Cohu Inc (COHU) Q3 2024 Earnings Call Highlights: Navigating Market Challenges with Strategic Wins

GuruFocus.com11-01

Revenue: $95.3 million for Q3, in line with guidance. Recurring Revenue: Represented 67% of total revenue in Q3. Gross Margin: 47.1% for Q3, higher than guidance. Operating Expenses: $45.2 million for...

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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nCohu Inc (COHU) Q3 2024 Earnings Call Highlights: Navigating Market Challenges with Strategic Wins\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-01 15:19 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/cohu-inc-cohu-q3-2024-071951405.html><strong>GuruFocus.com</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Revenue: $95.3 million for Q3, in line with guidance.\nRecurring Revenue: Represented 67% of total revenue in Q3.\nGross Margin: 47.1% for Q3, higher than guidance.\nOperating Expenses: $45.2 million for...</p>\n\n<a href=\"https://finance.yahoo.com/news/cohu-inc-cohu-q3-2024-071951405.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"COHU","symbol_name":"科休半导体","start_time":0,"source_url":"https://finance.yahoo.com/news/cohu-inc-cohu-q3-2024-071951405.html","article_id":"2480689027","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/m8t9sIHvO4Smqn8dP3MI2w--~B/aD0xODA7dz0xODA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/us.finance.gurufocus/98639e1076bd3de842dd86384e2c5b3c"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2480689027","pubTimestamp":1730445591,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Revenue: $95.3 million for Q3, in line with guidance.Recurring Revenue: Represented 67% of total revenue in Q3.Gross Margin: 47.1% for Q3, higher than guidance.Operating Expenses: $45.2 million for Q3, lower than guidance by approximately $1.6 million.Cash and Investments: Increased by $7 million during Q3 to $269 million.Cash Flow from Operations: $17 million for Q3.Share Repurchase: $8 million used to repurchase 315,000 shares.Capital Expenditures: $2 million related to factories in the Philippines and Germany.Q4 Revenue Guidance: $95 million plus or minus $7 million.Q4 Operating Expenses: Projected to increase by about $1 million to approximately $46 million.Q4 Non-GAAP Tax Provision: Expected to be approximately $3.1 million.Basic Share Count for Q4: Expected to be approximately 46.5 million shares.GuruFocus has detected 3 Warning Signs with COHU.Cohu Inc  anticipates a flat revenue outlook for Q4, indicating ongoing challenges in navigating the cyclical trough of the semiconductor","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"COHU":"科休半导体"},"translate_title":"Cohu Inc(COHU)2024年第三季度收益看涨期权亮点：以战略胜利应对市场挑战","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"COHU":1},"content_text":"Revenue: $95.3 million for Q3, in line with guidance.\nRecurring Revenue: Represented 67% of total revenue in Q3.\nGross Margin: 47.1% for Q3, higher than guidance.\nOperating Expenses: $45.2 million for Q3, lower than guidance by approximately $1.6 million.\nNon-GAAP Operating Income: Approximately breakeven for Q3.\nAdjusted EBITDA: 2.3% for Q3.\nNon-GAAP EPS: $0.08 loss for Q3.\nCash and Investments: Increased by $7 million during Q3 to $269 million.\nCash Flow from Operations: $17 million for Q3.\nShare Repurchase: $8 million used to repurchase 315,000 shares.\nCapital Expenditures: $2 million related to factories in the Philippines and Germany.\nQ4 Revenue Guidance: $95 million plus or minus $7 million.\nQ4 Gross Margin Forecast: Approximately 44%.\nQ4 Operating Expenses: Projected to increase by about $1 million to approximately $46 million.\nQ4 Non-GAAP Tax Provision: Expected to be approximately $3.1 million.\nBasic Share Count for Q4: Expected to be approximately 46.5 million shares.\n\n\nWarning! GuruFocus has detected 3 Warning Signs with COHU.\n\nRelease Date: October 31, 2024\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.\n Positive Points \n\nCohu Inc (NASDAQ:COHU) reported a sequential increase in systems revenue in the automotive and mobile segments, with mobile showing a 13% year-over-year growth.\nThe company secured a significant test cell design win with a top five automotive semiconductor manufacturer, enhancing its position in the power management device testing market.\nCohu Inc (NASDAQ:COHU) made progress in entering the memory and silicon carbide power semiconductor markets, with a notable customer order for its neon inspection metrology platform.\nThe company is expanding its recurring revenue through its AI inspection software, which has shown promising customer engagement and interest.\nCohu Inc (NASDAQ:COHU) maintains a strong balance sheet with $269 million in cash and investments, supporting its growth strategy and share repurchase program.\n\n Negative Points \n\nCohu Inc (NASDAQ:COHU) experienced declines in the computing, consumer, and industrial segments, offsetting gains in other areas.\nThe company's Q3 gross margin, while strong, benefited from one-time factors such as the utilization of previously reserved inventory.\nOperating expenses were lower than guidance due to delays in new hires and higher vacation utilization, indicating potential challenges in workforce management.\nThe Q3 tax provision reflected tax expenses on foreign profits without a benefit from the US loss, due to a valuation allowance against deferred tax assets.\nCohu Inc (NASDAQ:COHU) anticipates a flat revenue outlook for Q4, indicating ongoing challenges in navigating the cyclical trough of the semiconductor market.\n\n Q & A Highlights \nQ: Luis, regarding the mobile segment, is the recent strength a sign of a turnaround, or was it just seasonal? A: Luis Muller, CEO: Mobile revenue was up 13% year-on-year, and bookings increased sequentially across all market segments, except consumer. This suggests a potential turnaround as we head into 2025.\nQ: Can you elaborate on the revenue potential for the neon and die-level burn-in tests next year? A: Luis Muller, CEO: The market sizing is split among suppliers. For HBM inspection, we are entering a market largely dominated by HMI. We expect to intercept a production ramp in the summer, but it's too early to predict how quickly we'll capture market share.\nQ: Jeff, you mentioned orders tracking up 10% for Q1. Does this imply sequential revenue growth? A: Jeffrey Jones, CFO: Yes, we project Q1 revenue to be 10% higher than Q4, indicating a break from normal seasonality patterns, which haven't been seen for nearly two years.\nQ: Regarding the automotive business, is the improvement due to a specific customer, or is it a broader trend? A: Luis Muller, CEO: Automotive bookings and revenue improved quarter-over-quarter and year-over-year, indicating a broader trend rather than being driven by a single customer.\nQ: Can you provide more details on the HBM opportunity and competition? A: Luis Muller, CEO: We are not competing with companies like Camtech or Onto. Our focus is on stacked die inspection metrology, which is different from their wafer-level inspection.\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.This article first appeared on \nGuruFocus.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2480689027"}