© Cohu, Inc. All rights reserved. Page 1 Cautionary Statement Regarding Forward-Looking Statements COHU INVESTOR PRESENTATION Forward-Looking Statements: Certain statements contained in this presentation may be considered forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, including savings or value from higher yield or increasing productivity; systems installed base statements and any related financial results; assessments regarding market position fo ...

Group 1: Earnings Performance - Cohu reported a quarterly loss of $0.02 per share, significantly better than the Zacks Consensus Estimate of a loss of $0.16, representing an earnings surprise of 87.50% [1] - The company posted revenues of $96.8 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 0.21% and down from $107.61 million year-over-year [2] - Over the last four quarters, Cohu has surpassed consensus EPS estimates two times and topped consensus revenue estimates just once [2] Group 2: Stock Performance and Outlook - Cohu shares have declined approximately 40.1% since the beginning of the year, compared to a decline of 5.3% for the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is -$0.08 on revenues of $101.2 million, and for the current fiscal year, it is $0.02 on revenues of $430.3 million [7] - The estimate revisions trend for Cohu is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Group 3: Industry Context - The Electronics - Manufacturing Machinery industry, to which Cohu belongs, is currently in the bottom 5% of over 250 Zacks industries, suggesting a challenging environment [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Cohu's stock performance [5]

Cohu (COHU) Q1 2025 Earnings Call May 01, 2025 04:30 PM ET Company Participants Jeffrey Jones - VP, Finance & CFOLuis Müller - President, CEO & Board MemberBrian Chin - DirectorDavid Duley - Managing PrincipalCraig Ellis - Director of ResearchRobert Mertens - Equity Research Associate Conference Call Participants Charles Shi - Senior AnalystTyler Burmeister - Equity Research Analyst Operator Good day, and thank you for standing by. Welcome to Cohu's First Quarter twenty twenty five Financial Results Call. A ...

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was approximately $97 million, with a non-GAAP gross margin of about 44% [5][12] - Non-GAAP net loss for Q1 was approximately $800,000, resulting in a non-GAAP EPS loss of $0.02 [13] - Cash and investments decreased by $61 million during Q1, primarily due to acquisitions and share repurchases [14] Business Line Data and Key Metrics Changes - Revenue was split 63% recurring and 37% systems, with systems revenue increasing in automotive and consumer segments but declining in computing, industrial, and mobile [6][12] - Recurring orders increased by 28% quarter over quarter, indicating strong non-capital equipment revenue streams [7] Market Data and Key Metrics Changes - Test cell utilization was down to 72% in March, with expectations for improved accuracy in segmenting utilization by market in the future [7][11] - The automotive market is showing signs of recovery, with expectations for utilization to increase gradually [67] Company Strategy and Development Direction - The company implemented a restructuring program to reduce manufacturing and operating expenses, with benefits expected to start in Q2 2025 [5][6] - Focus on expanding into new market segments and enhancing technology portfolio, particularly in AI process monitoring solutions [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about business prospects due to design wins and increased recurring orders, with no significant changes in customer buying patterns due to tariffs [11][41] - The second quarter is expected to see a revenue increase of approximately 10% quarter over quarter, with gross margin forecasted at around 45% [15] Other Important Information - The company has repurchased approximately 4 million shares for about $117 million, with $23 million remaining for future buybacks [14] - The integration of the recently acquired Tignis is progressing well, with increased customer interest [50] Q&A Session Summary Question: How much of the $9 million revenue increase in Q2 guidance is from recurring revenue versus HBM inspection shipments? - Approximately half of the increase is from recurring revenue and half from systems [20] Question: Does the multi-unit order for inspection increase the revenue target for the full year? - Projecting about $8 million of revenue in HBM this year, with discussions ongoing with a second customer [21][22] Question: How do recurring orders connect with equipment demand? - An increase in recurring orders is expected to lead to improved utilization, which may indicate future capital equipment demand [24][25] Question: In which segments is the pickup in recurring orders occurring? - The recurring order pickup is predominantly in the mobile segment, but it is fairly concentrated among a small number of customers [28][29] Question: What is the expected revenue opportunity from the power probe card design win? - The opportunity is about $2 million per year per customer, with a fraction expected this year due to timing [32] Question: How is the automotive market expected to perform? - The automotive market is expected to recover slowly, with utilization and recurring orders anticipated to increase [67]

Q1'25 FINANCIAL RESULTS May 1, 2025 © Cohu, Inc. All rights reserved. Page 1 Cautionary Statement Regarding Forward-Looking Statements Forward-Looking Statements: Certain statements contained in this presentation may be considered forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, including statements regarding design wins, new product introductions or new market opportunities; impact of recurring orders and/or revenue; impacts due to restructuring ac ...

