COHU - Earnings call transcript Q4 2021

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Operator

Good day. And thank you for standing by. Welcome to the Cohu Inc. Fourth Quarter and Full Year 2021 Financial Results Conference Call. At this time, all participants are in listen-only mode. will question-and-answer there presentation, the be session. a After that may be Instructions] Please conference advised be [Operator recorded. today's Officer. Instructions] [Operator I'd Financial to now the hand conference like over Jones, Jeff to Chief

Jeff Jones

to you, Müller. our fourth Thank XXXX first today I'm and XXXX results afternoon, and by good and our quarter conference to President discuss and call Cohu's outlook. joined quarter welcome CEO, Luis

after Relations. from by of be call need earnings in release, call Investor it a contacting be Replays access the section. or cohu.com copy today's our Investor this also the presentation our you accessed concludes. slide at available call If may website with page website a in will There's Cohu the you via of Relations on conjunction Cohu's may that same

Safe the Harbor. to Now,

call, encourage filings slide Cohu's which and to statements presentation XX-K XX-Q. on abrupt are concerning changes. forward-looking earnings management's filed statements During will the section including most as the we its based well recently but subject by you make nature statements These reflecting rapid forward-looking We Form the have as Cohu's business. today's even current Form release the we assessed, and of future that current information expectations SEC, with and the review to is

as occurring this after call. Our XXXX and February for developments update only today, comments Cohu speak to XX, of statements assumes no these obligation

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

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

Luis Müller

the our a capping demonstrating non-GAAP Full year up of in of industry. XX% XX%, our grew was strongest XXX% of model. revenue guidance. $XXX $XXX was Fourth us. than Full year five-year $X.XX the joining million midpoint for revenue year-over-year was revenue our scalability thanks business and higher everyone, and million EPS of EPS non-GAAP both afternoon, approximately of $X.XX the of one XXXX CAGR Good quarter year-over-year

inspection and a We also supported achieved expanded Coming past had design and QX, in of metrology, and interface revenue that into multitude had in significant a XXX% products wins automotive and growth the new our several products to XX% back design wins segments. industrial we customer customers in this ramp year-over-year of business, quarter.

Taiwanese customer; a and precision with wins on handler at T-Core T-Core automotive our other in at first thermal gaining automotive for receiving a and equipped being a growing order X for in order semiconductor front-end received of for and Diamondx captured in goal with Japanese few active to US-based power Diamondx applications. leading processors markets the presence traction China. The of for Wi-Fi and the segment; display business for interface the semiconductor orders tester testing with initial for control; and Cohu's leading the design by order semiconductor our that from suite; receiving this used new X qualified German this RF device design a order mobile from system In semiconductors on delivering from processors automotive shipment a internal driver testing selected ADAS a followed a and RF customer; displacing capturing a to Our devices tester and and Matrix adopting analog industrial and rack-and-stack RF Japanese manufacturer solution. PAx initial is handler first our customer's testing with testing volume thermal we're customer Wi-Fi manufacturer platform tester an leading module business win with contactors the Eclipse customer; RedDragon a Tier volume business, instrumentation secured customer semiconductor Korea-based PAx got active automotive OSAT line in control important expand an industrial the Korean XE sales

products. cautious environment customer opportunity I analytics by DI-Core of about with single-quarter supply we're our We of impact in the in and to the wins chain the and win Omicron lists But longest also Europe. next was few excited that this Our the remember of quarter one tight design in the broaden remain the potential months. traction a another In in at our test data can Diamondx all, ongoing of customer data interest my mid-term at an software path in tenure analytics test our and inspection utilization, many metrology revenue technology; tester; XX% We enter target. Cohu that semi we increasing on strong estimated our growing our for with applications qualifications XXXX our and gives interface confidence are meet cell demand with to backlog test DI-Core me Neon and and products; solution. capped expansion

mid-term targets As EPS financial and Cohu's revenue we non-GAAP a recently billion $X share. of of to $X increased per result,

