Group 1 - U.S. stocks experienced a decline, with the Dow Jones index dropping over 150 points on Wednesday [1] - Freeport-McMoRan Inc. shares fell 16.4% to $37.94 after the company provided lower third-quarter sales guidance [1] - The company reported a tragic incident at the Grasberg Block Cave mine, resulting in two fatalities and five team members missing [1] Group 2 - Zhengye Biotechnology Holding Limited shares decreased by 28.2% to $5.02 [4] - YD Bio Ltd shares fell 15% to $17.91 [4] - Harmony Biosciences Holdings, Inc. shares dropped 14.6% to $27.36 after failing to meet primary endpoints in a clinical trial [4] - Needham reduced the price target for Harmony Biosciences from $48 to $41 [4] - Cohu, Inc. shares declined 12.7% to $19.85 following an announcement of convertible senior notes offering [4] - Rigel Pharmaceuticals, Inc. shares decreased by 12.7% to $29.69 [4] - BGM Group Ltd. shares fell 12.2% to $10.31 [4] - Worthington Enterprises, Inc. shares dipped 11.3% to $53.43 after reporting first-quarter results [4] - QMMM Holdings Limited shares decreased by 11% to $97.00 [4] - Astera Labs, Inc. shares fell 10.6% to $205.65 [4] - Sandisk Corporation shares dipped 8.2% to $97.68 [4]

Group 1: Market Overview - U.S. stocks experienced a decline, with the Dow Jones index dropping more than 150 points on Wednesday [1] Group 2: Company-Specific News - Freeport-McMoRan Inc. shares fell 16.4% to $37.94 after the company provided third-quarter sales guidance [1] - The company reported a tragic incident at the Grasberg Block Cave mine, resulting in the fatal injuries of two team members and five others remaining missing [1] - Zhengye Biotechnology Holding Limited shares decreased by 28.2% to $5.02 [4] - YD Bio Ltd shares fell 15% to $17.91 [4] - Harmony Biosciences Holdings, Inc. shares dropped 14.6% to $27.36 after its Phase 3 clinical trial for ZYN002 in Fragile X syndrome did not meet primary endpoints, leading Needham to lower its price target from $48 to $41 [4] - Cohu, Inc. shares declined 12.7% to $19.85 following the announcement of an offering of convertible senior notes [4] - Rigel Pharmaceuticals, Inc. shares fell 12.7% to $29.69 [4] - BGM Group Ltd. shares decreased by 12.2% to $10.31 [4] - Worthington Enterprises, Inc. shares dipped 11.3% to $53.43 after reporting first-quarter results [4] - QMMM Holdings Limited shares fell 11% to $97.00 [4] - Astera Labs, Inc. shares declined 10.6% to $205.65 [4] - Sandisk Corporation shares dipped 8.2% to $97.68 [4]

Core Insights - Premarket trading is showing notable activity with significant price movements indicating potential trading opportunities before the market opens [1] Premarket Gainers - SHF Holdings, Inc. (SHFS) increased by 150% to $8.17 - Lithium Americas Corp. (LAC) rose by 69% to $5.18 - Aqua Metals, Inc. (AQMS) gained 50% reaching $6.11 - CleanCore Solutions, Inc. (ZONE) up by 44% at $2.87 - Cyclerion Therapeutics, Inc. (CYCN) increased by 33% to $4.03 - Twin Vee Powercats Co. (VEEE) rose by 17% to $2.92 - Solidion Technology, Inc. (STI) up by 11% at $5.09 - China Pharma Holdings, Inc. (CPHI) increased by 11% to $2.18 - Stardust Power Inc. (SDST) rose by 10% to $3.04 - Aligos Therapeutics, Inc. (ALGS) increased by 7% to $11.03 [3] Premarket Losers - Aytu BioPharma, Inc. (AYTU) decreased by 15% to $2.11 - Professional Diversity Network, Inc. (IPDN) down by 13% to $4.10 - STRATA Skin Sciences, Inc. (SSKN) fell by 10% to $2.31 - Cohu, Inc. (COHU) decreased by 9% to $20.68 - Super League Enterprise, Inc. (SLE) down by 9% to $7.74 - CTW Cayman (CTW) fell by 9% to $2.29 - Fitell Corporation (FTEL) decreased by 8% to $7.70 - Soluna Holdings, Inc. (SLNH) down by 8% to $2.16 - StableX Technologies, Inc. (SBLX) decreased by 5% to $5.22 - Indaptus Therapeutics, Inc. (INDP) down by 5% to $2.95 [4]

Core Viewpoint - Cohu, Inc. plans to offer $200 million in convertible senior notes due 2031 in a private offering aimed at qualified institutional buyers [1] Company Summary - Cohu, Inc. is a global supplier of equipment and services that enhance semiconductor manufacturing yield and productivity [1]

Core Insights - Cohu, Inc. has announced that its Eclipse platform has been selected by a leading U.S.-based semiconductor manufacturer for production testing of next-generation processor devices [1] - The Eclipse systems utilize Cohu's proprietary T-Core Active Thermal Control (ATC) solution, which enhances yield through precise thermal management [1]

Group 1 - The article discusses Cohu, Inc. (NASDAQ: COHU) and reiterates a 'Sell' rating due to bearish technical indicators, declining revenues, and a negative earnings growth trajectory [1] - The last analysis on Cohu was conducted in May of this year, highlighting ongoing concerns regarding the company's financial performance [1] Group 2 - The focus is on the semiconductor test equipment sector, where Cohu operates, indicating challenges faced by companies in this industry [1]

Group 1: Earnings Performance - Cohu reported quarterly earnings of $0.02 per share, exceeding the Zacks Consensus Estimate of a loss of $0.02 per share, representing an earnings surprise of +200.00% [1] - The company posted revenues of $107.68 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.59% and showing an increase from $104.7 million year-over-year [2] - Over the last four quarters, Cohu has surpassed consensus EPS estimates two times and topped consensus revenue estimates twice [2] Group 2: Stock Performance and Outlook - Cohu shares have declined approximately 28.9% since the beginning of the year, contrasting with the S&P 500's gain of 8.2% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the upcoming quarter is $0.05 on revenues of $116.5 million, and for the current fiscal year, it is $0.11 on revenues of $435.6 million [7] Group 3: Industry Context - The Electronics - Manufacturing Machinery industry, to which Cohu belongs, is currently ranked in the bottom 25% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Cohu's stock performance [5][6]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was approximately $107.7 million, in line with guidance, with a non-GAAP gross margin of 44.4% [14][15] - Recurring revenue represented 63% of total revenue, indicating a stable revenue stream [15] - Operating expenses for Q2 were $47.7 million, also in line with guidance [15] - Cash and investments increased by $8 million during Q2 to $29 million, primarily due to $16 million of cash flow from operations [16][18] - Non-GAAP EPS for Q2 was $0.02 [15] Business Line Data and Key Metrics Changes - Cohu's systems revenue saw a sequential increase across mobile, computing, and industrial segments [7] - The Eclipse handler received a $28 million design win order, expanding presence in mobile and automotive end markets [9][10] - The software business booked $360,000 in Q2 with an annual recurring revenue opportunity of $530,000 [12] Market Data and Key Metrics Changes - Estimated test cell utilization increased by three points quarter over quarter to 75%, indicating a potential industry recovery [5] - Orders improved across all segments in Q2, particularly in mobile and automotive, with a significant increase in the automotive and industrial segments [30] - The company secured its first system order from a customer in India for silicon carbide test, opening new geographical opportunities [6] Company Strategy and Development Direction - Cohu is focusing on capturing new customer opportunities and investing in new products to address future market needs [13] - The company is in the process of transferring product manufacturing from the U.S. and Europe to Asian factories to drive efficiencies [13] - The introduction of the new Eclipse handler model aims to expand market share at test subcontractors [6] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about prospects for 2026, despite acknowledging potential seasonal slowdowns in Q4 [13][31] - Customers are rationalizing inventory levels and showing signs of a steady recovery in the automotive and industrial markets [47] - The company expects a 16% increase in revenue quarter over quarter for Q3, driven by recent system orders [19] Other Important Information - Total debt remained flat at $18 million, and capital expenditures for Q2 were $2.7 million [17][18] - The company is maintaining an annual CapEx target of $20 million [18] - A one-time year-to-date true-up for tax provision will be recorded in Q3 due to changes in capitalized R&D [20] Q&A Session Summary Question: Can you break down the $28 million order and its timing? - Cohu shipped and recognized about $4 million of that order in Q2, with $12 million expected in both Q3 and Q4 [24][26] Question: What is driving the recent order increases? - Orders improved across all segments, particularly in mobile and automotive, with significant increases in the automotive and industrial segments [30] Question: What seasonal slowdown is expected in Q4? - A mid-single-digit pull down in Q4 is anticipated, but it is too early for full guidance [42] Question: How are customers viewing their business for 2026? - Customers are generally optimistic about a steady, progressive recovery in the auto and industrial markets, with no expectation of a V-shaped recovery [47] Question: What are the capabilities of the Eclipse Gen 2.5? - The Eclipse Gen 2.5 offers configurability across various applications and can dissipate up to 3,000 watts, catering to high-end compute requirements [52][54]

Financial Performance - Q2'25 revenue reached $107.7 million[8, 15], reflecting a year-over-year and quarter-over-quarter increase[23] - Non-GAAP gross margin for Q2'25 was 44.4%[9, 22], compared to 44.2% in Q1'25[9, 22] - Adjusted EBITDA for Q2'25 was 3.6%[10, 22], an increase from -2.0% in Q1'25[10, 22] - Q3'25 revenue is projected to be $125 million +/- $7 million[27], representing an approximate 16% increase compared to Q2'25[29] - The company's cash and investments increased to $209 million in Q2'25[24], up from $201 million in Q1'25[24] Business Highlights - Orders increased by 26% quarter-over-quarter, primarily driven by the Mobile end-market[13] - Recurring revenue accounted for approximately $68 million of the Q2'25 revenue[16], representing 63% of the total revenue[15] - Systems revenue was approximately $40 million in Q2'25[16] - The company estimates test cell utilization increased by 3 percentage points quarter-over-quarter to 75%[11]

[Second Quarter 2025 Results Overview](index=1&type=section&id=Second%20Quarter%202025%20Results%20Overview) This section provides a comprehensive overview of Cohu's financial performance, operational achievements, and business outlook for the second quarter of fiscal year 2025 [Financial Performance Summary](index=1&type=section&id=Financial%20Performance%20Summary) Cohu reported Q2 FY2025 net sales of $107.7 million, a GAAP net loss of $16.9 million, and non-GAAP net income of $0.7 million Q2 FY2025 and 6 Months FY2025 Financial Summary | Metric (in millions, except per share) | Q2 FY2025 | Q1 FY2025 | Q2 FY2024 | 6 Months FY2025 | 6 Months FY2024 | | :------------------------------------ | :-------- | :-------- | :-------- | :-------------- | :-------------- | | **GAAP Results** | | | | | | | Net sales | $107.7 | $96.8 | $104.7 | $204.5 | $212.3 | | Net loss | $(16.9) | $(30.8) | $(15.8) | $(47.7) | $(30.4) | | Net loss per share | $(0.36) | $(0.66) | $(0.34) | $(1.02) | $(0.65) | | **Non-GAAP Results** | | | | | | | Net income (loss) | $0.7 | $(0.8) | $(0.6) | $(0.1) | $0.0 | | Net income (loss) per share | $0.02 | $(0.02) | $(0.01) | $(0.00) | $0.00 | - Total cash and investments at the end of second quarter 2025 increased by **$8.6 million** to **$209.4 million**[4](index=4&type=chunk) [Operational Highlights and Strategic Wins](index=1&type=section&id=Operational%20Highlights%20and%20Strategic%20Wins) Q2 FY2025 results aligned with guidance, driven by increased test cell utilization and significant design-win orders - Estimated test cell utilization increased by **3 points quarter-over-quarter** to **75%**[6](index=6&type=chunk) - Secured a **$28 million design-win order** from a customer serving mobile and automotive end-markets, with shipping through Q4'25[5](index=5&type=chunk)[6](index=6&type=chunk) - Opened new opportunities with the **first system sold in India**, introduced a new Eclipse handler model, and qualified ULTRA-S contactor for precision analog IC test[5](index=5&type=chunk) [Third Quarter 2025 Business Outlook](index=1&type=section&id=Third%20Quarter%202025%20Business%20Outlook) Cohu anticipates third quarter 2025 sales to be within a range of $125 million +/- $7 million - Cohu expects third quarter 2025 sales to be in a range of **$125 million +/- $7 million**[5](index=5&type=chunk) [Company Profile and Disclosures](index=3&type=section&id=Company%20Profile%20and%20Disclosures) This section outlines Cohu's business, its use of non-GAAP financial measures, forward-looking statements, and investor communication details [About Cohu](index=3&type=section&id=About%20Cohu) Cohu is a global technology leader providing test, automation, inspection, and metrology products and services to the semiconductor industry - Cohu is a global technology leader supplying test, automation, inspection and metrology products and services to the semiconductor industry[8](index=8&type=chunk) - Cohu's products enable optimized yield and productivity, accelerating customers' manufacturing time-to-market[8](index=8&type=chunk) [Use of Non-GAAP Financial Information](index=3&type=section&id=Use%20of%20Non-GAAP%20Financial%20Information) Cohu uses non-GAAP measures to provide insights into operational trends and financial performance by excluding specific charges - Non-GAAP financial measures supplement GAAP results by excluding charges for share-based compensation, amortization of purchased intangible assets, restructuring costs, manufacturing transition and severance costs, impairments, acquisition-related costs, depreciation of purchase accounting adjustments, fair value adjustment to contingent consideration, pension curtailment gain, amortization of cloud-based software implementation costs, and loss on extinguishment of debt[9](index=9&type=chunk) - Management uses non-GAAP measures to evaluate operational trends, financial performance, cash generating capacity, make operational decisions, determine executive compensation, forecast future results, and compare to annual operating plans[10](index=10&type=chunk) [Forward-Looking Statements and Risk Factors](index=3&type=section&id=Forward%20Looking%20Statements) The report contains forward-looking statements subject to risks including industry volatility, market erosion, and supply chain challenges - Forward-looking statements include projections regarding test cell utilization, revenue growth in vertical markets, new market entries, product introductions, and the FY2025 outlook[11](index=11&type=chunk) - Key risk factors include new product investment success, semiconductor industry seasonality and volatility, erosion in mobile, automotive and industrial market sales, supply chain management, inflationary pressures, intense competition, customer concentration, geopolitical instability, and cybersecurity breaches[12](index=12&type=chunk) - Actual results and future business conditions could differ materially due to various factors, as discussed in Cohu's SEC filings (Form 10-K and 10-Q)[12](index=12&type=chunk)[13](index=13&type=chunk) [Conference Call and Investor Information](index=1&type=section&id=Conference%20Call%20Information) Details regarding Cohu's Q2 2025 earnings conference call and investor relations contact information are provided - A live conference call and webcast to discuss Q2 2025 results was held on July 31, 2025, at 1:30 p.m. Pacific Time/4:30 p.m. Eastern Time[6](index=6&type=chunk) - Investor relations information and press releases are available on Cohu's website at www.cohu.com[14](index=14&type=chunk) - Investor Relations contact: Jeffrey D. Jones at 858-848-8106[14](index=14&type=chunk) [GAAP Consolidated Financial Statements](index=6&type=section&id=GAAP%20Consolidated%20Financial%20Statements) This section presents Cohu's GAAP consolidated statements of operations and balance sheets for the reported periods [Consolidated Statements of Operations (GAAP)](index=6&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) Presents Cohu's GAAP net sales and net loss for the three and six months ended June 28, 2025, including the Tignis acquisition Consolidated Statements of Operations (GAAP) - Key Figures | Metric (in thousands, except per share) | Three Months Ended June 28, 2025 | Three Months Ended June 29, 2024 | Six Months Ended June 28, 2025 | Six Months Ended June 29, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net sales | $107,680 | $104,701 | $204,477 | $212,315 | | Cost of sales (excluding amortization) | $60,571 | $57,779 | $115,051 | $116,144 | | Research and development | $23,188 | $21,342 | $46,340 | $43,678 | | Selling, general and administrative | $29,866 | $32,118 | $59,877 | $67,200 | | Amortization of purchased intangible assets | $10,081 | $9,748 | $19,933 | $19,543 | | Restructuring charges | $1,210 | $13 | $7,838 | $22 | | Loss from operations | $(17,236) | $(16,299) | $(44,562) | $(34,272) | | Net loss | $(16,880) | $(15,769) | $(47,684) | $(30,404) | | Basic loss per share | $(0.36) | $(0.34) | $(1.02) | $(0.65) | | Diluted loss per share | $(0.36) | $(0.34) | $(1.02) | $(0.65) | - The acquisition of Tignis, Inc. was completed on January 7, 2025, and its results have been included since that date[16](index=16&type=chunk) [Condensed Consolidated Balance Sheets (GAAP)](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) Details Cohu's assets, liabilities, and equity as of June 28, 2025, highlighting changes in cash, investments, and goodwill Condensed Consolidated Balance Sheets (GAAP) - Key Figures | Metric (in thousands) | June 28, 2025 | December 30, 2024 | | :------------------------------ | :------------ | :---------------- | | Cash and investments | $209,411 | $262,092 | | Accounts receivable | $90,826 | $91,619 | | Inventories | $137,831 | $141,861 | | Total current assets | $491,013 | $534,307 | | Property, plant & equipment, net | $77,111 | $74,786 | | Goodwill | $282,525 | $234,639 | | Intangible assets, net | $96,718 | $110,717 | | Total assets | $1,010,193 | $999,415 | | Short-term borrowings | $9,830 | $633 | | Total current liabilities | $100,565 | $85,184 | | Long-term debt | $7,253 | $7,052 | | Cohu stockholders' equity | $830,543 | $856,891 | | Total liabilities & stockholders' equity | $1,010,193 | $999,415 | - On January 7, 2025, the Company made a cash payment of **$34.9 million**, net of cash received, to acquire Tignis, Inc.