Cohu Reports Third Quarter 2024 Results
Cohu Inc reported Q3 2024 financial results with net sales of $95.3 million, showing a decline from $150.8 million in Q3 2023. The company posted a GAAP loss of $18.1 million ($0.39 per share) and non-GAAP loss of $3.8 million ($0.08 per share). Gross margin reached 46.8%, with non-GAAP gross margin at 47.1%. Total cash and investments stood at $269.2 million. The company repurchased 315,000 shares for $8.1 million. Recurring revenue comprised approximately 67% of total revenue, with an 8% sequential growth in recurring orders. Cohu expects Q4 2024 sales to be $95 million ±$7 million.
Cohu Inc ha riportato i risultati finanziari del Q3 2024 con vendite nette di 95,3 milioni di dollari, mostrando un calo rispetto a 150,8 milioni di dollari nel Q3 2023. L'azienda ha registrato una perdita GAAP di 18,1 milioni di dollari (0,39 dollari per azione) e una perdita non-GAAP di 3,8 milioni di dollari (0,08 dollari per azione). Il margine lordo ha raggiunto il 46,8%, con un margine lordo non-GAAP al 47,1%. La liquidità totale e gli investimenti ammontavano a 269,2 milioni di dollari. L'azienda ha riacquistato 315.000 azioni per 8,1 milioni di dollari. I ricavi ricorrenti hanno costituito circa il 67% del fatturato totale, con una crescita sequenziale dell'8% negli ordini ricorrenti. Cohu prevede vendite per il Q4 2024 di 95 milioni di dollari ±7 milioni di dollari.
Cohu Inc reportó resultados financieros del Q3 2024 con ventas netas de 95.3 millones de dólares, mostrando una disminución de 150.8 millones de dólares en el Q3 2023. La compañía registró una pérdida GAAP de 18.1 millones de dólares (0.39 dólares por acción) y una pérdida no-GAAP de 3.8 millones de dólares (0.08 dólares por acción). El margen bruto alcanzó el 46.8%, con un margen bruto no-GAAP del 47.1%. El total de efectivo e inversiones se situó en 269.2 millones de dólares. La empresa recompró 315,000 acciones por 8.1 millones de dólares. Los ingresos recurrentes representaron aproximadamente el 67% del ingreso total, con un crecimiento secuencial del 8% en los pedidos recurrentes. Cohu espera que las ventas del Q4 2024 sean de 95 millones de dólares ±7 millones de dólares.
Cohu Inc는 Q3 2024 재무 결과를 보고하며 순매출이 9,530만 달러로, 2023년 Q3의 1억 5,080만 달러에서 감소했다고 전했습니다. 회사는 GAAP 기준으로 1,810만 달러 (주당 0.39 달러)의 손실과 비GAAP 기준으로 380만 달러 (주당 0.08 달러)의 손실을 기록했습니다. 총 매출 총 이익률은 46.8%에 이르며, 비GAAP 총 매출 총 이익률은 47.1%입니다. 총 현금 및 투자액은 2억 6,920만 달러입니다. 회사는 810만 달러에 315,000주의 주식을 재매입했습니다. 반복 수익은 총 수익의 약 67%를 차지하며, 반복 주문은 8%의 순차적 성장을 기록했습니다. Cohu는 Q4 2024의 매출을 9,500만 달러 ±700만 달러로 예상하고 있습니다.
Cohu Inc a annoncé les résultats financiers du Q3 2024, avec des ventes nettes de 95,3 millions de dollars, montrant une baisse par rapport à 150,8 millions de dollars au Q3 2023. L'entreprise a affiché une perte GAAP de 18,1 millions de dollars (0,39 dollar par action) et une perte non-GAAP de 3,8 millions de dollars (0,08 dollar par action). La marge brute a atteint 46,8%, avec une marge brute non-GAAP à 47,1%. La trésorerie totale et les investissements se sont élevés à 269,2 millions de dollars. L'entreprise a racheté 315 000 actions pour 8,1 millions de dollars. Les revenus récurrents représentaient environ 67% des revenus totaux, avec une croissance séquentielle de 8% des commandes récurrentes. Cohu s'attend à ce que les ventes du Q4 2024 soient de 95 millions de dollars ±7 millions de dollars.
