COHU - Earnings call 4 2023

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Operator

[Audio Gap]

available via the same page after the call concludes.

Now to the safe harbor.

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

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

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

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

Luis Müller

to test customers of manufacturing January manufacturing XX foot XX,XXX We facility was to which resilient and the of and a facility cycles. with Hi, refer gross or and margin quarter already we engineering, construction Cohu strong with XX% deliver approximately new test of per square non-GAAP $X.XX. share. continues interface opening were deliveries. X, non-GAAP XX% better to able ramping and XX.X% softening in through XXXX as the On EPS EPS $X.XX revenue. of event profitability on profitability products and record we new was at good Cohu line Fourth and afternoon. EQT held all market Late that revenue of last and of expand The acquisition with approximately set than October a contactor margin adjusted Equipped guidance in announced EBITDA to make the an fiscal test results gross conditions, to full non-GAAP year industry Philippines. . Despite we is recurring QX goal to quarter, the transferred contactors our completed deliver

growth the positioning to to efficiency The on recurring and cost expand products, and wave business, lead which significant aspect strategy of to last quickly X%. revenue. XX of goal improve continues delivered under inspection of be is over our compound a this time year, our rate of the company of platform, to of a A to X-year the analytics software. software respond of introduced capitalize Di-Core we demand next revenue growth. last solution Part interface quality, the new end our million Cohu's to $XXX and AI is lower Cohu's And at months with growing

customers We are new AI X pleased higher capability from pass receive that vision for to inspection yield. orders initial first delivers this

XX%, dropped Sats IDM fourth to sequential another at However, and to utilization X low of from customers, The end estimated and at softer our the test flat device customers, Cohu at is computing in across quarter. end while and quarter-over-quarter. held these utilization industrial market of with automotive segments entirely was the test cell mobile inspection announcements Similar XX% QX, markets. for with also demand XX%. at remained points semiconductor decline Utilization recent at low experiencing systems XX% other consumer

recently introduced We microphones, between We for manufacturer is signal the second major know a starting of in lab MEMS new and ratio orders development test the the sustained initial MicroSense, to the on semiconductor qualifications product cycles which to high tester year. in received from precision this for we words, And U.S. noise production microphones. other half and customer company focus recovery in for position the important up and new cycles well ramp. a

particularly data hyperscalers infrastructure. tester in China, display Diamondx expanding also and local new computing pursuing customers. alignment stronger several automotive We're IC manufacturing. qualified customers for center strategic with we're supporting Our inhalers, driver also

There tester Cohu's as edge signal Our is solution mixed the offering at personal during the power the cost-effective is other by a to affordable microcontrollers proprietary cost. to dissipation subsystems. itself devices low capabilities test an intelligent for testing is being edge that large trend and excellent future to also clear devices lends digital customers is considered to which node, Similarly, AI applications. device edge. well and thermal data a key higher technology is processors, a very ADAS center migrate DI-Core Diamondx for intelligent to Diamondx several our digital are SaaS thermal mid-range

Diamondx AI continuation goggles devices, the devices so for devices. a in and These like edge customers will broad of of very types new portfolio other and As AI-capable excited smartphones proliferation grows are XG excellent RF pursuing for mobile an We're or products fit deployment. the with of about of applications. [indiscernible] for next-generation

recovery of needs customers semiconductor as portfolio, to near-term Although software well of emerging second have our With major improves year Cohu to for test automotive respond half demand inspection We'll normal, subscriptions times subdued, our use forecasting and second XXXX. the half quickly customers' lead is utilization industrial back remain broaden cell positioned to been into XXXX. through recurring this is and continue a to the and our and center to grow to likely business. executing increased metrology of strategy the into Diamondx and our customers to and business, data now

lays automotive, applications. forecasts new the opportunities and what and in indicating being created industrial about ahead the growth with node. AI mobile excited market pretty edge for secular We're semiconductors at for

X provide quarter me and results. to fourth Jeff? details Let first it on further turn to now guidance. over Jeff quarter

Jeffrey Jones

Thanks, Luis.

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

financial Now XX% of profitability midpoint which XXXX year total million. revenue, of XXXX turning Systems $XXX.X the revenue XX% revenue. was $XXX.X Cohu consumable-driven of largely revenue than more above QX Recurring is results. our and guidance. million, revenue represented on revenue which the full year Full and is stable delivered strong in QX to

for And of sales. business for XX% full lower-than-forecasted year XXX Cohu's more in than higher sales. accounted manufacturing During for of costs and margin X products. customer was the the in XX% by more gross customer about XX.X%, fourth quarter, automotive XXXX, than and accounted recurring guidance market strong points QX differentiated resilient driven at One automotive market basis the than

