Cohu Reports Second Quarter 2010 Operating Results
Wednesday, July 21, 2010
POWAY, Calif., July 21, 2010 -- Cohu, Inc. (NASDAQ:COHU) today reported fiscal 2010 second quarter net sales of $74.9 million and GAAP net income of $6.7 million or $0.28 per share. Net sales for the first six months of 2010 were $139.7 million and GAAP net income was $7.6 million or $0.32 per share.
The Company also reported non-GAAP results, with second quarter 2010 net income of $8.7 million or $0.36 per share and net income of $11.8 million or $0.49 per share for the first six months of 2010.
Sales of semiconductor equipment accounted for 87.6% of fiscal 2010 second quarter sales. Microwave communications equipment and video cameras and related equipment contributed 6.5% and 5.9%, respectively, for the same period.
Orders were $95.4 million for the second quarter of 2010 and $81.8 million for the first quarter of 2010. Orders for semiconductor equipment were $84.8 million in the second quarter of 2010 compared to $74.7 million in the first quarter of 2010. Total consolidated backlog was $116.6 million at June 26, 2010 compared to $96.1 million at March 27, 2010. Cohu expects third quarter 2010 sales to be approximately $83 million.
James A. Donahue, Chairman, President and Chief Executive Officer stated, "On a 15% sequential increase in sales, Cohu's Q2 non-GAAP operating income increased to 14.9% compared to 6.3% in Q1. Consolidated and semiconductor equipment orders of $95.4 million and $84.8 million, respectively, are new company records. We obtained initial customer acceptance of our new Pyramid thermal handler, enabling Cohu to recognize revenue associated with multiple Pyramid handlers in Q2."
Donahue concluded, "Unit orders for handlers increased by 32% compared to the first quarter and demand was strong for both pick-and-place and gravity systems. Equipment utilization on customer test floors remains high, forecasts are strong and order momentum has continued into the third quarter."
Cohu's Board of Directors approved a quarterly cash dividend of $0.06 per share payable on October 29, 2010 to shareholders of record on September 3, 2010. Cohu has paid consecutive quarterly cash dividends since 1977.
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, inventory step-up adjustments and the deferred tax asset valuation allowance. 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, July 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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