Cohu Reports Fourth Quarter 2012 Operating Results

Cohu Reports Fourth Quarter 2012Operating Results

POWAY, Calif.--(BUSINESS WIRE)-- Cohu, Inc. (NAS: COHU) today reported fiscal 2012 fourth quarter net sales of $50.7 million and GAAP net loss of $5.2 million or $0.21 per share. Net sales for the twelve months ended 2012 were $221.2 million and GAAP net loss was $12.2 million or $0.50 per share.

The Company also reported non-GAAP results, with fourth quarter 2012 net loss of $1.7 million or $0.07 per share and net loss of $3.1 million or $0.13 per share for the twelve months ended 2012.

GAAP Results

Q4 FY 2012

Q3 FY 2012

Q4 FY 2011

Net sales

$ 50.7 million

$ 57.7million

$ 66.6 million

Net income (loss)

$ (5.2) million

$ (1.7)million

$ 0.7 million

Income (loss) per share

$(0.21)

$(0.07)

$0.03

12 Months 2012

12 Months 2011

Net sales

$ 221.2 million

$ 309.0million

Net income (loss)

$ (12.2) million

$ 15.7million

Income (loss) per share

$(0.50)

$0.64

Non-GAAP Results

Q4 FY 2012

Q3 FY 2012(1)

Q4 FY 2011

Non-GAAP net income (loss)

$ (1.7) million

$ (0.4)million

$ 2.8 million

Non-GAAP income (loss) per share

$(0.07)

$(0.01)

$0.12

12 Months 2012

12 Months 2011

Non-GAAP net income (loss)

$ (3.1) million

$ 23.4million

Non-GAAP income (loss) per share

$(0.13)

$0.96

(1)

Non-GAAP results for the third quarter of 2012 were revised in the current period to exclude the impact of other acquisition costs incurred in connection with the acquisition of Ismeca Semiconductor.


Sales of semiconductor equipment accounted for 79% of fiscal 2012 fourth quarter sales. Microwave communications equipment and video cameras and related equipment contributed 14% and 7%, respectively, for the same period.

Orders were $42.1 million for the fourth quarter of 2012 and $50.1 million for the third quarter of 2012. Orders for semiconductor equipment were $33.7 million in the fourth quarter of 2012 compared to $38.5 million in the third quarter of 2012. Total consolidated backlog was $44.7 million at December 29, 2012 compared to $54.4 million at September 29, 2012. As previously announced, Cohu completed its acquisition of Ismeca on December 31, 2012. Ismeca will be included in Cohu's operating results beginning in the first quarter of 2013. Cohu expects first quarter 2013 sales to be between $52 million and $57 million.

James A. Donahue, Chairman, President and Chief Executive Officer, stated, "Fourth quarter results were higher than our guidance and benefited from recurring business in our semiconductor equipment group. Equipment utilization on customer test floors was generally flat during the quarter, limiting the need for new capacity. With the exception of technology-related buys, customers remain cautious and weak macroeconomic conditions are likely to continue to affect business over the near term."

Donahue concluded, "With the acquisition of Ismeca we increased our market share, significantly expanded our served market with complementary products and now have the broadest portfolio of test handling solutions in the industry. Ismeca also provides us with an entry into the LED equipment market, which is forecasted to experience high growth as LED technology is adopted for general lighting. We expect this acquisition to be accretive when business conditions improve."

Cohu's Board of Directors approved a quarterly cash dividend of $0.06 per share payable on April 19, 2013 to shareholders of record on March 5, 2013. Cohu has paid consecutive quarterly cash dividends since 1977.

Use of Non-GAAP Financial Information:

Included within this press release are non-GAAP financial measures that supplement the Company's Condensed Consolidated Statements of Operations prepared under generally accepted accounting principles (GAAP). These non-GAAP financial measures adjust the Company's actual results prepared under GAAP to exclude charges and the related income tax effect for share-based compensation, the amortization of acquired intangible assets, other acquisition costs and the gain on the sale of a facility. Reconciliations of GAAP to non-GAAP amounts for the periods presented herein are provided in schedules accompanying this release and should be considered together with the Condensed Consolidated Statements of Operations.

