Cohu(COHU) - 2025 Q2 - Quarterly Results

Second Quarter 2025 Results Overview 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 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] Operational Highlights and Strategic Wins 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] - Secured a $28 million design-win order from a customer serving mobile and automotive end-markets, with shipping through Q4'25[5][6] - 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] Third Quarter 2025 Business Outlook 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] Company Profile and Disclosures This section outlines Cohu's business, its use of non-GAAP financial measures, forward-looking statements, and investor communication details About Cohu 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] - Cohu's products enable optimized yield and productivity, accelerating customers' manufacturing time-to-market[8] Use of Non-GAAP Financial Information 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] - 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] Forward-Looking Statements and Risk Factors 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] - 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] - 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][13] Conference Call and Investor Information 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] - 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] GAAP Consolidated Financial Statements This section presents Cohu's GAAP consolidated statements of operations and balance sheets for the reported periods Consolidated Statements of Operations (GAAP) 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] Condensed Consolidated Balance Sheets (GAAP) 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] Supplemental Non-GAAP Reconciliations 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 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) 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) 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) 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) 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 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) 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) 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) 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) 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 |