EX-99.1 2 exhibit1.htm EX-99.1 EX-99.1

Cohu Reports Third Quarter 2008 Operating Results

POWAY, Calif., October 23, 2008 — Cohu, Inc. (NASDAQ:COHU) today announced that net sales were $48.0 million for the third quarter ended September 27, 2008 compared to $64.5 million for the third quarter ended September 29, 2007 and $51.8 million for the second quarter ended June 28, 2008. Net income for the third quarter of 2008 was $37,000, or $0.00 per share compared to $2.2 million or $0.10 per share for the third quarter of 2007 and $0.2 million or $0.01 per share in the second quarter of 2008.

Net sales for the first nine months of 2008 were $158.3 million with net income of $2.2 million or $0.09 per share compared to net sales of $184.3 million with net income of $5.9 million or $0.26 per share for the first nine months of 2007.

Semiconductor test handling equipment accounted for 79.3% of total third quarter 2008 sales, microwave communications equipment contributed 11.9% and closed circuit television cameras and related equipment were 8.8% of sales for the same period.

Consolidated orders for the third quarter of 2008 were $46.0 million compared to $50.1 million for the second quarter of 2008. Third quarter 2008 orders for semiconductor equipment decreased from $39.0 million in the second quarter of 2008 to $31.0 million in the third quarter of 2008. Backlog was $52.0 million at September 27, 2008 compared to $54.0 million at June 28, 2008. Cohu expects fourth quarter 2008 sales to be approximately $37.0 million.

James A. Donahue, President and Chief Executive Officer, stated, “An already challenging environment for semiconductor equipment has been further impacted by the global financial crisis. Last week, SEMI reported that preliminary September orders for test and assembly equipment declined 47% compared to September 2007 and that the book to bill ratio fell to 0.70.”

Donahue concluded, “Visibility in the backend semiconductor industry is limited to several quarters at best, and over this time horizon, we expect business conditions to remain difficult. Despite the current economic headwinds, we are optimistic about the long term prospects for our industry and confident in our products, people and strategy. Through this downturn, we plan to continue to invest in new product development and key initiatives to improve gross margin and operating performance that will benefit the Company when industry conditions improve.”

Cohu’s Board of Directors approved a quarterly cash dividend of $0.06 per share payable on January 2, 2009 to shareholders of record on November 28, 2008. Cohu has paid consecutive quarterly cash dividends since 1977.

Certain matters discussed in this release, including statements concerning Cohu’s new products and expectations of business conditions, orders, revenues and operating performance are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those projected or forecasted. Such risks and uncertainties include, but are not limited to, the concentration of our revenues from a limited number of customers; our ability to convert new products under development into production on a timely basis, support product development and meet customer delivery and acceptance requirements for next generation equipment; failure to obtain customer acceptance resulting in the inability to recognize revenue and accounts receivable collection problems; inventory write-offs; intense competition in the semiconductor test handler industry; our reliance on patents and intellectual property; compliance with U.S. export regulations; the cyclical and unpredictable nature of capital expenditures by semiconductor manufacturers; difficulties in integrating acquisitions and new technologies and other risks addressed in Cohu’s filings with the Securities and Exchange Commission, including the most recently filed Form 10-K and Form 10-Q. Cohu assumes no obligation to update the information in this release.

Cohu is a supplier of test handling, burn-in and thermal solutions used by the global semiconductor industry, microwave communications and closed circuit television equipment.

Cohu will be conducting a conference call on Thursday, October 23, 2008 at 2:00 p.m. Pacific Time. The call will be webcast at www.cohu.com. Replays of the call can be accessed at www.cohu.com.

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    Cohu, Inc.

