-
Record first quarter revenue
$225.5 million , up 11.4% quarter-over-quarter - Gross margin of 45.3%; non-GAAP gross margin of 45.6%
- Record orders driven by robust automotive segment demand and broad market strength
-
Reduced outstanding Term Loan B debt by approximately
$102 million during the quarter
|
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GAAP Results (1) |
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|
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|
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|
(in millions, except per share amounts) |
Q1 FY 2021 |
|
Q4 FY 2020 |
|
Q1 FY 2020 |
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Net sales |
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Income (loss) |
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Income (loss) per share |
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Non-GAAP Results (1) |
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|
|
|
|
|
|
(in millions, except per share amounts) |
Q1 FY 2021 |
|
Q4 FY 2020 |
|
Q1 FY 2020 |
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Income |
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Income per share |
|
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(1) All amounts presented are from continuing operations. |
Total cash and investments at the end of first quarter 2021 were
“Cohu had record first quarter orders and revenue with strength continuing across all major markets. Recurring business is benefiting from new semiconductor product designs driving a 14% contactor revenue growth quarter-over-quarter. The systems business is experiencing robust automotive demand, driven by xEV and ADAS technologies, and continued mobility expansion with 5G proliferation,” said
Conference Call Information:
The Company will host a live conference call and webcast with slides to discuss first quarter 2021 results at
About
Use of Non-GAAP Financial Information:
Included within this press release and accompanying materials are non-GAAP financial measures, including non-GAAP Gross Margin/Profit, Income and Income (adjusted earnings) per share, Operating Income, Operating Expense and Adjusted EBITDA 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, employer payroll taxes related to accelerated vesting share-based awards, the amortization of purchased intangible assets, restructuring costs, manufacturing transition and severance costs, asset impairment charges, reduction of indemnification receivable, depreciation of purchase accounting adjustments to property, plant and equipment, amortization of cloud-based software implementation costs (Adjusted EBITDA only) and loss on extinguishment of debt (Adjusted EBITDA only). 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. With respect to any forward looking non-GAAP figures, we are unable to provide without unreasonable efforts, at this time, a GAAP to non-GAAP reconciliation of any forward-looking figures due to their inherent uncertainty.
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 uses non-GAAP measures for a variety of reasons, including to make operational decisions, to determine executive compensation in part, to forecast future operational results, and for comparison to our annual operating plan. 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 statements contained in this release and accompanying materials may be considered forward-looking statements within the meaning of the
Actual results could differ materially from those contained in any forward-looking statement as a result of various factors, including, without limitation: the ongoing global COVID-19 pandemic has adversely affected, and is continuing to adversely affect, our business and results of operations; component, logistics and labor costs that are materially increasing due to COVID-19 constraints, commodity costs, availability of direct labor, increased demand and other factors; we are making investments in new products and product enhancements, which may adversely affect our operating results and these investments may not be commercially successful; we are exposed to the risks of operating a global business; we have manufacturing operations in
These and other risks and uncertainties are discussed more fully in Cohu’s filings with the
For press releases and other information of interest to investors, please visit Cohu’s website at www.cohu.com.
|
||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||
(Unaudited) |
||||||||
(in thousands, except per share amounts) |
