- Full year 2023 revenue of $636 million
- Fourth quarter revenue $137 million
- Fourth quarter gross margin of 47.7%; non-GAAP gross margin of
48.5%
- Paid off the remaining balance of $29.3 million of Term Loan B
in early first quarter 2024
- Introduced AI inspection software to increase vision yield,
expanding recurring business
Cohu, Inc. (NASDAQ: COHU), a global leader in semiconductor
equipment and services, today reported fiscal 2023 fourth quarter
net sales of $137.2 million and GAAP loss of $2.0 million or $0.04
per share. Net sales for full year 2023 were $636.3 million with
GAAP income of $28.2 million or $0.59 per share.
The Company also reported non-GAAP results, with fourth quarter
2023 income of $11.1 million or $0.23 per share and income of $77.9
million or $1.62 per share for full year 2023.
GAAP Results
(in millions, except per share
amounts)
Q4 FY 2023
Q3 FY 2023
Q4 FY 2022
12 Months 2023
12 Months 2022
Net sales
$
137.2
$
150.8
$
191.1
$
636.3
$
812.8
Net income (loss)
$
(2.0
)
$
3.9
$
21.6
$
28.2
$
96.8
Net income (loss) per share
$
(0.04
)
$
0.08
$
0.45
$
0.59
$
1.98
Non-GAAP Results
(in millions, except per share
amounts)
Q4 FY 2023
Q3 FY 2023
Q4 FY 2022
12 Months 2023
12 Months 2022
Net income
$
11.1
$
16.9
$
33.5
$
77.9
$
141.9
Net income per share
$
0.23
$
0.35
$
0.70
$
1.62
$
2.91
Total cash and investments at the end of fourth quarter 2023
were $335.7 million and our Term Loan B principal amount was $29.3
million; however, on February 9, 2024, the Company paid off the
remaining amounts owed under the loan. Cohu repurchased 390,285
shares of its common stock during fourth quarter 2023 for an
aggregate amount of approximately $12.8 million.
“Fourth quarter results were in-line or better than guidance
with strong gross margin and profitability. We launched AI
inspection software with two customers and opened our new factory
in the Philippines which is ramping manufacturing of test
contactors, both aligned with our strategy to expand recurring
business. Cohu achieved recurring revenue of $310 million over the
last twelve months with a 3-year compound growth rate of 5%,” said
Cohu President and CEO Luis Müller. “Although demand for systems is
likely to remain subdued in the near-term, our customers have been
forecasting a recovery for the second half of 2024.”
Cohu expects first quarter 2024 sales to be in a range of $107
million +/- $6 million.
Conference Call Information:
The Company will host a live conference call and webcast with
slides to discuss fourth quarter 2023 results at 1:30 p.m. Pacific
Time/4:30 p.m. Eastern Time on February 15, 2024. Interested
parties may listen live via webcast on Cohu’s investor relations
website at https://edge.media-server.com/mmc/p/5ovoraj2.
To participate via telephone and join the call live, please
register in advance at
https://register.vevent.com/register/BI94bbc71cea5a4b439ae74a94ccfd02e2
to receive the dial-in number along with a unique PIN number that
can be used to access the call.
About Cohu:
Cohu (NASDAQ: COHU) is a global technology leader supplying
test, automation, inspection and metrology products and services to
the semiconductor industry. Cohu’s differentiated and broad product
portfolio enables optimized yield and productivity, accelerating
customers’ manufacturing time-to-market. Additional information can
be found at www.cohu.com.
Use of Non-GAAP Financial Information:
Included within this press release and accompanying materials
are non-GAAP financial measures, including non-GAAP Gross
Margin/Profit, Income and Income (adjusted earnings) per share,
Operating Income, Operating Expense, effective tax rate, free cash
flow, net cash per share and Adjusted EBITDA that supplement the
Company’s Condensed Consolidated Statements of Operations prepared
under generally accepted accounting principles (GAAP). These
non-GAAP financial measures adjust the Company’s actual results
prepared under GAAP to exclude charges and the related income tax
effect for: share-based compensation, the amortization of purchased
intangible assets, manufacturing transition and severance costs,
acquisition-related costs and associated professional fees,
restructuring costs, inventory step-up, depreciation of purchase
accounting adjustments to property, plant and equipment, employer
payroll taxes related to accelerated vesting share-based awards,
amortization of cloud-based software implementation costs (Adjusted
EBITDA only) and loss on
extinguishment of debt (Adjusted EBITDA only). Reconciliations of GAAP to non-GAAP amounts
for the periods presented herein are provided in schedules
accompanying this release and should be considered together with
the Condensed Consolidated Statements of Operations. With respect
to any forward-looking non-GAAP figures, we are unable to provide
without unreasonable efforts, at this time, a GAAP to non-GAAP
reconciliation of any forward-looking figures due to their inherent
uncertainty.