and working the on product segments outsize customer qualify group, strategy portfolio the sensor to customers' industrial wins industrial tester is Additionally, drives typically align and in inspection further that improve augmenting particularly lifting high-performance their and product continued our data value to later delivering many the advanced large DI-Core year at to solutions have that starting at requirements XXXX; our a via single many is and emboldens which business, tighter new to gains prospects. year view forecast strong that interface RF from our customers deploying customers and RF for a We semiconductor vision the metrology and for mining don't growth our Cohu. have products planning growth but many in mobility of products our off automotive publicly also in manufacturers, be productivity. our and that quarterly mobility. design to several be packaging. business have growth in We're automotive the customer of segment; recent and quality semiconductor year benefit good and revenue another provided Neon power count aligning customers in new for another year applications in announced our XXXX expansion our which a XXXX, We results forecasts beyond in will recent to and market year this within for

consolidated Finally, to and we which Order be forecast margin handler drive continues supply the satisfy flow the this opportunities and from in secure challenge on will ROI assess strong strong chain always, gross high sequential as expansion will we and expect investments demand. moderate cash remains continue year. demand future to to to to XXXX, forecast And enough we make based potential.

and quarter Jeff? me Let share guidance. Jeff it results over QX now specifics our turn about to to fourth provide

Jeff Jones

Thanks Luis.

non-GAAP website. the note included Before the in including my the through are guidance, and other disclosures are results non-GAAP the QX all figures. Investor about presentation to earnings that and measures and page accompanying investor on Information follow I that of walk non-GAAP comments refer financial to QX release our located please which reconciliations GAAP the

the range. a full of results, higher was profitability million new Total revenue Now, QX for our financial and turning $XXX million the Cohu strong XX% Cohu revenue quarter. end in revenue guidance and was delivered year to at record. the and growing $XXX.X XXXX setting XXXX over

two During more of segment automotive than accounted for XX% customers the sales. each fourth quarter,

invested to XXXX non-GAAP end traction of revenue in to $XXX credits QX ROIC fourth key in net in quarter foreign of operating supplementing benefiting taxes. QX expenses recognized XXXX our due In coupled tax NOLs, in financial points of basis foreign and the revenue Fourth For guidance. full XXX XXXX gross approximately tax for and led targets about the operating adjusted capital was customer effective Full by recognized for Non-GAAP non-GAAP in with XX.X% and a expenses R&D tax from in gross margin. demand year federal strong was year income year the XX% for gross applied $X. markets also was our margin revenue year XX.X%. $XX.X XXXX, on lower XX%. Operating non-GAAP $X.XX. Cohu and credits XXXX were generated contributed XXX% fourth EPS. line full in than growth sales. with XX.X% and profitability as one was to in $X.XX XXXX Record profitability of target foreign increasing expand was adjusted automotive and margin operating segment EPS growth XX.X%. credits The recognition tax EBITDA Full million Full QX. line Return year we recent QX was our EPS approximately expansion $X.XX billion was at growing to XX% was was backlog were the the XX.X% year million for guidance. tax with revenue The credits, full a customer approximately approximately benefit XX% full rate income mid-term XX%. quarter and quarter for was was of of XX% mainly US and year $X midterm Cohu's fourth the fiscal year-over-year. US quarter accounted and QX year approximately of XXXX of EBITDA of The EPS to

grew balance cash relatively was million sheet, $XXX unchanged and million. at Moving the to total to the $XXX quarter-over-quarter debt

did markets the we make of expansion in the balance used remained modest remains opportunities of portfolio stock flow technology and mainly B share net expand our position to common approximately and to in $XX shares a with contactor Cohu's early is our cash the repayment to balance million strong operations program investment $X from of The balance voluntary $X.X strong quarter. fourth to our in reduction, support growth million. outstanding served a However, to is sheet of debt capital to Cash during additions operations QX debt overall. manufacturing repurchase line and strategy. Term XXXXXX Loan reduce million repurchase QX approximately support

be Now moving to and to between $XXX our QX million QX guiding revenue $XXX We're outlook. million.

our strong our utilization and for a Supply over beyond shortages customer QX As demand customers, for to among and material others wafers supply demand guidance on testers. due mentioned, pushed revenue and and I as well QX. shipments some constraints Cohu QX revenue our have semiconductors both bodes certain reflects challenging our resulting in dynamic midpoint revenue cell sequential were frames backlog, in shifts remains the customer chain in been increase revenue. lead QX QX, while remains and customers and remains growth of but into pulled small used test Order of small in strong

