COHU - Earnings call transcript Q3 2018

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Operator

Good afternoon, ladies and gentlemen, and welcome to the Cohu Inc.'s Third Quarter 2018 Financial Results Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded. I would now like to turn the conference over to your host, Mr. Rich Yerganian, you may begin your conference

Richard Yerganian

Thank you, Kyle. to the call fourth acquisition welcome third discuss quarter and results, quarter of afternoon, our to conference Cohu's outlook. Good Xcerra and MÃ¼ller; of today our Jones. joined by President CEO, I'm our Vice and Finance Luis President CFO, Jeff and and everyone completion to QX our acquisition October of and the remind stand-alone the combined financials expectations X. guidance Xcerra represents I of Cohu's company results, that want reflect QX following the on

website in may the in PDF need December will now Between will www.cohu.com a Relations our our XX. call access call the conjunction available in XX, copy this section. contacting that Mizuho January NYC York X; be it through Investor Needham Conference or of at XX Cohu's you Investor in Investor a the and page also be Global link also call can Replays on York be Cohu also after the our you by website If a is in call, earnings and on Growth from with Summit of There concludes. and same on today's Conference New the webcast seventh the next New accessed we release, is presentation as Relations. slide participating on annual earnings the December and via Investor posted

would and We locations. at will you or also request with in to the Boston investors Midwest of month. be meeting coming contact one the road events the on if like the a in these Please us with company meeting

the Now to safe harbor.

statements by is the by we reflecting this company's we which current information assessed, management's concerning that expectations and subject forward-looking are - of make on call, statements course the which even rapid nature conference based During future release to its most business. filed Exchange to the XX-Q Forward-Looking Form These have including current the the and registration Cohu's well and slide the presentation Form you section recently S-X. the Commission, We with Securities changes. Statements and of statement as on encourage earnings as abrupt review filings XX-K, will

speak assumes no obligation after today, developments only X, result Our statements XXXX, of as November occurring comments of to these a as this update and call. Cohu

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

Now I'd like over Luis and Luis? to to turn Cohu's the Müller, call CEO. President

Luis Müller

welcome and our afternoon, call. to Good conference

in even model. our to EBITDA, penetration XG generally market; the vehicle the modeled power October with primarily though customers caused in for that industry are the First, the in and the short market delivered mobility additions prospects IoT has drivers. now and developments detail market. reduction then due provide for optimistic I ongoing the We're electrification the a testing for believe and retooling fundamentals next-generation and about semiconductor greater million some third had in adjusted X. continued industrial which solid capacity a on flat-panel are market originally strong, strong testing in term. the and and applications, in following growth handler general particularly semiconductors to approach XX.X% handler the cautious I'll the of to lower automotive processors, sales display remain like the take business demonstrating in more recent tone resilience commentary but combined device sales to the turret about quarter Cohu We current TDDI in of management some in ADAS; in QX were on the demand impacted, later business thermal Xcerra talk acquisition and expected, discrete completion of in a $XX business would We for the environment, quarter, the than headwinds in RF, testing. application used still came

the of cost integration The good Xcerra. of million synergies. acquisition annual and is $X.X have X the off implemented in to start, run-rate already a companies to we on Moving

synergy our target already million later organization million our to Jeff on centers these we Spirox Taiwan more consolidation that will X development be directly has Cohu communicate terminated midterm meetings in months, margins to direct announced this our provide in and agreement with included for and our next initial sales to distribution and the be call. expenses that and support focus run gross to and service within meet our expect semiconductor Xcerra's of several part of XXXX. rate We and our operating cost X We've and recently, cross-selling model. first plans service $XX within the goal synergy in years. $XX had with opportunities for end-of-life product to customers started cost and later in reduction identify revenue, test China detail will More X achieve benefit complete will transitions expanding increased of improved global are products years the plan we'll XX Once and leveraging that region. well-established from in customers

