Cohu Reports Fourth Quarter 2023 Results
- Cohu reported a full-year 2023 revenue of $636 million and a fourth-quarter revenue of $137 million.
- The company paid off the remaining balance of $29.3 million of Term Loan B in early first quarter 2024.
- Cohu introduced AI inspection software to increase vision yield, expanding recurring business.
- The GAAP income for 2023 was $28.2 million, with a fourth-quarter GAAP loss of $2.0 million.
- Non-GAAP income for 2023 was $77.9 million, with a fourth-quarter income of $11.1 million.
- Cohu repurchased 390,285 shares of its common stock during the fourth quarter 2023 for approximately $12.8 million.
- The company expects first-quarter 2024 sales to be in a range of $107 million +/- $6 million.
- None.
Insights
Reviewing Cohu, Inc.'s financial results reveals a mixed picture. The company's full-year revenue of $636.3 million represents a significant decrease from the previous year's $812.8 million. This decline is a critical indicator of the company's performance and could potentially affect investor sentiment. The fourth-quarter gross margin of 47.7% is robust, especially considering the non-GAAP gross margin of 48.5%, which excludes certain expenses and provides a clearer picture of the company's profitability from its core operations. However, the GAAP loss of $2.0 million in the fourth quarter contrasts with the full-year GAAP income of $28.2 million, suggesting some volatility in earnings.
Furthermore, the reduction in net income per share from $1.98 in the previous year to $0.59 indicates a substantial drop in profitability on a per-share basis. This could be concerning for shareholders, as earnings per share is a critical metric used to gauge a company's profitability and potential for growth. The repayment of the Term Loan B is a positive development, as it reduces interest expenses and improves the balance sheet. The share repurchase program indicates management's confidence in the company's intrinsic value, which could be a positive signal to the market.
The introduction of AI inspection software and the opening of a new factory in the Philippines are strategic moves by Cohu to enhance its product offerings and manufacturing capabilities. The company's focus on expanding recurring business, evidenced by a 3-year compound growth rate of 5% in recurring revenue, is a forward-looking strategy that could stabilize revenue streams and reduce reliance on cyclical capital expenditures by customers. However, the forecasted subdued demand for systems in the near-term, with a recovery expected in the second half of 2024, suggests that Cohu and its stakeholders should brace for potential short-term headwinds.
The semiconductor equipment and services industry is highly cyclical and sensitive to macroeconomic factors. Cohu's performance and future outlook must be contextualized within the broader semiconductor market trends. Investors should consider the company's new product developments and geographic expansion as potential catalysts for growth, balanced against the current industry downturn and the anticipated recovery timeline.
The semiconductor industry is a critical component of the global economy, serving as the backbone of technological innovation and consumer electronics. Cohu's financial results and operational strategies must be analyzed in light of the broader economic context, including trade policies, supply chain disruptions and shifts in consumer demand. The company's ability to pay off debt and repurchase shares during a period of declining sales reflects a certain level of financial resilience, which is commendable in an uncertain economic climate.
However, the anticipated recovery in the second half of 2024 aligns with some economic forecasts predicting a rebound in technology spending and stabilization of supply chains. Cohu's positioning through strategic investments in AI and manufacturing expansion could enable it to capitalize on this recovery. For investors, understanding the cyclical nature of the semiconductor industry and the economic indicators that drive it is crucial for making informed decisions about Cohu's prospects.
