Cohu Inc (COHU) Reports Mixed Q4 and Full Year 2023 Financial Results
Net Sales: Q4 net sales decreased to $137.2 million from $191.1 million in Q4 of the previous year.
GAAP Net Income: Reported a GAAP loss of $2.0 million in Q4, compared to a net income of $21.6 million in the same quarter last year.
Non-GAAP Net Income: Non-GAAP income stood at $11.1 million for Q4, down from $33.5 million in Q4 of the prior year.
Earnings Per Share: GAAP loss per share of $0.04 in Q4, with non-GAAP earnings per share of $0.23.
Full Year Performance: Full year net sales were $636.3 million with GAAP income of $28.2 million or $0.59 per share.
Balance Sheet Strength: Ended the year with $335.7 million in cash and investments after paying off Term Loan B principal.
Share Repurchase: Cohu repurchased 390,285 shares for approximately $12.8 million during the fourth quarter.
On February 15, 2024, Cohu Inc (NASDAQ:COHU), a leading supplier of semiconductor test and inspection handlers, reported its fourth-quarter and full-year financial results for 2023. The company announced a decrease in net sales to $137.2 million for the quarter, down from $191.1 million in the same period last year. The full-year net sales amounted to $636.3 million. The company experienced a GAAP net loss of $2.0 million, or $0.04 per share, in the fourth quarter, contrasting with a net income of $21.6 million, or $0.45 per share, in the fourth quarter of the previous year. However, on a non-GAAP basis, Cohu reported income of $11.1 million, or $0.23 per share, for the quarter, and $77.9 million, or $1.62 per share, for the full year. The full details of the financial results can be found in the company's 8-K filing.
Cohu Inc's product portfolio includes Semiconductor ATE, Semiconductor Handlers, Interface Products, Spares and Kits, Bare Board PCB Test Systems, and services. The company operates primarily in two segments: Semiconductor Test and Inspection Equipment, which is the major revenue contributor, and PCB Test Equipment.
The company's financial achievements, such as the full repayment of its Term Loan B principal and the repurchase of shares, reflect its commitment to maintaining a strong balance sheet and returning value to shareholders. These actions are particularly important in the semiconductor industry, where capital-intensive operations and rapid technological changes require firms to maintain financial flexibility.
Key financial metrics from the income statement include a year-over-year decrease in net sales and net income, which are critical indicators of the company's top-line growth and profitability. The balance sheet shows a robust cash position, which is essential for the company's strategic initiatives and operational stability. The cash flow statement details the company's liquidity and financial health, with the pay-off of debt highlighting its focus on reducing financial liabilities.
Cohu President and CEO Luis Muller commented on the results:
"Fourth quarter results were in-line or better than guidance with strong gross margin and profitability. We launched AI inspection software with two customers and opened our new factory in the Philippines which is ramping manufacturing of test contactors, both aligned with our strategy to expand recurring business. Cohu achieved recurring revenue of $310 million over the last twelve months with a 3-year compound growth rate of 5%. Although demand for systems is likely to remain subdued in the near-term, our customers have been forecasting a recovery for the second half of 2024."
The company's performance reflects the broader challenges facing the semiconductor industry, including cyclical demand and intense competition. Despite these challenges, Cohu's strategic initiatives, such as the launch of AI inspection software and the opening of a new factory, are aimed at expanding its recurring revenue and positioning the company for future growth.
Cohu expects first-quarter 2024 sales to range between $101 million and $113 million, indicating a cautious outlook for the near term. The company's management will discuss the fourth-quarter results in a conference call and webcast, providing an opportunity for investors to gain further insights into Cohu's performance and strategy.
For investors and stakeholders, Cohu Inc's latest financial report provides a comprehensive view of the company's current financial health and future prospects. The company's focus on innovation and operational efficiency, combined with its strong balance sheet, positions it to navigate the semiconductor industry's challenges and capitalize on potential market recoveries.
For more detailed financial information and analysis, interested parties are encouraged to visit Cohu's investor relations website and attend the live conference call and webcast.
Explore the complete 8-K earnings release (here) from Cohu Inc for further details.
This article first appeared on GuruFocus.
