Cohu (COHU) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $104.7 million, meeting guidance, with 66% recurring revenue and a non-GAAP gross margin of 45.1%.

• GAAP net loss for Q2 2024 was $15.8 million ($0.34 per share); non-GAAP net loss was $0.6 million ($0.01 per share).

• New product launches included the Krypton inspection/metrology system and cStrider power probe card, with customer wins in automotive, aerospace, and SiC markets.

• Test cell utilization improved to 74%, with sequential gains in computing and mobile, and automotive/industrial at 77%.

• Opened an engineering design center in Penang, Malaysia, for test instrumentation development.

Financial highlights

• Q2 2024 revenue: $104.7 million, down from $168.9 million in Q2 2023 and $107.6 million in Q1 2024.

• Non-GAAP gross margin: 45.1%; GAAP gross margin: 44.8%.

• Adjusted EBITDA: $4.0 million (3.8% of sales), down from $33.4 million (19.8%) in Q2 2023.

• Net loss per diluted share: $0.34 GAAP; non-GAAP EPS: $0.01 loss.

• Cash and investments at quarter-end: $262.4 million.

Outlook and guidance

• Q3 2024 revenue guidance: $95 million ± $5 million, with gross margin expected around 45%.

• Q3 recurring revenue expected at 68%, systems at 32%.

• Operating expenses projected to decrease to ~$46 million; adjusted EBITDA expected at ~1%.

• Q3 non-GAAP tax provision: $1.8 million.

• Recovery in computing and mobile expected in Q4 2024, with industrial and automotive lagging into 2025.