COHU - Earnings call transcript Q1 2018

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Operator

Greetings, and welcome to the Cohu Incorporated first quarter 2018 financial results and Xcerra acquisition conference call. At this time all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host today, Mr. Finance, CFO. of VP Jones, and the Jeff Please proceed sir.

Jeff Jones

to our Cohu’s announcement by most morning, an last and financial our of to welcome, agreement reached Luis has the Good President recent and joined Müller. discussion results that Cohu Xcerra. CEO, acquire I’m night today late and

the as Xcerra provide and outlook our for greater quarter XXXX, Following we’ll our for as details our opening of the well performance we proposed will detail. discuss then of in remarks, first acquisition quarter XXXX second

If you website, accessed of using Relations. be presentation copy this through is contacting cohu.com, a may slide obtain our on will maybe as posted also Investor you need or in in webcast link earnings conjunction one a There Cohu and website, a section. PDF we release, is with also from Cohu’s relations the today's our that that by investor call

all of reflecting we that statements rapid Before aware during assessed, to current you begin, are current based expectations course abrupt its management’s even make should will changes. future concerning by we is the nature, on the business. we but have that company’s and subject call, These be forward-looking conference information this which statements

Xcerra filed as including and with of the and Commission, to QX the Securities response and acquisition statements PANTHER benefits, [indiscernible], Forward-looking make XX-Q. financing sales first our our the on about section comments comments XXXX XX-K the questions. European tax review guidance, Exchange Xcerra most company’s automotive we forward-looking to progress effective We any your release, on well and the other the statements recently half opportunities future Form transaction, our Cohu’s as include regarding expected customer, the rate, contactor, release, including results, you with Form new in progress future filings and growth, the earnings thermal encourage

as these from will any obligation developments a Further, assumes comments to precluded Our to only reference X, nondisclosure disclosing XXXX, Cohu this make and as customers, our call. update May speak information specific to by such questions occurring comments after not today, statements no our result responses agreements. any are we as of and of

call refer non-GAAP our will discuss earnings certain during release to also the most webcast measures. Please reconciliation presentation to measures. and financial we today, the Finally, comparable GAAP the for

I’ll turn Now, over to it Luis.

Luis Müller

everyone. Jeff, and morning, good Thanks,

two We begin last today's with review have We second in for results XXXX guidance to agreement of and announcement equipment. Xcerra definitive discuss quarter a topics call. first to create semiconductor global Cohu’s Cohu’s of and a the acquire then leader for quarter the night backend

automotive and up were part our sub-systems slide is mobile due sales As or market European selected can Jeff quarter, industry Starting handler Non-GAAP pick-and-place I mobility multi-beam today's PDF be and in increased monitoring market enables qualified large a included XTA our the to combined Cohu; $XX.X standards. capabilities first diagnostics first processor that mentioned, that handler, on captured the This platform. process million, to be there a opportunity the in that X.X customer our of thermal is the reviewing the and will is guidance to website. within with exceeded EPS as the for multiyear and year-over-year with of quarter; $X.XX. that Eclipse XX% We was as large Korean and customers accelerated new a incorporates robots webcast, contactors, presentation accessed one of test. call ramp factory interface MATRiX the two the new a in for in tri-temperature test support

opportunities very in the as computing spring sales demand to cross-selling we synergies strong and test market, recurring Cohu made had our probes capture During loop and handlers. continued contactors and lengthy quarter, contactor the the in the quarter for in the calibrations. We increase eliminating wins thermal that we with temperature particularly of and an need good design a part system with new solution control active thermal progress key for becomes five had

captured power at analog customers. graphics, also and applications new contactors microcontroller Our

Additionally, included and inspection Aquilae platform revenue growing PANTHER vision sales the interest first quarter our from in module.