These non-GAAP measures are not meant as a substitute for GAAP,
but are included solely for informational and comparative purposes.
The Company’s management believes that this information can assist
investors in evaluating the Company’s operational trends, financial
performance, and cash generating capacity. Management uses non-GAAP
measures for a variety of reasons, including to make operational
decisions, to determine executive compensation in part, to forecast
future operational results, and for comparison to our annual
operating plan. However, the non-GAAP financial measures should not
be regarded as a replacement for (or superior to) corresponding,
similarly captioned, GAAP measures.
Forward Looking Statements:
Certain statements contained in this release and accompanying
materials may be considered forward-looking statements within the
meaning of the U.S. Private Securities Litigation Reform Act of
1995, including statements regarding expectations related to our AI
inspection software products or our new factory in the Philippines;
expanding Cohu’s recurring revenue; Cohu’s FY2024 outlook,
including quarterly projections; expected market condition
improvements or other forecasts based upon customer input; and any
other statements that are predictive in nature and depend upon or
refer to future events or conditions; and/or include words such as
“may,” “will,” “should,” “would,” “expect,” “anticipate,” “plan,”
“likely,” “believe,” “estimate,” “project,” “intend;” and/or other
similar expressions among others. Statements that are not
historical facts are forward-looking statements. Forward-looking
statements are based on current beliefs and assumptions that are
subject to risks and uncertainties and are not guarantees of future
performance. Any third-party industry analyst forecasts quoted are
for reference only and Cohu does not adopt or affirm any such
forecasts.
Actual results and future business conditions could differ
materially from those contained in any forward-looking statement as
a result of various factors, including, without limitation: new
product investments and product enhancements which may not be
commercially successful; the semiconductor industry is seasonal,
cyclical, volatile and unpredictable; recent erosion in mobile,
automotive and industrial market sales; our ability to manage and
deliver high quality products and services; failure of sole source
contract manufacturer or our ability to manage third-party raw
material, component and/or service providers; ongoing inflationary
pressures on material and operational costs coupled with rising
interest rates; economic recession; the semiconductor industry is
intensely competitive, subject to rapid technological changes, and
experiences consolidation of key customers for semiconductor test
equipment; a limited number of customers account for a substantial
percentage of net sales; significant exports to foreign countries
with economic and political instability and competition from a
number of Asia-based manufacturers; our relationships with
customers may deteriorate; loss of key personnel; risks of using
artificial intelligence within Cohu’s product developments and
business; reliance on foreign locations and geopolitical
instability in such locations critical to Cohu and its customers;
natural disasters, war and climate-related changes, including
related economic impacts; levels of debt; access to sufficient
capital on reasonable or favorable terms; foreign operations and
related currency fluctuations; required or desired accounting
charges and the cost or effectiveness of accounting controls;
instability of financial institutions where we maintain cash
deposits and potential loss of uninsured cash deposits; significant
goodwill and other intangibles as percentage of our total assets;
increasingly restrictive trade and export regulations impacting our
ability to sell products, specifically within China; risks
associated with acquisitions, investments and divestitures such as
integration and synergies; constraints related to corporate
governance structures; share repurchases and related impacts;
financial or operating results that are below forecast or credit
rating changes impacting our stock price or financing ability;
law/regulatory changes and including environmental or tax law
changes; significant volatility in our stock price; the risk of
cybersecurity breaches; enforcing or defending intellectual
property claims or other litigation.
These and other risks and uncertainties are discussed more fully
in Cohu’s filings with the SEC, including our most recent Form 10-K
and Form 10-Q, and the other filings made by Cohu with the SEC from
time to time, which are available via the SEC’s website at
www.sec.gov. Except as required by applicable law, Cohu does not
undertake any obligation to revise or update any forward-looking
statement, or to make any other forward-looking statements, whether
as a result of new information, future events or otherwise.