QX of projected to payment mix be approximately will approximately million, million. of quarter-over-quarter and uncertainty availability, at QX this about million made However, projecting time. to $X QX gross and on impact are the reflecting moderation revenue is revenue, approximately at a be automotive expenses improving $XX end We're in detail the future to tester forecasted approximately seeing supply handlers with repayment semiconductor a given to the we're growth January. quarterly chain further we're interest expense gross product be positive having already debt margin. and comment be operating test in and $X margin XX.X%. QX hesitant

be for to XX%. be QX forecast approximately guidance We expect the at XX% estimated And tax non-GAAP The of approximately adjusted at of XX.X QX rate EBITDA diluted million QX XXXX XX%. is share guidance. that the count midpoint prepared midpoint rate expected non-GAAP to our be is to approximately And concludes tax the year Full remarks. approximately shares. is

to questions. the your open call we'll Now,

Operator

question Instructions] Hari comes with [Operator Sachs. Our first from Goldman Toshiya

Toshiya Hari

Hi, bit It about the and follow-up. hoping Luis, you good I've in a on embedding also was impacting impact challenges some of of the my got talk you're do to afternoon. when are results you then supply thank you causes? supply directly taking quick environment. like What but abate? And question. the both little of perspective I some strong could looks outlook, customers. primary some a these Congrats sort your from for guys, expect QX you And impacting a your

Luis Müller

Toshiya. Yes, correct. you're Hi

continued modeling are substrates challenge as sourcing well lead We from customers wafers, sourcing both a and at frames our perspective. as

even and stage as motors, tight themselves. as discrete we supply own tightness bit now to some controllers, but of a instances few little electronic shifting a in the on So, several it's side situation. sourcing quantify, as pretty have remains components have hard sourcing for for well been customers the our in from quarters we understanding then our to chain some And at mentioning devices this semiconductor

Jeff Jones

I Toshi, that. to Maybe add can

the to shortage semi adjusted the through some $XX For of we're both $X customer as million delays as well modeling as shortage, we've supply as result QX chain by forecast a million our Luis -- semi explained.

Toshiya Hari

then different of in I your I follow-up, remarks And prepared Got you about are That's tests. your strong you in year thinking helpful. very talked wins about in XXXX, full design my how guys as products? think terms the guess Luis it. semiconductor

interface contactor handlers. also your on comments positive in had you think you I talked moderation And business. about

relative for about to curious those Thank but XXXX? how your buckets growth you're So thinking how you. three about large within are Cohu business SAM specifically, the you also thinking

Luis Müller

the at looking XXXX TAM we've here then. the a largely start We're the from been with that while the be at then to test for same this about end don't to saying Why we our the still is way changing tester and the now And And work to overall Sure. into we a of year What's and wins perspective, particularly $X.X SAM by changing. company portion half XXXX. here back little a fairly for to billion SAM have on scored penetrate last not what in market. that SAM. frankly XXXX. into We're SAM our is that second we is going emboldened that the play ability year-over-year at design

the driver automotive business. a see traction degree market, Also very to So with signal management in mixed DDIC test that to getting power in the display side. tester happy our in we're IC particularly market

doesn't rack-and-stack solutions our penetration the That's change the SAM; the SAM. side. into positive RFM It it the continue some more in-house well. opportunities and We get as so displacing in changes really too to

bit the to we are forecast contactor business penetrations continuing it'd side. up for We customers power difficult management new devices the On a be flat semiconductor gain analog is But to to market and like particularly X% more on in tests. new going and contactor think the look little precision somewhat to what XXXX.

On I talking should think side, a things. hope probably combination we about, we've automotive have share your automotive in moderate test a question the handler our with equipment. will our business and been down the One, have a market effect the answers in of test itself on such automation that conjunction handler moderation the business we in that similar Toshiya. that since large

Toshiya Hari

you Thank great. that’s details. Yeah, for the all

Operator

Chin question Stifel. comes next Our from with Brian

Brian Chin

do or letting thanks the Luis Hi questions. business? the there. QX ask Good you business, in to in than of to follow-up any of relative you're on brackets in more and even now. see around terms magnitude for not XQ, handler put you up duration terms to moderation last Maybe afternoon, would congratulations care on test the growth question the been strong in that still the Clearly have right guiding us you first constrained

have you and that vis-à-vis commentary many in And you so the call. earlier talked like looks it wins about some order offsets the do

put So just around any handler wondering the could more moderation brackets business? if you that in