Looking more first-quarter at capacity and XX% at platform were by We processor device for orders. segment, the specifically processors test. leading order mobile test upgrades, order received for customer subsystem and of a multiunit thermal orders expansion system burn-in a

with from testing quarter our orders, mostly been in Mixed growth devices. RF by handler. is had customers Sensors we This some gravity management gravity, cars at We power used market, affected and to the smartphone XXXX slowdown for industrial orders demand with global XX% for the applications stimulus orders were orders, the in of and reflecting plug-in customer devices for [indiscernible], for and used in handlers where prior system for conditions automotive Our hybrid while utilizing on This market, our the win gravity we automotive MEMS switch orders, XX% in XX% quarter. acquisition discrete European XX% an mixed key Small-signal of growth remain our increase mobility over XX% end-markets, while customer, systems. is this signal solutions project has customer handlers IoT was others half European system reflecting semiconductors was testing handlers the to strong market, turret. automotive system of mostly the Digital I’ll mainly discrete MEMS for signal for digital and our a by offset devices in momentum the devices was modules. industrial of contributing order some QX and in segment last automotive magnetic sales Overall industry testing The device to expansion it that, coupled the in XX down demand turn devices second capacity and offer and period These for supplied same With [indiscernible] guidance driven and the represented system tests. in improvement related markets. approximately before in in relative first are a with LED to was used the on various another the market. of robust, Xcerra. of competitive turret details and for quarter, X% the Jeff we and year. and was topics continued growth handlers a position of by leading segment. over a major driver electric outlook. certain projections for for turret demand larger system turret financials fully design device X%

Jeff Jones

of sales of exceeded results as on stronger $XX.X expectations, generally business, including QX revised adjusted Cohu’s across first-quarter approximately first-quarter we contactor million. Cohu’s Luis. represented Thanks our XX% EBITDA sales. business were of which unit generated each non-GAAP XX% our

customer and to product to increased the to shift a product include to guidance XX.X% than $X.X QX. primarily of QX follow stock-based foreign Kita mainly forecasted into foreign approximately QX QX guidance, expenses GAAP for the XXXX costs Xcerra, earn-out due are to a $XX.X million For comments credit to have XX% to from intangible amortization the due during purchased acquisition annual guidance currency adjustments $X.X forecast million Operating $X.X of $XXX,XXX late adjust QX, development compensation all the taxes mix represented and of was non-GAAP based on including million. were operating was and moved the of tax outside million QX, two March. for of rate The expenses first accrual $XX.X related expense, of weeks which the of of and that non-GAAP our our valuation funds expense, the My the $XXX,XXX a in of due sales approximately repatriate acquisition. for of XX% million quarter. approximately results, event exclude below gross million, customer guidance quarter other in in below automotive sales. $XX.X market in the we on were updated as loss million now the last Cohu’s included the which announced withholding the effective One our Sales non-GAAP first revised services QX higher March and exceeded XX% US. of margin of of XXst. our for No materials impact above these $XX the and approximately items. quarter

benefit will profits do not before, the company the statutory income the US Cohu generated are rates taxable valuation to tax certain from lower the our of also countries that rates and those countries mentioned Furthermore, in with continues new tax in I provision with a because rate US tax where generated currently in As holidays. outside profit benefit from has tax allowance. tax our which along income incur

cash and increased sequentially XXXX. million factors, effective Accounts for flat As was Inventory to expecting are and increased days Accounts by DSO asset $XX.X to the to a for of QX, income by XXX. a XX% be days. inventory XX. XX result four by depreciation compensation days decreasing we increased to as of million working typical million capital variable $X.X was million. specific result days including by were in cash an million to in a XXX increase improved declined $XX.X Fixed that taxes RSU and to cycle X XX% a Overall, XX days tax Cash six on approximately and rate these days are additions payments days. $XX.X by by QX full vesting. year conversion approximately with also $X.X the of QX and receivable our quarter-over-quarter sequentially the payable

in deferred payment And related sequentially. XX, to QX. The million approved the the to quarterly share, million, related was Additionally Kita down of was million down July we That the cash of end $X.X $X.X fourth to shareholders XXXX, from made XXXX. end the earn-out Deferred June is dividend payable the at Cohu’s guidance QX on moving of Directors $X.XX March for profit million. XX, $X $X.X record end QX Board $X.X our million of a at acquisition. per of a quarter. revenue now of on at

reflects to increase XX% in Gross back quarter expenses We $XX.X exciting is XX.X%, approximately six Luis first to million. today to our last to $XX news expected approximately turn be and be be of year. I approximately discuss of regarding operating same are the approximately to it of for the sales the now in the compared Xcerra. will to expect during XXXX second acquisition expected period months million, margin which QX revenue an QX

