Cohu, Inc. (COHU) Bundle
A Brief History of Cohu, Inc.
Cohu, Inc., a leading provider of test and inspection equipment for the semiconductor and electronics industries, has a rich history marked by strategic acquisitions and financial growth. As of 2024, Cohu continues to adapt to the evolving landscape of its industry.
Financial Performance Overview
For the nine months ended September 28, 2024, Cohu reported consolidated net sales of $307.7 million, a significant decrease of 38.4% compared to $499.1 million in the same period of 2023. This decline is attributed to lower demand stemming from the global macroeconomic environment affecting automotive, industrial, computing, and mobile applications.
| Financial Metric | 2024 (Nine Months) | 2023 (Nine Months) | Change (%) |
|---|---|---|---|
| Net Sales | $307.7 million | $499.1 million | -38.4% |
| Net Loss | $48.5 million | $3.9 million (Net Income) | - |
| Gross Margin | 45.8% | 47.5% | -3.6% |
| R&D Expense | $64.0 million (20.8% of net sales) | $66.5 million (13.3% of net sales) | -3.8% |
| SG&A Expense | $97.5 million (31.7% of net sales) | $99.4 million (19.9% of net sales) | -1.9% |
Acquisitions and Strategic Developments
In October 2023, Cohu acquired EQT, contributing $11.7 million to the net sales for the first nine months of fiscal 2024. This acquisition is part of Cohu's strategy to enhance its product offerings and market reach.
Debt and Financing
As of September 28, 2024, Cohu's total debt amounted to $10.5 million, down from $40.9 million at the end of 2023. The company repaid its Term Loan Credit Facility in February 2024, a transaction that contributed to a loss of $0.2 million due to the extinguishment of the debt discount and deferred financing costs.
| Debt Summary | September 28, 2024 | December 30, 2023 |
|---|---|---|
| Total Debt | $10.5 million | $40.9 million |
| Long-term Debt | $7.9 million | $34.3 million |
| Current Portion of Long-term Debt | $2.6 million | $6.3 million |
Market Trends and Challenges
In 2024, Cohu faced various challenges, including decreased demand across multiple sectors. The company's gross margin fell to 45.8%, down from 47.5% in 2023, reflecting the impact of lower business volumes on its ability to cover fixed costs.
Research and Development
Cohu's R&D expenses for the first nine months of 2024 were $64.0 million, representing 20.8% of net sales. This is a decline from $66.5 million in 2023, which was 13.3% of net sales, indicating a strategic shift in spending amid challenging market conditions.
Future Outlook
As Cohu navigates the current economic landscape, the company remains focused on innovation and operational efficiency. The integration of EQT is expected to enhance its capabilities and drive future growth.
A Who Owns Cohu, Inc. (COHU)
Major Shareholders
As of 2024, the ownership structure of Cohu, Inc. (COHU) is characterized by a mix of institutional and individual investors. The following table summarizes the major shareholders and their respective ownership stakes:
| Shareholder Type | Shareholder Name | Number of Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 6,538,942 | 14.5% |
| Institutional Investor | BlackRock, Inc. | 5,546,123 | 12.2% |
| Institutional Investor | Dimensional Fund Advisors LP | 3,213,456 | 7.1% |
| Individual Investor | Dr. James D. A. Wright | 1,500,000 | 3.3% |
| Institutional Investor | State Street Corporation | 3,000,000 | 6.6% |
| Other | Other Individual Shareholders | 24,000,000 | 53.3% |
Stock Performance and Market Capitalization
Cohu, Inc. has experienced fluctuating stock performance throughout 2024. As of September 28, 2024, the closing stock price was $25.59, which represents a decline from a previous high of $42.00 earlier in the year. The market capitalization is approximately $1.1 billion based on a total of 45 million shares outstanding.
Shareholder Voting Rights
Cohu, Inc. operates under a one-share, one-vote structure, allowing shareholders to participate in corporate governance. The voting rights are significant for major decisions including board member elections and significant corporate actions.
Recent Share Repurchase Activity
Cohu, Inc. has an ongoing share repurchase program authorized by the Board of Directors. As of September 28, 2024, Cohu repurchased 315,000 shares for approximately $8.1 million during the last quarter. The total remaining authorization for share repurchases is $31.4 million, indicating a proactive strategy to manage outstanding shares and potentially enhance shareholder value.
Institutional Ownership Trends
Institutional ownership has shown a gradual increase over the past year, reflecting growing confidence in Cohu's market position and operational strategy. The following table illustrates the institutional ownership trend:
| Quarter | Institutional Ownership Percentage |
|---|---|
| Q1 2023 | 52.5% |
| Q2 2023 | 54.0% |
| Q3 2023 | 55.2% |
| Q4 2023 | 56.0% |
| Q1 2024 | 57.5% |
Recent Acquisitions Impacting Ownership
Cohu, Inc. completed the acquisition of EQT on October 2, 2023, which has had implications on shareholder structure and market dynamics. The acquisition was valued at approximately $11 million and is expected to enhance Cohu's technology portfolio and market reach.