Luis Müller

is million, we in the as that half that we $XX the be that as go think The I And business I know. also to to a out combination $XX for look be plus first a drivetrain handler here Sure. will in I particularly lack and I plus to to and well. we can. buy The I of there's the and the so-called going because Yes, think, environment being million if XXXX all XXXX. way we same moderation a or of electrification last XXXX XXXX year look very of, and the continues At you today very mean space be in that vehicles from we're constrained to netting handler semiconductors that a the the minus strong of progressing at automotive a had commenting in business time think rebound can't growth XXXX. here. in XXXX expected automotive of sort of going predominantly you negative sized in into growth you of about net rebound happened

Brian Chin

it. Got it. Got

as about number year. half what question to lot curious shipment initiatives disruptions that from of track? there's the gross if one Have the impacted of a pretty manufacturing. Wondering have revenue test a Southeast to Okay. And improvement expected And -- well? some discontinuities that end you That's some in meaningful margin standpoint I you of from those where extent the are know Asia helpful. that by the towards I'm second be a as have know on contactors. as are been out well I been at standpoint two still all you

Jeff Jones

we we significant a And QX position yes, suspected still bit increase so the ended XX%. Brian on contactors margin to above with the as a strong throughout there in gross little year. respect anticipating just

business. the So anticipating primarily in for with margin it's challenge. mid-XX% Asia, half workforce contactor still a been the Certainly gross second Philippines

don't just had result but we're And -- it. haven't challenge. a significant I continues so through downtime any it be to we working a as

Brian Chin

XQ something I of Okay. end make usually revenue XQ the speaks know products some to sort be stronger But any there's rate? to in that want will you're may much business? the business. And of think of you year-to-year a way I to and The sort that in your commentary terms don't ask enough. question again still that of And kind Do forward board think about speak about Fair I terms your tend about other know too on different. but periods. in of seasonal overlays the you seasonality. talking various of seasonality taking to effects demand supply to

Jeff Jones

can and you bit. go I'll a add little

seeing yes, far. QX looking had in strong So demand Brian a book-to-bill one over QX so it's strong still. and still pretty We in

So the The supply the there. chain. is wildcard demand still real is

Luis Müller

Yes.

I think that covers it.

Brian Chin

Thanks, Okay. guys.

Operator

comes Our Company. and Krish next from Sankar Cowen with question

Krish Sankar

had taking the XXXX. the thanks of opportunity Luis SAM I for two Thanks color them. or on in question. Jeff the for FY

tester flat that it that? if revenues and be it handler seems could FY a the XXXX So between all to of like on decent maybe low kind digits. or up Is together your proxy, roll contactor any I the single thoughts

Luis Müller

all is a we I it moderation spoke have together same Krish, you is reality in to. already I it What as we the together. Yes, the on all that XXXX market XXXX about the putting think when side the put handler is have do

that RFM, then continue of bubble customer PMIC tester as gains we business that growth well DDIC, expect the saw automotive even as sort to sort XXXX. $XX of we mixed that as tune And the the million had in gains do and into have XXXX. that tailwind here contactor have we So business signal from well of $XX the million of in in customer we with

that the market So same. in is the all story the XXXX. reality is a of more gaining blender, It's you share right SAM about put the and of in

Jeff Jones

Yes, that's true.

Krish one $XX They million Test last think PCB halfway million year. I our remember to through more contributed we that year. for is $XXX thing to last sold

gap make a to that we're that's looking up. So

Krish Sankar

shift Got the And just gross it. to is from And tester tailwind going for then path, for given towards margins. Super a follow for you're obviously that gross along improving contactors. color. mix more the then helpful. be same Thanks to handlers, that's the margin that your

optically just should it about So to the compared this last OpEx should given rising for we earnings. makes the that trying grow to gross margin all sense costs? And I'm the out implications think figure year. year How

Jeff Jones

that For Krish, what question? is your mentioned OpEx, in you had

Krish Sankar

one And does B, going number OpEx? make think gross how it A, to sense? margin about up

Jeff Jones

Okay.

