Cohu Reports Fourth Quarter and Full Year 2009 Operating Results
Wednesday, January 27, 2010
POWAY, Calif., January 27, 2010 -- Cohu, Inc. (NASDAQ:COHU) today reported fiscal 2009 fourth quarter net sales of $52.2 million and GAAP net income of $0.8 million or $0.03 per share. For its fiscal year ended December 26, 2009, the company reported net sales of $171.3 million and a GAAP net loss of $(28.2) million or $(1.20) per share. As previously announced, the net loss for the fiscal year ended December 26, 2009 includes a non-cash charge, recorded in the second quarter, of $19.6 million, or $0.84 per share, for an increase in the valuation allowance against our deferred tax assets.
The company also reported non-GAAP results, with fourth quarter 2009 net income of $2.5 million or $0.11 per share and a fiscal year 2009 net loss of $(1.9) million or $(0.08) per share.
Sales of semiconductor equipment accounted for 74% of fiscal 2009 fourth quarter sales. Microwave communications equipment and video cameras and related equipment contributed 16% and 10%, respectively, for the same period.
Orders were $68.8 million for the fourth quarter of 2009 and $55.0 million for the third quarter of 2009. Orders for semiconductor equipment were $60.0 million in the fourth quarter of 2009 compared to $46.9 million in the third quarter of 2009. Total consolidated backlog was $79.1 million at December 26, 2009 compared to $62.5 million at September 26, 2009. Cohu expects first quarter 2010 sales to be approximately $53 million. These sales exclude up to $14 million in revenue for semiconductor test handlers that may be recognized in the first quarter upon customer acceptance.
James A. Donahue, President and Chief Executive Officer, stated, "Amid growing indications of improvement in the semiconductor equipment industry, Cohu was profitable for the second consecutive quarter on a non-GAAP basis. The order momentum that began in Q3 continued into the fourth quarter, from a broad base of customers for our test handling systems. Unit orders for test handlers increased 42% from the third quarter."
Donahue continued, "All operations were profitable on a non-GAAP basis in the fourth quarter. For the year, our microwave communications equipment business achieved record sales and operating income. This, coupled with cost reduction measures and strict cash management, enabled Cohu to generate positive cash flow from operations in 2009, during the global recession and one of the worst downturns in the semiconductor equipment industry."
Donahue concluded, "Our new pick and place test handlers, Pyramid and Matrix, are installed on customer test floors and we have received follow-on orders for both products. We are particularly pleased with the significant increase in orders at Rasco, for both gravity and test-in-strip handlers, that began in Q3 and is continuing. The positive trend in customer forecasts is encouraging."
Cohu's Board of Directors approved a quarterly cash dividend of $0.06 per share payable on April 23, 2010 to shareholders of record on March 9, 2010. 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 and the deferred tax asset valuation allowance. 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 concerning Cohu's new products and expectations of business conditions, orders, sales, revenues and operating performance 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, inventory, goodwill and other intangible 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; 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. Cohu assumes no obligation to update the information in this release.
About Cohu:
Cohu is a supplier of test handling, burn-in and thermal solutions used by the global semiconductor industry, microwave communications and closed circuit television equipment.
Cohu will be conducting their conference call on Wednesday, January 27, 2010 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. Contact: Jeffrey D. Jones - Investor Relations (858) 848-8106
Full Press Release including Consolidated Statements of Operations and Consolidated Balance Sheets
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