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Full year 2023 revenue of
$636 million -
Fourth quarter revenue
$137 million -
Fourth quarter gross margin of
47.7% ; non-GAAP gross margin of48.5% -
Paid off the remaining balance of
$29.3 million - Introduced AI inspection software to increase vision yield, expanding recurring business
The Company also reported non-GAAP results, with fourth quarter 2023 income of
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GAAP Results |
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(in millions, except per share amounts) |
Q4 FY 2023 |
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Q3 FY 2023 |
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Q4 FY 2022 |
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12 Months 2023 |
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12 Months 2022 |
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Net sales |
$ |
137.2 |
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$ |
150.8 |
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$ |
191.1 |
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$ |
636.3 |
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$ |
812.8 |
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Net income (loss) |
$ |
(2.0 |
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$ |
3.9 |
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$ |
21.6 |
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$ |
28.2 |
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$ |
96.8 |
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Net income (loss) per share |
$ |
(0.04 |
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$ |
0.08 |
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$ |
0.45 |
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$ |
0.59 |
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$ |
1.98 |
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Non-GAAP Results |
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(in millions, except per share amounts) |
Q4 FY 2023 |
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Q3 FY 2023 |
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Q4 FY 2022 |
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12 Months 2023 |
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12 Months 2022 |
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Net income |
$ |
11.1 |
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$ |
16.9 |
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$ |
33.5 |
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$ |
77.9 |
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$ |
141.9 |
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Net income per share |
$ |
0.23 |
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$ |
0.35 |
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$ |
0.70 |
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$ |
1.62 |
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$ |
2.91 |
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Total cash and investments at the end of fourth quarter 2023 were
“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
Cohu expects first quarter 2024 sales to be in a range of
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
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
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. |
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CONSOLIDATED STATEMENTS OF OPERATIONS |
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(Unaudited) |
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(in thousands, except per share amounts) |
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Three Months Ended (1) |
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Twelve Months Ended (1) |
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December 30, |
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December 31, |
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December 30, |
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December 31, |
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2023 (2) |
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2022 |
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2023 |
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2022 |
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Net sales |
$ |
137,226 |
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$ |
191,105 |
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$ |
636,322 |
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$ |
812,775 |
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Cost and expenses: |
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Cost of sales (excluding amortization) |
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71,816 |
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97,954 |
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333,454 |
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429,449 |
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Research and development |
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22,117 |
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22,951 |
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88,571 |
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92,589 |
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Selling, general and administrative |
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32,846 |
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34,849 |
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132,249 |
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131,390 |
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Amortization of purchased intangible assets |
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9,738 |
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8,103 |
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36,355 |
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33,185 |
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Restructuring charges |
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375 |
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5 |
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2,421 |
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605 |
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136,892 |
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163,862 |
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593,050 |
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687,218 |
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Income from operations |
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334 |
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27,243 |
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43,272 |
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125,557 |
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Other (expense) income: |
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Interest expense |
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(754 |
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(1,249 |
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(3,382 |
) |
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(4,177 |
) |
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Interest income |
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2,847 |
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2,461 |
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11,504 |
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4,012 |
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Foreign transaction gain (loss) |
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(2,924 |
) |
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(2,344 |
) |
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(5,209 |
) |
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1,635 |
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Loss on extinguishment of debt |
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- |
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- |
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(369 |
) |
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(312 |
) |
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Income (loss) from operations before taxes |
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(497 |
) |
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26,111 |
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45,816 |
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126,715 |
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Income tax provision |
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1,531 |
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4,483 |
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17,660 |
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29,868 |
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Net income (loss) |
$ |
(2,028 |
) |
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$ |
21,628 |
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$ |
28,156 |
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$ |
96,847 |
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Income (loss) per share: |
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Basic: |
$ |
(0.04 |
) |
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$ |
0.46 |
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$ |
0.59 |
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$ |
2.01 |
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Diluted: |
$ |
(0.04 |
) |
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$ |
0.45 |
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$ |
0.59 |
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$ |
1.98 |
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Weighted average shares used in computing income (loss) per share: (3) |
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Basic |
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47,369 |
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47,477 |
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47,486 |
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48,178 |
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Diluted |
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47,369 |
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48,175 |
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48,025 |
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48,799 |
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(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. |
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(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. |
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(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. |
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CONDENSED CONSOLIDATED BALANCE SHEETS |
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(Unaudited) |