Luis Müller

Thanks Jeff.

model. portfolios, product with time. clear semiconductor the transaction. companies backend approved outstanding long do our has backend criteria, long-term accelerate offerings, signing two and touch and as announced product it needs customers agreement stated could shares Through this resources, This to Cohu to immediately kept diversify strategy a of customers. financial coming. and Earlier as today customer years complementary The product well of stock Xcerra and our became a to for of global ago and will solutions a leader both of over delivering as enabling met which the accretive and definitive position meets This time over support first all morning, and companies acquisition midterm Cohu the engineering transaction could exciting value, surpass semiconductor equipment. I directors, combined expand will of shareholder CEO, meets that what expected strengthen our markets, cash unanimously under So Tacelli, is our by us our employees. the complementary our be close, companies’ better as Xcerra’s acquire be combination will well Cohu comprehensive transaction in discussions development and very individually. each into enable Upon a two board Dave been powerful Cohu. This margins have day deliver a is our global potential Xcerra this generate future as in significant three a our and line beneficial of and combined acquisition depth of us previously breadth profitable for that and that is in day in

will of walk and the the details through its transaction strategic I Now rationale.

into products following and Cohu sense those along Slide with we contactors with of complementary of a made and The of highly core X, number footprint diversified test in key equipment. on combining $X high-growth and portfolio for together total the addressable base. semiconductor and growth industrial, company product our our markets and The IoT serve For expands transaction please rationale test handlers, to posted combination mobility. brings a website, areas, a market PCB The I inspection test customer the particularly broadens in our in about slides billion with Xcerra automotive, existing start secular will strategic turn combined reasons. the will

printed and circuit $XXX portfolio diversified the company backend and a across margin of scale, complementary page, On the next semiconductor board has combined increased revenues profile. million approximately highly and is The manufacturing. strong product

Now turning to Xcerra with Slide our X, joining is highly aligned forces with strategy.

are enhance expands and drives into inspection to ability combining and relevance equipment businesses them test as more investments longer-term increase with automated fundamental such scale, markets handler the Our our test the in customer over technologies. along business also and PCB manufacturing. consumable complementary Xcerra and adjacent

company Turning applications, the X, our IoT core end-market particularly to combined test companies broader segments. various semiconductor across established brings with device and across the automotive, in well together industrial, page inspection application handlers coverage focused key mobility. Both and are

test Now SoC address Onto the on gained page is to solutions expands key and see Cohu knowledge equipment automated semiconductor cross-selling strategic adding in capabilities to product thermal fragmented market the unit pace accelerate of tough development signal competition growing in contactor and the momentum X, the the opportunities in of our new and is interacting integrity, Test and over handler. the on in new better this with space, test applications semiconductor significant for opportunities to X, challenges. customer management drivers. the in Diamondx leading business We performance of the address portfolio will while page accelerate million display provide and RF, requirements and $XXX penetration innovation contactors and objective with management digital and these XX acquisition a resolve volume test. requirements Xcerra solutions a to certain and with challenge handlers, transaction segments power both new customers. cost-effective RFPA, market panel outgrowing flat test months, past with

industrial, page both focused Cohu the to and growing are end Xcerra turning markets. automotive, on attractive Now X, IoT and mobility and

