Cohu (COHU) Q1 2025 Earnings Call May 01, 2025 04:30 PM ET Company Participants Jeffrey Jones - VP, Finance & CFOLuis Müller - President, CEO & Board MemberBrian Chin - DirectorDavid Duley - Managing PrincipalCraig Ellis - Director of ResearchRobert Mertens - Equity Research Associate Conference Call Participants Charles Shi - Senior AnalystTyler Burmeister - Equity Research Analyst Operator Good day, and thank you for standing by. Welcome to Cohu's First Quarter twenty twenty five Financial Results Call. A ...

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]