    Condensed Consolidated Statements of Income

    (in thousands, except per share amounts) (unaudited)

                                 
     Three months ended (1)    Nine months ended (1)
 
    September 27, 2008    September 29, 2007    September 27, 2008    September 29, 2007
 
                                
Net sales
   $ 48,016     $ 64,490     $ 158,258     $ 184,265  
Cost and expenses:
                                
Cost of sales
     30,458       43,885       101,453       124,691  
Research and development
     9,140       9,575       29,582       29,298  
Selling, general and administrative
     9,693       9,861       27,652       27,408  
 
                                
 
     49,291       63,321       158,687       181,397  
 
                                
Income (loss) from operations
     (1,275 )     1,169       (429 )     2,868  
Interest and other, net
     1,391       2,106       4,282       6,286  
 
                                
Income from continuing operations before
     116       3,275       3,853       9,154  
income taxes
                                
Income tax provision
     79       1,040       1,690       3,163  
 
                                
Income from continuing operations
     37       2,235       2,163       5,991  
 
                                
Discontinued operations (2):
                                
Loss from discontinued operations
     —       —       —       (66 )
before income taxes
                                
Income tax benefit
     —       —       —       (23 )
 
                                
Loss from discontinued operations
     —       —       —       (43 )
 
                                
Net income
   $ 37     $ 2,235     $ 2,163     $ 5,948  
 
                                
Income (loss) per share:
                                
Basic:
                                
Income from continuing operations
   $ 0.00     $ 0.10     $ 0.09     $ 0.26  
Loss from discontinued operations
     —       —       —       (0.00 )
 
                                
Net income
   $ 0.00     $ 0.10     $ 0.09     $ 0.26  
 
                                
Diluted:
                                
Income from continuing operations
   $ 0.00     $ 0.10     $ 0.09     $ 0.26  
Loss from discontinued operations
     —       —       —       (0.00 )
 
                                
Net income
   $ 0.00     $ 0.10     $ 0.09     $ 0.26  
 
                                
Weighted average shares used in computing income (loss) per share:
                                
Basic
     23,233       22,945       23,142       22,830  
Diluted
     23,477       23,433       23,380       23,282  
 
                                

(1)   The three- and nine-month periods ended September 27, 2008 and September 29, 2007 each contain 13 weeks and 39 weeks, respectively.  Total share-based compensation recorded in the three-month period ended September 27, 2008 under SFAS 123R was approximately $1,094,000 and is included in cost of sales ($88,000); research and development ($331,000); and selling, general and administrative expense ($675,000). Total share-based compensation recorded in the nine-month period ended September 27, 2008 was approximately $3,188,000 and is included in cost of sales ($266,000); research and development ($951,000); and selling, general and administrative expense ($1,971,000). Total share-based compensation recorded in the three-month period ended September 29, 2007 was approximately $1,016,000 and is included in cost of sales ($119,000); research and development ($322,000); and selling, general and administrative expense ($575,000). Total share-based compensation recorded in the nine-month period ended September 29, 2007 was approximately $3,138,000 and is included in cost of sales ($347,000); research and development ($937,000); and selling, general and administrative expense ($1,854,000).

(2)   In May, 2006, Cohu sold its metal detection equipment business, Fisher Research Laboratory (FRL). As a result of the disposition, the operating results of FRL have been presented as discontinued operations and all prior period amounts have been reclassified accordingly.

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Cohu, Inc.
Condensed Consolidated Balance Sheets

(in thousands) (unaudited)

                 
 
           ,
 
    September 27, 2008    December 29, 2007
 
                
Assets:
                
Current assets:
                
Cash and investments
   $ 171,179   $ 170,118
Accounts receivable
   34,464   45,491
Inventories
   48,337   42,165
Deferred taxes and other
   21,984   25,952
Current assets of discontinued operations
   5   28
 
                
Total current assets
   275,969   283,754
Property, plant & equipment, net
   29,095   29,818
Goodwill
   16,370   16,377
Other assets
   8,284   9,959
Noncurrent assets of discontinued operations
   471   471
 
                
Total assets
   $ 330,189   $ 340,379
 
                
Liabilities & Stockholders’ Equity:
                
Current liabilities:
                
Deferred profit
   $ 4,784   $ 4,868
Other current liabilities
   32,957   44,383
Current liabilities of discontinued operations
   144   158
 
                
Total current liabilities
   37,885   49,409
Deferred taxes and other noncurrent liabilities
   6,604   7,502
Stockholders’ equity
   285,700   283,468
 
                
Total liabilities & stockholders’ equity
   $ 330,189   $ 340,379
 
                

For press releases and other information of interest to investors, please visit Cohu’s website at www.cohu.com
Contact: Jeffrey D. Jones — Investor Relations (858) 848-8106

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