Xcerra, acquisition we of both the position semiconductor and With strengthen in industrial our applications. automotive

test our markets XX, revenue will ability on segments. and on secular combined the more $XXX with that combination If The customers you semiconductor acquisition rapidly turn I impacted our and in across increases global to are for and financial of you contactors, proliferation and capitalize to growth revenue the business has page, the over providing more positively applications the see market these addressable base the equipment Cohu’s handlers, to inspection IoT diversifies $X On multiple automated next of than industry. industrial backend across page approximately approximately leader overall opportunities million, Xcerra portfolio growing our billion strengthening aspects complete manufacturing. by of growth future a in we of company to IoT, The a the see it now will of solutions hand equipment for mobility. automotive, semiconductor transaction. Jeff with creates for opportunities details semiconductor

Jeff Jones

Thanks Luis.

of synergies turn XX% So $XXX in approximately last EBITDA now presentation. The page non-GAAP company gross have had XX% months. would XX the pro margin million over combined and please a to on non-GAAP basis margin the without XX revenues, forma

than stock-based XX after rate $XX excluding transaction. annual highlighted run Luis first approximately million As months we earlier, closing more of million $X expect within cost the the of synergies, compensation

COGS, drives product transaction revenue innovation. operating SG&A relative share to accretive scale immediately to combined the the in company closing. synergies of Over down the we non-GAAP and to expense targeting the earnings expenses the That margins for at percentage expected are and due higher combination be midterm, is per to new

X.XXXX for the total and Now balances the will page approval slide. financing each in is cash turning loan under a is transaction conditions of by customary share senior the half The includes XXXX. expected Xcerra regulatory will close million, approximately each are Cohu page shareholders The approvals. summary approximately to at closing to secured will combined recently outstanding EBITDA. stock and debt million of that ratio a of balance XX, Xcerra approximately Xcerra both leverage receive in $XXX will of $XXX is the to cash forma combined and Cohu be XX% of term funded most the $XXX a stock. shares of for XX% and of from facility combination secured companies, consideration stock, subject total The of loan have next million and Cohu a will last company, new million XX% a months XX pro shareholders for subject closing we on transaction for stock. approximately post transaction $X cash Cohu B approximately and and common close. own cash consisting reported borrow net will and pro of X.Xx time available the customary share common debt, companies’ Considering next senior of second $XXX $XXX the also and The which of consideration term to of Xcerra be B, the details transaction, million, cash is forma cash the sheet, by of

that the questions. for with line Now will we open

Operator

first & Our from comes your Company. Please Instructions] Needham question question. with Edwin with [Operator Mok proceed

Edwin Mok

question. a taking getting Great. Thanks good and also deal for Congrats my quarter. for the

quarter, talked with is Korean guys – the some customer. come customer? just first on first do wins and saw customer, customer that acceleration part. the to into you Korean [indiscernible] the – these from also we that, on we the start customer is the decent from expect demand when so the first like European color the the quarter, me to European revenue get about, expect get quarter that the the and the then second you how you from Let guys customer? business In continued that some And have system sounds focusing continuing then, And qualified it get That on auto do for two quarter, on revenue quarter? of mobile, start guys

Luis Müller

again Nice is This Edwin. today. speak to to you Luis. Hi,

one an accelerated subsystems. happen So, multi-quarter for of quarter. delivery the us subsystems had start of and the the end have with of delivery We first a orders at first let to thermal thermal

systems the will on was revised part here additional upside guidance. And of quarter. They the second delivered the be our in guidance. that are certainly to So

As this there shipping two in – only customer is XXXX throughout but as and that for orders Korean from we do be going an side; you year customers ongoing receiving do year. not mentioned, well. to the business onwards also the we That this on systems to expect be throughout

in For They shipments the other perspective. actual recognition It business is hasn't this customer, but the an customer at revenue future. from business, point. agreement are want system the automotive that happened secured the

Edwin Mok

visibility have happen…? don't that will terms we of Then, when in

Luis Müller

I will mean I exactly. be based. that into based be that Not that now. visibility demand and demand right it will have will It that, clear drive customer’s don't

Edwin Mok

the if I And the for color the missed that. what guidance kind then, Thanks Jeff, second near-term? about for the it, margin do on think and sorry good. beyond you of was just gross margin gross Okay, how quarter,