Cohu Inc hat die finanziellen Ergebnisse für das Q3 2024 mit Nettoumsätzen von 95,3 Millionen Dollar veröffentlicht, was einem Rückgang von 150,8 Millionen Dollar im Q3 2023 entspricht. Das Unternehmen verzeichnete einen GAAP-Verlust von 18,1 Millionen Dollar (0,39 Dollar pro Aktie) und einen Non-GAAP-Verlust von 3,8 Millionen Dollar (0,08 Dollar pro Aktie). Die Bruttomarge betrug 46,8%, während die Non-GAAP-Bruttomarge bei 47,1% lag. Insgesamt standen 269,2 Millionen Dollar an Bargeld und Investitionen zur Verfügung. Das Unternehmen hat 315.000 Aktien für 8,1 Millionen Dollar zurückgekauft. Wiederkehrende Einnahmen machten etwa 67% des Gesamterlöses aus, mit einem sequenziellen Wachstum von 8% bei den wiederkehrenden Aufträgen. Cohu erwartet, dass die Umsätze im Q4 2024 bei 95 Millionen Dollar ±7 Millionen Dollar liegen werden.
- High recurring revenue at 67% of total revenue with 8% sequential growth
- Strong gross margin of 46.8% (47.1% non-GAAP)
- Solid cash position of $269.2 million
- Active share repurchase program with $8.1 million in buybacks
- Q3 2024 revenue declined 36.8% YoY to $95.3 million from $150.8 million
- GAAP net loss of $18.1 million vs. profit of $3.9 million in Q3 2023
- Non-GAAP net loss of $3.8 million vs. profit of $16.9 million in Q3 2023
- Nine-month revenue down 38.3% to $307.7 million from $499.1 million
Insights
The Q3 results paint a challenging picture with significant year-over-year declines. Revenue dropped to
Despite the downturn, there are some positive signs:
- Strong cash position of
$269.2 million 67% recurring revenue indicates stable base business8% sequential growth in recurring orders
The design wins in mixed signal applications for Diamondx tester and expansion in inspection metrology with Neon and Krypton systems represent strategic positioning in growth segments. The focus on data center opportunities is particularly noteworthy, as this sector shows resilience amid broader semiconductor market weakness. The
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Third quarter revenue
, approximately$95.3 million 67% recurring -
Gross margin of
46.8% ; non-GAAP gross margin of47.1% -
Sequential order growth with recurring improving
8% quarter-over-quarter
Cohu also reported non-GAAP results, with third quarter 2024 loss of
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GAAP Results |
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(in millions, except per share amounts) |
Q3 FY 2024 |
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Q2 FY 2024 |
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Q3 FY 2023 |
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9 Months 2024 |
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9 Months 2023 |
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Net sales |
$ |
95.3 |
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$ |
104.7 |
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$ |
150.8 |
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$ |
307.7 |
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$ |
499.1 |
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Net income (loss) |
$ |
(18.1 |
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$ |
(15.8 |
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$ |
3.9 |
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$ |
(48.5 |
) |
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$ |
30.2 |
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Net income (loss) per share |
$ |
(0.39 |
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$ |
(0.34 |
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$ |
0.08 |
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$ |
(1.03 |
) |
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$ |
0.63 |
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Non-GAAP Results |
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(in millions, except per share amounts) |
Q3 FY 2024 |
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Q2 FY 2024 |
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Q3 FY 2023 |
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9 Months 2024 |
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9 Months 2023 |
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Net income (loss) |
$ |
(3.8 |
) |
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$ |
(0.6 |
) |
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$ |
16.9 |
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$ |
(3.8 |
) |
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$ |
66.8 |
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Net income (loss) share |
$ |
(0.08 |
) |
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$ |
(0.01 |
) |
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$ |
0.35 |
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$ |
(0.08 |
) |
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$ |
1.39 |
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Total cash and investments at the end of third quarter 2024 were
“We continued to execute on our strategy to win customers on Cohu’s Diamondx tester, capturing design-wins in mixed signal applications, while also expanding our inspection metrology business with Neon and the new Krypton system,” said Cohu President and CEO Luis Müller. “We are focused on developing new products that are aligned to higher near-term growth opportunities in data centers and continuing to build our recurring software revenue.”
Cohu expects fourth 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 third quarter 2024 results at 1:30 p.m. Pacific Time/4:30 p.m. Eastern Time on October 31, 2024. Interested parties may listen live via webcast on Cohu’s investor relations website at https://edge.media-server.com/mmc/p/4pae8v3k.
