In This Article:
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Revenue: $95.3 million for Q3, in line with guidance.
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Recurring Revenue: Represented 67% of total revenue in Q3.
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Gross Margin: 47.1% for Q3, higher than guidance.
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Operating Expenses: $45.2 million for Q3, lower than guidance by approximately $1.6 million.
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Non-GAAP Operating Income: Approximately breakeven for Q3.
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Adjusted EBITDA: 2.3% for Q3.
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Non-GAAP EPS: $0.08 loss for Q3.
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Cash and Investments: Increased by $7 million during Q3 to $269 million.
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Cash Flow from Operations: $17 million for Q3.
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Share Repurchase: $8 million used to repurchase 315,000 shares.
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Capital Expenditures: $2 million related to factories in the Philippines and Germany.
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Q4 Revenue Guidance: $95 million plus or minus $7 million.
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Q4 Gross Margin Forecast: Approximately 44%.
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Q4 Operating Expenses: Projected to increase by about $1 million to approximately $46 million.
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Q4 Non-GAAP Tax Provision: Expected to be approximately $3.1 million.
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Basic Share Count for Q4: Expected to be approximately 46.5 million shares.
Release Date: October 31, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Cohu Inc (NASDAQ:COHU) reported a sequential increase in systems revenue in the automotive and mobile segments, with mobile showing a 13% year-over-year growth.
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The company secured a significant test cell design win with a top five automotive semiconductor manufacturer, enhancing its position in the power management device testing market.
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Cohu Inc (NASDAQ:COHU) made progress in entering the memory and silicon carbide power semiconductor markets, with a notable customer order for its neon inspection metrology platform.
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The company is expanding its recurring revenue through its AI inspection software, which has shown promising customer engagement and interest.
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Cohu Inc (NASDAQ:COHU) maintains a strong balance sheet with $269 million in cash and investments, supporting its growth strategy and share repurchase program.
Negative Points
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Cohu Inc (NASDAQ:COHU) experienced declines in the computing, consumer, and industrial segments, offsetting gains in other areas.
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The company's Q3 gross margin, while strong, benefited from one-time factors such as the utilization of previously reserved inventory.
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Operating expenses were lower than guidance due to delays in new hires and higher vacation utilization, indicating potential challenges in workforce management.
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The Q3 tax provision reflected tax expenses on foreign profits without a benefit from the US loss, due to a valuation allowance against deferred tax assets.
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Cohu Inc (NASDAQ:COHU) anticipates a flat revenue outlook for Q4, indicating ongoing challenges in navigating the cyclical trough of the semiconductor market.