Cohu Increases First Quarter Guidance and Announces Acceptance of New Eclipse XTA Handler by Large Korean Customer
March 21 2018 - 7:00AM
Business Wire
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% to 43.5%.
- 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.”
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.
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.
Forward-Looking Statements:
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.
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version on businesswire.com: https://www.businesswire.com/news/home/20180321005326/en/
CohuInvestor RelationsJeffrey D. Jones, 858-848-8106
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