Cohu Reports First Quarter 2010 Operating Results
Wednesday, April 21, 2010
POWAY, Calif., April 21, 2010 -- Cohu, Inc. (NASDAQ:COHU) today reported fiscal 2010 first quarter net sales of $64.8 million and GAAP net income of $0.9 million or $0.04 per share. The Company also reported non-GAAP results, with first quarter 2010 net income of $3.1 million or $0.13 per share.
Sales of semiconductor equipment accounted for 86% of fiscal 2010 first quarter sales. Microwave communications equipment and video cameras and related equipment contributed 8% and 6%, respectively, for the same period.
Orders were $81.8 million for the first quarter of 2010 and $68.8 million for the fourth quarter of 2009. Orders for semiconductor equipment were $74.7 million in the first quarter of 2010 compared to $60.0 million in the fourth quarter of 2009. Total consolidated backlog was $96.1 million at March 27, 2010 compared to $79.1 million at December 26, 2009. Cohu expects second quarter 2010 sales to be approximately $75 million.
James A. Donahue, Chairman, President and Chief Executive Officer, stated, "Cohu achieved a third consecutive quarter of non-GAAP profitability and was also profitable on a GAAP basis in the first quarter of 2010. Sales exceeded our previous expectations, as a result of higher revenue in our semiconductor test handler operations, due in part to the recognition of additional deferred revenue on new test handler products that gained customer acceptance during the first quarter."
Donahue continued, "Both consolidated and semiconductor equipment orders were at the highest level since the first quarter of 2000. Unit orders for test handlers in Q1 increased 42% sequentially and a remarkable 650% year-over-year. Demand was strong for all major handler products. Rasco had another excellent quarter, including record quarterly orders, supporting our view that Rasco is gaining market share in the gravity and test-in-strip handler markets."
Donahue concluded, "Semiconductor sales are improving and customer forecasts for our equipment continue to strengthen, typically with requirements for fast delivery. We expect volatility in near-term capacity requirements, but customer sentiment remains positive."
Use of Non-GAAP Financial Information:
Included within this press release are non-GAAP financial measures that supplement the Company's Condensed Consolidated Statements of Operations prepared under generally accepted accounting principles (GAAP). These non-GAAP financial measures adjust the Company's actual results prepared under GAAP to exclude charges and the related income tax effect for share-based compensation, the amortization of acquired intangible assets and inventory step-up adjustments. Reconciliations of GAAP to non-GAAP amounts for the periods presented herein are provided in schedules accompanying this release and should be considered together with the Condensed Consolidated Statements of Operations.
These non-GAAP measures are not meant as a substitute for GAAP, but are included solely for informational and comparative purposes. The Company's management believes that this information can assist investors in evaluating the Company's operational trends, financial performance, and cash generating capacity. Management believes these non-GAAP measures allow investors to evaluate Cohu's financial performance using some of the same measures as management. However, the non-GAAP financial measures should not be regarded as a replacement for (or superior to) corresponding, similarly captioned, GAAP measures.
Forward Looking Statements:
Certain matters discussed in this release, including statements concerning Cohu's new products and expectations of business conditions, orders, sales, revenues and operating performance are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those projected or forecasted. Such risks and uncertainties include, but are not limited to, our ability to convert new products under development into production on a timely basis, support product development and meet customer delivery and acceptance requirements for next generation equipment; failure to obtain customer acceptance resulting in the inability to recognize revenue and accounts receivable collection problems; customer orders may be canceled or delayed; inventory, goodwill and other intangible asset write-downs; the concentration of our revenues from a limited number of customers; intense competition in the semiconductor test handler industry; our reliance on patents and intellectual property; compliance with U.S. export regulations; and the cyclical and unpredictable nature of capital expenditures by semiconductor manufacturers. These and other risks and uncertainties are discussed more fully in Cohu's filings with the Securities and Exchange Commission, including the most recently filed Form 10-K and Form 10-Q. Cohu assumes no obligation to update the information in this release.
About Cohu:
Cohu is a supplier of test handling, burn-in and thermal solutions used by the global semiconductor industry, microwave communications and video equipment.
Cohu will be conducting their conference call on Wednesday, April 21, 2010 at 1:30 p.m. Pacific Time/4:30 p.m. Eastern Time. The call will be webcast at www.cohu.com. Replays of the call can be accessed at www.cohu.com.
For press releases and other information of interest to investors, please visit Cohu's website at www.cohu.com. Contact: Jeffrey D. Jones - Investor Relations (858) 848-8106
Full Press Release including Consolidated Statements of Operations and Consolidated Balance Sheets
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