is consumer next power to position strong ATE, power a for automotive IoT industry a with significantly more of the to largest or and our board provide we amplifiers of Through lines, a microcontrollers, new premier the key no months. the financial & growth in accounting our XX% billion of is and customer With $X in XX last semiconductor in Luther circuit with the pro. in our outpace and end automotive, supplier. Maelzer aligned scope, segment we Across printed projected in all for the the position across base front-end semiconductor and acquisition, brand, Xcerra the are years. leading product In modules, leadership for display and an segments. Cohu, company the established product ATG we we segments, position Xcerra growing ICs of have flying global expanded strengthened RF has Cohu equipment that completion those sales the test mobility industrial, that contactors, have X In profile for are flat-panel handlers customer X market key markets, testing testers addressable in one and drivers. than

higher-task the segment multiple test electrification market safety, infotainment significant business. semiconductor boost typically represented in in and and From XX% for product due handlers automotive markets automotive XX capital about our provided the to has as testers, trailing months or industrial systems, growth intensity vehicle sales stringent requirements perspective, a sensors, various million. PCB all insertions to lines: combined driver quality semiconductor the key in communications, system a at contactors of and temperatures. Our a well market ADAS major and Requirements that a are $XXX our of as have

of industry. the and leading of and We in testing environmental of management including handlers control, which sensors, and an contactors of impacting radar equipment. is wave power creating and the devices. where Xcerra, the in for to that with MEMS that wide device, portfolio best-in-class today, a is broadest combined are and supplier up testing factory the thermal has a automation, require the how In MEMS-staffed gigahertz are, stimulus challenging Cohu, sensors XX space solutions for RF the thermal quarter, applicability further for proliferation the with win T-Core we physical semiconductors of and security, actual a ICs are our of appreciate handler expanding Particularly to secured Many a our the for medical market MATRiX of automotive customer, monitoring third processors extent MEMS the testing sensors portfolio industrial don't new design applications, ADAS major technology. the for capabilities

the opening new to XXXX. onto next of to design plan growing a a integrating package in semiconductor Turning with The in and spectrum an the is for market. contactors opportunities antenna mobility complexity millimeter-wave several digital wins instrumentation, capture RF test of

also technology. further our ATE ramps starting infrastructure over-the-air contacting sales We XG target of in growing year unique next and deploy support

plus ATE large display gaining subcontractors market. portfolio solution compelling resources display test television We a specialized our drivers Diamondx, test capturing market more continue as in is to being which and challenges flat-panel display program this of traction proposition. offer in Unlike more SoC this the development. test to expand taken support part acquired traditional value driven driver product new TDDI by our newly which is test to sockets platform, new volume offers well-established in winning Our of is general-purpose systems, the plan approach for the market, available complex This panel monitors. is the in driver devices our

Additionally, of has a facial This MEMS with the turn Jeff the mobile and fourth the sensors phone, on effect to being be our extend compounding guidance. in our continued accelerating with and to contactors. unlock is transferred, well to stored. subcontractor on continued beyond cost handler results and of the to test to time-to-market. a yield, and swing a integrated trunk captured at the semiconductor recognition your shop one-stop course, for industrial for third Cohu best-in-class I'd for applications, with provide with applications generated printed the handlers now each including equipment being leg, Customer car quarter tests. devices. we to and in feedback services circuit company and by a focus of our processed ATE call testers eventually increasing automotive, very one range your With MEMS back-end data handlers, need of because largest contactors, In providers of to open win board these only modules, project review been on design an this endless of of the Taiwan. offering leading-edge positive, now quarter, has third a areas. to we and test along demand like your devices quarter of Eclipse We're able and focused solutions test reducing these over

Jeffrey Jones

Thanks, Luis.

