- Q2 sales of $76.4 million, up 16%
sequentially
- Design-win at Korean customer with the
Eclipse handler
- Cash from operations was
$7.4 million for the second quarter of 2016
Cohu, Inc. (NASDAQ:COHU) today reported fiscal 2016 second
quarter net sales of $76.4 million and GAAP income of
$2.7 million or $0.10 per share. Net sales for the first
six months of 2016 were $142.1 million and GAAP income was
$0.8 million or $0.03 per share.
The Company also reported non-GAAP results, with second quarter
2016 income of $5.9 million or $0.22 per share and income
of $7.4 million or $0.27 per share for the first six
months of 2016. (1)
GAAP Results (1)
(in millions, except per
share amounts)
Q2 FY
2016
Q1 FY
2016
Q2 FY
2015
6 Months
2016
6 Months
2015
Net sales $ 76.4 $ 65.8 $ 75.2 $ 142.1 $ 138.7 Income (loss)
$ 2.7 $ (1.9) $ 3.9 $ 0.8 $ 2.2 Income (loss) per share
$0.10 $(0.07) $0.15 $0.03 $0.08
Non-GAAP Results (1)
(in millions, except per share amounts)
Q2 FY
2016
Q1 FY
2016
Q2 FY
2015
6 Months
2016
6 Months
2015
Income $ 5.9 $ 1.5 $ 7.2 $ 7.4 $ 8.8 Income per share
$0.22 $0.06 $0.27 $0.27 $0.33
(1) On June 10, 2015 the Company sold
its mobile microwave communication equipment segment, Broadcast
Microwave Services, Inc. (“BMS”) and, as a result, the operating
results of BMS have been presented as discontinued operations. All
amounts presented are from continuing operations.
Total cash and investments at the end of the second quarter were
$117.9 million.
"Second quarter results were better than forecast," said
President and Chief Executive Officer Luis Müller. "Demand for our
thermal handlers in automotive and computing was capped by the
successful introduction of the new NY32 turret platform at large
European and Japanese-based customers. We received the first order
from a market leading Korean company for testing non-memory devices
with the Eclipse handler and interest is growing in our contactors
that are under evaluation at several customers."
Cohu expects third quarter 2016 sales to be approximately
$68 million. Cohu's Board of Directors approved a quarterly
cash dividend of $0.06 per share payable on October 21, 2016 to
shareholders of record on August 26, 2016. 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,
manufacturing transition costs, employee severance costs, and asset
impairments. 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
regarding expectations of business, sales, revenues and operating
results 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 under development into
production on a timely basis, support product development and meet
customer delivery and acceptance requirements for next generation
equipment; our reliance on third-party contract manufacturers;
failure to obtain customer acceptance resulting in the inability to
recognize revenue and accounts receivable collection problems;
customer orders may be canceled or delayed; 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. The forward-looking
statements included in this release speak only as of the date
hereof, and Cohu does not undertake any obligation to update these
forward-looking statements to reflect subsequent events or
circumstances.
About Cohu:
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.
Cohu will be conducting their conference call on Thursday, July
28, 2016 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.
COHU, INC. CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited) (in thousands, except per share amounts)
Three Months Ended (1)
Six Months Ended (1)
June 25, June 27,
June 25, June 27,
2016 2015
2016
2015 Net sales
$
76,353 $ 75,211
$ 142,131 $ 138,658 Cost and
expenses: Cost of sales
49,669 49,509
96,006 92,811
Research and development
8,305 7,731
16,108 16,296
Selling, general and administrative
15,015
13,811
28,385 26,083
72,989 71,051
140,499 135,190 Income from operations
3,364 4,160
1,632 3,468 Interest and other, net
59 4
102
10 Income from continuing operations before taxes
3,423 4,164
1,734 3,478 Income tax provision
761 277
983
1,311 Income from continuing operations
2,662
3,887
751 2,167
Discontinued operations:
Loss from discontinued operations before
taxes (2)
(55 ) (3,959 )
(55 ) (4,973 ) Income
tax provision
- -
- 6 Loss from discontinued operations
(55 ) (3,959 )
(55
) (4,979 ) Net income (loss)
$ 2,607
$ (72 )
$ 696 $ (2,812 )
Income (loss) per share: Basic: Income from continuing operations
$ 0.10 $ 0.15
$ 0.03 $ 0.08 Loss from
discontinued operations
0.00 (0.15 )
0.00 (0.19 )
$ 0.10
$ 0.00
$ 0.03 $ (0.11 )
Diluted: Income from continuing operations
$ 0.10 $
0.15
$ 0.03 $ 0.08 Loss from discontinued operations
0.00 (0.15 )
0.00
(0.19 )
$ 0.10 $ 0.00
$
0.03 $ (0.11 )
Weighted average shares used in computing
income (loss) per share: (3)
Basic
26,711 26,059
26,514 25,905 Diluted
27,358 26,722
27,350
26,620 (1)
The three- and six-month periods ended June 25, 2016 and June 27,
2015 were comprised of 13 weeks and 26 weeks, respectively. On June
10, 2015 the Company sold its mobile microwave communication
equipment business and, as a result, the operating results of BMS
have been presented as discontinued operations and all prior period
amounts have been reclassified accordingly. (2) Prior year
amounts include the loss generated by the sale of our mobile
microwave communication equipment business totaling $2.9 million
and $3.0 million in the three- and six-month periods ended June 27,
2015, respectively. (3) The Company has utilized the
"control number" concept in the computation of diluted earnings per
share to determine whether a potential common stock instrument is
dilutive. The control number used is income from continuing
operations. The control number concept requires that the same
number of potentially dilutive securities applied in computing
diluted earnings per share from continuing operations be applied to
all other categories of income or loss, regardless of their
anti-dilutive effect on such categories.
