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6 Months : From Feb 2018 to Aug 2018
Expecting Sales of Approximately $93 Million with Higher Gross Margin
in the First Quarter
Cohu, Inc. (NASDAQ: COHU), a leading supplier of semiconductor
equipment, today announced that a major Korean customer has qualified
the new Eclipse XTA handler, generating earlier than anticipated revenue
recognition. As a result, the company now expects the following
revisions to first quarter 2018 guidance:
Sales increasing to approximately $93 million from prior guidance of
approximately $89 million.
Non-GAAP gross margin expanding from prior guidance to a range of 43%
Non-GAAP research and development costs expected to be approximately
$1 million lower than prior guidance.
Foreign currency loss estimated to be approximately $1.5 million,
based on information currently available to the company.
Cohu continues to project approximately 10% growth in the first half
of 2018 compared to the same period last year.
Luis Müller, President and Chief Executive Officer of Cohu, commented,
“We are encouraged by the accelerated qualification and product
acceptance of our Eclipse XTA handler by this major customer in Korea.
This is the second significant customer success in the first quarter,
following our January announcement that a large automotive semiconductor
leader selected the MATRiX handler and our multi-beam test contactors.
Together, these two customers are expected to add 2-3 points of handler
share gains in 2018, while also providing increased confidence in our
growth projections for our contactor business.”
The Eclipse XTA handler delivers scalable performance for testing a wide
range of semiconductors, from analog ICs to high performance mobile
processors, in a fully automated semiconductor test operation. This
handler’s capabilities include interface to factory robots, new
diagnostics and process monitoring systems, sophisticated communications
interface as well as data acquisition to support Industry 4.0 standards.
Christopher Bohrson, Vice President and General Manager of Cohu’s
Digital Test Handler business, stated, “The Eclipse XTA is the first
handler in the industry to enable operation in a lights-out automated
factory. We are excited to be on the forefront of the robotics
revolution in semiconductor test, working alongside this leading Korean
customer. The initial target application for this customer is testing
analog semiconductors, with potential follow-on business for Cohu and
applicability for this technology in additional device segments.
Further, the know-how and technologies utilized to develop the Eclipse
XTA can be implemented over time across our product portfolio as
customers participate in the Industry 4.0 revolution.”
Cohu is a leading supplier of semiconductor test and inspection
handlers, micro-electro mechanical system (MEMS) test modules, test
contactors and thermal sub-systems used by global semiconductor
manufacturers and test subcontractors.
Discussion of Non-GAAP Financial Measures:
This release includes presentation of preliminary estimates of certain
non-GAAP financial measures for the quarter ended March 31, 2018,
including non-GAAP gross margin and research and development expense.
These non-GAAP estimated financial measures adjust the Company's
forecasts prepared under GAAP to exclude charges and the related income
tax effect for share-based compensation, the amortization of acquired
intangible assets, manufacturing transition costs, employee severance
costs, acquisition related costs, fair value adjustment to contingent
consideration, purchase accounting inventory step-up included in cost of
sales, the reduction of an uncertain tax position liability and related
indemnification receivable and U.S. Tax Reform. Non-GAAP financial
measures should be viewed in addition to, and not as an alternative for,
the company’s results prepared in accordance with GAAP. In addition, the
non-GAAP measures the company is using may differ from non-GAAP measures
used by other companies. Because GAAP financial measures on a
forward-looking basis are neither accessible nor deemed to be
significantly different from the non-GAAP financial measures, and
reconciling information is not available at this time without
unreasonable effort, with regard to the non-GAAP financial measures in
this release, the company has not provided that information.
Certain matters discussed in this release, including statements
regarding revised first quarter 2018 financial guidance, increased sales
and gross margin; decreased operating expenses; estimated foreign
currency loss; meeting first half 2018 year-over-year growth
projections; business prospects, growth and revenue recognition with a
major Korean customer; growth projections in the contactor market; and
specific handler share gain projections 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, risks
associated with acquisitions; inventory, goodwill and other asset
write-downs; our ability to convert new products into production on a
timely basis and to support product development and meet customer
delivery and acceptance requirements for new products; our reliance on
third-party contract manufacturers and suppliers; failure to obtain
customer acceptance resulting in the inability to recognize revenue and
accounts receivable collection problems; revenue recognition impacts due
to ASC 606; market demand and adoption of our new products; customer
orders may be canceled or delayed; the concentration of our revenues
from a limited number of customers; intense competition in the
semiconductor equipment industry; our reliance on patents and
intellectual property; compliance with U.S. export regulations; impacts
from the Tax Cuts and Jobs Act of 2017; geopolitical issues; ERP system
implementation issues; the seasonal, volatile and unpredictable nature
of capital expenditures by semiconductor manufacturers; and rapid
technological change. 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.
The forward-looking statements included in this release are not
assurances, and speak only as of the date of this release, and Cohu does
not undertake any obligation to update these forward-looking statements
to reflect subsequent events or circumstances.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180321005326/en/
CohuInvestor RelationsJeffrey D. Jones, 858-848-8106