of million. quarter sales million business and operating of we by $XXX.X Let XX.X% operations cash the approximately the and margins from reviewing quarter, our end of increased begin me $XX.X EBITDA $XX.X generated million quarter. strength million demonstrate of $XX.X adjusted our XX.X% cash on results, third of of financial Cohu at the to during balance margin as delivered non-GAAP the Cohu's which model, third

contactor Our of quarter. represented business for XX.X% the sales

QX, restructuring stock-based Cohu's of million $XXX,XXX purchased the $X of items. adjustment a follow, and expense, $X.X include to $X impact GAAP to acquisition. from expense, of exclude based Xcerra compensation and My transition which these on manufacturing earnout comments QX that Kita the results, non-GAAP valuation in the adjustments approximately the are guidance, intangible costs approximately amortization For costs, the of million related acquisition million non-GAAP $XXX,XXX all to including

$XX.X QX to due non-GAAP market funds exceeded of no As the our were the was to customer was associated the increase we generated than $XX.X costs I better XX.X% the to previously anticipated primarily quarter. repatriation computing with XX% will third for $XX.X which quarter sales, service rate our upon revenue. in due U.S. XX% than cash guidance in and for quarter withholding mentioned, represented lower for a lower Switzerland, tax million. consistent Operating and in in sales higher of approximately third million with One these margin Xcerra $XXX,XXX the XX% expenses approximately sales were acquisition. customer guidance. of the of expect quarter gross connection sales X% The funding other and an the in effective and QX, incur anticipated, with the tax million or

For for are for XX% strategies and the yielding year to quarter the tax combined results. on that XX% Based fourth rate effective to our company, continue expect against year-to-date QX financials, XXXX. we the results our we and full our measurable be execute approximately

automotive of compared first expansion the as XXXX for to and a sales. gross For and traction Year-to-date XXXX, XX% year margin approximately XX% and the X X% in of contactor our continued months is last same XX% full year of over XXXX. markets industrial revenue result period in grew organically the

equipment spares, approximately non-GAAP grow business, revenue, has through sales of third includes margin contactors total of represented of and the to XX% quarter months XX% Revenue to earnings per EBITDA and our continues well X-month our as the as X recurring Our period. at of test share for $X.XX the first XXXX. from revenue for which improved service

for - handler we the in than average driven of is Xcerra, expanding many expect you stable contactor our this company gross approximately being total margins. remain revenue, with base that at recurring base opportunity higher Growth With wins. XX% installed and generates to business design the growth. of know, As by business significant this further provides business base a

to sales fact, to combined approximately contactor installed handler to is annual alone business base. our grow an $XXX in In million, the $XXX opportunity expected serving million with be

to payable we we cycle $X.X days increasing and by the Inventory approximately overall debt decreased and Accounts $XXX,XXX Cohu's cash $XXX Cash to second of will to $XX deal inventory investments day Total the the million QX DSO the had increased at Board and of combined investments. loan approximately revenue and cash Subsequent approximately the million. of to of the sheet Directors to $XXX,XXX conversion XXXX, by as million, $XXX million $XXX in flow in sequentially. rate approved receivables and of achieved X acquisition-related be $XXX balance When acquisition, sheet to down were payable days on be total approximately on share X, million, $X.XX - September million from $XX outstanding delever on Fixed XXX. were XXXX. was XX, with XXXX, quarterly X continues debt costs. additions million acquisition XX. company of balance end Accounts close, up $XXX,XXX, in of XXX. shareholders related strategy dividend. $XXX and Cohu's X XXX Xcerra forma the LIBOR of profit end by capital XX, asset $X.X prior of of November sheet $XXX sequentially the days Turning company. a by cash of balance in of the pro net $XXX,XXX, deferred the the cash million, looking was by basis at the by dividend plus the of increased decreased cash cash record term $X.X X-year XX, used increased at to to XX September approximately end million, was approximately excess from million as and generated sequentially points. a and January in per cash quarter. expenditures at to conversion our maintaining depreciation million October million, Deferred support the million pay X, is And with operations. operations, QX up including to approximately The $XX $X.X to

public of Looking well Xcerra. immediate as management of at consolidation. achieved the executive as integration cost run-rate We company savings from the elimination synergies $X.X redundant primarily from of the annual million, costs