To participate via telephone and join the call live, please register in advance at https://register.vevent.com/register/BI24f4649d559f4b5d9688d8da0a83a4e9 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, restructuring costs, manufacturing transition and severance costs, acquisition-related costs and associated professional fees, impairments, inventory step-up, depreciation of purchase accounting adjustments to property, plant and equipment, 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) (2) |
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Nine Months Ended (1) (2) |
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September 28, |
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September 30, |
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September 28, |
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September 30, |
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2024 |
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2023 |
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2024 |
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2023 |
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Net sales |
$ |
95,342 |
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$ |
150,804 |
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$ |
307,657 |
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$ |
499,096 |
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Cost and expenses: |
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Cost of sales (excluding amortization) |
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50,685 |
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79,909 |
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166,829 |
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261,638 |
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Research and development |
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20,324 |
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21,478 |
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64,002 |
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66,454 |
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Selling, general and administrative |
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30,297 |
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32,416 |
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97,497 |
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99,403 |
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Amortization of purchased intangible assets |
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9,791 |
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8,857 |
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29,334 |
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26,617 |
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Restructuring charges |
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14 |
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742 |
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36 |
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2,046 |
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111,111 |
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143,402 |
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357,698 |
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456,158 |
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Income (loss) from operations |
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(15,769 |
) |
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7,402 |
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(50,041 |
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42,938 |
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Other (expense) income: |
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Interest expense |
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(86 |
) |
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(773 |
) |
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(519 |
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(2,628 |
) |
Interest income |
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2,609 |
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3,207 |
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7,651 |
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8,657 |
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Foreign transaction loss |
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(1,579 |
) |
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(1,200 |
) |
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(2,493 |
) |
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(2,285 |
) |
Loss on extinguishment of debt |
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- |
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- |
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(241 |
) |
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(369 |
) |
Income (loss) from operations before taxes |
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(14,825 |
) |
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8,636 |
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(45,643 |
) |
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46,313 |
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Income tax provision |
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3,231 |
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4,721 |
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2,817 |
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16,129 |
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Net income (loss) |
$ |
(18,056 |
) |
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$ |
3,915 |
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$ |
(48,460 |
) |
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$ |
30,184 |
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Income (loss) per share: |
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Basic: |
$ |
(0.39 |
) |
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$ |
