Cohu Provides Business Update for the Fourth Quarter Ending December 26, 2020
December 01 2020 - 4:05PM
Business Wire
Cohu, Inc. (NASDAQ: COHU), a global leader in back-end
semiconductor equipment and services, today provided a business
update and an upward revision to its fiscal fourth quarter 2020
guidance:
- Forecasting record orders in fourth quarter, driven by RF
tester share gains and accelerating automotive segment demand.
- Expecting fourth quarter revenue of $195 to $200 million, a 31%
sequential increase at mid-point over third quarter.
- Strong momentum is projected to continue, with first quarter
2021 revenue expected to be approximately 5% higher than our
updated fourth quarter guidance.
- The company further reduced its term loan B debt associated
with the financing of the Xcerra acquisition in October 2018 by
$20.9 million fourth quarter-to-date.
Luis Müller, President and Chief Executive Officer of Cohu,
commented, “We are encouraged by our fourth quarter order momentum,
continued ramp of our RF test solutions, accelerating automotive
segment demand, and our drive to further improve operational
efficiencies. With these business trends and our team’s outstanding
execution, we are well positioned for growth in 2021.”
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.
Forward-Looking Statements:
Certain statements contained in this release and accompanying
materials may be considered forward-looking statements within the
meaning of the U.S. Private Securities Litigation Reform Act of
1995, including statements regarding record orders expected in
fourth quarter, RF tester share gains and ramp of RF test
solutions, accelerating automotive segment demand, updated guidance
for fourth quarter revenue of $195 to $200 million, strong momentum
being expected to continue with first quarter 2021 revenue expected
to be approximately 5% higher than the updated fourth quarter
guidance, drive to further improve operational efficiencies, Cohu
being well positioned for growth in 2021, and any other statements
that are predictive in nature and depend upon or refer to future
events or conditions, and include words such as “may,” “will,”
“should,” “would,” “expect,” “anticipate,” “plan,” “likely,”
“believe,” “estimate,” “project,” “intend,” and other similar
expressions among others. Statements that are not historical facts
are forward-looking statements. Forward-looking statements are
based on current beliefs and assumptions that are subject to risks
and uncertainties and are not guarantees of future performance.
Actual results could differ materially from those contained in
any forward-looking statement as a result of various factors,
including, without limitation: The ongoing global COVID-19 pandemic
has adversely affected, and is continuing to adversely affect, our
business, financial condition and results of operations, and
COVID-19 could re-surge at any time and our business could be
abruptly impacted again to an even greater extent; Other
significant risks associated with the Xcerra acquisition,
integration and synergies including the failure to achieve the
expected benefits of the acquisition, and mandatory ongoing
impairment evaluation of goodwill and other intangibles whereby
Cohu could be required to write off some or all of this goodwill
and other intangibles; Continued availability of capital and
financing and additional rating agency downgrade actions, and
limited market access given our high debt levels; Our Credit
Agreement contains various representations and negative covenants
that limit our business flexibility; Changes to or replacement of
LIBOR may adversely affect interest rates; Adverse investor
reaction to the recently suspended cash dividend; Other 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; Lost
productivity, project delays and internal control risks due to
ongoing employee “work from home” programs; 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; Market demand and
adoption of our new products; Customer orders may be canceled or
delayed; Design-wins may or may not result in future orders or
sales; 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 and ongoing tax examinations; Geopolitical
issues, trade wars and Huawei/HiSilicon export restrictions
(including new restrictions effective in May and August 2020);
Retention of key staff; Other health epidemics or natural
disasters; ERP system implementation issues particularly as Cohu
recently launched a new ERP system in first quarter 2020 and plans
a broader rollout in 2020; The seasonal, volatile and unpredictable
nature of capital expenditures by semiconductor manufacturers
particularly in light of weakened demand in 2019 followed by the
COVID-19 global pandemic in 2020; and Rapid technological
change.
These and other risks and uncertainties are discussed more fully
in Cohu’s filings with the SEC, including the most recently filed
Form 10-K and Form 10-Q, and the other filings made by Cohu with
the SEC from time to time, which are available via the SEC’s
website at www.sec.gov. Except as required by applicable law, Cohu
does not undertake any obligation to revise or update any
forward-looking statement, or to make any other forward-looking
statements, whether as a result of new information, future events
or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20201201005202/en/
Jeffrey D. Jones – Investor Relations (858) 848-8106
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