment, and vehicles. We determine if an arrangement is a lease, or contains a lease, at inception and record the leases in our financial statements upon lease commencement, which is the date when the underlying asset is made available for use by the lessor. Our lease terms may include one or more options to extend the lease terms, for periods from one year to 20 years, when it is reasonably certain that we will exercise that option. As of October 4, 2025, there were no options to extend the lease which was recognized as a right-of-use (ROU) asset, or a lease liability. We have lease agreements with lease and non-lease components, and non-lease components are accounted for separately and not included in our leased assets and corresponding liabilities. We have elected not to present short-term leases on the Consolidated Balance Sheets as these leases have a lease term of 12 months or less at lease inception. Operating leases are included in operating ROU assets, current operating lease liabilities and non-current operating lease liabilities, and finance leases are included in property, plant and equipment, accrued expenses and other current liabilities, and other liabilities on the Consolidated Balance Sheets. As of October 4, 2025 and September 28, 2024, our finance leases were not material. The …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

"Recent Accounting Pronouncements Disclosure Improvements In October 2023, the Financial Accounting Standards Board (the ""FASB"") issued ASU 2023-06, Disclosure Improvements: Codification Amendments in Response to the SECs Disclosure Update and Simplification Initiative. This ASU aligns the requirements in the FASB Accounting Standards Codification with the SECs regulations. The amendments in the ASU are expected to clarify or improve disclosure and presentation requirements of a variety of Codification Topics. They will also allow users to more easily compare entities subject to the SECs existing disclosures with those entities that were not previously subject to the requirements, and align the requirements in the Codification with the SECs regulations. This ASU will become effective for each amendment on the date on which the SEC removes the related disclosure from its regulations. However, if by June 30, 2027, the SEC has not removed the related disclosure from its regulations, the amendments will be removed from the Codification and not become effective for any entity. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements. Segment Reporting In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosure, which aims to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expens …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

. REVENUE AND CONTRACT BALANCES The Company recognizes revenue when we satisfy performance obligations as evidenced by the transfer of control of our products or services to customers. In general, the Company generates revenue from product sales, either directly to customers or to distributors. In determining whether a contract exists, we evaluate the terms of the agreement, the relationship with the customer or distributor and their ability to pay. Service revenue is generally recognized over time as the services are performed. For the for the fiscal years ended October 4, 2025, September 28, 2024 and September 30, 2023, the service revenue was not material. The Company reports revenue based on its reportable segments and end markets, which provides information about how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. Please refer to Note 15: Segment Information, for disclosure of revenue by segment and end market. Contract Balances As of (in thousands) October 4, 2025 September 28, 2024 September 30, 2023 Contract liabilities $ 23,936 $ 18,646 $ 4,797 Our contract liabilities are primarily related to payments received in advance of satisfying performance obligations, and are reported in the accompanying Consolidated Balance Sheets within accrued expenses and other current liabilities. Contract liabilities increased as a result of receiving new advanced payments from customers, partially offset by the recognition in rev …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

. SEGMENT INFORMATION Reportable segments are defined as components of an enterprise that engage in business activities for which discrete financial information is available and regularly reviewed by the chief operating decision maker (the CODM) in deciding how to allocate resources and assess performance. The Companys Chief Executive Officer is the CODM. Our CODM evaluates performance and allocates resources primarily based on income from operations. This measure is regularly provided to and reviewed by our CODM to support budgeting, forecasting, and decisions regarding resource allocation for strategic initiatives across segments, capital investments, and workforce planning. While income from operations is the primary measure used by our CODM to allocate resources, our CODM regularly reviews materials that present revenue, cost of sales and significant operating expenses. Accordingly, we have disclosed these segment items in the tables below. The CODM does not review discrete asset information. Segment information is disclosed based upon our management organization structure as of the fiscal year ended October 4, 2025. Future changes to this internal financial structure may result in changes to our reportable segments. The Company has four reportable segments consisting of: (1) Ball Bonding Equipment, (2) Wedge Bonding Equipment, (3) Advanced Solutions, and (4) Aftermarket Products and Services (APS). The four reportable segments are disclosed below: Ball Bonding Equipment …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