0.08 |
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$ |
(1.03 |
) |
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$ |
0.64 |
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Diluted: |
$ |
(0.39 |
) |
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$ |
0.08 |
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$ |
(1.03 |
) |
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$ |
0.63 |
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Weighted average shares used in computing income (loss) per share: (3) |
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Basic |
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46,815 |
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47,615 |
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46,971 |
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47,525 |
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Diluted |
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46,815 |
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48,107 |
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46,971 |
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48,102 |
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(1) |
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The three- and nine-month periods ended September 28, 2024 and September 30, 2023 were both comprised of 13 weeks and 39 weeks, respectively. |
(2) |
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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) |
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For the three- and nine-month periods ended September 28, 2024, potentially dilutive securities were excluded from the per share computations due to their antidilutive effect. |
COHU, INC. | |||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
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(Unaudited) |
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(in thousands) |
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September 28, |
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December 30, |
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2024 |
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2023 |
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Assets: |
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Current assets: |
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Cash and investments (1) |
$ |
269,238 |
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$ |
335,698 |
Accounts receivable |
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91,937 |
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124,624 |
Inventories |
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144,125 |
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155,793 |
Other current assets |
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37,154 |
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22,703 |
Total current assets |
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542,454 |
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638,818 |
Property, plant & equipment, net |
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76,666 |
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69,085 |
Goodwill |
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242,867 |
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241,658 |
Intangible assets, net |
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122,624 |
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151,770 |
Operating lease right of use assets |
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14,067 |
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16,778 |
Other assets |
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33,668 |
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|
32,243 |
Total assets |
$ |
1,032,346 |
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$ |
1,150,352 |
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Liabilities & Stockholders’ Equity: |
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Current liabilities: |
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Short-term borrowings |
$ |
1,407 |
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$ |
1,773 |
Current installments of long-term debt |
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1,199 |
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4,551 |
Deferred profit |
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4,053 |
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3,586 |
Other current liabilities |
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78,316 |
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|
93,511 |
Total current liabilities |
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84,975 |
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103,421 |
Long-term debt (1) |
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7,914 |
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34,303 |
Non-current operating lease liabilities |
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10,429 |
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13,175 |
Other noncurrent liabilities |
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44,490 |
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|
49,283 |
Cohu stockholders’ equity |
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884,538 |
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|
950,170 |
Total liabilities & stockholders’ equity |
$ |
1,032,346 |
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$ |
1,150,352 |
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(1) |
On February 9, 2024, the Company made a cash payment of |
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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September 28, |
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June 29, |
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September 30, |
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2024 |
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2024 |