For press releases and other information of interest to
investors, please visit Cohu’s website at www.cohu.com.
COHU, INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(Unaudited)
(in thousands, except per share
amounts)
Three Months Ended (1)
Twelve Months Ended (1)
December 30,
December 31,
December 30,
December 31,
2023 (2)
2022
2023
2022
Net sales
$
137,226
$
191,105
$
636,322
$
812,775
Cost and expenses:
Cost of sales (excluding amortization)
71,816
97,954
333,454
429,449
Research and development
22,117
22,951
88,571
92,589
Selling, general and administrative
32,846
34,849
132,249
131,390
Amortization of purchased intangible
assets
9,738
8,103
36,355
33,185
Restructuring charges
375
5
2,421
605
136,892
163,862
593,050
687,218
Income from operations
334
27,243
43,272
125,557
Other (expense) income:
Interest expense
(754
)
(1,249
)
(3,382
)
(4,177
)
Interest income
2,847
2,461
11,504
4,012
Foreign transaction gain (loss)
(2,924
)
(2,344
)
(5,209
)
1,635
Loss on extinguishment of debt
-
-
(369
)
(312
)
Income (loss) from operations before
taxes
(497
)
26,111
45,816
126,715
Income tax provision
1,531
4,483
17,660
29,868
Net income (loss)
$
(2,028
)
$
21,628
$
28,156
$
96,847
Income (loss) per share:
Basic:
$
(0.04
)
$
0.46
$
0.59
$
2.01
Diluted:
$
(0.04
)
$
0.45
$
0.59
$
1.98
Weighted average shares used in computing
income (loss) per share: (3)
Basic
47,369
47,477
47,486
48,178
Diluted
47,369
48,175
48,025
48,799
(1)
The three- and twelve-month
periods ended December 30, 2023 and December 31, 2022 were both
comprised of 13 weeks and 52 weeks, respectively.
(2)
On January 30, 2023 the Company
completed the acquisition of MCT Worldwide, LLC (“MCT”) and on
October 2, 2023 the Company completed the acquisition of Equiptest
Engineering Pte. Ltd. (“EQT”). The results of MCT’s and EQT’s
operations have been included since those dates.
(3)
For the three-month period ended
December 30, 2023, potentially dilutive securities were excluded
from the per share computations due to their antidilutive
effect.
COHU, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Unaudited)
(in thousands)
December 30,
December 31,
2023
2022
Assets:
Current assets:
Cash and investments
$
335,698
$
385,576
Accounts receivable
124,624
176,148
Inventories
155,793
170,141
Other current assets
22,703
32,986
Total current assets
638,818
764,851
Property, plant & equipment, net
69,085
65,011
Goodwill
241,658
213,539
Intangible assets, net
151,770
140,104
Operating lease right of use assets
16,778
22,804
Other assets
32,243
21,105
Total assets
$
1,150,352
$
1,227,414
Liabilities & Stockholders’
Equity:
Current liabilities:
Short-term borrowings
$
1,773
$
1,907
Current installments of long-term debt
4,551
4,404
Deferred profit
3,586
8,022
Other current liabilities
93,511
146,539
Total current liabilities
103,421
160,872
Long-term debt
34,303
72,664
Non-current operating lease
liabilities
13,175
19,209
Other noncurrent liabilities
49,283
45,828
Cohu stockholders’ equity
950,170
928,841
Total liabilities & stockholders’
equity
$
1,150,352
$
1,227,414
COHU, INC.