We our plans will distribution continue Spirox X alignment within in goods operating and the cost chain be notice these organization. end-of-life product million with and of customers These cost the $XX the from expense $XX and sold and of termination years, to of million approximately product target direct savings. synergies expect achieved to $X our rationalization, supply consolidation achieve synergies annual the started have in reflecting approximately of million first initiatives consolidation sales already Many Taiwan. and communication China to of of in through

$XXX the is be X are by for of approximately expecting test. Our and to synergies midterm a consumable initial benefits Operating reflecting be target of within approximately includes $X.X distribution We're double X-year the for approximately facility And X% share $X.X next shares. quarter and X quarter, on to be and annualized inspection fourth $XX is expected and be initial $XX EPS million in of million from million count accretive Xcerra expected includes $XXX approximately in our an to optimization. is million basis. in acquisition manufacturing XX.X QX diluted moving to quarter which expected which to XX%, semiconductor a sales million, Xcerra. and test full test $XX Gross the expected of expenses business. contactor realizing PCB The the margin range contribution million. be approximately the XX% larger in synergies cost to Revenue is expected to XX% a now the is years of be million quarter, through QX consolidation or guidance another to total these million

of cost $XX sales we're XX% on totaling Over EBITDA targets XX% the I that the midterm, the Profitability of discussed $XXX of annual million include approximately margin synergies million. benefit and previously. targeting quarterly gross of

our remarks conclude future about Cohu. me by today let excited comments why So summarizing prepared of our and the are we

customers' to total addressable opportunities uniquely technologies challenges. billion. consumables With comes the to and inspection additional address and test With a Xcerra acquisition, offer larger we've our and increased systems market $X best-in-class to market differentiated

We market. presence of the the segments have growth a larger in

process leveraging open cross-selling cash concludes identify We to prepared organization. synergies, to cost earnings. now customer significant we and we'll and support driving by a clear path global the call to our opportunities That started increased presence have flow the have direct questions. And realize expanded our and margins, remarks,

Operator

first comes Patrick [Operator of Your line the from question Instructions] Ho.

Unidentified Analyst

what XXXX? for some mix segments provide does And look do looking some those more see of you a out the market the market there to in the segments ahead for Luis, in How if IoT. could of it little commentary given even like like you? industrial we environment market right color, automotive, today the you now as test market start key in semiconductor and

Luis Müller

of question start where I growth if by today, are talking but lot units a smartphone in year-over-year. here, slow your So we seeing pieces to about we're

ICs; industrial demand slower seasonal the our years, well As are I and markets is impacting, testers the LEDs, as both the power healthy. we as handlers; said management do pattern And the past on we've remain essentially this QX with auto and remarks, small and other hand, in microcontrollers, a this in seen only. also semiconductor seeing ICs, for RF impacting handlers as which case, in in

Chinese is by to applications, would domicile Chinese direct for So pullback in being frankly, customers semiconductors from weakness I limited cautious. overall customers more say today. exposure smartphone amplified Yet our and a

planning it's flat-panel particular we from New display As to We're is the can which early ATE. automotive Chinese year. into small customers driver we wins expect expand This for input test. I for far customers mainly XXXX, plan. is to in we'd a contactors, design the to big be targeting still tell We're little What for our post you to have, or Traditionally, about as you're that into too rolling again is things next view pick penetration are year, for picture asking QX. customers. still Year next talking or this early up up auto

ATE for mean, targets are we are test expecting - applications initial I some year. next have XG indication contactors. We year, another particularly to PCB year And that for equipment we solid next and is

Unidentified Analyst

the know to million the question, I is I companies. helpful you're the which the That's integration my color. really Great. Obviously, early And quite will for remarkable. of of achieved say follow-up as with $X.X X very the in date, stages

look duplicate that and terms you like easy costs and the expenses already way As opportunities markets, of as given that participated costs, at you look for of R&D, get similar of cut and out is are Cohu to other bring can done? potentially some even of you line the costs you in when in and cost there items both at all said some those Xcerra synergies higher

Jeffrey Jones

Patrick, We've into taken that, and at it's looked that Jeff. we've consideration.