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2023 |
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Income (loss) from operations - GAAP basis (a) |
$ |
(15,769 |
) |
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$ |
(16,299 |
) |
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$ |
7,402 |
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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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270 |
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262 |
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223 |
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Research and development (R&D) |
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765 |
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1,001 |
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849 |
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Selling, general and administrative (SG&A) |
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4,213 |
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4,320 |
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3,262 |
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5,248 |
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5,583 |
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4,334 |
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Amortization of purchased intangible assets (c) |
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9,791 |
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9,748 |
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8,857 |
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Restructuring charges related to inventory adjustments in COS (d) |
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(20 |
) |
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(12 |
) |
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(18 |
) |
Restructuring charges (d) |
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14 |
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13 |
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742 |
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Manufacturing and sales transition costs included in (e): |
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COS |
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- |
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2 |
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- |
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R&D |
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62 |
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44 |
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- |
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SG&A |
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393 |
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1,196 |
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61 |
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|
455 |
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1,242 |
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61 |
|
Impairment charge included in SG&A (f) |
|
(63 |
) |
|
|
- |
|
|
|
- |
|
Acquisition costs included in SG&A (g) |
|
- |
|
|
|
1 |
|
|
|
758 |
|
Depreciation of PP&E step-up included in SG&A (h) |
|
12 |
|
|
|
12 |
|
|
|
14 |
|
Income (loss) from operations - non-GAAP basis (i) |
$ |
(332 |
) |
|
$ |
288 |
|
|
$ |
22,150 |
|
|
|
|
|
|
|
|
|
|
|||
Net income (loss) - GAAP basis |
$ |
(18,056 |
) |
|
$ |
(15,769 |
) |
|
$ |
3,915 |
|
Non-GAAP adjustments (as scheduled above) |
|
15,437 |
|
|
|
16,587 |
|
|
|
14,748 |
|
Tax effect of non-GAAP adjustments (j) |
|
(1,178 |
) |
|
|
(1,400 |
) |
|
|
(1,754 |
) |
Net income (loss) - non-GAAP basis |
$ |
(3,797 |
) |
|
$ |
(582 |
) |
|
$ |
16,909 |
|
|
|
|
|
|
|
|
|
|
|||
GAAP net income (loss) per share - diluted |
$ |
(0.39 |
) |
|
$ |
(0.34 |
) |
|
$ |
0.08 |
|
|
|
|
|
|
|
|
|
|
|||
Non-GAAP net income (loss) per share - diluted (k) |
$ |
(0.08 |
) |
|
$ |
(0.01 |
) |
|
$ |
0.35 |
|
|
|
|
|
|
|
|
|
|
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 and manufacturing transition activities including employee headcount reductions and other organizational changes to align our business strategies in light of the acquisitions of MCT and EQT. Restructuring and manufacturing transition costs have been excluded because such expense is not used by Management to assess the core profitability of Cohu’s business operations. Impairment charges have been excluded as these amounts are infrequent and are unrelated to the operational performance of Cohu. 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) |
(16.5)%, (15.6)% and |
|
(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. |
|
(e) |
To eliminate the manufacturing transition and severance costs. |
|
(f) |
To eliminate the impairment of the Company’s investment in Fraes-und Technologiezentrum GmbH Frasdorf. |
|
(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 acquisitions. |
|
(i) |
(0.3)%, |
|
(j) |
To adjust the provision for income taxes related to the adjustments described above based on applicable tax rates. |
|
(k) |
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, except per share amounts) |
|||||||
|
Nine Months Ended |
||||||
|
September 28, |
|
September 30, |
||||
|
2024 |
|
2023 |
||||
Income (loss) from operations - GAAP basis (a) |
$ |
(50,041 |
) |
|
$ |
42,938 |
|
Non-GAAP adjustments: |
|
|
|
|
|
||
Share-based compensation included in (b): |
|
|
|
|
|
||
Cost of sales (COS) |
|
759 |
|
|
|
619 |
|
Research and development (R&D) |
|
2,600 |
|
|
|
2,534 |
|
Selling, general and administrative (SG&A) |
|
12,100 |
|
|
|
9,527 |
|
|
|
15,459 |
|
|
|
12,680 |
|
Amortization of purchased intangible assets (c) |
|
29,334 |
|
|
|
26,617 |
|
Restructuring charges related to inventory adjustments in COS (d) |
|
(36 |
) |
|
|
(59 |
) |
Restructuring charges (d) |
|
36 |
|
|
|
2,046 |
|
Manufacturing and sales transition costs included in (e): |
|
|
|
|
|
||
COS |
|
2 |
|
|
|
18 |
|
R&D |
|
120 |
|
|
|
22 |
|
SG&A |
|
3,229 |
|
|
|
480 |
|
|
|
3,351 |
|
|
|