So $XX million. we guided OpEx QX about at

have I a XXXX. OpEx think to have of range we're tight will we going for –

don't So $XX on have we $XX things anywhere that basis, from the range – we're quarter to some you variable more quarterly costs range to but commissions a quarter some million that have year revenue necessarily a probably of we that on will. just at seasonal But the not items is for of sort a travel $XX nature million. million call $XX depending only of a them million modeling if and that

Luis Müller

may through. But some that we from catch cost through had delays to been last up do pass to cost There a eventually year it we much have customers. like be we year last passing we And increases. those when increase like

Krish Sankar

much Perfect. Thanks, Jeff. and thanks, it. very Thank Luis, you appreciate

Operator

Riley from with Craig question next Our B. comes Securities. Ellis

Craig Ellis

a the by taking questions. wanted clarifying to just Yes. start I Thanks for point.

indicated $XX were about supply you you worth near-term that $X to the the issues seeing Jeff in million. million think I that chain were

ago that the have between to and three at you X% at three guide moving XX% terms you're XQ there we the that where months X.X% business X% $XX I or thinking grow the might of think dynamics the were as $X some look is looking from XX%, to and million million, So the we were months to in how difference ago? been X.X%

Jeff Jones

back into a Craig, more had QX. so little roll we

than our correct. yes, then had you're So midpoint as said we of supply a to QX was $X chain. And the revenue million to related – $XX guidance. bit impact there little million higher I a

Craig Ellis

it. Got

to is million you as distributed would Any half in Okay. duration Can across $XXX And that comment that at in second out into giving look the on helpful. you that just secondly, far Is nice visibility terms and what of the quarter? or you then seeing breadth that's is how through the backlog on just the really second of, be extending? And year, see the the color you're different how backlog. products?

Jeff Jones

two The duration meaningful. is some that beyond not There's quarters. but really up that, to goes it's

on color quarters. up it's to So two

perspective. to breakdown the of think basis of where on close terms the I a it's an were backlog, In annual we from revenue

probably last two quarter handlers certainly XX% the balance testers test over I would But close as a say, makeup then handlers stronger be the to gotten to have from would total XX% testers moderated. XX% Now and contactors. or automotive it's have and

Craig Ellis

active Got on given see valuation company at it. that let's million being me, you And the look the help us lastly quarter the about thinking program the year? ahead with just as utilizing levels. of versus is XX-year how you buyback then first where $X Can you're nice understand program, buyback for the see, to

Jeff Jones

be target be to going it's think to we the in similar to in is think the I did quarter first dilution really what going QX, I Craig. and to offset

to results would close I So close our somewhere something were. shares QX XXX,XXX model what to

Craig Ellis

hop queue I’ll the it. in back guys. Thanks very Got much, then.

Jeff Jones

Craig Thanks,

Operator

question with next from Needham. Our Quinn Bolton comes

Quinn Bolton

Hi, guys.

you takes talked a about Just QX, just Test range. into beyond perhaps you the the of seeing the some second have going million million. commenting it QX. QX QX, in business and for flattish quarter out of really guidance $XXX even growth continuing at of into QX you're at sequential sounds June the the for $XXX like, to the either first revenue like PCB but look the not quarter ex into big to puts sort wanted revenue either maybe be about you're a I kind or of walking million $XXX and shifting It sort year know picture seeing roughly feels to I ask through is quarter of XXXX.

I I'm with get you that than you flat do just just sort if of see to to be you stronger seems of imply, June? So wondering, guess, might to see. captured or normally of a whatever it March second perhaps agree pushes in half sort year a guys out might And

Jeff Jones

Well, in based of of hard quarter pushes into on to a recapture terms to trying out what uncertainty. March that's the do particular

So of one seeing similar a right market again, this now, revenues. is of what we're too There's much the last the just kind for indication of as lot went giving QX just But we're lot they of strength the uncertainty. in projections are any reasons of the it's a Luis and -- to indicators business good through, not year. were

what that too QX, comes it's of out whether So pushes the QX, QX moment. to just QX uncertain at

Quinn Bolton

You don't have the visibility.

Jeff Jones

Right.

this. we're so parameters of around any as put really can you hesitant kind to tell And

Luis Müller

It's too talk in far realistically second we're to to not year what's good that guess have just position educated out. Yeah, yet. going of happen to a half Quinn, soon about the of a

Quinn Bolton

risk confident you're to you be outlook Is that, that to flattish there's harder your is of kind of that ex-PCB fair do $XXX million say flattish it the million or what's Test $XXX to revenue, just would roughly that the of think timing the though sort revenue outlook? more year-on-year call in