||||||||
|
|
|
|
|
|
|||
|
Three Months Ended (1) |
|||||||
|
|
|
|
|||||
|
2021 |
|
2020 |
|||||
|
|
|
|
|
|
|||
Net sales |
$ |
225,488 |
|
|
$ |
138,921 |
|
|
Cost and expenses: |
|
|
|
|
|
|||
Cost of sales (excluding amortization) |
|
123,283 |
|
|
|
82,837 |
|
|
Research and development |
|
23,152 |
|
|
|
22,468 |
|
|
Selling, general and administrative |
|
32,739 |
|
|
|
33,352 |
|
|
Amortization of purchased intangible assets |
|
9,244 |
|
|
|
9,538 |
|
|
Restructuring charges |
|
1,340 |
|
|
|
403 |
|
|
Impairment charges (2) |
|
- |
|
|
|
3,949 |
|
|
|
|
189,758 |
|
|
|
152,547 |
|
|
Income (loss) from operations |
|
35,730 |
|
|
|
(13,626 |
) |
|
Other (expense) income: |
|
|
|
|
|
|||
Interest expense |
|
(2,575 |
) |
|
|
(4,427 |
) |
|
Interest income |
|
50 |
|
|
|
147 |
|
|
Foreign transaction loss |
|
(262 |
) |
|
|
(404 |
) |
|
Loss on extinguishment of debt (3) |
|
(1,761 |
) |
|
|
- |
|
|
Income (loss) from continuing operations before taxes |
|
31,182 |
|
|
|
(18,310 |
) |
|
Income tax provision (benefit) |
|
3,575 |
|
|
|
(992 |
) |
|
Income (loss) from continuing operations |
|
27,607 |
|
|
|
(17,318 |
) |
|
|
|
|
|
|
|
|||
Discontinued operations: (4) |
|
|
|
|
|
|||
Income from discontinued operations before taxes |
|
- |
|
|
|
46 |
|
|
Income tax provision |
|
- |
|
|
|
4 |
|
|
Income from discontinued operations |
|
- |
|
|
|
42 |
|
|
Net income (loss) |
$ |
27,607 |
|
|
$ |
(17,276 |
) |
|
|
|
|
|
|
|
|||
Income (loss) per share: |
|
|
|
|
|
|||
Basic: |
|
|
|
|
|
|||
Income (loss) from continuing operations |
$ |
0.63 |
|
|
$ |
(0.42 |
) |
|
Income from discontinued operations |
|
- |
|
|
|
0.00 |
|
|
Net income (loss) |
$ |
0.63 |
|
|
$ |
(0.42 |
) |
|
|
|
|
|
|
|
|||
Diluted: |
|
|
|
|
|
|||
Income (loss) from continuing operations |
$ |
0.61 |
|
|
$ |
(0.42 |
) |
|
Income from discontinued operations |
|
- |
|
|
|
0.00 |
|
|
Net income (loss) |
$ |
0.61 |
|
|
$ |
(0.42 |
) |
|
|
|
|
|
|
|
|||
Weighted average shares used in computing income (loss) per share: (5) |
|
|
|
|
|
|||
Basic |
|
43,756 |
|
|
|
41,502 |
|
|
Diluted |
|
45,482 |
|
|
|
41,502 |
|
|
|
|
|
|
|
|
(1) |
The three-month periods ended |
|
(2) |
For the three-month period ended |
|
(3) |
Utilizing a portion of the proceeds from the underwritten public offering discussed above in |
|
(4) |
On |
|
(5) |
For the three-month period ended |
|
||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||
(Unaudited) |
||||||
(in thousands) |
||||||
|
|
|
|
|||
|
2021 |
|
2020 |
|||
Assets: |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and investments (1) |
$ |
291,045 |
|
$ |
170,027 |
|
Accounts receivable |
|
196,755 |
|
|
151,919 |
|
Inventories |
|
160,871 |
|
|
142,500 |
|
Other current assets |
|
27,047 |
|
|
20,600 |
|
Total current assets |
|
675,718 |
|
|
485,046 |
|
Property, plant & equipment, net |
|
65,776 |
|
|
66,916 |
|
|
|
246,735 |
|
|
252,304 |
|
Intangible assets, net |
|
221,378 |
|
|
233,685 |
|
Operating lease right of use assets |
|
29,917 |
|
|
29,203 |
|
Other assets |
|
19,231 |
|
|
23,192 |
|
Total assets |
$ |
1,258,755 |
|
$ |
1,090,346 |
|
|
|
|
|
|
|
|
Liabilities & Stockholders’ Equity: |
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Short-term borrowings |
$ |
5,018 |
|
$ |
5,314 |
|
Current installments of long-term debt |
|
3,833 |
|
|
3,075 |
|
Deferred profit |
|
12,955 |
|
|
8,671 |
|
Other current liabilities |
|
186,227 |
|
|
157,393 |
|
Total current liabilities |
|
208,033 |
|
|
174,453 |
|
Long-term debt (2) |
|
211,182 |
|
|
311,551 |
|
Non-current operating lease liabilities |
|
26,251 |
|
|
25,787 |
|
Other noncurrent liabilities |
|
63,815 |
|
|
66,267 |
|
|
|
749,474 |
|
|
512,288 |
|
Total liabilities & stockholders’ equity |
$ |
1,258,755 |
|
$ |
1,090,346 |
|
|
|
|
|
|
|
(1) |
On |
|
(2) |
Utilizing a portion of the proceeds from the underwritten public offering discussed above in |
|
||||||||||||
Supplemental Reconciliation of GAAP Results to Non-GAAP Financial Measures (Unaudited) |
||||||||||||
(in thousands, except per share amounts) |
||||||||||||
|
|
Three Months Ended |
||||||||||
|
|
|
|
|
|
|
||||||
|
|
2021 |
|
2020 |
|
2020 |
||||||
Income (loss) from operations - GAAP basis (a) |
|
$ |
35,730 |
|
|
$ |
18,774 |
|
|
$ |
(13,626 |
) |
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|||
Share-based compensation included in (b): |
|
|
|
|
|
|
|
|
|
|||
Cost of sales (COS) |
|
|
262 |
|
|
|
252 |
|
|
|
212 |
|
Research and development (R&D) |
|
|
781 |
|
|
|
802 |
|
|
|
833 |
|
