Cohu's earnings are out and labeled as a beat in both revenue and and EPS.
Weak guidance at 105 million for Q2.
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Cohu Reports First Quarter 2024 Results
- First quarter revenue $107.6 million, approximately 66% recurring
- Gross margin of 45.8%; non-GAAP gross margin of 46.0%
- Sense+ system with µ-sense selected for testing next-generation high fidelity microphones
POWAY, Calif.--(BUSINESS WIRE)--May 2, 2024-- Cohu, Inc. (NASDAQ: COHU), a global supplier of equipment and services optimizing semiconductor manufacturing yield and productivity, today reported fiscal 2024 first quarter net sales of $107.6 million and GAAP loss of $14.6 million or $0.31 per share. Cohu also reported first quarter 2024 non-GAAP income of $0.6 million or $0.01 per share.
Cash and investments at the end of first quarter 2024 were $271.3 million. On February 9, 2024, the Company made a cash payment of $29.3 million to repay the remaining outstanding amounts owed under our Term Loan B. Cohu repurchased 333,504 shares of its common stock in the first quarter for an aggregate amount of approximately $10.7 million.
“Recurring revenue continued to deliver stable profitability during the trough of this Semicap cycle when customers typically limit capital expenditures and focus on reducing semiconductor inventory,” said Cohu President and CEO Luis Müller. “We remain focused on developing core technologies and were pleased to receive initial orders from a leading U.S. fabless semiconductor manufacturer for our new high fidelity microphone tester integrated with Cohu’s Sense+ automation platform.”
Cohu expects second quarter 2024 sales to be in a range of $105 million +/- $6 million.
Results are certainly showing a trough in new system sales, although a new buyer of low tech testing of microphones is a bone they throw out there.
That being said in past years trough sales would have put the stock price in the low teens and 10 Dollar puts would be the game to play.
For a company touted a mid market goal of a billion dollars, they tracking foe less than half a billion, so it shows that Cohu still must ride the cyclical revenue slide.
The good news is they have gained a global scale that keeps them marginally (on a non gaap basis) profitable during the trough of new system sales.
This is where the dip buying becomes brutal.
Note that it is not a coincidence that millions of shares were bought back last quarter and a significant amount of cash was well utilised.
Thus another weak guidance for next quarter and my bet is more dip buying below 30.00.
Cohu on the positive side will annoounce better guidance in between quarters just before an investor presentation when the new system tough turns up with orders.
They know how to play the guidance game and as a small positive thought, it is good to see them being opportunistic on their buyback timing and expense.
The margins of the recurring business are what is savings the stocks price.
Lastly Cohu is once again a debt free company, and has now sucessfully absorbed Xcerra.
This trough too shall pass and Cohu's upcycle will be powerful, but until then "Buy the DIP Mantra is the only way to go.
So far Bear gets the gold star for that!
Patience grasshopper! and buy the dip!
This laggard once again gives blindly loyal stockholders a chance to buy value.
Bob |