XXXX XX.X% loss in and not quarters. was higher future dollar quarter and exposure year Operating currency expenses was was Swiss XX.X% a gross adjusted year the QX in year-over-year operating for QX income Full franc weakening with Cohu. guidance XXXX XX.X% XX.X%. euro non-GAAP in basis XX revenue, a points for for line XX%. million, and was sets $XX driven and annual was Fourth $X.X FX were which mainly margin Full onetime U.S. of EBITDA record new million. by at was operating and adjusted the income against repeat that will EBITDA is

approximately fourth In Non-GAAP effective this and for financial and EBITDA summary, for XXXX XX% was EPS full tax margin and gross were full higher effective year tax than of tax The QX XX%. and strong, $X.XX items EPS to true-ups the full through the flowing provision. adjusted discrete non-GAAP at QX was targets revenue. exceeding midterm due XXXX quarter year level rate $X.XX. was year XXXX guidance rate The tax was non-GAAP the and and for approximately QX the

by approximately repurchase XXX,XXX decreased million common million used Moving and and because to million stock. of investments of QX approximately to the shares Cohu we $XX balance to million EQT to $XX cash Cash sheet. during acquire $XXX $XX

prospects building quarter QX fourth facility our net in was we the interface million in in repayment per share. of cash related with growth $X.X with million. $X $X.XX QX totaled was million support the approximately long-term new ended for to construction XXXX, to Philippines the and $XX Total million CapEx of CapEx $X including business. approximately Debt new

was of Term Cohu Term B expand and the accelerated repurchase with increase portfolio to Last we our to repaid interest at to served markets approximately XXXX in like strong Overall, million. $XX.X technology $XXX,XXX net in of income debt program line support the the to October a current B share investment and rates. outstanding quarter growth balance and opportunities Loan and will mature EQT continues our by maintain scheduled payment The strategy. per sheet balance week, reduction, interest Loan

at our new stable, payroll We're and cycles. benefits, end quarter-over-quarter exercise approximately QX production to gross and consistent test in million range million, cell to Operating revenue reset $X our XX% QX we $X than financial first increase this facilities. model customers' the through to due reduce to annual at expenses business other half expenses tight better the action XXXX. and target are product products utilization to QX navigating industry moving operating light in revenue, the $XXX of guiding taxes recurring million approximately sacrificing the or of markets level Now control to without cycle. the minus reflecting through customer cash due to over differentiated subdued and adds low margin outlook. across this expenses investments We've be of of weakness million, projected trough for demand and is high-margin resilience QX forecasted provides Cohu's to plus profitability which flow part $XX critical the labor while taken in be to to of continue operating of for continued

in to As of million $X $XXX,XXX $XX.X per at and be expense interest interest income average QX. operating We're modeling rates. approximately offset QX approximately a to we're QX by quarter projecting million interest expenses current result, approximately through

rate is and approximately QX expect XX.X XXXX XX%. shares. The approximately count be QX diluted X%. We QX full adjusted million for to EBITDA is year tax The share non-GAAP be approximately forecasted expected to

remarks. And And now call that the open questions. our to concludes prepared we'll

Operator

first Ellis Our line the Securities. Instructions] B. question Craig of [Operator Riley comes from with

Unknown Analyst

in what for equipment be you performance as sounds also, into do It you how you This and Start, Craig half see seeing? takes relative are of the I was is between recurring? half year, Ellis. the calling Lydall may systems the spend Ethan back look like back And gives weighted? wondering,

Luis Müller

the customers point, we're information Luis. predominantly the that on this back the getting year. a towards relying Ethan, expecting recovery this customers of industrial are this is is our At automotive half generally recovery. from and And we're

mobile mobile we've inventories and some start the the have order already on device already a mobile Android at the seen space, in particularly pattern market. again the seen largely market, of the correction into look you If in

revenue. So pattern know, distribution half of you put the second of and recovery in again, the the add here can together I the the things some you a is, expectation Jeff, if year. X don't

Jeffrey Jones

Yes.

on systems being around that somewhere come that ratio. revenue with based trajectory, X%, somewhere revenue probably in XX% would in So recurring

Unknown Analyst

you we helpful. ecosystem, shoots green mobile? seeing Can some or read-throughs as mentioned. Android for in there seem That's the be And demand then speak utilization to any to for

Luis Müller

is I think in in a level second. Utilization mobile

think I collection customers. XX% mobile of it's the about across

only . of but So that's them. not Android, all

Operator

the comes Stifel. from And of our next line Chin with question Brian

Brian Chin

threshold utilization customer in that you'll monitor of kind the have of occur towards of crossover back view for pickup to a the recovery, sort Maybe against half that you and the first question, improvement half? your point particular second monitoring year of be maybe that indications terms will some in solidify

Luis Müller

monitoring a across. Brian. was we that utilization Yes, question If Yes. will there, be

I utilization QX. couple XX% that think as I commented pretty throughout actually is XX% of points at at a to It the QX. was end stable of here, down

we can in which So the also quite January, call the to on was honestly, had speak quarter X XX%. fourth here I months

now XX%. So row XX%. increase. XX% is a about pockets computing we've of of strength X ago got that It utilization monitor mobile got it. . [Audio a at quarters and in Gap] is pockets XX%, -- weakness I We to at mentioned at months and in X Consumer second at

ended quarter-over-quarter ] Auto down QX at industrial despite [ XX%. coming points X

Gap] [Audio

Operator

no further at showing I'm this And questions time.

call that, remarks. Chief to for with Jeff the closing over Jones any hand Officer, Financial So I'll back

Jeffrey Jones

just and you with you speaking everybody forward to I we look care. for soon. call, today's say Take . to thank want Yes. to joining

Operator

program. you participating. today's thank concludes for all Thank and This you.

You disconnect. may now

Cohu (COHU) 15 Feb 242023 Q4 Earnings call transcript