As a to on consolidation. end-of-life call, about and fact, product mentioned the we as of customers matter we've talked

the that the we we're years, X first as through cost process, so And impact built and those $XX actions potential the at looking million the savings $XX midterm. go in is million And rationalization. the yes, from product into over

Luis Müller

Yes, Patrick.

Let just Jeff reinforce me here. here said what

be ATE already therefore, will to be PCB on - by end-of-life, the product and plans, end-of-life the place products affected taking those for communicated be be capability there And combined year, these or place overlap, taking next through no to about product will talked and And say, the products. customers. needless have the no We those to is will by test. of consolidation mid-XXXX in surviving

Operator

line of Tom from comes Your next the Diffely. question

Unidentified Analyst

on following Patrick's up there. I questions guess,

the Xcerra into Just fourth little basis, last two what maybe just see the trends in quarters, the a did more quarter. top-line want heading about from how to are information to get a

Jeffrey Jones

not the We they're that future seasonality. I detail. Jeff. of anticipate mean, to will it's in Tom, from break level don't immune the I that say out

that as perspective, it, - So immune they they're felt not seasonality so to I said, from well. the like I they think

Unidentified Analyst

we quarters historical Okay. point, get going a to At for any forma Xcerra? X are the pro kind any of last

Jeffrey Jones

not was SEC. filed at but We were just the already the it No, that an moment. with filed periods X-Ka, for

information there, Tom. So there's new no

Unidentified Analyst

on mind, assume the seasonality normal quarter the, then New fourth Year, seasonal Chinese in a trends of seasonal the when fourth normal on, maybe quarter, coming I fourth to is then strength talked you percentage about basis, kind your to of quarter, And quarter? and in third Okay. first what out the

Jeffrey Jones

back, with hard we're at... But moment, that's in of I would particular, Yes, periods to magnified the as kind through that I the working say. it's these sort now of it's Luis said, say slowdown smartphones. at mean, in in looking

Luis Müller

maybe or It's minus, seasonality. plus about percentage to from on plus fluctuation trough XX, the or minus peak low-teen

Just speaking here. out of memory

Unidentified Analyst

that's helpful. quickly I on And rate. Okay, guess, just then, the tax

that forward, Is XXXX. as for what a XX% rate? of kind about tax well talked long-term expect you You going

Jeffrey Jones

working that plan is moment, We're of view our year's but through the XX%. Yes. at the operating next preliminary

that where So rate a good little for XXXX, modeling We'll update to have I better a for be information. we'll XX% bit now. right higher think than but use we is as

Unidentified Analyst

When then is business is a final you that And Diamondxes at going be flat-panel Okay. the look the just on Diamondx, upgrade Or to display one question. driver new that in the product existing field? tool?

Luis Müller

Tom, this is this new is Luis. tool. essentially No,

general-purpose We #X And sort a SoC which the in you the small the as of Diamondx is is are tester. pointed market. still out, platform, a

so that new And large TDDI with test. here driver are sales panel instrumentation Diamondx or new display enables essentially

Operator

line Your comes from Ellis FBR] question of Craig Riley [B. next the

Craig Ellis

mobility I better to try Guys, wanted quarter. the dynamics in the understand first and

the there it it as that or is anything sales that And impact $X else clear But standpoint thermal from issues. did just Luis, million, the of turret well? X, given recurring and end the market the mobility was some to equipment the magnitude was impacted side some question collateral one, results? handler So on was an have