Supplemental Reconciliation of GAAP
Results to Non-GAAP Financial Measures (Unaudited)
(in thousands, except per share
amounts)
Three Months Ended
December 30,
September 30,
December 31,
2023
2023
2022
Income from operations - GAAP basis
(a)
$
334
$
7,402
$
27,243
Non-GAAP adjustments:
Share-based compensation included in
(b):
Cost of sales (COS)
226
223
168
Research and development (R&D)
860
849
767
Selling, general and administrative
(SG&A)
3,471
3,262
2,888
4,557
4,334
3,823
Amortization of purchased intangible
assets (c)
9,738
8,857
8,103
Restructuring charges related to inventory
adjustments in COS (d)
(3
)
(18
)
(35
)
Restructuring charges (d)
375
742
5
Manufacturing and sales transition costs
included in (e):
COS
7
-
(13
)
R&D
-
-
(7
)
SG&A
527
61
1,723
534
61
1,703
Inventory step-up included in COS (f)
868
-
-
Acquisition costs included in SG&A
(g)
288
758
72
Depreciation of PP&E step-up included
in SG&A (h)
30
14
-
Income from operations - non-GAAP basis
(i)
$
16,721
$
22,150
$
40,914
Net income (loss) - GAAP basis
$
(2,028
)
$
3,915
$
21,628
Non-GAAP adjustments (as scheduled
above)
16,387
14,748
13,671
Tax effect of non-GAAP adjustments (j)
(3,239
)
(1,754
)
(1,761
)
Net income - non-GAAP basis
$
11,120
$
16,909
$
33,538
GAAP net income (loss) per share -
diluted
$
(0.04
)
$
0.08
$
0.45
Non-GAAP net income per share - diluted
(k)
$
0.23
$
0.35
$
0.70
Management believes the presentation of
these non-GAAP financial measures, when taken together with the
corresponding GAAP financial measures, provides meaningful
supplemental information regarding the Company’s operating
performance. Our management uses these non-GAAP financial measures
in assessing the Company's operating results, as well as when
planning, forecasting and analyzing future periods and these
non-GAAP measures allow investors to evaluate the Company’s
financial performance using some of the same measures as
management. Management views share-based compensation as an expense
that is unrelated to the Company’s operational performance as it
does not require cash payments and can vary in amount from period
to period and the elimination of amortization charges provides
better comparability of pre- and post-acquisition operating results
and to results of businesses utilizing internally developed
intangible assets. Management initiated certain restructuring
activities including employee headcount reductions and other
organizational changes to align our business strategies in light of
the merger with Xcerra and the acquisitions of MCT and EQT.
Restructuring costs have been excluded because such expense is not
used by Management to assess the core profitability of Cohu’s
business operations. PP&E and inventory step-up costs have been
excluded by management as they are unrelated to the core operating
activities of the Company. Acquisition costs have been excluded by
management as they are unrelated to the core operating activities
of the Company and the frequency and variability in the nature of
the charges can vary significantly from period to period. Excluding
this data provides investors with a basis to compare Cohu’s
performance against the performance of other companies without this
variability. However, the non-GAAP financial measures should not be
regarded as a replacement for (or superior to) corresponding,
similarly captioned, GAAP measures. The presentation of non-GAAP
financial measures above may not be comparable to similarly titled
measures reported by other companies and investors should be
careful when comparing our non-GAAP financial measures to those of
other companies.
(a)
0.2%, 4.9% and 14.3% of net
sales, respectively.
(b)
To eliminate compensation expense
for employee stock options, stock units and our employee stock
purchase plan.
(c)
To eliminate the amortization of
acquired intangible assets.
(d)
To eliminate restructuring costs
incurred related to the integration of MCT and Xcerra.
(e)
To eliminate the manufacturing
transition and severance costs.
(f)
To eliminate amortization of
inventory step up charges related to the acquisition of MCT and
EQT.
(g)
To eliminate professional fees
and other direct incremental expenses incurred related to
acquisitions.
(h)
To eliminate depreciation of
PP&E step up charges related to the acquisition of MCT and
EQT.
(i)
12.2%, 14.7% and 21.4% of net
sales, respectively.
(j)
To adjust the provision for
income taxes related to the adjustments described above based on
applicable tax rates.
(k)
The three months ended December
30, 2023 was computed using 47,795 shares outstanding, as the
effect of dilutive securities was excluded from GAAP diluted common
shares due to the reported net loss under GAAP, but are included
for non-GAAP diluted common shares since the Company has non-GAAP
net income. All other periods presented were calculated using the
number of GAAP diluted shares outstanding.
COHU, INC.