Luis Müller

quarters, by the some confident say, sense see an both the the perhaps in the talked contactor We the these is first design growth revenue positively we about translating wins year. on of already. into the orders about. the this gross exciting. improvement got If we effect would we're of last volume improvements what in a on been Quinn, that their have increase the We see recently half That's talking snapback automotive two moderation a on of on and margin. I I business, we think for to surprised tester handler we're the due were in, the going would the saying, business would strength little which to confident we of into one we're business,

I would I'm supply out as a bit. it not; easing have side. disappointed started And that's tightness So chain little those remaining. thought are the in all expected. continued say, the playing we have on little it's would a

near So of in a bit aggravation creates more the than term expected. that here little we

So the second for half early way year expected a it's What of too playing out know far to remains we everything comment. challenge. is the for the to chain except supply

So how for the I point. at question don't answer your year know to full this

Quinn Bolton

Understood.

Okay, guys. Thank you very much.

Operator

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

Tom Diffely

Good Thank you. afternoon. Yes.

So side in about wins. to test to a hear in design the very nice I more on little dig RF want the just bit mini Japan.

big And is with So there? Luis, market? or competitors how currently that it are is being served specific there solutions, in-house

Luis Müller

and few few of of or one large perhaps over more penetration we customer a Japan on entrance. RF is customers leaders win a for working we win, than the important This but it potentially for win, one had to or more more beachhead mentioned, couple, the to us. a We've customers – are win. been got RFM a year, I So finally a ago, in I RF very mean, a a the they quarters couple of the the space. And think we as

important very a penetration that's So there.

RFM some for a had where also We in-house customer US Wi-Fi X design a at rack-and-stack wins we're displacing solution application. Wi-Fi and based Xe

think moment the So it RF. on the I that's for

Tom Diffely

margin? we and are just the there to And target any as of mix combination higher or model, scale, is Okay. Jeff, bridge from I'm model, results implement to other to the target curious, year's the that that side moving the to the gap Thank you product expansion need margin programs a on then get you. last to

Jeff Jones

the the two mix about contactors moderation and in items: key internal would terms be contactors of in Those the in the and more testers is there. No. scale And manufacturing really the growth handlers. then

factories. revenue the increasing Philippines-based, and product Japan-based flow the that yes Asia-based, So the through or

Tom Diffely

than just roughly in year target like, but there is And free free XX% the bigger model. seems it cash cash flow flow quickly very And there's cash XX% helpful. the on generation yield last a free Okay. the margins. That's then, on EPS or jump flow focusing cash for nice you're projecting

basis? what kind I'm bridge-the-gap of incremental just a curious, So the there on driver is

Jeff Jones

sheet a Yeah. inventory. This increase balance year on saw significant we and the and receivables

the to think the going to I improve a able there. So and and be DSOs we're better get churn inventory days

So the of us. front the and in actions that's target are those

Tom Diffely

you, Great. And both. thank

Jeff Jones

you. Yeah. Thank

Operator

Atif Our with next Citi. question from comes Malik

Atif Malik

Hi. improve. remember has about Luis, little to utilization But something seems to you were any side signs me and customers, being last it to starting if just curious Are early down just play a hear stabilized cyclicality Thanks conservative? question. you're year started or guys that it out? or on mobile taking bit auto handlers, my to this the and right I now, kind moderation coming talking there on like for from in the you that is your are you expect in correctly the test of

Luis Müller

No. think don't any it's speculation. I

automotive for normal of We first half we And back the tremendous year the that of the have in obviously started quarter. has then already expected a ramp and pattern seen in year to in last XXXX. fourth first the third here and the pretty test the in moderation the demand our seasonality quarter handlers quarter last

forecast, going hand half snapback in market. demand So of forecast, view that effect the that that backlog already. supports there's the repeat I last saw we aren't in to order the still itself. a on we lot automotive year, And just the that first much of unfulfilled think have pretty the

Atif Malik

But could strongest. XE. if within rank-order power versus this management touch on improving which test you that test versus driver RF that year. Great. can display the demand you demand is And is just the Wi-Fi then, market end rank-order understand I if can you if

Luis Müller

each penetration part it of to in our segments. our Well, in do penetration these has one with share

quarter Korea market, in very in the we That's a volume segment at tester share strongest RF XXXX, probably area DDIC growth prepared really be quarter. to due Japan, just if look into year. the the remarks: our qualification the some continue described for display starting we at moment I pure in a that's going to fourth had fact U.S. subsequent the in percentage growth of, win and We business to were that have I the RFM. but year-on-year in on bullish into the the that's our continue quarters one are customers very, strongest the important or to business, simply, and revenue here this this one the the So in the and Nevertheless, gain driver as will translate market. to as year-on-year, new