520 |
|
|
|
|
|
|
|
||
Impairment charge included in SG&A (f) |
|
903 |
|
|
|
- |
|
Inventory step-up included in COS (g) |
|
- |
|
|
|
273 |
|
Acquisition costs included in SG&A (h) |
|
175 |
|
|
|
1,283 |
|
Depreciation of PP&E step-up included in SG&A (i) |
|
36 |
|
|
|
37 |
|
Income (loss) from operations - non-GAAP basis (j) |
$ |
(783 |
) |
|
$ |
86,335 |
|
|
|
|
|
|
|
||
Net income (loss) - GAAP basis |
$ |
(48,460 |
) |
|
$ |
30,184 |
|
Non-GAAP adjustments (as scheduled above) |
|
49,258 |
|
|
|
43,397 |
|
Tax effect of non-GAAP adjustments (k) |
|
(4,577 |
) |
|
|
(6,815 |
) |
Net income (loss) - non-GAAP basis |
$ |
(3,779 |
) |
|
$ |
66,766 |
|
|
|
|
|
|
|
||
GAAP net income (loss) per share - diluted |
$ |
(1.03 |
) |
|
$ |
0.63 |
|
|
|
|
|
|
|
||
Non-GAAP income (loss) per share - diluted (l) |
$ |
(0.08 |
) |
|
$ |
1.39 |
|
|
|
|
|
|
|
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 and manufacturing transition activities including employee headcount reductions and other organizational changes to align our business strategies in light of the acquisitions of MCT and EQT. Restructuring and manufacturing transition costs have been excluded because such expense is not used by Management to assess the core profitability of Cohu’s business operations. Impairment charges have been excluded as these amounts are infrequent and are unrelated to the operational performance of Cohu. 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) |
(16.3)% and |
|
(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. |
|
(e) |
To eliminate the manufacturing transition and severance costs. |
|
(f) |
To eliminate the impairment of the Company’s investment in Fraes-und Technologiezentrum GmbH Frasdorf. |
|
(g) |
To eliminate amortization of inventory step up charges related to acquisitions. |
|
(h) |
To eliminate professional fees and other direct incremental expenses incurred related to acquisitions. |
|
(i) |
To eliminate the property, plant & equipment step-up depreciation accelerated related to acquisitions. |
|
(j) |
(0.3)% and |
|
(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 |
||||||||||
|
September 28, |
|
June 29, |
|
September 30, |
||||||
|
2024 |
|
2024 |
|
2023 |
||||||
|
|
|
|
|
|
|
|
|
|||
Gross Profit Reconciliation |
|
|
|
|
|
|
|
|
|||
Gross profit - GAAP basis (excluding amortization) (1) |
$ |
44,657 |
|
|
$ |
46,922 |
|
|
$ |
70,895 |
|
Non-GAAP adjustments to cost of sales (as scheduled above) |
|
250 |
|
|
|
252 |
|
|
|
205 |
|
Gross profit - Non-GAAP basis |
$ |
44,907 |
|
|
$ |
47,174 |
|
|
$ |
71,100 |
|
|
|
|
|
|
|
|
|
|
|||
As a percentage of net sales: |
|
|
|
|
|
|
|
|
|||
GAAP gross profit |
|
46.8 |
% |
|
|
44.8 |
% |
|
|
47.0 |
% |
Non-GAAP gross profit |
|
47.1 |
% |
|
|
45.1 |
% |
|
|
47.1 |
% |
|
|
|
|
|
|
|
|
|
|||
Adjusted EBITDA Reconciliation |
|
|
|
|
|
|
|
|
|||
Net income - GAAP Basis |
$ |
(18,056 |
) |
|
$ |
(15,769 |
) |
|
$ |
3,915 |
|
Income tax provision |
|
3,231 |
|
|
|
1,286 |
|
|
|
4,721 |
|
Interest expense |
|
86 |
|
|
|
144 |
|
|
|
773 |
|
Interest income |
|
(2,609 |
) |
|
|
(2,333 |
) |
|
|
(3,207 |
) |
Amortization of purchased intangible assets |
|
9,791 |
|
|
|
9,748 |
|
|
|
8,857 |
|
Depreciation |
|
3,362 |
|
|
|
3,413 |
|
|
|
3,319 |
|
Amortization of cloud-based software implementation costs (2) |
|
709 |
|
|
|
709 |
|
|
|
700 |
|
Other non-GAAP adjustments (as scheduled above) |
|
5,634 |
|
|
|
6,827 |
|
|
|
5,877 |
|
Adjusted EBITDA |
$ |
2,148 |
|
|
$ |
4,025 |
|
|
$ |
24,955 |
|
|
|
|
|
|
|
|
|
|
|||
As a percentage of net sales: |
|
|
|
|
|
|
|
|
|||
Net income - GAAP Basis |
|
(18.9 |
)% |
|
|
(15.1 |
)% |
|
|
2.6 |
% |
Adjusted EBITDA |
|
2.3 |
% |
|
|
3.8 |
% |
|
|
16.5 |
% |
|
|
|
|
|
|
|
|
|
|||
Operating Expense Reconciliation |
|
|
|
|
|
|
|
|
|||
Operating Expense - GAAP basis |
$ |
60,426 |
|
|
$ |
63,221 |
|
|
$ |
63,493 |
|
Non-GAAP adjustments to operating expenses (as scheduled above) |
|
(15,187 |
) |
|
|
(16,335 |
) |
|
|
(14,543 |
) |
Operating Expenses - Non-GAAP basis |
$ |
45,239 |
|
|
$ |
46,886 |
|
|
$ |
48,950 |
|
(1) |
Excludes amortization of |
(2) |
Represents amortization of capitalized implementation costs related to cloud-based software arrangements that are included within SG&A. |
Nine Months Ended |
|||||||
|
September 28, |
|
September 30, |
||||
|
2024 |
|
2023 |
||||
Gross Profit Reconciliation |
|
|
|
|
|
||
Gross profit - GAAP basis (excluding amortization) (1) |
$ |
140,828 |
|
|
$ |
237,458 |
|
Non-GAAP adjustments to cost of sales (as scheduled above) |
|
725 |
|
|
|
851 |
|
Gross profit - Non-GAAP basis |
$ |
141,553 |
|
|
$ |
238,309 |
|
|
|
|
|
|
|
||
As a percentage of net sales: |
|
|
|
|
|
||
GAAP gross profit |
|
45.8 |
% |
|
|
47.6 |
% |
Non-GAAP gross profit |
|
46.0 |
% |
|
|
47.7 |
% |
|
|
|
|
|
|
||
Adjusted EBITDA Reconciliation |
|
|
|
|
|
||
Net income (loss) - GAAP Basis |
$ |
(48,460 |
) |
|
$ |
30,184 |
|
Income tax provision |
|
2,817 |
|
|
|
16,129 |
|
Interest expense |
|
519 |
|
|
|
2,628 |
|
Interest income |
|
(7,651 |
) |
|
|
(8,657 |
) |
Amortization of purchased intangible assets |
|
29,334 |
|
|
|
26,617 |
|
Depreciation |
|
10,204 |
|
|
|
10,017 |
|
Amortization of cloud-based software implementation costs (2) |
|
2,127 |
|
|
|
2,100 |
|
Loss on extinguishment of debt |
|
241 |
|
|
|
369 |
|
Other non-GAAP adjustments (as scheduled above) |
|
19,888 |
|
|
|
16,743 |
|
Adjusted EBITDA |
$ |
9,019 |
|
|
$ |
96,130 |
|
|
|
|
|
|
|
||
As a percentage of net sales: |
|
|
|
|
|
||
Net income (loss) - GAAP Basis |
|
(15.8 |
)% |
|
|
6.0 |
% |
Adjusted EBITDA |
|
2.9 |
% |
|
|
19.3 |
% |
|
|
|
|
|
|
||
Operating Expense Reconciliation |
|
|
|
|
|
||
Operating Expense - GAAP basis |
$ |
190,869 |
|
|
$ |
194,520 |
|
Non-GAAP adjustments to operating expenses (as scheduled above) |
|
(48,533 |
) |
|
|
(42,546 |
) |
Operating Expenses - Non-GAAP basis |
$ |
142,336 |
|
|
$ |
151,974 |
|
(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/20241031933443/en/
Cohu, Inc.
Jeffrey D. Jones - Investor Relations
858-848-8106
Source: Cohu, Inc.
FAQ
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