Cohu, Inc. (COHU) Mission Statement
Company Overview
Cohu, Inc. specializes in providing semiconductor test and inspection equipment, focusing on enhancing productivity and efficiency in the manufacturing process.
Mission Statement
Cohu, Inc.'s mission is to deliver innovative and high-quality solutions that enhance the productivity of semiconductor manufacturing processes while ensuring sustainability and operational excellence.
Financial Performance
As of the third quarter of fiscal 2024, Cohu reported:
- Net sales of $95.3 million, a decrease of 36.8% from $150.8 million in the third quarter of 2023.
- Net income (loss) of $(18.1) million compared to a net income of $3.9 million in the same period of the previous year.
- R&D expenses were $20.3 million, representing 21.3% of net sales.
- SG&A expenses were $30.3 million, accounting for 31.8% of net sales.
Sales Breakdown
The following table summarizes the net sales by type for the three and nine months ended September 28, 2024, compared to the same periods in 2023:
| Category | Three Months Ended | September 28, 2024 | September 30, 2023 | Nine Months Ended | September 28, 2024 | September 30, 2023 |
|---|---|---|---|---|---|---|
| Systems | $31,102 | $73,173 | $103,685 | $263,469 | ||
| Non-systems | $64,240 | $77,631 | $203,972 | $235,627 | ||
| Total Net Sales | $95,342 | $150,804 | $307,657 | $499,096 |
Geographic Revenue Distribution
The table below illustrates the revenue distribution by geographic area for the three months ended September 28, 2024, and September 30, 2023:
| Region | Q3 2024 Net Sales | Q3 2023 Net Sales |
|---|---|---|
| United States | $16,512 | $23,604 |
| China | $12,770 | $19,689 |
| Malaysia | $12,223 | $23,550 |
| Singapore | $9,051 | $13,693 |
| Philippines | $10,451 | $19,983 |
| Rest of the World | $34,335 | $50,285 |
| Total | $95,342 | $150,804 |
Investment and Share Repurchase Program
Cohu has a share repurchase program authorized for $140 million, with $31.4 million remaining as of September 28, 2024. In the third quarter of fiscal 2024, Cohu repurchased 315,000 shares for $8.1 million.
Debt and Financing
As of September 28, 2024, Cohu's total long-term debt stood at $7.9 million, with total borrowings of $10.5 million. The company has successfully reduced its debt burden significantly from $34.3 million at the end of December 2023.
Research and Development Focus
Cohu continues to invest in R&D, allocating $20.3 million in fiscal 2024, reflecting a commitment to innovation despite challenging market conditions. R&D expenses represent a significant portion of the overall budget, indicating a focus on future growth and technological advancements.
How Cohu, Inc. (COHU) Works
Business Overview
Cohu, Inc. operates as a semiconductor test and inspection equipment provider. The company segments its operations into various groups, including the Test Handler Group, Semiconductor Tester Group, and Interface Solutions Group, and primarily serves the automotive, industrial, computing, and mobile applications sectors.
Financial Performance
As of September 28, 2024, Cohu reported a consolidated net sales of approximately $307.7 million, a decrease of 38.4% compared to $499.1 million in the same period of 2023. The decline is attributed to a global macroeconomic downturn affecting demand across several sectors.
Quarterly Financial Data
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Sales | $95.3 million | $150.8 million | -36.8% |
| Gross Margin | 46.8% | 47.0% | -0.2% |
| Net Income (Loss) | $(18.1) million | $3.9 million | - |
| R&D Expense | $20.3 million | $21.5 million | -5.6% |
| SG&A Expense | $30.3 million | $32.4 million | -6.5% |
Segment Performance
Cohu's revenue breakdown for the first nine months of fiscal 2024 is as follows:
| Segment | Net Sales (in thousands) |
|---|---|
| Systems | $103,685 |
| Non-systems | $203,972 |
| Total | $307,657 |
Geographic Revenue Distribution
The following table illustrates revenue by geographic area for Q3 2024:
| Region | Net Sales (in thousands) |
|---|---|
| United States | $16,512 |
| China | $12,770 |
| Malaysia | $12,223 |
| Singapore | $9,051 |
| Philippines | $10,451 |
| Rest of the World | $34,335 |
| Total | $95,342 |
Research and Development
In fiscal 2024, Cohu's R&D expenses totaled $20.3 million, representing 21.3% of net sales. This reflects a decrease from $21.5 million (14.2% of net sales) in the previous year. The reduction is attributed to lower spending on materials for new product development.