These non-GAAP measures are not meant as a substitute for GAAP, but are included solely for informational and comparative purposes. The Company's management believes that this information can assist investors in evaluating the Company's operational trends, financial performance, and cash generating capacity. Management believes these non-GAAP measures allow investors to evaluate Cohu's financial performance using some of the same measures as management. However, the non-GAAP financial measures should not be regarded as a replacement for (or superior to) corresponding, similarly captioned, GAAP measures.

Forward Looking Statements:

Certain matters discussed in this release, including statements concerning Cohu's new products, expectations of business conditions, orders, sales, revenues, expected accretion from the Ismeca acquisition, growth in the LED market and operating results 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, risks associated with acquisitions including the acquisition of Ismeca Semiconductor on December 31, 2012, inventory, goodwill and other intangible asset write-downs; 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; our reliance on third-party contract manufacturers; failure to obtain customer acceptance resulting in the inability to recognize revenue and accounts receivable collection problems; customer orders may be canceled or delayed; the concentration of our revenues from a limited number of customers; intense competition in the semiconductor test handler industry; our reliance on patents and intellectual property; compliance with U.S. export regulations; and the cyclical and unpredictable nature of capital expenditures by semiconductor manufacturers. These and other risks and uncertainties are discussed more fully 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.

About Cohu:

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

Cohu will be conducting their conference call on Wednesday, January 30, 2013 at 1:30 p.m. Pacific Time/4:30 p.m. Eastern Time. The call will be webcast at www.cohu.com. Replays of the call can be accessed at www.cohu.com.

For press releases and other information of interest to investors, please visit Cohu's website at www.cohu.com.

COHU, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(in thousands, except per share amounts)

Three Months Ended (1)

Twelve Months Ended (1)

December 29,

December 31,

December 29,

December 31,

2012

2011

2012

2011

Net sales

$

50,714

$

66,559

$

221,162

$

308,968

Cost and expenses:

Cost of sales

34,065

45,147

153,184

208,839

Research and development

9,977

9,039

36,171

36,230

Selling, general and administrative

12,377

11,168

45,891

46,563

56,419

65,354

235,246

291,632

Income (loss) from operations

(5,705

)

1,205

(14,084

)

17,336

Interest and other, net (2)

47

102

967

442

Income (loss) before income taxes

(5,658

)

1,307

(13,117

)

17,778

Income tax provision (benefit)

(497

)

588

(874

)

2,059

Net income (loss)

$

(5,161

)

$

719

$

(12,243

)

$

15,719

Income (loss) per share:

Basic

$

(0.21

)

$

0.03

$

(0.50

)

$

0.65

Diluted

$

(0.21

)

$

0.03

$

(0.50

)

$

0.64

Weighted average shares used in

computing income (loss) per share (3):

Basic

24,572

24,259

24,459

24,134

Diluted

24,572

24,559

24,459

24,501

(1) The three- and twelve-month periods ended December 29, 2012 and December 31, 2011 were comprised of 13 weeks and 14 weeks and 52 weeks and 53 weeks, respectively.

(2) For the twelve-month period ended December 29, 2012, Interest and other income includes a gain on the sale of facility totaling $677,000 related to our metal detection equipment segment, FRL, which was divested in 2006.

(3) For the three- and twelve-month periods ended December 29, 2012, potentially dilutive securities were excluded from the per share computations due to their antidilutive effect.

COHU, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(in thousands)

December 29,

December 31,

2012(1)

2011

Assets:

Current assets:

Cash and investments

$

110,229

$

105,002

Accounts receivable

36,986

41,922

Inventories

62,332

82,689

Deferred taxes and other

11,536

14,203

Total current assets

221,083

243,816

Property, plant & equipment, net

35,464

36,981

Goodwill

58,756

58,060

Intangible assets, net

18,977

21,828

Other assets

593

923

Total assets

$

334,873

$

361,608

Liabilities & Stockholders' Equity:

Current liabilities:

Deferred profit

$

2,139

$

2,821