[Q1 2025 Financial Highlights](index=1&type=section&id=Cohu%20Reports%20First%20Quarter%202025%20Results) [Q1 2025 Performance Summary](index=1&type=section&id=Q1%202025%20Performance%20Summary) Cohu reported Q1 2025 net sales of **$96.8 million**, a GAAP net loss of **$30.8 million**, and a non-GAAP net loss of **$0.8 million**, with **$200.8 million** in cash and investments Q1 2025 Financial Performance Overview | Metric (in millions, except per share) | Q1 FY 2025 | Q4 FY 2024 | Q1 FY 2024 | | :--- | :--- | :--- | :--- | | **GAAP Results** | | | | | Net Sales | $96.8 | $94.1 | $107.6 | | Net Loss | $(30.8) | $(21.4) | $(14.6) | | Net Loss per Share | $(0.66) | $(0.46) | $(0.31) | | **Non-GAAP Results** | | | | | Net Income (Loss) | $(0.8) | $(7.1) | $0.6 | | Net Income (Loss) per Share | $(0.02) | $(0.15) | $0.01 | - Total cash and investments at the end of Q1 2025 were **$200.8 million**, with the company repurchasing **432,288 shares** for approximately **$8.6 million** during the quarter[3](index=3&type=chunk) - Key operational highlights for Q1 2025 include revenue of **$96.8 million** with approximately **63%** recurring, a non-GAAP gross margin of **44.2%**, and a **28% increase** in recurring orders quarter-over-quarter[5](index=5&type=chunk) [Business Outlook and Management Commentary](index=1&type=section&id=Business%20Outlook%20and%20Management%20Commentary) Management expressed optimism regarding design-wins and customer expansion, forecasting Q2 2025 sales in the range of **$106 million +/- $7 million** - CEO Luis Müller highlighted multiple design-wins, customer expansion for testers, handlers, and inspection systems, and new customer engagements for Tignis AI process monitoring software[4](index=4&type=chunk) - Cohu expects second quarter 2025 sales to be in a range of **$106 million +/- $7 million**[4](index=4&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) [Consolidated Statements of Operations](index=5&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) Q1 2025 net sales decreased to **$96.8 million**, with loss from operations widening to **$27.3 million** and net loss reaching **$30.8 million**, including **$6.6 million** in restructuring charges Consolidated Statements of Operations (in thousands) | Metric | Three Months Ended Mar 29, 2025 | Three Months Ended Mar 30, 2024 | | :--- | :--- | :--- | | Net sales | $96,797 | $107,614 | | Loss from operations | $(27,326) | $(17,973) | | Net loss | $(30,804) | $(14,635) | | Diluted loss per share | $(0.66) | $(0.31) | - The company recorded restructuring charges of **$6.6 million** in Q1 2025, compared to a negligible amount in Q1 2024[14](index=14&type=chunk) - The results for the quarter ended March 29, 2025 include the operations of Tignis, Inc., which was acquired on January 7, 2025[15](index=15&type=chunk) [Condensed Consolidated Balance Sheets](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of March 29, 2025, total assets were **$975.5 million**, with cash and investments at **$200.8 million**, impacted by the **$34.9 million** Tignis acquisition Condensed Consolidated Balance Sheet Highlights (in thousands) | Metric | March 29, 2025 | December 30, 2024 | | :--- | :--- | :--- | | Cash and investments | $200,808 | $262,092 | | Total current assets | $478,762 | $534,307 | | Goodwill | $272,598 | $234,639 | | Total assets | $975,537 | $999,415 | | Total current liabilities | $92,024 | $85,184 | | Total liabilities & stockholders' equity | $975,537 | $999,415 | - On January 