Cohu Inc. Reports Disappointing Q4 Results Amidst Strategic Shifts

Cohu, Inc. (NASDAQ: COHU), a prominent player in the semiconductor manufacturing equipment sector, announced its fourth-quarter results for fiscal year 2024 on February 13, 2025. The report revealed a continued decline in sales and significant losses, reflecting the challenges faced by the company in a volatile market.

Cohu reported fourth-quarter net sales of $94.1 million, a slight decrease from $95.3 million in the previous quarter and a substantial drop from $137.2 million in the same quarter of the prior year. The company recorded a GAAP loss of $21.4 million, translating to $0.46 per share. This marks a deterioration from a loss of $18.1 million or $0.39 per share in Q3 2024 and a profit of $2.0 million or $0.04 per share in Q4 2023.

For the full year, Cohu's net sales totaled $401.8 million, down from $636.3 million in 2023, resulting in a yearly GAAP loss of $69.8 million or $1.49 per share compared to a profit of $28.2 million or $0.59 per share in the prior year.

When excluding certain expenses, Cohu reported a non-GAAP loss of $7.1 million or $0.15 per share for Q4 2024, which also reflects a decline from the previous quarter's loss of $3.8 million. For the full year, the non-GAAP loss stood at $10.9 million or $0.23 per share, compared to a profit of $77.9 million in 2023.

Cohu ended the fourth quarter with a cash and investment balance of $262.1 million, down from $335.7 million in the previous year. Notably, the company did not engage in any share repurchases during this quarter, a shift from earlier strategies as they navigate their current financial landscape.

Luis Müller, President and CEO of Cohu, commented on the results, stating, "Systems revenue increased sequentially in Computing, Industrial, and Consumer segments in a seasonally slow period." He emphasized the company's strategic pivot towards expanding its analytics offerings through Tignis, projecting a potential annual growth rate of 50% or more over the next three years. This move is seen as crucial as the semiconductor industry increasingly seeks solutions for optimizing yield and productivity.

Looking ahead, Cohu forecasts first-quarter 2025 sales to be in the range of $97 million, with a margin of error of $7 million. This projection signals cautious optimism amidst ongoing market challenges.

Cohu will host a live conference call and webcast to further discuss its fourth-quarter results on February 13, 2025, at 1:30 PM Pacific Time. Investors and interested parties can access the call via Cohu’s investor relations website.

Cohu's latest financial results highlight the ongoing struggles within the semiconductor manufacturing sector, coupled with a strategic shift aimed at enhancing revenue through analytics. While the company faces significant losses and declining sales, the leadership's focus on future growth avenues may provide a pathway for recovery. Investors will be keenly watching Cohu's next steps as they navigate this complex landscape.