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

To: Johnny Canuck who wrote (7600)	11/2/2023 6:58:01 AM
From: robert b furman	Read Replies (3) \| Respond to of 7822

Earnings webcast today after hours. Street consensus is revenue of 150 million with earnings at 32 cents. Last webcasts guidance was down stating the market was down and new products were expected to be beneficial upon a market upturn. Not sure how mobility could be much of a boost, although AAPL has a new entry - suspect equipment utilization rates are not driving new system sales? recurring sales should be up and with good margins , providing a bright spot on earnings (margins boosted to 50%? The recent acquisition of " acquired Equiptest Engineering Pte. Ltd. (“EQT”), a provider of semiconductor test contactors and other consumables with trailing twelve months revenue of approximately $20 million" This acquisition should add 5 million in higher end contactors - serving the automotive and industrial - which may be excellent timing (Industrial is benefitting from onshoring). I suspect the margins are 50% plus and likely in the 60% plus range. The acquisition was expected to be accretive in 2024. These acquisitions often have severance and surplus property disposal fees resulting from the acquisition - we'll see. Bottomline the price action has been dismal. As we slide in price, we'll see how crucial recurring business has become. We're hopeful of new system sales bottoming in a trough quarter announcement during the webcast. Last night had good earnings from Qualcom,and noted a rise in China's sales. ( Note that China is Cohu's largest installed equipment base). On a conference call, Qualcomm Chief Executive Cristiano Amon told investors smartphone companies had finally worked through most of their existing inventory and were starting to put in fresh orders. "We're happy that the inventory dynamics that we have seen within the Android business are largely behind us right now," Amon said. For the just-ended fiscal fourth quarter, Qualcomm reported sales of $8.67 billion and adjusted profits of $2.02 per share, both above analysts' estimates of $8.51 billion and $1.91 per share, according to LSEG. Cohu is very cyclical and swings between business demand for new system sales, while recurring revenue holds Cohu in the black with its 7% cagr growth. 2024 looks to be a reversal year and let's hope we see it earlier , better than later in the year. Seasonality of Q4 and Q1 is not our friend. Q3's are usually strong, could well be a new cycle in seasonality is surfacing. Bob Bob