7, 2025, the Company made a cash payment of **$34.9 million**, net of cash received, to acquire Tignis, Inc., which impacted the cash balance[16](index=16&type=chunk) [Non-GAAP Financial Measures & Reconciliations](index=3&type=section&id=Non-GAAP%20Financial%20Measures) [Explanation of Non-GAAP Measures](index=3&type=section&id=Use%20of%20Non-GAAP%20Financial%20Information) Cohu uses non-GAAP measures to provide supplemental operational performance insights by excluding items like share-based compensation, amortization, and restructuring costs - Non-GAAP measures exclude charges and related tax effects for share-based compensation, amortization of purchased intangible assets, restructuring costs, acquisition-related costs, and other specific items[8](index=8&type=chunk) - Management uses non-GAAP measures for operational decision-making, forecasting, determining executive compensation, and comparing performance to its annual operating plan[9](index=9&type=chunk) [Reconciliation of GAAP to Non-GAAP Results](index=7&type=section&id=Supplemental%20Reconciliation%20of%20GAAP%20Results%20to%20Non-GAAP%20Financial%20Measures%20(Unaudited)) Q1 2025 GAAP net loss of **$30.8 million** was reconciled to a non-GAAP net loss of **$0.8 million**, primarily by excluding amortization, restructuring, and share-based compensation Q1 2025 Reconciliation of GAAP to Non-GAAP Net Loss (in thousands) | Description | Amount | | :--- | :--- | | **Net loss - GAAP basis** | **$(30,804)** | | Share-based compensation | $6,230 | | Amortization of purchased intangible assets | $9,852 | | Restructuring charges | $6,628 | | Other adjustments | $(1,168) | | Tax effect of non-GAAP adjustments | $8,476 | | **Net loss - non-GAAP basis** | **$(786)** | [Supplemental Reconciliations (Gross Profit & EBITDA)](index=9&type=section&id=Supplemental%20Reconciliation%20of%20GAAP%20Results%20to%20Non-GAAP%20Financial%20Measures%20(Unaudited)%202) Q1 2025 non-GAAP gross margin was **44.2%**, with Adjusted EBITDA at negative **$1.9 million**, reconciled from a GAAP net loss of **$30.8 million** Gross Profit Margin Reconciliation | Metric | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | GAAP gross profit | 43.7% | 41.9% | 45.8% | | Non-GAAP gross profit | 44.2% | 41.8% | 46.0% | Q1 2025 Adjusted EBITDA Reconciliation (in thousands) | Description | Amount | | :--- | :--- | | **Net loss - GAAP Basis** | **$(30,804)** | | Income tax provision | $4,838 | | Interest expense (net) | $(1,415) | | Amortization & Depreciation | $13,802 | | Other non-GAAP adjustments | $11,690 | | **Adjusted EBITDA** | **$(1,898)** | [Forward-Looking Statements and Other Information](index=3&type=section&id=Forward%20Looking%20Statements) [Forward-Looking Statements and Risk Factors](index=3&type=section&id=Forward%20Looking%20Statements%20and%20Risk%20Factors) The report contains forward-looking statements subject to risks including semiconductor industry cyclicality, intense competition, inflationary pressures, geopolitical instability, and customer concentration - Forward-looking statements are based on current beliefs and assumptions and are not guarantees of future performance, including projections, new products, and market growth[10](index=10&type=chunk) - The company faces numerous risks, including the seasonal, cyclical, and unpredictable nature of the semiconductor industry, intense competition, inflationary pressures, geopolitical instability, and reliance on a limited number of customers[11](index=11&type=chunk)