. SUBSEQUENT EVENTSOn October 28, 2025, the Company announced that Dr. Fusen Chen will retire as President and Chief Executive Officer of the Company and as a member of the Board, effective December 1, 2025. Also, on October 28, 2025, the Board appointed Lester Wong, the Companys current Executive Vice President and Chief Financial Officer, as the Companys Interim Chief Executive Officer. The Board will conduct a search for a permanent successor among external and internal candidates. …

SubsequentEventsTextBlock · excerpt; the full note is in the filing

. DEBT AND OTHER OBLIGATIONS Bank Guarantees On November 22, 2013, the Company obtained a $5.0 million credit facility with Citibank in connection with the issuance of bank guarantees for operational purposes. As of January 3, 2026, no liability has been recognized on the Consolidated Condensed Balance Sheets in connection with these bank guarantees.

DebtDisclosureTextBlock

. FAIR VALUE MEASUREMENTS Accounting standards establish three levels of inputs that may be used to measure fair value: quoted prices in active markets for identical assets or liabilities (referred to as Level 1), inputs other than Level 1 that are observable for the asset or liability either directly or indirectly (referred to as Level 2) and unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities (referred to as Level 3). Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis We measure certain financial assets and liabilities as described in Note 4: Cash, Cash Equivalents, And Short-term Investments, Note 5: Equity Investments on a recurring basis. There were no transfers between fair value measurement levels during the three months ended January 3, 2026 and October 4, 2025. Fair Value Measurements on a Nonrecurring Basis Our non-financial assets such as intangible assets and property, plant and equipment are carried at cost unless impairment is deemed to have occurred. Fair Value of Financial Instruments Amounts reported as accounts receivables, prepaid expenses and other current assets, investment in debt securities, accounts payable and accrued expenses approximate fair value.

FairValueDisclosuresTextBlock

. GOODWILL AND INTANGIBLE ASSETS Goodwill Intangible assets classified as goodwill are not amortized. The goodwill established in connection with our acquisitions represents the estimated future economic benefits arising from the assets we acquired that did not qualify to be identified and recognized individually. The goodwill also includes the value of expected future cash flows from the acquisitions, expected synergies with our other affiliates and other unidentifiable intangible assets. The Company performs an annual impairment test of its goodwill during the fourth quarter of each fiscal year, which coincides with the completion of its annual forecasting and refreshing of business outlook process. The Company performed its annual impairment test in the fourth quarter of fiscal 2025 and concluded that no impairment charge was required. Any future adverse changes in expected operating results and/or unfavorable changes in other economic factors used to estimate fair values could result in a non-cash impairment in the future. During the three months ended January 3, 2026, the Company reviewed qualitative factors to ascertain if a triggering event may have taken place that would indicate it is more likely than not that that the fair value of the reporting unit is less than the carrying value and concluded that no triggering event had occurred. While we have concluded that a triggering event did not occur during the quarter ended January 3, 2026, the persistent macroeconomic h …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

". INCOME TAXES The following table reflects the provision for income taxes and the effective tax rate for the three months ended January 3, 2026 and December 28, 2024: Three months ended (dollar amounts in thousands) January 3, 2026 December 28, 2024 Provision for income taxes $ 5,743 $ 11,332 Effective tax rate 25.5 % 12.2 % As previously disclosed in fiscal 2025, the Company received reimbursement from the cancellation of a prior project, for which the Company was engaged by one of its customers to support the customer with the development and future mass production of certain technologies (the ""Project""). For the three months ended January 3, 2026, the decrease in provision for income taxes and the increase in the effective tax rate was primarily due to the reimbursement from cancellation of the Project, which was recorded as a discrete item in the first quarter of the prior fiscal year, partially offset by an increase in profitability. For the three months ended January 3, 2026, the effective tax rate is higher than the U.S. federal statutory tax rate primarily due to nondeductible expenses, deemed income, and taxes on undistributed foreign earnings, partially offset by tax credits."

