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Technology Stocks : Cohu, Inc. (COHU) -- Ignore unavailable to you. Want to Upgrade?

To: robert b furman who wrote (6339)	4/26/2017 3:16:46 PM
From: robert b furman	Respond to of 7827

Estimated earnings are 24 cents - non- gaap. Bob

To: robert b furman who wrote (6339)

4/27/2017 8:59:35 AM

From: robert b furman

Read Replies (1) | Respond to of 7827

Earnings are tonight the 27th AH.

My week had been off all week please excuse.

Last night Ter reported - Ter makes the test equipment that sits inside a test handler.

TER is a much bigger company and they have branched off into memory test and robotics.

As goes Teradyne SO GOES COHU.

Note: reading the Cohu annual report - I gleaned some interesting facts:

1)Consumables represented 43 % of revenue. Overall revenue grew 4.6% year over year. Cohu with the largest installed owner base of test handlers has through the years established a very solid and stable repair business of contactors and probers and handler kits which refit the handlers as chip sizes shrink due to smaller node sizes.

This quarter we should see the Kita acquisition really begin to add revenue 4-5 million and more if cross selling is catching on.

Imagine consumables becoming 50 % of revenue - with out an increase in test handler orders.

2) The description of the test handlers they create now includes a wafer level packaging handler called Delta Lin X = their platform serving assembly automation. "Back end semiconductor assembly is the major process step prior to device testing and validation. The Lin X line offers advanced JDEC (Joint Electron Engineering Council) handling automation that efficiently links various test processes.

The above two subjects are the new revenue growth areas that management has chosen to grow over the next 5 years.

Wafer Level Packaging is 20 % of all chips and growing fast. Wafer level packaging does not go through test handlers. Delta has consolidated all of the testhandler types and that reaches 80 % of all chips.

If Delta can gain dominance in wafer level packaging AS THEY HAVE IN TEST HANDLERS THEN Delta Lin X is a growth sector that can provide faster growth and 20% more business above the handler business.

Now couple these two growth initiatives with a robust new handler environment and we've got a beat in earnings and above consensus guidance for the next several quarters.

Here is Ter's guidance and it is a beauty :

From Briefing.com: 5:05 pm Teradyne beats by $0.06, beats on revs; guides Q2 EPS and rev above consensus ( TER) : Reports Q1 (Mar) adj. earnings of $0.44 per share, $0.06 better than the Capital IQ Consensus of $0.38; revenues rose 6.0% year/year to $457 mln vs the $440.96 mln Capital IQ Consensus. Orders in the first quarter of 2017 were $595 million of which $476 million were in Semiconductor Test, $46 million in System Test, $45 million in Industrial Automation, and $27 million in Wireless Test.

Co issues upside guidance for Q2, sees adj. EPS of $0.81-0.90 vs. $0.60 Capital IQ Consensus Estimate; sees Q2 revs of $660-700 mln vs. $555.19 mln Capital IQ Consensus Estimate.

"Semiconductor Test year over year quarterly orders were up 56% on broad strength in mobile, automotive, industrial analog, and Flash memory end market demand. Universal Robots' (:UR) year over year quarterly sales were up 117% powered by an expanding range of customers embracing the power of UR's collaborative robots to reduce production costs and improve product quality. "With our large backlog and strong first quarter orders, our Q2 revenue is expected to increase 28% year on year at the mid-point of our Q2 guidance. While we expect the familiar seasonality in the second half, we're on track for another year of revenue and operating profit growth." Bold high lights are Mine regarding guidance.