Cohu(COHU) - 2025 Q1 - Quarterly Results

Q1 2025 Financial Highlights Q1 2025 Performance Summary 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] - 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] Business Outlook and Management Commentary 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] - Cohu expects second quarter 2025 sales to be in a range of $106 million +/- $7 million[4] Financial Statements Consolidated Statements of Operations 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] - The results for the quarter ended March 29, 2025 include the operations of Tignis, Inc., which was acquired on January 7, 2025[15] Condensed Consolidated Balance Sheets 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] Non-GAAP Financial Measures & Reconciliations Explanation of Non-GAAP Measures 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] - Management uses non-GAAP measures for operational decision-making, forecasting, determining executive compensation, and comparing performance to its annual operating plan[9] Reconciliation of GAAP to Non-GAAP Results 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) 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 Forward-Looking Statements and Risk Factors 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] - 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]