Jeff Jones

XX.X%. guidance The Edwin for was QX

per to in our XX% revenue model. we million think gross work or of million, per We margin gross quarter. XX% about continue at million terms the $XXX margin $XXX with of will million revenue up through different $XXX At quarter annual or to levels, $XXX

that changed. So hasn't

Edwin Mok

[indiscernible]. So is it just based

Okay, I of combined over great. And given I guess you guys [indiscernible] questions, be have million, seems deal, on $XXX have first then, $XX low is, two of the right. Xcerra synergies million the to

OpEx break of how smaller between cost of $XX that curious, does and million bigger and a down or Just drives cost goods what a versus sold, number?

Jeff Jones

the XX Well, can is as we our at of see this thirds estimate point. initial again a the as best months. COGS breakdown third is the is two and in in over number. that approximately that And operating expense first It at

Edwin Mok

see. I

have on is okay. current then, have the guys that that, for is company, regulatory be concern you go much specifically there or approval, market, great. of you the up and this speed space, a So combined for the any just I regulatory regulatory? on is regions do is last with in expect question [indiscernible] the going that on how have to That shot you the to and to way every first can And do share approval

Jeff Jones

of that to work So, countries. We to so having down different not on the we apply regulatory it a to question Edwin. whittle a of couple to are number countries

are and I US on focused generally think we Europe. So,

Luis Müller

focused And time as Edwin, different the really far as over have parallels in different handlers go, we applications, on past.

application specific are large products across and spectrum. by complementary So the the

Edwin Mok

it. Okay, great. Thank have. is all That I I you. appreciate

Jeff Jones

Edwin. you Thank

Operator

you. Thank

Our question with proceed comes Please with your Ho Stifel. from next Patrick question.

Patrick Ho

how well have give off Thank things talking deal coming that quickly version with that as much about you of did talks for pretty of you your the just like Xcerra, were you and when started to very time get terms this off Luis the on Maybe the, end their getting in of acquired failed reinitiated this done congratulations seems like us kind considering kind on first be been can mentioned it a by you you and attempt entity, with came updated again itself, around? I the that of given some deal. they Chinese time guess, deal

Luis Müller

basically reassessed Well, and transaction made it with were it It – Dave contacted hi, Once was broke and in just Patrick. is is and the what again, apart described. public, situation we dialogs. you reengaged Hubei their I we

Patrick Ho

the question contract the how given as a maybe targeted synergies model used area of where company, have shifted manufacturer, you test at Asia, has and you could have Jeff, for to a do of in manufacturing have traditionally And Great. million today? new Xcerra different rationalization, have the and highlighted strategies, look XX their that cost you the potential you business get over combined terms metrics somewhat you versus additional is the guys on you that lot [indiscernible], that follow-up some of both

Jeff Jones

and Patrick, think, I different types of in manufactured different handlers equipment testers are ways. the

margin further by good transition that gross and we leverage in as for on at and something to side continue will product of operation are initially. least costs be to think that the things, looking we fixed we Xcerra at But I so the moment we manufacturing volume we which a that adding to that to gains outsourced So modifying, operation. their the testers, is drive be model have operation won't looking at not in handler Morocco

Patrick Ho

Great. very Thank much. you

Operator

Thank you.

proceed comes from question Please next with Duley Securities. Our your question. Steelhead David with

David Duley

Hi, yes. Thanks for taking questions. my

X% to the increase what it you upside the was right raised driven was for XX%, is think first half I your a before, by? Just revenue and I growth first guidance that clarification, think the

Jeff Jones

the in ’XX. Dave, of of half last over had Jeff. expected we a said first We this that increase couple quarters the XX% is ’XX over

And And strong. were the continued so, about talked currently. it across we as board continue to be to the about be XX% markets – we

seeing and QX. automotive in talked strength increase still we good in So, with revenue about, mobility the in

it is demand. be XX% think XX% versus And broad I a to it that at highlighted based continues So previously. growth the had we

Luis Müller

would market I automotive, industrial well been add as industrial mobility, has also to doing well.