COHU, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands)
(Unaudited)
June 25, December
26,
2016 2015
Assets: Current assets: Cash and
investments
$ 117,928 $ 117,022 Accounts receivable
62,705 59,832 Inventories
50,815 51,348 Other current
assets
8,137 6,261 Total current assets
239,585 234,463 Property, plant & equipment, net
18,665 19,000 Goodwill
60,753 60,264 Intangible
assets, net
22,085 25,297 Other assets
6,408
6,322 Total assets
$ 347,496 $ 345,346
Liabilities & Stockholders’ Equity: Current liabilities:
Deferred profit
$ 6,876 $ 3,730 Other current
liabilities
57,654 59,461 Total current
liabilities
64,530 63,191 Other noncurrent liabilities
43,129 44,018 Stockholders’ equity
239,837
238,137 Total liabilities & stockholders’ equity
$ 347,496 $ 345,346
COHU, INC.
Supplemental Reconciliation of GAAP Results to Non-GAAP
Financial Measures (Unaudited) (in thousands, except per share
amounts) Three Months Ended June 25, March 26,
June 27, 2016 2016 2015
Income (loss) from operations - GAAP basis (a) $ 3,364 $
(1,732 ) $ 4,160 Non-GAAP adjustments: Share-based
compensation included in (b): Cost of goods sold 170 (66 ) 198
Research and development 294 416 254 Selling, general and
administrative 1,187 1,607 1,294
1,651 1,957 1,746 Amortization of intangible assets included
in (c): Cost of goods sold 1,348 1,329 1,361 Selling, general and
administrative 443 439 384
1,791 1,768 1,745 Manufacturing transition and severance
costs included in (d):
Cost of goods sold
- 75 - Selling, general and administrative 276
65 311 276 140
311 Income from operations - non-GAAP basis
(e) $ 7,082 $ 2,133 $ 7,962 Income
(loss) from continuing operations - GAAP basis $ 2,662 $ (1,911 ) $
3,887 Non-GAAP adjustments (as scheduled above) 3,718 3,865 3,802
Tax effect of non-GAAP adjustments (f) (477 ) (437 )
(476 ) Income from continuing operations - non-GAAP basis $
5,903 $ 1,517 $ 7,213 GAAP income
(loss) from continuing operations per share - diluted $ 0.10 $
(0.07 ) $ 0.15
Non-GAAP income from continuing operations
per share - diluted (g)
$ 0.22 $ 0.06 $ 0.27
Management believes the presentation of
these non-GAAP financial measures, when taken together with the
corresponding GAAP financial measures, provides meaningful
supplemental information regarding the Company's operating
performance. Our management uses these non-GAAP financial measures
in assessing the Company's operating results, as well as when
planning, forecasting and analyzing future periods and these
non-GAAP measures allow investors to evaluate the Company’s
financial performance using some of the same measures as
management. Management views share-based compensation as an expense
that is unrelated to the Company’s operational performance as it
does not require cash payments and can vary in amount from period
to period and the elimination of amortization charges provides
better comparability of pre- and post-acquisition operating results
and to results of businesses utilizing internally developed
intangible assets. Manufacturing transition costs relate
principally to employee severance expenses incurred as a
result of moving certain manufacturing activities to
Asia as part of our cost reduction efforts and employee
severance are costs incurred in conjunction with the termination of
certain employees to streamline our operations and reduce costs.