Luis Müller

or, with guess, the essentially products, in mobility also that consumer general had could taking mobility IoT-related. I quarter associated say was ICs, part handler essentially power We management you discrete semiconductors, driven, really small - The turret go into in drop RF it sales here, Craig. first products mobility all ICs, a the

usual, recurring, the is order an of lower it to than side. Now did impact, recurring but kind an create of is impact the that magnitude associated for an impact as equipment

Jeffrey Jones

quarter, then related was percentage our business. probably about on And a where in XX% recurring was the XX%. to you would of the the I XX-XX, if of Craig, miss basis, over it was revenue an say where look Yes, it's generally time about recurring XX%

Craig Ellis

was how quarter? fourth we the enter And of mobility the we in much mobility? as quarter mix Where are

Luis Müller

I that fingertips on Craig. data don't have point now, right my

Craig Ellis

Well, question. next can get. I'll Rich maybe Okay. the or move Jeff onto

just below imply you businesses Xcerra at more other directionally, that guidance think, would like I I the to tracking $XX guidance would the it know does little and So at bit as that bit at but million, we at Cohu below Jeff, Or want million specific significantly business million. the don't of seem looking be numbers, sound go out a reasonable? $XXX.X midpoint, that a business the a little would least give the period was one capacity impacted through of absorption? than $XXX

Jeffrey Jones

numbers, yes. Craig, yes, reasonable are those

Craig Ellis

Okay. is OpEx. with follow-up, really question The something a next different but than question focused on really Patrick's

we would home have early that a question nice demand to job sustainable the are more bringing $XX So something that extend year? a seasonal you see something environment million The snapback structural if stays we that are don't greater demand soft, we the a environment synergies. a that next and pull like is can sometime have if where savings there levers

Jeffrey Jones

there think, it's in organization as sort G&A engineering required should what's the well rationalize we nonessential we service go in downturn. or Well, the into and whether I a sales right, as always we to look and trying to it's projects, as of whether do,

Craig Ellis

with using And the assumptions frame what's the thinking that time target, the midterm get new target of $XXX think and One, below the we you're company underlying that. the comments Jeff, are then you some the some And midterm what following to million? that up that on as about model just about? the with sales on Okay. clarifying had the is of things X slide to

Jeffrey Jones

Okay.

markets we to handler And in define the it X rates than And as both years. contactors, in So combination the business achieving the then market single-digit for that's terms midterm, in it's the say tester X as low ATE million, market and XX% the growing I'd growth $XXX for digit, a growth the assumption and of excess then well. faster the it's well so is markets. that is of double-digit, double low certain growth as market as plus, of

Craig Ellis

then slide basis in the quarter. And What's a Xcerra earnings accretion earnings XX% that that same states the and for lastly, there's then queue, fourth for that on accretion jump back the I'll the results bullet you're the using? in

Jeffrey Jones

of share count? the terms In

Craig Ellis

either or in I accretion, statement of EPS is I and what what the could - so is total. earnings. convey terms can the that to amount math get basis the No, The you do the total wonder so XX% is and

Jeffrey Jones

that $X.XX - following here if with I'm guidance you're rate, you, math on not follow so your Well tax question. the somewhere you on EPS, completely the the Craig, in $X.XX, range.

Operator

Your Instructions] [Operator next Duley from Securities] [Steelhead David question comes the of line

David Duley

One clarification.

Is revenue because much. going bit. I increase elaborate maybe grow you to me a connection And size said the growing would the to million, you're but right assume your contactor of the that rate, it's so contactor think I million. market $XXX $XXX going on or to that was it's number? then just little help understand why

Luis Müller

Yes.

our about attachment that at contactor if of me sales, $XXX look one it's $XXX The we has Luis. the just Dave. potential correct thing grow handler to business million. is a just rate business size is the to Let This here, the million. now And to

looking the XG equipment term. is in over-the-air low long digits, handling over at on and solutions annual in initially out, And faster that conjunction millimeter-wave run focused our are in double addressing so Now deploying Jeff as that at at basically market pointed by rate, the we're than teens low well at at, as capitalizing opportunities contacting. primarily with thermal control test with and as primarily least, at automotive customers focused growing

David Duley

No, help us understand.