Supplemental Reconciliation of GAAP
Results to Non-GAAP Financial Measures (Unaudited)
(in thousands, except per share
amounts)
Twelve Months Ended
December 30,
December 31,
2023
2022
Income from operations - GAAP basis
(a)
$
43,272
$
125,557
Non-GAAP adjustments:
Share-based compensation included in
(b):
Cost of sales (COS)
845
646
Research and development (R&D)
3,394
3,100
Selling, general and administrative
(SG&A)
12,998
11,172
17,237
14,918
Amortization of purchased intangible
assets (c)
36,355
33,185
Restructuring charges related to inventory
adjustments in COS (d)
(62
)
(454
)
Restructuring charges (d)
2,421
605
Manufacturing and sales transition costs
included in (e):
COS
25
(13
)
R&D
22
(7
)
SG&A
1,007
1,723
1,054
1,703
Inventory step-up included in COS (f)
1,141
-
Acquisition costs included in SG&A
(g)
1,571
72
Depreciation of PP&E step-up included
in SG&A (h)
67
-
Payroll taxes related to accelerated
vesting of share-based awards included in SG&A (i)
-
132
Income from operations - non-GAAP basis
(j)
$
103,056
$
175,718
Net income - GAAP basis
$
28,156
$
96,847
Non-GAAP adjustments (as scheduled
above)
59,784
50,161
Tax effect of non-GAAP adjustments (k)
(10,054
)
(5,063
)
Net income - non-GAAP basis
$
77,886
$
141,945
GAAP net income per share - diluted
$
0.59
$
1.98
Non-GAAP income per share - diluted
(l)
$
1.62
$
2.91
Management believes the presentation of
these non-GAAP financial measures, when taken together with the
corresponding GAAP financial measures, provides meaningful
supplemental information regarding the Company’s operating
performance. Our management uses these non-GAAP financial measures
in assessing the Company's operating results, as well as when
planning, forecasting and analyzing future periods and these
non-GAAP measures allow investors to evaluate the Company’s
financial performance using some of the same measures as
management. Management views share-based compensation as an expense
that is unrelated to the Company’s operational performance as it
does not require cash payments and can vary in amount from period
to period and the elimination of amortization charges provides
better comparability of pre- and post-acquisition operating results
and to results of businesses utilizing internally developed
intangible assets. Management initiated certain restructuring
activities including employee headcount reductions and other
organizational changes to align our business strategies in light of
the merger with Xcerra and the acquisitions of MCT and EQT.
Restructuring costs have been excluded because such expense is not
used by Management to assess the core profitability of Cohu’s
business operations. PP&E and inventory step-up costs have been
excluded by management as they are unrelated to the core operating
activities of the Company. Acquisition costs have been excluded by
management as they are unrelated to the core operating activities
of the Company and the frequency and variability in the nature of
the charges can vary significantly from period to period. Employer
payroll taxes related to accelerated severance stock-based
compensation are dependent on the Company's stock price and the
timing and size of the vesting of their restricted stock, over
which management has limited to no control, and as such management
does not believe it correlates to the company's operation of the
business. Excluding this data provides investors with a basis to
compare Cohu’s performance against the performance of other
companies without this variability. However, the non-GAAP financial
measures should not be regarded as a replacement for (or superior
to) corresponding, similarly captioned, GAAP measures. The
presentation of non-GAAP financial measures above may not be
comparable to similarly titled measures reported by other companies
and investors should be careful when comparing our non-GAAP
financial measures to those of other companies.
(a)
6.8% and 15.4% of net sales,
respectively.
(b)
To eliminate compensation expense
for employee stock options, stock units and our employee stock
purchase plan.
(c)
To eliminate the amortization of
acquired intangible assets.
(d)
To eliminate restructuring costs
incurred related to the integration of MCT and Xcerra.
(e)
To eliminate the manufacturing
transition and severance costs.
(f)
To eliminate amortization of
inventory step up charges related to the acquisition of MCT and
EQT.
(g)
To eliminate professional fees
and other direct incremental expenses incurred related to
acquisitions.
(h)
To eliminate the property, plant
& equipment step-up depreciation accelerated related to the
acquisition of MCT and EQT.
(i)
To eliminate the impact of
employer payroll taxes associated with the acceleration of Pascal
Rondé share-based awards under the terms of his separation
agreement.
(j)
16.2% and 21.6% of net sales,
respectively.
(k)
To adjust the provision for
income taxes related to the adjustments described above based on
applicable tax rates.
