On July 31, 2024, Cohu Inc (COHU, Financial) released its 8-K filing detailing its financial performance for the second quarter of fiscal 2024. Cohu Inc, a global supplier of semiconductor test and inspection handlers, reported net sales of $104.7 million and a GAAP loss of $15.8 million, or $0.34 per share, for the quarter. This performance fell short of analyst estimates, which had projected earnings per share of -$0.31 and revenue of $105.12 million.
Company Overview
Cohu Inc is a leading provider of semiconductor test and inspection handlers, micro-electro-mechanical system (MEMS) test modules, test contactors, and thermal sub-systems. The company's product portfolio includes Semiconductor ATE (Automated Test Equipment), Semiconductor Handlers, Interface Products such as test contactors, probe heads, and probe pins, Spares and Kits, Bare Board PCB Test Systems, and services. Cohu operates in one reportable segment: Semiconductor Test and Inspection Equipment.
Performance and Challenges
Cohu Inc's performance in Q2 2024 reflects ongoing challenges in the semiconductor industry. The company reported a GAAP loss of $15.8 million, or $0.34 per share, compared to a net income of $10.6 million, or $0.22 per share, in Q2 2023. For the first six months of 2024, net sales were $212.3 million with a GAAP loss of $30.4 million, or $0.65 per share, compared to net sales of $348.3 million and a net income of $26.3 million for the same period in 2023.
Financial Achievements
Despite the challenges, Cohu Inc achieved several milestones. The company reported non-GAAP results with a second quarter loss of $0.6 million, or $0.01 per share, and break-even results for the first six months of 2024. Additionally, Cohu repurchased 267,000 shares of its common stock for approximately $8.2 million during the second quarter.
Income Statement Highlights
| Metric | Q2 FY 2024 | Q1 FY 2024 | Q2 FY 2023 | 6 Months 2024 | 6 Months 2023 |
|---|---|---|---|---|---|
| Net Sales | $104.7M | $107.6M | $168.9M | $212.3M | $348.3M |
| Net Income (Loss) | $(15.8M) | $(14.6M) | $10.6M | $(30.4M) | $26.3M |
| Net Income (Loss) per Share | $(0.34) | $(0.31) | $0.22 | $(0.65) | $0.55 |
Balance Sheet and Cash Flow
As of the end of Q2 2024, Cohu Inc reported total cash and investments of $262.4 million. The company's balance sheet shows total assets of $1.04 billion, with current assets amounting to $546.1 million. Total liabilities stood at $78.6 million, with stockholders' equity at $896.2 million.
Management Commentary
“Cohu continued to execute well on new product development initiatives and delivered several design-wins to expand customer and addressable markets. We secured two customer awards for the new Krypton inspection metrology system, two Taiwanese OSATs adopted the Diamondx tester, and we landed a leading silicon carbide customer with our new cStrider power probe card,” said Cohu President and CEO Luis Müller. “Estimated test cell utilization improved for the second quarter in a row to 74%, a 2 point sequential increase from the March quarter. It is encouraging to see utilization improvements, particularly in computing and mobile segments.”
Future Outlook
Cohu Inc expects third quarter 2024 sales to be in the range of $95 million +/- $5 million. The company continues to focus on new product development and expanding its market reach, which could potentially improve its financial performance in the coming quarters.
For more detailed information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from Cohu Inc for further details.