David Duley

I many wondering sales the food the have quarter? slower impacted that handset Apple, been how by from guess chain mobility during And companies might in you and just guys I was impacted have

Luis Müller

hi Yes, Dave.

have degree to I the We honestly seen read not can but some some, the that from companies. out other of

process continue test, a digital thermal apply consumer strong a is device, pool call challenging and used connected which have connected test, also subsystems, other actually a in for management into that now, very handlers for power and device, RFIC general ICs, we little mobile continue got for automotive IoT. inspection. IoT strong to to know or or for We It a to us therefore and application demand have and it if are to some so even going those for

actually two products. remains demand for So pretty those of classes strong

David Duley

difficult Anyway you do to that it currently? there results might be Okay, realize I of there, you to would questions accretive answer? up be come acquisition how be question color and the couple a and provide valuation, it you the can on with your help just Xcerra then how did expect to great.

Jeff Jones

projected is off quite In negotiation, their It start while. Xcerra combination. by this will valuation. driven valuation deal, Hubei one, Dave. a is largely the with capped I coming Well, case, the first of a for was It with

and compare to looking really total And negotiation valuations, is so, and just between it how teams, course, does market value that up number. right come of the of a at the matter then, with to discussion

Luis Müller

the test at company recent looking and future strength, And the market prospects. current gains SOC current financials, in

Jeff Jones

can tell was yes, Dave, what again? you us that question, second the

David Duley

could the us if of any you wondering this any other can sort that help help just Yes, I was it you deal, is understand details of immediately to that? or accretion amount around mentioned what – from that you accretive, you extent, expect

Jeff Jones

point It to our – by going we for months. now. little those is I synergies a It us with of to early largely XX driven the significant, are over think at going this synergies. just million is are $XX stay next right but we bit

David Duley

some and then handler some product plan lines, do have elimination of going you the obviously to be there line, look Okay, products when you or do is your at support do overlap, to product you to forward? all going

Luis Müller

as I look Dave, company details product the before here, have mentioned into different specifics actually we if lines, to application are you on company. of focused that the

[parallels] you that in across test quite therefore semiconductor spectrum, able So, are to us and spectrum, the markets. customers more industrial time handlers and types, automotive, accelerates the see and being device the actually support complementary mobility, fully both

David Duley

what percentage your from And that Okay. the not sure presentation, this this segments of gave and growing rapidly you showed comes of buckets automotive, point, IoT? revenue as industrial, in I'm if you slide those each mobility But to at us. one far as consumer those

Luis Müller

into Cohu pro the there XX% you the Xcerra distribution and mobility, revenue. Dave, on consumer the become slide industrial and right acquisition and then combination, was see if then and based auto numbers page current consumer, solid-state where systems balance forma the industrial, and we on based XX% a market, mobility, XX% you and reference computing see sort auto solid-state, the deck, of you lighting, X of computer, across this

David Duley

exposure I'm sorry. that and industrial pick XX% forward. Okay. you up that, good that on it see didn't I but auto I is have going slide. did

Anyway, everyone that is that market congratulations luck. good and a think everything on I likes.

Jeff Jones

Dave. Thanks

Luis Müller

Thanks Dave.

Operator

you. Thank

question next question. Ellis from Riley B. your with comes Our proceed Craig and Company. Please with

Peter Peng

Craig and Peng in question. Peter calling for is for taking Ellis, thanks this Hi, actually that

Jeff Jones

Hi, Peter.

Luis Müller

Peter. Hi,

Peter Peng

off I execution, play gross mix deal quarterly the on second any or guidance the one-offs on at kind to and the on are congratulations Hi, just of product want start there margins, there? quarter

Luis Müller

that would would we million. it which at expect and when say XXX with with look our line be to significant you Again right model, margin, in about gross the is Nothing model, I Peter. are at in-line our we

at be We XX%. will

guiding million, margin. So, we are are XX guiding the we XX.X% gross

one-offs or anything in significant no So, there QX is revenue. the

Peter Peng

talk then half quarter And on of how the on into and see – do visibility you just third a can then half maybe that? basis, kind Great. about you

Jeff Jones

orders, thing I to as best current think quarter trending the say Actually talking the continue quarter. really the we which into about here up go to is strong be and strong.

So that of third I over on totality be quite of here. quarter focused the and weeks confidence year, have won’t To the us been the second speak the we this for last gives much this honest, half. transaction few for

quarter third So, I to just will now. the speak

Peter Peng

Okay, revenue and some the potential switching synergies the products? to kind of about the deal, just can of talk from you

Luis Müller

Yes.

really put in once anything this we only it at revenue synergies for financial the in the will be cross-selling by million haven’t cross-selling cost synergies over and opportunities closes, model, closes. we transaction opportunities or We But as XX for the time using time. exploring are our

Peter Peng

fairly loaded across then, equally split second of terms first And of synergies, cost a is kind the and year? in is this backend or this

Jeff Jones

Yes, We a Peter time progression is see it on. more kind latter. goes of of the as more it as linear

in think half of months, XX, the would half and So that about the expect in first XX second. I over the I

Peter Peng

more for question the debt cost hop I this? back, before about can one And you talk

Jeff Jones

I that. me. catch Excuse didn't

Peter Peng

they that should cost cost – for…? The potential debt debt

Jeff Jones

XXX around we right about be X.X%, – total. going plus It it expect in Yes. is is be points. LIBOR That a X.X% to to basis

Peter Peng

Thank guys. you Great. Congratulations.

Jeff Jones

Thank you.

Luis Müller

Thank you.

Operator

you. Thank

Tom proceed with comes Our question. next your Please Davidson. D.A. from question Diffely with

Tom Diffely

good morning. Attractive Yes, acquisition here.

just model put need require targets? growth there Does you midterm that EBITDA. synergies core the and of level is XX% that the business certain a in to the XX% on those you question or the out, the achieve first So,

Jeff Jones

business, to – by is so really that mainly It out of Tom. have is Modeling it. future is end on hard too been the this do we not aggressive growth synergies it and in driven

as would on impact that the So look forward to what in do, margin, is what the growth driving trying is cost estimate we synergies gross gross the margin.

Tom Diffely

And and I great. slide other market, then, as business, far slide would Okay, what your on really as the the players like had page on you liked overall? the handler a similar X for the contactor look percentage

Luis Müller

yet, analysis that done haven't We Tom.

privately held on companies. make market installed running our year some we to right are waiting collective of equipment of to that are and the large from last adjustments through We base knowledge now reports

time. So at don't information that have this

Tom Diffely

year gotten acquisition Okay, doing market acquisition, you just and is over during prior look and gained I is shop] so and became guess Xcerra year has it a stronger target a simply in the at the was mode versus acquisition. attractive that [go they for today a share What when this their last picture, big ago, difference, the more perhaps you? when

Jeff Jones

are company financially. in Well, available they prospects than have share is They forward, different all right were going gained are customer SOC. are now. a – year today They very first ago. of They stronger have and they that good a they

it So that makes actionable.

Tom Diffely

Okay. Thank time. for your you

Jeff Jones

Thanks Tom.

Luis Müller

Thanks Tom.

Operator

you and gentlemen. ladies Thank

Q&A have closing to session, end the the We back turn the come I to comments. over and management for of to would like call

Luis Müller

quarter and you look report attend, today. XXXX our plan or B. Riley, have investor the speaking forward conferences at Cowen us when to second this to Thank results. the including July, to joining for FBR again and you Stifel and and June, We Thanks Summit great at we later a month; we conferences in upcoming day. in the conferences CEO Needham

Operator

concludes This teleconference. today's

may disconnect and your this lines you time your for thank participation. You at

Cohu (COHU) 9 May 182018 Q1 Earnings call transcript