Cohu(US:COHU)2025-10-29 20:05Financial Performance - Third quarter 2025 net sales were $126.2 million, a 17.2% increase from $107.7 million in Q2 2025 and a 32.4% increase from $95.3 million in Q3 2024[4] - GAAP net loss for Q3 2025 was $4.1 million, compared to a loss of $16.9 million in Q2 2025 and $18.1 million in Q3 2024, resulting in a loss per share of $0.09[4] - Non-GAAP net loss for Q3 2025 was $2.8 million, or $0.06 per share, compared to a profit of $0.7 million in Q2 2025[3] - GAAP net loss for the three months ended September 27, 2025, was $4,101 thousand, compared to a loss of $16,880 thousand in the previous quarter, showing an improvement of approximately 75.7%[19] - Non-GAAP net loss for the same period was $2,834 thousand, a significant improvement from a loss of $3,797 thousand year-over-year[19] - The company reported a net loss of $4,101 thousand for Q3 2025, an improvement from a net loss of $16,880 thousand in Q2 2025 and $18,056 thousand in Q3 2024[23] Revenue and Profitability - Gross margin for Q3 2025 was 43.8%, with a non-GAAP gross margin of 44.1%[7] - GAAP gross profit for Q3 2025 was $55,264 thousand, up from $47,109 thousand in Q2 2025 and $44,657 thousand in Q3 2024, representing a 17.5% increase quarter-over-quarter and a 23.7% increase year-over-year[23] - Non-GAAP gross profit for Q3 2025 was $55,658 thousand, with a gross profit margin of 44.1%, compared to 44.4% in Q2 2025 and 47.1% in Q3 2024[23] - Adjusted EBITDA for Q3 2025 was $11,652 thousand, which is 9.2% of net sales, significantly higher than $3,848 thousand (3.6%) in Q2 2025 and $2,148 thousand (2.3%) in Q3 2024[23] - For the nine months ended September 27, 2025, GAAP gross profit was $144,690 thousand, with a gross profit margin of 43.7%, compared to 45.8% for the same period in 2024[25] - Non-GAAP adjusted EBITDA for the nine months ended September 27, 2025, was $13,602 thousand, representing 4.1% of net sales, compared to 2.9% in the same period of 2024[25] Cash and Investments - Total cash and investments at the end of Q3 2025 were $198.2 million, with no share repurchases during the quarter[4] - Cash and investments decreased from $262,092 thousand to $198,157 thousand, a decline of about 24.4%[18] Strategic Initiatives - The company is focusing on growth in AI data center markets with new products like Neon HBM inspection and Eclipse test handler[7] - Cohu completed the acquisition of Tignis, Inc. on January 7, 2025, integrating its operations into the company[17] - The company is strategically deploying proceeds from a recent convertible debt offering to support innovation initiatives[5] Future Outlook - Cohu expects fourth quarter 2025 sales to be in the range of $122 million +/- $7 million, reflecting a cautious outlook[5] Balance Sheet - Total assets increased to $1,021,271 thousand as of September 27, 2025, compared to $999,415 thousand on December 30, 2024, reflecting a growth of approximately 2.3%[18] - Total current liabilities increased to $116,912 thousand from $85,184 thousand, reflecting a rise of approximately 37.3%[18] - Goodwill increased to $282,293 thousand as of September 27, 2025, from $234,639 thousand, representing a growth of about 20.3%[18] Operating Expenses - Operating expenses on a GAAP basis for Q3 2025 were $64,980 thousand, up from $64,345 thousand in Q2 2025 and $60,426 thousand in Q3 2024[23] - Non-GAAP operating expenses for Q3 2025 were $47,948 thousand, compared to $47,658 thousand in Q2 2025 and $45,239 thousand in Q3 2024[23] - The company’s total operating expenses for the nine months ended September 27, 2025, were $198,968 thousand, compared to $190,869 thousand for the same period in 2024[25] - Share-based compensation included in cost of sales for the three months ended September 27, 2025, was $341 thousand, up from $270 thousand in the same period last year[19] Loss from Operations - Loss from operations on a GAAP basis for the nine months ended September 27, 2025, was $54,278 thousand, compared to $50,041 thousand for the same period in 2024, indicating a decline of about 8.9%[21] - Non-GAAP income from operations for the nine months ended September 27, 2025, was $2,073 thousand, compared to a loss of $783 thousand in the same period last year[21]