IncomeTaxDisclosureTextBlock

LEASES We have entered into various non-cancellable operating and finance lease agreements for certain of our offices, manufacturing, technology, sales support and service centers, equipment, and vehicles. We determine if an arrangement is a lease, or contains a lease, at inception and record the leases in our financial statements upon lease commencement, which is the date when the underlying asset is made available for use by the lessor. Our lease terms may include one or more options to extend the lease terms, for periods from one year to 20 years, when it is reasonably certain that we will exercise that option. As of January 3, 2026, there were no options to extend the lease which was recognized as a right-of-use (ROU) asset, or a lease liability. We have lease agreements with lease and non-lease components, and non-lease components are accounted for separately and not included in our leased assets and corresponding liabilities. We have elected not to present short-term leases on the Consolidated Condensed Balance Sheets as these leases have a lease term of 12 months or less at lease inception. Operating leases are included in operating ROU assets, current operating lease liabilities and non-current operating lease liabilities, and finance leases are included in property, plant and equipment, accrued expenses and other current liabilities, and other liabilities on the Consolidated Condensed Balance Sheets. As of January 3, 2026 and October 4, 2025, our finance leases were …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

"Recent Accounting Pronouncements Disclosure Improvements In October 2023, the Financial Accounting Standards Board (the ""FASB"") issued ASU 2023-06, Disclosure Improvements: Codification Amendments in Response to the SECs Disclosure Update and Simplification Initiative. This ASU aligns the requirements in the FASB Accounting Standards Codification with the SECs regulations. The amendments in the ASU are expected to clarify or improve disclosure and presentation requirements of a variety of Codification Topics. They will also allow users to more easily compare entities subject to the SECs existing disclosures with those entities that were not previously subject to the requirements, and align the requirements in the Codification with the SECs regulations. This ASU will become effective for each amendment on the date on which the SEC removes the related disclosure from its regulations. However, if by June 30, 2027, the SEC has not removed the related disclosure from its regulations, the amendments will be removed from the Codification and not become effective for any entity. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements. Income Taxes In December 2023, the FASB issued ASU 2023-09 Income Taxes (Topic 740): Improvement to Income Tax Disclosures. The amendments in this update are intended to enhance the transparency and decision usefulness of income tax disclosures primarily through changes to the ra …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

. REVENUE AND CONTRACT BALANCES The Company recognizes revenue when we satisfy performance obligations as evidenced by the transfer of control of our products or services to customers. In general, the Company generates revenue from product sales, either directly to customers or to distributors. In determining whether a contract exists, we evaluate the terms of the agreement, the relationship with the customer or distributor and their ability to pay. Service revenue is generally recognized over time as the services are performed. For the three months ended January 3, 2026 and December 28, 2024, the service revenue was not material. The Company reports revenue based on its reportable segments and end markets, which provides information about how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. Please refer to Note 15: Segment Information, for disclosure of revenue by segment and end market. Contract Balances As of (in thousands) January 3, 2026 October 4, 2025 Contract liabilities $ 25,356 $ 23,936 Our contract liabilities are primarily related to payments received in advance of satisfying performance obligations, and are reported in the accompanying Consolidated Condensed Balance Sheets within accrued expenses and other current liabilities. Contract liabilities increased as a result of receiving new advanced payments from customers, partially offset by the recognition in revenue of $14.6 million that was included in contra …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

". SEGMENT INFORMATION Reportable segments are defined as components of an enterprise that engage in business activities for which discrete financial information is available and regularly reviewed by the chief operating decision maker (the CODM) in deciding how to allocate resources and assess performance. The Companys Interim Chief Executive Officer is the CODM. Our CODM evaluates performance and allocates resources primarily based on income from operations. This measure is regularly provided to and reviewed by our CODM to support budgeting, forecasting, and decisions regarding resource allocation for strategic initiatives across segments, capital investments, and workforce planning. While income from operations is the primary measure used by our CODM to allocate resources, our CODM regularly reviews materials that present revenue, cost of sales and significant operating expenses. Accordingly, we have disclosed these segment items in the tables below. The CODM does not review discrete asset information. Future changes to this internal financial structure may result in changes to our reportable segments. The Company has four reportable segments consisting of: (1) Ball Bonding Equipment, (2) Wedge Bonding Equipment, (3) Advanced Solutions, and (4) Aftermarket Products and Services (APS). The four reportable segments are disclosed below: Ball Bonding Equipment : Reflects the results of the Company from the design, development, manufacture and sale of ball bonding equipment and …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing