Financial Data and Key Metrics Changes - Revenue for Q1 2025 was approximately $97 million, with a non-GAAP gross margin of approximately 44% [5][11] - Q1 non-GAAP net loss was approximately $800,000, with a non-GAAP EPS of a $0.02 loss [12] - Cash and investments decreased by $61 million during Q1, primarily due to acquisitions and share repurchases [13] Business Line Data and Key Metrics Changes - Revenue was split 63% recurring and 37% systems, with systems revenue increasing sequentially in automotive and consumer segments, offset by declines in computing, industrial, and mobile [6][11] - Recurring orders increased by 28% quarter over quarter, indicating strong non-capital equipment revenue streams [7] Market Data and Key Metrics Changes - Estimated test cell utilization was down 1 point quarter over quarter to 72% [7] - The automotive and industrial market accounted for more than 10% of sales from one customer in Q1 [12] Company Strategy and Development Direction - The company implemented a restructuring program to reduce manufacturing and operating expenses, with benefits expected to start in Q2 [5][6] - The focus is on expanding into new market segments and enhancing technology portfolios, particularly in the memory market and AI process monitoring [8][10] 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 [10][15] - The second quarter is expected to see a revenue increase of approximately 10% quarter over quarter, with guidance set at approximately $106 million [15] Other Important Information - Total debt increased by approximately $9 million due to a revolving credit facility used for facility purchases [13] - The company is exploring strategic acquisition opportunities and has paused share buybacks for Q2 [80] Q&A Session Summary Question: Revenue increase in Q2 guidance - Approximately half of the $9 million revenue increase is attributed to improvements in recurring revenue and half to systems [19] Question: Multi-unit order for inspection - Projecting about $8 million of revenue in HBM this year, with discussions ongoing with a second customer [20][21] Question: Connection between recurring revenue and equipment demand - An increase in recurring orders is expected to lead to improved utilization, which may indicate future capital equipment demand [24] Question: Segments with recurring order pickup - The recurring order pickup is predominantly in the mobile segment and is fairly concentrated among a few customers [28] Question: Power probe card design win - The opportunity for revenue from the power probe card is estimated at about $2 million per year per customer, with initial revenue expected to be a fraction of that this year [32] Question: Handler business in China - The company has captured a small number of startup fabless companies in China, with total design wins expected to generate $6.5 million in orders this year [35] Question: Customer needs for systems and recurring products - Customers are showing increased interest in systems, but management remains cautious about predicting future demand [40][42] Question: Test cell utilization rates - Uptick in buying is usually dictated by utilization, with OSATs typically leading in recovery cycles [67] Question: Automotive market turnaround - The automotive market is expected to recover slowly, with utilization and recurring orders anticipated to increase [69] Question: Restructuring impact on revenue levels - After restructuring, operating expenses are expected to be around $47 million at a revenue level of $100 million [75] Question: Capital allocation and buyback strategy - The company is reviewing acquisition opportunities and has paused buybacks for now, focusing on offsetting dilution from equity compensation plans [80]

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]

Financial Performance - Q1'25 revenue was $968 million[8], slightly below the guidance of $97 million +/- $7 million[26] - Q1'25 non-GAAP gross margin was 442%[10], compared to 418% in Q4'24[10] and 460% in Q1'24[10] - Q1'25 adjusted EBITDA was -20%[12], similar to Q4'24[12] - Q1'25 non-GAAP EPS was -$002[26], an improvement from -$015 in Q4'24[26] Balance Sheet and Cash Flow - Cash and investments decreased from $262 million in Q4'24 to $201 million in Q1'25[27] - Total debt increased from $9 million in Q4'24 to $18 million in Q1'25[27] - Cash flow from operations was -$102 million in Q1'25[27] - Net cash per share decreased from $542 in Q4'24 to $393 in Q1'25[28] Q2'25 Outlook - Q2'25 revenue is forecasted to be $106 million +/- $7 million[30], an increase of approximately 10% compared to Q1'25[32] - Q2'25 gross margin is expected to be around 45%[30] - Q2'25 operating expenses are projected to be approximately $48 million[30], down from $486 million in Q1'25[30] - Q2'25 adjusted EBITDA is expected to be around 4%[30]

[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]

Financial Performance - Q4 2024 net sales were $94.1 million, a decrease from $137.2 million in Q4 2023, with a full year 2024 net sales of $401.8 million compared to $636.3 million in 2023[2][4] - GAAP loss for Q4 2024 was $21.4 million or $0.46 per share, while the full year 2024 GAAP loss was $69.8 million or $1.49 per share[2][4] - Non-GAAP loss for Q4 2024 was $7.1 million or $0.15 per share, with a full year 2024 non-GAAP loss of $10.9 million or $0.23 per share[3][4] - GAAP net loss for the three months ended December 28, 2024, was $21,358 thousand, compared to a net loss of $2,028 thousand for the same period in 2023[18] - Non-GAAP net loss for the three months ended December 28, 2024, was $7,076 thousand, compared to a non-GAAP net income of $11,120 thousand for the same period in 2023[18] - Income from operations on a GAAP basis for the twelve months ended December 28, 2024, was a loss of $71,668 thousand, compared to a profit of $43,272 thousand for the same period in 2023[20] - Non-GAAP income from operations for the twelve months ended December 28, 2024, was a loss of $6,751 thousand, compared to a profit of $103,056 thousand for the same period in 2023[20] - The net income (loss) on a GAAP basis for the twelve months ended December 28, 2024, was $(69,818,000), contrasting with a profit of $28,156,000 in 2023[25] Cash and Investments - Total cash and investments at the end of Q4 2024 were $262.1 million, with no share repurchases during the quarter[4][6] - Cash and investments decreased from $335,698 thousand in December 30, 2023, to $262,092 thousand in December 28, 2024, a reduction of approximately 21.9%[17] - The company made a cash payment of $29.3 million to repay the remaining outstanding amounts owed under Term Loan B on February 9, 2024[17] Revenue and Margins - Approximately 62% of Q4 2024 revenue was recurring, with a gross margin of 41.9% impacted by a $2.1 million inventory reserve charge[6] - Full year 2024 gross margin was 44.9%, with a non-GAAP gross margin of 45.0%[6] - GAAP gross profit for the three months ended December 28, 2024, was $39,466,000, a decrease of 42.6% compared to $65,410,000 for the same period in 2023[23] - Non-GAAP gross profit for the twelve months ended December 28, 2024, was $180,889,000, down 40.6% from $304,817,000 in 2023[25] - The GAAP gross profit margin for the three months ended December 28, 2024, was 41.9%, down from 47.7% in the same period of 2023[23] - The adjusted EBITDA margin for the twelve months ended December 28, 2024, was 1.8%, a significant drop from 17.9% in 2023[26] Operating Expenses - Operating expenses on a GAAP basis for the twelve months ended December 28, 2024, were $251,962,000, a decrease from $259,596,000 in 2023[26] - Non-GAAP operating expenses for the three months ended December 28, 2024, were $45,304,000, slightly lower than $49,787,000 in the same period of 2023[23] - Non-GAAP adjustments to operating expenses for the twelve months ended December 28, 2024, totaled $64,322,000, compared to $57,835,000 in 2023[26] Acquisitions and Future Outlook - The company acquired Tignis, Inc., aiming to expand its analytics offerings and potentially grow software revenue at an annual rate of 50% or more over the next three years[5][6] - The company completed acquisitions of MCT Worldwide, LLC and Equiptest Engineering Pte. Ltd. in 2023, integrating their operations into Cohu's financial results[16] - Cohu expects Q1 2025 sales to be in the range of $97 million +/- $7 million, indicating a potential increase in revenue[5][6] Assets and Liabilities - Total assets decreased from $1,150,352 thousand in December 30, 2023, to $999,415 thousand in December 28, 2024, representing a decline of approximately 13.1%[17] - Total current liabilities decreased from $103,421 thousand in December 30, 2023, to $85,184 thousand in December 28, 2024, a decline of approximately 17.6%[17]

Core Insights - Cohu (NASDAQ: COHU) reported its Q3 FY2024 results on October 31, missing both revenue and earnings estimates, and provided disappointing guidance for Q4 [1] Financial Performance - The company failed to meet expectations for both the top line (revenue) and bottom line (earnings) in its latest quarterly report [1] Future Outlook - Cohu's guidance for Q4 indicates further challenges ahead, suggesting a potentially difficult operating environment for the upcoming quarter [1]