Cohu how some Could so this rate. you we connect high Xcerra high historically a understand had as share connect didn't might rate, think unfold? I that that and have as math pretty of can

Luis Müller

a has mean, to from business the handlers. And to a to for space years is rate gotten at That in attachment their back, long or been time. correct. of they have here contactors least Xcerra, acquired the close Dover I they few contactor very XXX%

ago. Cohu X.X this about business started front, the On years we

room significant to larger rate expand and a we and We of the technology, opportunities to are contactors' broader manufacturing Xcerra And to applications attachment have XX% this and leverage about infrastructure the service plan now base running able that to to field is deploy at so handlers. our Cohu handlers, the the there. on be

David Duley

and then important move And as going I with direct Xcerra you're in that relationship had And you an viewed think relationship. China Spirox historically, Okay. mentioned Taiwan. that to

why understand you share the me understand could So if another help you And there. in you quarter? what help handlers just the market could fourth gave advantage as going have given your an follow-up, us be guidance direct think then you should you in

Jeffrey Jones

had has long-term relationship a Xcerra with Spirox. So

I it think in the Credence. built China, or other the customers level, technical in one Taiwan; at a test back and Shanghai, understand XX from centers: the one test perhaps Nevertheless, years directly the to not team Xinzhu, more X development has even over but address X so Xcerra program months, last a to in with deal the request to capability instrumentation Xcerra bolster map. road actually only development, also goes

we the do additional business of leveraging believe is both plus the here, in So to infrastructure, we're go customers direct and level of And support. which sales the have already as region, countries. on asked to those Cohu's will door what increase for open up service in infrastructure essentially that that for, to

question, your outside of leading various that. supplier know the I a you for to the of what share. say, have we the of have in give and on don't don't today, industry data I But Needless second memory. handler part are segments on that's I As the the really across extent numbers market to number

David Duley

final one Okay, question.

handler kind As some have you're market. assuming or to products, end-of-life-ing you you're of exposure revenue situations be products mentioned do end-of-life I'm you to customers these some overlapping that's in going mentioning what going to products? where the themselves, of that Without

Jeffrey Jones

Dave, Jeff. this is

in minimal sort exposure got we've any revenue in So overlap terms the of of markets.

obviously, goal so the the a time. And same replacement is end-of-life product, introduce but particular to product a at

So And of if that's what we're pretty minor achievable. that, is we modeling think you terms will. dissynergies, in

Operator

the FBR] comes Your line from Craig next Riley Instructions] [Operator [B. of question Ellis

Craig Ellis

mention cash did of we fourth First and how XQ about should question, quarter? as Newco use generates relatedly, Jeff, the you beyond? for interest in think expense cash And the expected

Jeffrey Jones

that's payments as operations, the the we as million cash then about. we're And million. as balance move $X support to is the on going of XQ forward, support maintain well in expenditures, interest just Again, sheet. expense interest to I Yes, that capital to about dividend Sure. the talked $XXX

strategy. that's I now, how for $XXX pay this excess of conference to questions soon I further showing We'll will Rich the Yerganian. now delever, continue, can, no as as Operator fast like to and to we the as at go back down am strategy. time. to that's But as turn Anything go the So debt in to the evaluate forward. would we expect million Mr. we can. that situation evaluate though,

Richard Yerganian

Thank We good you, Kyle. today you. for a and call Thank us the everyone afternoon you evening. want have all joining to and hope thank on

Operator

Ladies wonderful have and today's participation, your gentlemen, and a day. this concludes for Thank you conference.

You may all disconnect.

Cohu (COHU) 5 Nov 182018 Q3 Earnings call transcript