The following is a summary of the Cohu, Inc. (COHU) Q4 2023 Earnings Call Transcript:
Financial Performance:
Cohu reported Q4 revenue of $137.2 million, with full year 2023 revenue reaching $636.3 million.
Recurring revenue represented 54% of total revenue in Q4 and 49% of full year 2023 revenue.
Q4 gross margin stood at 48.5%, and full year margin was 47.9%.
The company used $43 million to acquire EQT and $13 million to repurchase 390,000 shares of its common stock.
Cohu ended Q4 with net cash of $6.17 per share. Net interest income is expected to increase by approximately $200,000 per quarter following repayment of the Term Loan B.
Cohu forecasted Q1 2024 revenue to be around $107 million.
Business Progress:
Cohu continues to maintain a strong balance sheet to support debt reduction, share buyback program, and investment opportunities to expand its markets and technology portfolio.
The company is taking measures to reduce operating expenses due to subdued customer demand without sacrificing critical new product investments.
Cohu is constructing a new facility in the Philippines to support long-term growth prospects in the interface business.
The company completed the acquisition of Equiptest Engineering to enhance their product range and increase recurring income.
A new 92,000 square foot facility has been set up in the Philippines to improve efficiency, quality, and cost-effectiveness.
Cohu introduced a new solution within their DI-Core analytics platform.
Anticipated business recovery in the second half of the year due to potential increase in automotive and industrial customers' demand.
More details: Cohu Inc IR
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