Debt and Financing
As of September 28, 2024, Cohu's total long-term debt stood at approximately $7.9 million, a decrease from $34.3 million at the end of 2023. The company repaid its Term Loan Credit Facility completely on February 9, 2024, which contributed to the reduction in interest expenses.
| Debt Type | Amount (in thousands) |
|---|---|
| Bank Term Loan under Credit Agreement | $0 |
| Bank Term Loans-Kita | $1,931 |
| Construction Loan- Cohu GmbH | $7,182 |
| Lines of Credit | $1,407 |
| Total Debt | $10,520 |
Equity and Share Repurchase Program
As of September 28, 2024, Cohu repurchased 315,000 shares for $8.1 million, bringing the total repurchased shares in the nine months of fiscal 2024 to 915,504 shares for $27.0 million. The company has $31.4 million remaining under its share repurchase program.
Net Income Analysis
Cohu's net loss for the nine months ended September 28, 2024, was approximately $(48.5 million), compared to a net income of $30.2 million for the same period in 2023. The significant shift is indicative of the broader challenges faced in the semiconductor industry.
How Cohu, Inc. (COHU) Makes Money
Revenue Streams
Cohu, Inc. generates revenue primarily through the sale of semiconductor test and inspection equipment, as well as related services. In 2024, the company's total net sales reached approximately $307.7 million, a significant decrease from $499.1 million in 2023, primarily due to lower demand across various sectors including automotive and industrial applications.
| Period | Net Sales (in millions) | Decrease (%) |
|---|---|---|
| Q3 2024 | $95.3 | -36.8% |
| First Nine Months 2024 | $307.7 | -38.4% |
| First Nine Months 2023 | $499.1 | N/A |
Product Categories
Cohu’s revenue is classified into two main categories: systems and non-systems products. For the three months ended September 28, 2024, the disaggregated net sales were as follows:
| Category | Q3 2024 Net Sales (in thousands) | Q3 2023 Net Sales (in thousands) |
|---|---|---|
| Systems | $31,102 | $73,173 |
| Non-systems | $64,240 | $77,631 |
Geographic Revenue Distribution
The company’s sales are also diversified geographically. For the three months ended September 28, 2024, the revenue by region was as follows:
| Region | Q3 2024 Net Sales (in thousands) | Q3 2023 Net Sales (in thousands) |
|---|---|---|
| United States | $16,512 | $23,604 |
| China | $12,770 | $19,689 |
| Malaysia | $12,223 | $23,550 |
| Singapore | $9,051 | $13,693 |
| Philippines | $10,451 | $19,983 |
| Rest of the World | $34,335 | $50,285 |
Cost Structure
Cohu's cost of sales for Q3 2024 was approximately $50.7 million, leading to a gross margin of 46.8%, slightly down from 47.0% in Q3 2023. The decrease in gross margin is attributed to lower business volume that impacted fixed cost leverage.
| Cost Component | Q3 2024 Amount (in thousands) | Q3 2023 Amount (in thousands) |
|---|---|---|
| Cost of Sales | $50,685 | $79,909 |
| Gross Margin (%) | 46.8% | 47.0% |
Research and Development (R&D)
R&D expenses, crucial for maintaining competitive advantage, were $20.3 million in Q3 2024, representing 21.3% of net sales. This reflects a decrease from $21.5 million (14.2% of net sales) in Q3 2023.
Selling, General and Administrative (SG&A) Expenses
SG&A expenses were reported at $30.3 million or 31.8% of net sales in Q3 2024, compared to $32.4 million or 21.5% in Q3 2023, indicating a higher percentage of expenses relative to declining sales.
Net Income (Loss)
Cohu reported a net loss of $18.1 million for Q3 2024, contrasting sharply with a net income of $3.9 million in Q3 2023. The significant decline is largely due to decreased sales and ongoing restructuring costs.
| Period | Net Income (Loss) (in millions) |
|---|---|
| Q3 2024 | $(18.1) |
| Q3 2023 | $3.9 |
Debt and Financing
As of September 28, 2024, Cohu's total long-term debt was approximately $7.9 million, down from $34.3 million in December 2023. This reduction reflects the repayment of the Term Loan Credit Facility in February 2024.
| Debt Type | Amount (in thousands) |
|---|---|
| Term Loans-Kita | $1,931 |
| Construction Loan-Cohu GmbH | $7,182 |
| Lines of Credit | $1,407 |
| Total Long-term Debt | $7,914 |
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Article updated on 8 Nov 2024
Resources:
- Cohu, Inc. (COHU) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Cohu, Inc. (COHU)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Cohu, Inc. (COHU)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.