Management has excluded these costs primarily because they are not
reflective of the ongoing operating results and they are not used
to assess ongoing operational performance. Excluding this data
provides investors with a basis to compare Cohu’s performance
against the performance of other companies without this
variability. However, the non-GAAP financial measures should not be
regarded as a replacement for corresponding, similarly captioned,
GAAP measures. The presentation of non-GAAP financial measures
above may not be comparable to similarly titled measures reported
by other companies and investors should be careful when comparing
our non-GAAP financial measures to those of other companies.
(a) 4.4%, (2.6)% and 5.5% of net sales, respectively.
(b) To eliminate compensation expense for employee stock options,
stock units and our employee stock purchase plan. (c) To eliminate
the amortization of acquired intangible assets. (d) To eliminate
manufacturing transition and employee severance costs. (e) 9.3%,
3.2% and 10.6% of net sales, respectively. (f) To adjust the
provision for income taxes related to the adjustments described
above based on applicable tax rates. (g) Computed using 27,342
diluted shares outstanding for the three-month period ended March
26, 2016 as the effect of dilutive securities was excluded from
GAAP diluted common shares due to the reported net loss under GAAP,
but are included for non-GAAP diluted common shares since the
Company had non-GAAP net income. All other periods presented were
computed using number of GAAP diluted shares outstanding for the
period.
COHU, INC. Supplemental Reconciliation of
GAAP Results to Non-GAAP Financial Measures (Unaudited) (in
thousands, except per share amounts)
Six Months Ended
June 25, June 27, 2016 2015
Income from operations - GAAP basis (a) $ 1,632 $ 3,468
Non-GAAP adjustments: Share-based compensation included in
(b): Cost of goods sold 104 313 Research and development 710 585
Selling, general and administrative 2,794
2,546 3,608 3,444 Amortization of intangible assets included
in (c): Cost of goods sold 2,677 2,746 Selling, general and
administrative 882 774 3,559 3,520
Manufacturing transition and severance costs included in
(d): Cost of goods sold 75 - Selling, general and administrative
341 350 416 350 Asset impairment
included in selling, general and administrative (e) -
273 Income from operations - non-GAAP basis
(f) $ 9,215 $ 11,055 Income from continuing
operations - GAAP basis $ 751 $ 2,167 Non-GAAP adjustments (as
scheduled above) 7,583 7,587 Tax effect of non-GAAP adjustments (g)
(914 ) (926 ) Income from continuing operations -
non-GAAP basis $ 7,420 $ 8,828 GAAP income per
share - diluted $ 0.03 $ 0.08 Non-GAAP income per share -
diluted (h) $ 0.27 $ 0.33
Management believes the presentation of
these non-GAAP financial measures, when taken together with the
corresponding GAAP financial measures, provides meaningful
supplemental information regarding the Company's operating
performance. Our management uses these non-GAAP financial measures
in assessing the Company's operating results, as well as when
planning, forecasting and analyzing future periods and these
non-GAAP measures allow investors to evaluate the Company’s
financial performance using some of the same measures as
management. Management views share-based compensation as an expense
that is unrelated to the Company’s operational performance as it
does not require cash payments and can vary in amount from period
to period and the elimination of amortization charges provides
better comparability of pre- and post-acquisition operating results
and to results of businesses utilizing internally developed
intangible assets. Manufacturing transition costs relate
principally to employee severance expenses incurred as a
result of moving certain manufacturing activities to
Asia as part of our cost reduction efforts and employee
severance are costs incurred in conjunction with the termination of
certain employees to streamline our operations and reduce costs.
Management has excluded these costs primarily because they are not
reflective of the ongoing operating results and they are not used
to assess ongoing operational performance. Impairments are incurred
when specific assets carrying value exceeds its fair
value. Management has excluded this item because it is not
reflective of the ongoing operating results and because of the
infrequent and non-cash nature of this activity. Excluding this
data provides investors with a basis to compare Cohu’s performance
against the performance of other companies without this
variability. However, the non-GAAP financial measures should not be
regarded as a replacement for corresponding, similarly captioned,
GAAP measures. The presentation of non-GAAP financial measures
above may not be comparable to similarly titled measures reported
by other companies and investors should be careful when comparing
our non-GAAP financial measures to those of other companies.
(a) 1.1% and 2.5% of net sales, respectively. (b) To
eliminate compensation expense for employee stock options, stock
units and our employee stock purchase plan. (c) To eliminate the
amortization of acquired intangible assets. (d) To eliminate
manufacturing transition and employee severance costs. (e) To
eliminate the asset impairment charge recorded in the first quarter
of 2015. (f) 6.5% and 8.0% of net sales, respectively. (g) To
adjust the provision for income taxes related to the adjustments
described above based on applicable tax rates. (h) All periods
presented were computed using number of GAAP diluted shares
outstanding for each period.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160728006563/en/
Cohu, Inc.Jeffrey D. Jones - Investor Relations(858)
848-8106
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