Financial Performance - For the fiscal year ended December 28, 2024, Cohu's net sales decreased 36.9% year-over-year to $401.8 million due to lower demand in automotive, industrial, and mobile applications [198]. - Cohu's consolidated net sales decreased 36.9% from $636.3 million in fiscal 2023 to $401.8 million in fiscal 2024, primarily due to lower demand in various sectors [220]. - Gross margin decreased to 44.9% in fiscal 2024 from 47.6% in fiscal 2023, attributed to lower business volume impacting fixed cost leverage [221]. - Net loss for fiscal 2024 was $69.8 million, compared to net income of $28.2 million in fiscal 2023 [239]. - Cash provided by operating activities in fiscal 2024 totaled $2.8 million, a significant decrease from $101.5 million in fiscal 2023 [247]. Acquisitions - Cohu completed the acquisition of MCT on January 30, 2023, and EQT on October 2, 2023, both of which are included in the consolidated results of operations [197]. - Cohu acquired MCT on January 30, 2023, and EQT on October 2, 2023, contributing to consolidated results from the acquisition dates [218]. - Amortization of purchased intangible assets increased to $39.1 million in fiscal 2024 from $36.4 million in fiscal 2023, driven by EQT's acquisition [226]. Debt and Financing - Cohu repaid $29.3 million of its Term Loan Credit Facility on February 9, 2024, and repurchased 915,504 shares of common stock for approximately $27.0 million during fiscal 2024 [198]. - Total indebtedness as of December 28, 2024, was $8.8 million, including $1.7 million under term loans and $6.5 million under construction loans [242]. - Cash used in financing activities in fiscal 2024 totaled $59.0 million, a decrease from $68.1 million in fiscal 2023 [249]. - Repayments of short-term borrowings and long-term debt in fiscal 2024 totaled $31.3 million, including $29.3 million in cash prepayments of the Term Loan Credit Facility [249]. - As of December 30, 2023, the company had approximately $29.3 million of long-term debt under a Term Loan Credit Facility, with interest payments based on a base rate plus a margin of up to 2.0% per annum or SOFR plus a margin of up to 3.0% per annum [274]. - The company repaid the remaining outstanding principal of $29.3 million on February 9, 2024 [274]. Cash Flow and Investments - In fiscal 2024, net cash provided by investing activities totaled $21.9 million, compared to a net cash used of $30.2 million in fiscal 2023 [248]. - Cash used for purchases of short-term investments in fiscal 2024 was $78.6 million, while cash generated from sales and maturities was $114.2 million [248]. - Additions to property, plant, and equipment in fiscal 2024 amounted to $10.6 million, down from $16.1 million in fiscal 2023 [248]. - The company expects to continue making capital expenditures to support its business and anticipates that current working capital will be sufficient for at least the next twelve months [263]. - At December 28, 2024, the investment portfolio included short-term, fixed-income investment securities with a fair value of approximately $55.7 million [271]. Tax and Valuation - The company maintains a gross deferred tax asset balance of approximately $138.2 million, with a valuation allowance of approximately $114.5 million as of December 28, 2024 [206]. - The company has determined there was no impairment of goodwill as of October 1, 2024, as the estimated fair values of reporting units exceeded their carrying values [210]. Foreign Currency and Risk Management - Fluctuations in foreign currency exchange rates impacted the company's stockholders' equity, which decreased by $16.8 million due to foreign currency translation as of December 28, 2024, compared to December 30, 2023 [277]. - A hypothetical 10% devaluation of the U.S. dollar would result in an approximate $28.3 million positive translation adjustment recorded in other comprehensive income within stockholders' equity [278]. - Conversely, a hypothetical 10% appreciation of the U.S. dollar would lead to an approximate $28.3 million negative translation adjustment recorded in other comprehensive income within stockholders' equity [278]. - The company has entered into foreign currency forward contracts to hedge against future movements in foreign exchange rates affecting U.S. Dollar denominated assets and liabilities [276]. - The company began hedging foreign currency risk associated with net investment positions in certain foreign subsidiaries in the third quarter of fiscal 2024 [277]. - The company’s strategy aims to mitigate risks and volatility associated with foreign currency transaction gains or losses through foreign currency forward contracts [276]. Operational Focus - Cohu's long-term market drivers remain intact, with optimism about the increasing use of semiconductors, particularly in artificial intelligence applications [199]. - The company continues to focus on developing innovative products and capturing new customers, driven by increasing semiconductor complexity and quality demands [199]. - Cohu's inventory valuation includes reserves for estimated excess and obsolete inventory, which may impact gross margin if future demand is lower than projected [204]. Expenses - Research and development (R&D) expenses in fiscal 2024 were $84.8 million, or 21.1% of net sales, compared to $88.6 million, or 13.9% of net sales in fiscal 2023 [223]. - Selling, general and administrative (SG&A) expenses as a percentage of net sales increased to 31.9% in fiscal 2024 from 20.8% in fiscal 2023, despite a decrease in total SG&A expenses from $132.2 million to $128.0 million [225]. - Cohu's share-based compensation expense is calculated based on the market price of common stock on the grant date, affecting financial results [216].