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(in thousands) |
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December 30, |
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December 31, |
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2023 |
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2022 |
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Assets: |
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Current assets: |
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Cash and investments |
$ |
335,698 |
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$ |
385,576 |
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Accounts receivable |
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124,624 |
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176,148 |
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Inventories |
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155,793 |
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170,141 |
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Other current assets |
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22,703 |
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|
32,986 |
|
Total current assets |
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638,818 |
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|
764,851 |
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Property, plant & equipment, net |
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69,085 |
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|
65,011 |
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Goodwill |
|
241,658 |
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213,539 |
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Intangible assets, net |
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151,770 |
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|
140,104 |
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Operating lease right of use assets |
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16,778 |
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|
22,804 |
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Other assets |
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32,243 |
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|
21,105 |
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Total assets |
$ |
1,150,352 |
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$ |
1,227,414 |
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Liabilities & Stockholders’ Equity: |
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Current liabilities: |
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Short-term borrowings |
$ |
1,773 |
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$ |
1,907 |
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Current installments of long-term debt |
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4,551 |
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|
4,404 |
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Deferred profit |
|
3,586 |
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|
8,022 |
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Other current liabilities |
|
93,511 |
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|
146,539 |
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Total current liabilities |
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103,421 |
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|
160,872 |
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Long-term debt |
|
34,303 |
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|
72,664 |
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Non-current operating lease liabilities |
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13,175 |
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|
19,209 |
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Other noncurrent liabilities |
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49,283 |
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|
45,828 |
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Cohu stockholders’ equity |
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950,170 |
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|
928,841 |
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Total liabilities & stockholders’ equity |
$ |
1,150,352 |
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$ |
1,227,414 |
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COHU, INC. |
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Supplemental Reconciliation of GAAP Results to Non-GAAP Financial Measures (Unaudited) |
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(in thousands, except per share amounts) |
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Three Months Ended |
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December 30, |
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September 30, |
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December 31, |
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2023 |
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2023 |
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2022 |
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Income from operations - GAAP basis (a) |
$ |
334 |
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$ |
7,402 |
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$ |
27,243 |
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Non-GAAP adjustments: |
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Share-based compensation included in (b): |
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Cost of sales (COS) |
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226 |
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|
223 |
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168 |
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Research and development (R&D) |
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860 |
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|
849 |
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|
767 |
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Selling, general and administrative (SG&A) |
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3,471 |
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|
3,262 |
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|
2,888 |
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|
4,557 |
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|
4,334 |
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|
3,823 |
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Amortization of purchased intangible assets (c) |
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9,738 |
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|
8,857 |
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|
8,103 |
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Restructuring charges related to inventory adjustments in COS (d) |
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(3 |
) |
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(18 |
) |
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(35 |
) |
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Restructuring charges (d) |
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375 |
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|
742 |
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|
5 |
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Manufacturing and sales transition costs included in (e): |
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COS |
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7 |
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- |
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(13 |
) |
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R&D |
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- |
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- |
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(7 |
) |
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SG&A |
|
527 |
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|
61 |
|
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|
1,723 |
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|
534 |
|
|
|
61 |
|
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|
1,703 |
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Inventory step-up included in COS (f) |
|
868 |
|
|
|
- |
|
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|
- |
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Acquisition costs included in SG&A (g) |
|
288 |
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|
758 |
|
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|
72 |
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Depreciation of PP&E step-up included in SG&A (h) |
|
30 |
|
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|
14 |
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|
|
- |
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Income from operations - non-GAAP basis (i) |
$ |
16,721 |
|
|
$ |
22,150 |
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|
$ |
40,914 |
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Net income (loss) - GAAP basis |
$ |
(2,028 |
) |
|
$ |
3,915 |
|
|
$ |
21,628 |
|
|
Non-GAAP adjustments (as scheduled above) |
|
16,387 |
|
|
|
14,748 |
|
|
|
13,671 |
|
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Tax effect of non-GAAP adjustments (j) |
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(3,239 |
) |
|
|
(1,754 |
) |
|
|
(1,761 |
) |
|
Net income - non-GAAP basis |
$ |
11,120 |
|
|
$ |
16,909 |
|
|
$ |
33,538 |
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GAAP net income (loss) per share - diluted |
$ |
(0.04 |
) |
|
$ |
0.08 |
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|
$ |
0.45 |
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Non-GAAP net income per share - diluted (k) |
$ |
0.23 |
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|
$ |
0.35 |
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|
$ |
0.70 |
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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. |
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(a) |
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|
(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) |
|
|
(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) |
|
|
(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) |
|
|
(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 |
|
(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 |
(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
Source: Cohu, Inc.
FAQ
What was Cohu's full-year 2023 revenue?
How much did Cohu pay off in early first quarter 2024?
What did Cohu introduce to increase vision yield?
What was Cohu's GAAP income for 2023?
How many shares did Cohu repurchase during the fourth quarter of 2023?
What is Cohu's sales expectation for the first quarter of 2024?