(l)
All periods presented were
computed using the number of GAAP diluted shares outstanding.
COHU, INC.
Supplemental Reconciliation of GAAP
Results to Non-GAAP Financial Measures (Unaudited)
(in thousands)
Three Months Ended
December 30,
September 30,
December 31,
2023
2023
2022
Gross Profit Reconciliation
Gross profit - GAAP basis (excluding
amortization) (1)
$
65,410
$
70,895
$
93,151
Non-GAAP adjustments to cost of sales (as
scheduled above)
1,098
205
120
Gross profit - Non-GAAP basis
$
66,508
$
71,100
$
93,271
As a percentage of net sales:
GAAP gross profit
47.7
%
47.0
%
48.7
%
Non-GAAP gross profit
48.5
%
47.1
%
48.8
%
Adjusted EBITDA Reconciliation
Net income - GAAP Basis
$
(2,028
)
$
3,915
$
21,628
Income tax provision
1,531
4,721
4,483
Interest expense
754
773
1,249
Interest income
(2,847
)
(3,207
)
(2,461
)
Amortization of purchased intangible
assets
9,738
8,857
8,103
Depreciation
3,372
3,319
3,268
Amortization of cloud-based software
implementation costs (2)
700
700
626
Other non-GAAP adjustments (as scheduled
above)
6,619
5,877
5,568
Adjusted EBITDA
$
17,839
$
24,955
$
42,464
As a percentage of net sales:
Net income - GAAP Basis
(1.5
)%
2.6
%
11.3
%
Adjusted EBITDA
13.0
%
16.5
%
22.2
%
Operating Expense
Reconciliation
Operating Expense - GAAP basis
$
65,076
$
63,493
$
65,908
Non-GAAP adjustments to operating expenses
(as scheduled above)
(15,289
)
(14,543
)
(13,551
)
Operating Expenses - Non-GAAP basis
$
49,787
$
48,950
$
52,357
(1)
Excludes amortization of $7,476,
$6,948 and $6,350 for the three months ending December 30, 2023,
September 30, 2023 and December 31, 2022, respectively.
(2)
Represents amortization of
capitalized implementation costs related to cloud-based software
arrangements that are included within SG&A.
Twelve Months Ended
December 30,
December 31,
2023
2022
Gross Profit Reconciliation
Gross profit - GAAP basis (excluding
amortization) (1)
$
302,868
$
383,326
Non-GAAP adjustments to cost of sales (as
scheduled above)
1,949
179
Gross profit - Non-GAAP basis
$
304,817
$
383,505
As a percentage of net sales:
GAAP gross profit
47.6
%
47.2
%
Non-GAAP gross profit
47.9
%
47.2
%
Adjusted EBITDA Reconciliation
Net income (loss) - GAAP Basis
$
28,156
$
96,847
Income tax provision
17,660
29,868
Interest expense
3,382
4,177
Interest income
(11,504
)
(4,012
)
Amortization of purchased intangible
assets
36,355
33,185
Depreciation
13,389
12,831
Amortization of cloud-based software
implementation costs (2)
2,800
2,060
Loss on extinguishment of debt
369
312
Other non-GAAP adjustments (as scheduled
above)
23,362
16,976
Adjusted EBITDA
$
113,969
$
192,244
As a percentage of net sales:
Net income (loss) - GAAP Basis
4.4
%
11.9
%
Adjusted EBITDA
17.9
%
23.7
%
Operating Expense
Reconciliation
Operating Expense - GAAP basis
$
259,596
$
257,769
Non-GAAP adjustments to operating expenses
(as scheduled above)
(57,835
)
(49,982
)
Operating Expenses - Non-GAAP basis
$
201,761
$
207,787
(1)
Excludes amortization of $28,417
and $26,023 for the twelve months ending December 30, 2023 and
December 31, 2022, respectively.
(2)
Represents amortization of
capitalized implementation costs related to cloud-based software
arrangements that are included within SG&A.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240215208057/en/
Cohu, Inc. Jeffrey D. Jones - Investor Relations
858-848-8106
Cohu (NASDAQ:COHU)
Graphique Historique de l'Action
De Déc 2024 à Jan 2025
Cohu (NASDAQ:COHU)
Graphique Historique de l'Action
De Jan 2024 à Jan 2025