Financial Data and Key Metrics Changes - Full year 2024 revenue was approximately $402 million, with a non-GAAP gross margin of 45% [8][21] - Q4 revenue was $94.1 million, within guidance, but gross margin was impacted by a $2.1 million inventory reserve charge, resulting in a gross margin of 41.8% [9][21] - Operating expenses for Q4 were lower than guidance at $45.3 million, leading to a non-GAAP operating loss of approximately $6 million [22] Business Line Data and Key Metrics Changes - Recurring revenue represented 62% of total revenue in Q4 and 65% for the full year 2024, indicating a stable revenue stream [20] - Systems revenue increased sequentially in computing, industrial, and consumer segments, but declined in automotive and mobile due to inventory corrections [10] - The company entered the memory and silicon carbide power semiconductor markets, expecting to generate $7 million in revenue from HBM inspection systems in 2025 [11][12] Market Data and Key Metrics Changes - Estimated test cell utilization at the end of December increased to 73%, with OSATs at 76% and IDMs at 70% [10] - Automotive and industrial markets are experiencing significant inventory corrections, with expectations of recovery in the second half of 2025 [56][68] Company Strategy and Development Direction - The company is focusing on aligning new products with compute applications, particularly in the data center market and AI at the EDGE [12][16] - Cohu aims to establish itself as a key player in AI-driven semiconductor manufacturing, with a projected annual growth rate of 50% or more for software revenue over the next three years [16] - The acquisition of Tignis is expected to enhance Cohu's software capabilities and expand its market reach [16][96] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges posed by ongoing inventory corrections in the automotive and industrial sectors, predicting another two quarters of adjustment [56][57] - The company is optimistic about growth opportunities in data centers and AI applications, despite the current market conditions [55][56] - Q1 2025 revenue is guided to be approximately $97 million, impacted by customer requests to delay shipments [26] Other Important Information - Cash and investments decreased by $7 million during Q4, with a total of $262 million remaining on the balance sheet [24][25] - The company had no share repurchase activity in Q4, having repurchased approximately 915,000 shares for $27 million through the end of Q3 2024 [25] Q&A Session Summary Question: Revenue impact of new businesses - Management expects HBM to contribute about $7 million, silicon carbide about $5 million, and software around $1 million in 2025, totaling $25 million to $30 million from new drivers [38][39] Question: Utilization levels in automotive and industrial - Automotive and industrial markets are still digesting inventory, with expectations of recovery in the second half of 2025 [46][56] Question: Diamondx win details - The key parameter for winning the Diamondx business was cost of test, addressing various semiconductor applications [51] Question: Recovery in revenue line - Management is focusing on expanding penetration in high-growth segments like data centers, with a cautious outlook on market recovery [54][56] Question: Segment revenue projections for 2025 - Automotive and industrial are expected to recover first, followed by mobile, with specific revenue projections not yet available for 2025 [68] Question: Stability of recurring revenue - Recurring revenue is expected to remain stable, with historical data showing it has about one-third the volatility of systems revenue [84]

Q4'24 FINANCIAL RESULTS February 13, 2025 Forward-Looking Statements: Certain statements contained in this presentation may be considered forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, including statements regarding growth opportunity for acquired business and technology; effects of test cell utilization on future business; impact of key business drivers for recurring revenue and systems; design wins or new product introductions; annual renewal ra ...

Company Performance - Cohu reported a quarterly loss of $0.15 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.12, and a decline from earnings of $0.23 per share a year ago, representing an earnings surprise of -25% [1] - The company posted revenues of $94.12 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 0.92%, and a significant decrease from year-ago revenues of $137.23 million [2] - Over the last four quarters, Cohu has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Stock Outlook - Cohu shares have lost approximately 21.8% since the beginning of the year, contrasting with the S&P 500's gain of 2.9% [3] - The current consensus EPS estimate for the coming quarter is $0.01 on revenues of $104.75 million, and for the current fiscal year, it is $0.71 on revenues of $501.6 million [7] - The estimate revisions trend for Cohu is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Electronics - Manufacturing Machinery industry, to which Cohu belongs, is currently in the bottom 3% of over 250 Zacks industries, suggesting a challenging environment for stocks in this sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Cohu's stock performance [5]