[17](index=17&type=chunk) [Supplemental Non-GAAP Reconciliations](index=8&type=section&id=Supplemental%20Reconciliation%20of%20GAAP%20Results%20to%20Non-GAAP%20Financial%20Measures) This section provides detailed reconciliations of GAAP to non-GAAP financial measures for both quarterly and six-month periods [Three Months Ended June 28, 2025](index=8&type=section&id=Three%20Months%20Ended%20June%2028%2C%202025) Provides detailed reconciliations from GAAP to non-GAAP financial measures for the three months ended June 28, 2025 [Net Income (Loss) Reconciliation (Three Months Ended)](index=8&type=section&id=Net%20Income%20%28Loss%29%20Reconciliation%20-%203%20Months) Reconciles GAAP net loss to non-GAAP net income for Q2 FY2025, adjusting for various non-GAAP items and tax effects Net Income (Loss) Reconciliation (Three Months Ended) | Metric (in thousands, except per share) | June 28, 2025 | March 29, 2025 | June 29, 2024 | | :------------------------------------ | :------------ | :------------- | :------------ | | Net loss - GAAP basis | $(16,880) | $(30,804) | $(15,769) | | Non-GAAP adjustments | $17,383 | $21,542 | $16,587 | | Tax effect of non-GAAP adjustments | $1,757 | $8,476 | $(1,400) | | Pension curtailment gain | $(1,530) | - | - | | Net income (loss) - non-GAAP basis | $730 | $(786) | $(582) | | GAAP net loss per share - diluted | $(0.36) | $(0.66) | $(0.34) | | Non-GAAP net income (loss) per share - diluted | $0.02 | $(0.02) | $(0.01) | [Gross Profit Reconciliation (Three Months Ended)](index=12&type=section&id=Gross%20Profit%20Reconciliation%20-%203%20Months) Reconciles GAAP gross profit to non-GAAP gross profit for Q2 FY2025, primarily adjusting for restructuring charges in cost of sales Gross Profit Reconciliation (Three Months Ended) | Metric (in thousands) | June 28, 2025 | March 29, 2025 | June 29, 2024 | | :-------------------- | :------------ | :------------- | :------------ | | Gross profit - GAAP basis (excluding amortization) | $47,109 | $42,317 | $46,922 | | Non-GAAP adjustments to cost of sales | $696 | $482 | $252 | | Gross profit - Non-GAAP basis | $47,805 | $42,799 | $47,174 | | GAAP gross profit (% of net sales) | 43.7% | 43.7% | 44.8% | | Non-GAAP gross profit (% of net sales) | 44.4% | 44.2% | 45.1% | [Adjusted EBITDA Reconciliation (Three Months Ended)](index=12&type=section&id=Adjusted%20EBITDA%20Reconciliation%20-%203%20Months) Reconciles GAAP net loss to Adjusted EBITDA for Q2 FY2025, reflecting adjustments for tax, interest, amortization, and other non-GAAP items Adjusted EBITDA Reconciliation (Three Months Ended) | Metric (in thousands) | June 28, 2025 | March 29, 2025 | June 29, 2024 | | :-------------------- | :------------ | :------------- | :------------ | | Net income - GAAP Basis | $(16,880) | $(30,804) | $(15,769) | | Income tax provision (benefit) | $2,049 | $4,838 | $1,286 | | Interest expense | $126 | $198 | $144 | | Interest income | $(1,386) | $(1,613) | $(2,333) | | Amortization of purchased intangible assets | $10,081 | $9,852 | $9,748 | | Depreciation | $3,377 | $3,232 | $3,413 | | Amortization of cloud-based software implementation costs | $709 | $709 | $709 | | Pension curtailment gain | $(1,530) | - | - | | Other non-GAAP adjustments | $7,302 | $11,690 | $6,827 | | Adjusted EBITDA | $3,848 | $(1,898) | $4,025 | | Net income - GAAP Basis (% of net sales) | (15.7)% | (31.8)% | (15.1)% | | Adjusted EBITDA (% of net sales) | 3.6% | (2.0)% | 3.8% | [Operating Expense Reconciliation (Three Months Ended)](index=12&type=section&id=Operating%20Expense%20Reconciliation%20-%203%20Months) GAAP operating expenses for Q2 FY2025 were $64.3 million. After non-GAAP adjustments, non-GAAP operating expenses were $47.7 million Operating Expense Reconciliation (Three Months Ended) | Metric (in thousands) | June 28, 2025 | March 29, 2025 | June 29, 2024 | | :-------------------- | :------------ | :------------- | :------------ | | Operating Expense - GAAP basis | $64,345 | $69,643 | $63,221 | | Non-GAAP adjustments to operating expenses | $(16,687) | $(21,060) | $(16,335) | | Operating Expenses - Non-GAAP basis | $47,658 | $48,583 | $46,886 | [Six Months Ended June 28, 2025](index=10&type=section&id=Six%20Months%20Ended%20June%2028%2C%202025) Provides detailed reconciliations from GAAP to non-GAAP financial measures for the six months ended June 28, 2025 [Net Income (Loss) Reconciliation (Six Months Ended)](index=10&type=section&id=Net%20Income%20%28Loss%29%20Reconciliation%20-%206%20Months) For the first six months of FY2025, GAAP net loss was $47.7 million. After non-GAAP adjustments, the non-GAAP net loss was $0.1 million Net Income (Loss) Reconciliation (Six Months Ended) | Metric (in thousands, except per share) | June 28, 2025 | June 29, 2024 | | :------------------------------------ | :------------ | :------------ | | Net loss - GAAP basis | $(47,684) | $(30,404) | | Non-GAAP adjustments | $38,925 | $33,821 | | Tax effect of non-GAAP adjustments | $10,233 | $(3,399) | | Pension curtailment gain | $(1,530) | - | | Net income (loss) - non-GAAP basis | $(56) | $18 | | GAAP net loss per share - diluted | $(1.02) | $(0.65) | | Non-GAAP income (loss) per share - diluted | $(0.00) | $0.00 | [Gross Profit Reconciliation (Six Months Ended)](index=13&type=section&id=Gross%20Profit%20Reconciliation%20-%206%20Months) For the first six months of FY2025, GAAP gross profit was $89.4 million. With non-GAAP adjustments, the non-GAAP gross profit was $90.6 million Gross Profit Reconciliation (Six Months Ended) | Metric (in thousands) | June 28, 2025 | June 29, 2024 | | :-------------------- | :------------ | :------------ | | Gross profit - GAAP basis (excluding amortization) | $89,426 | $96,171 | | Non-GAAP adjustments to cost of sales | $1,178 | $475 | | Gross profit - Non-GAAP basis | $90,604 | $96,646 | | GAAP gross profit (% of net sales) | 43.7% | 45.3% | | Non-GAAP gross profit (% of net sales) | 44.3% | 45.5% | [Adjusted EBITDA Reconciliation (Six Months Ended)](index=13&type=section&id=Adjusted%20EBITDA%20Reconciliation%20-%206%20Months) For the first six months of FY2025, Cohu reported an Adjusted EBITDA of $2.0 million, after various non-GAAP adjustments Adjusted EBITDA Reconciliation (Six Months Ended) | Metric (in thousands) | June 28, 2025 | June 29, 2024 | | :-------------------- | :------------ | :------------ | | Net loss - GAAP Basis | $(47,684) | $(30,404) | | Income tax provision | $6,887 | $(414) | | Interest expense | $324 | $433 | | Interest income | $(2,999) | $(5,042) | | Amortization of purchased intangible assets | $19,933 | $19,543 | | Depreciation | $6,609 | $6,842 | | Amortization of cloud-based software implementation costs | $1,418 | $1,418 | | Pension curtailment gain | $(1,530) | - | | Loss on extinguishment of debt | - | $241 | | Other non-GAAP adjustments | $18,992 | $14,254 | | Adjusted EBITDA | $1,950 | $6,871 | | Net loss - GAAP Basis (% of net sales) | (23.3)% | (14.3)% | | Adjusted EBITDA (% of net sales) | 1.0% | 3.2% | [Operating Expense Reconciliation (Six Months Ended)](index=13&type=section&id=Operating%20Expense%20Reconciliation%20-%206%20Months) GAAP operating expenses for the first six months of FY2025 were $134.0 million. After non-GAAP adjustments, non-GAAP operating expenses were $96.2 million Operating Expense Reconciliation (Six Months Ended) | Metric (in thousands) | June 28, 2025 | June 29, 2024 | | :-------------------- | :------------ | :------------ | | Operating Expense - GAAP basis | $133,988 | $130,443 | | Non-GAAP adjustments to operating expenses | $(37,747) | $(33,346) | | Operating Expenses - Non-GAAP basis | $96,241 | $97,097 |