Taiwan, have qualified customers some the at customer existing reality devices We on in in new platform had testing at although OSATs. fabless

and is Also So a and even to business. Japan. happy signal DDIC really bit mixed volume that PMIC very by in by frankly translating see emboldened how traction fast traction into win in the surprised the

we can that in PMIC I a there's to need lot and mixed signal the think do side. and more

be I the would So will discussing more towards a we'll of that second year. the half of expect story that be perhaps

Atif Malik

Great. you. Thank

Operator

from next question Our comes Duley Steelhead. David with Instructions] [Operator

David Duley

headwind they for just was kind remarks. I Thanks customer. Teradyne your of taking have of the prepared of I'm curious my with test question. but largest for big part or I what growth year. this a missed flat, of it the size you apologize. their mentioned market think the kind rate

they mentioned and -- imagine growth business. mobility of Apple that decent the outside and pretty I there's So,

the rate So, is wondering what growth this the of what the market I'm for test business of be your year. of kind might guess

Luis Müller

particular. XX% as size as market our what the SOC our I the in given flat. pointed market, Teradyne claim out it we both claims SAM. SAM AVANTA the of tend about opportunities should saying growth looked Obviously, and in for David year-on-year size. you be growth I know mean, think more I Teradyne at a and our don't I on sort to focus talking market they're in that bellwether AVANTA XX%

in here, opportunities mentioned I the we're signal. really mixed DDIC in interesting PMIC seeing prior in and As question

like So design for are growing they wins. us, design wins or are says, realistically also it AVANTA recent markets those is because

business. So see tester think for opportunity growth business in XXXX. grow is we to our We our tester nicely going

far Teradyne the bellwether take guess, XX% I'll between growth grows, based on AVANTA. comments X% As say, somewhere it's I and as market and the and

David Duley

Okay.

just at expected elaborate parts to think in expect Could of you what point to share? or I gain your gain mentioned You that one in another you business XXXX. you share

Luis Müller

the contactor tester is side. on the It Sure. predominantly and

are We Taiwan. design really win our QX, and presence we a we in Korea market again done have have -- in in DDIC now seriously once in expanding good the

some including brought of our in and space RFM us. also that I is a the in. more way. mean, for management RFM, the XXXX. end our broke Japan So tremendous in just little done signal There do is opportunity US in in IC of DDIC we that presence not the bit by to these wins customers. and refresh That's and and the the road mixed power in some were We're expanding the we've a tester new in instrumentation

power of orders, and first to I side, are very that and think new revenues starting the we've good at the this quarter The year. quarter the applications. design contactor fourth analog had good different in some in rate we here products management and order the still getting precision all capture very got

So lastly tremendous with again has metrology. We attachment we so-called good do had year-over-year. revenue. in expect a the business this contactor to it really, XXXX. year-over-year really to year inspection XX% imaging in the mobile and grew in lot And capability with in XXX% infrared We it to a then We A grew do platform grow XXXX of device just applications. Neon 'XX.

packaging a new there have technology digital bring 'XX. semiconductor continues we customers where And to high-performance in the we're do vision that stack vertical later penetration We then to year expand that or XXXX. more targeting and in some win to expect stacking list thereafter into our into particularly of in XD is

growth primary in areas of for the So are the 'XX. business those

David Duley

the this. reasons you the per Excellent. expectations And what outline just in I'm addressed Street share above were. it for seems Jeff where a earnings But if bit the sorry Could quarter key that you December already then were were? like

Jeff Jones

had gain $XXX,XXX. better reasons: foreign a we revenue then currency margin Key little more a of slightly gross about and

those provision tax small credit opposed a $X benefit foreign in But realized then debit So some a on a credit we quarter a to the a are tax differences. drove which quarter. as million tax the in

to $X.XX EPS. added that So

David Duley

Got you. you. Thank

Operator

call remarks. for session. Jones turn some closing question-and-answer today's the to to Jeff back concludes I'd That like

Jeff Jones

everybody. soon. the Thank Appreciate joining you Thank you. you you right. All call and we'll talk to

Operator

concludes call. participating. conference Thank This for today's you

now disconnect. may You

Cohu (COHU) 11 Feb 222021 Q4 Earnings call transcript