Cohu (COHU) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $96.8 million, with 63% from recurring sources and a 28% quarter-over-quarter increase in recurring orders, mainly in the mobile segment.

• Net sales declined 10.1% year-over-year but increased 2.9% sequentially; results aligned with guidance.

• Restructuring program initiated in February targets $2 million in quarterly cost savings and aims to reduce manufacturing and operating expenses, with benefits expected from Q2 onward.

• Completed Tignis, Inc. acquisition for $34.9–$36.6 million to expand AI process monitoring and analytics offerings.

• Repurchased 432,288 shares for $8.6–$9 million during the quarter.

Financial highlights

• Q1 2025 GAAP net loss was $30.8 million ($0.66/share); non-GAAP net loss was $0.8 million ($0.02/share).

• Non-GAAP gross margin was 44.2%, with GAAP gross margin at 43.7%.

• Operating expenses for Q1 were $48.6 million, slightly below guidance due to restructuring.

• Cash and investments at quarter-end were $200.8–$201 million, down mainly due to the Tignis acquisition and share repurchases.

• CapEx was $11 million, primarily for the Melaka facility purchase.

Outlook and guidance

• Q2 2025 revenue is guided to $106 million, plus or minus $7 million, a 10% sequential increase.

• Q2 gross margin is forecasted at 45%, with operating expenses expected to be $48 million.

• Full impact of restructuring expected by early 2026, reducing quarterly OpEx to $47 million at $100 million revenue.

• Management optimistic about design-wins, recurring order growth, and expansion into new segments.

• No measurable cost impact from tariffs anticipated in Q2; ongoing supply chain adjustments to minimize future tariff effects.