Selling, general and administrative (SG&A) |
|
|
2,480 |
|
|
|
2,867 |
|
|
|
2,566 |
|
|
|
|
3,523 |
|
|
|
3,921 |
|
|
|
3,611 |
|
Amortization of purchased intangible assets (c) |
|
|
9,244 |
|
|
|
9,898 |
|
|
|
9,538 |
|
Restructuring charges related to inventory adjustments in COS (d) |
|
|
400 |
|
|
|
(550 |
) |
|
|
1,603 |
|
Restructuring charges (d) |
|
|
1,340 |
|
|
|
6,223 |
|
|
|
403 |
|
Manufacturing and sales transition costs included in (e): |
|
|
|
|
|
|
|
|
|
|||
COS |
|
|
- |
|
|
|
26 |
|
|
|
- |
|
R&D |
|
|
- |
|
|
|
6 |
|
|
|
- |
|
SG&A |
|
|
- |
|
|
|
458 |
|
|
|
63 |
|
|
|
|
- |
|
|
|
490 |
|
|
|
63 |
|
Impairment charges (f) |
|
|
- |
|
|
|
- |
|
|
|
3,949 |
|
PP&E step-up included in SG&A (g) |
|
|
145 |
|
|
|
145 |
|
|
|
243 |
|
Reduction of indemnification receivable included in SG&A (h) |
|
|
- |
|
|
|
111 |
|
|
|
- |
|
Payroll taxes related to accelerated vesting of share-based awards included in SG&A (i) |
|
|
300 |
|
|
|
263 |
|
|
|
- |
|
Income from operations - non-GAAP basis (j) |
|
$ |
50,682 |
|
|
$ |
39,275 |
|
|
$ |
5,784 |
|
|
|
|
|
|
|
|
|
|
|
|||
Income (loss) from continuing operations - GAAP basis |
|
$ |
27,607 |
|
|
$ |
14,861 |
|
|
$ |
(17,318 |
) |
Non-GAAP adjustments (as scheduled above) |
|
|
14,952 |
|
|
|
20,501 |
|
|
|
19,410 |
|
Tax effect of non-GAAP adjustments (k) |
|
|
(2,045 |
) |
|
|
(3,556 |
) |
|
|
(1,960 |
) |
Income from continuing operations - non-GAAP basis |
|
$ |
40,514 |
|
|
$ |
31,806 |
|
|
$ |
132 |
|
|
|
|
|
|
|
|
|
|
|
|||
GAAP income (loss) from continuing operations per share - diluted |
|
$ |
0.61 |
|
|
$ |
0.34 |
|
|
$ |
(0.42 |
) |
|
|
|
|
|
|
|
|
|
|
|||
Non-GAAP income from continuing operations per share - diluted (l) |
$ |
0.89 |
|
|
$ |
0.73 |
|
|
$ |
0.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|||
Management believes the presentation of these non-GAAP financial measures, when taken together with the corresponding GAAP financial measures, provides meaningful supplemental information regarding the Company's operating performance. Our management uses these non-GAAP financial measures in assessing the Company's operating results, as well as when planning, forecasting and analyzing future periods and these non-GAAP measures allow investors to evaluate the Company’s financial performance using some of the same measures as management. Management views share-based compensation as an expense that is unrelated to the Company’s operational performance as it does not require cash payments and can vary in amount from period to period and the elimination of amortization and impairment charges provides better comparability of pre and post-acquisition operating results and to results of businesses utilizing internally developed intangible assets. Management initiated certain restructuring activities including employee headcount reductions and other organizational changes to align our business strategies in light of the merger with |
(a) |
15.8%, 9.3% and (9.8)% of net sales, respectively. |
|
(b) |
To eliminate compensation expense for employee stock options, stock units and our employee stock purchase plan. |
|
(c) |
To eliminate the amortization of acquired intangible assets. |
|
(d) |
To eliminate restructuring costs incurred related to the integration of |
|
(e) |
To eliminate manufacturing and sales transition and severance costs. |
|
(f) |
To eliminate impairment charges recorded to adjust IPR&D assets obtained in the acquisition of |
|
(g) |
To eliminate the accelerated depreciation from the property, plant & equipment step-up related to the acquisition of |
|
(h) |
To eliminate the impact of the reduction of an uncertain tax position liability and related indemnification receivable. |
|
(i) |
To eliminate the impact of employer payroll taxes associated with the acceleration of |
|
(j) |
22.5%, 19.4% and 4.2% of net sales, respectively. |
|
(k) |
To adjust the provision for income taxes related to the adjustments described above based on applicable tax rates. |
|
(l) |
All periods presented were computed using the number of GAAP diluted shares outstanding except the three months ended |
|
||||||||||||
Supplemental Reconciliation of GAAP Results to Non-GAAP Financial Measures (Unaudited) |
||||||||||||
(in thousands) |
||||||||||||
|
Three Months Ended |
|||||||||||
|
|
|
|
|
|
|||||||
|
2021 |
|
2020 |
|
2020 |
|||||||
|
|
|
|
|
|
|
|
|
||||
Gross Profit Reconciliation |
|
|
|
|
|
|
|
|
||||
Gross profit - GAAP basis (excluding amortization) (1) |
$ |
102,205 |
|
|
$ |
91,241 |
|
|
$ |
56,084 |
|
|
Non-GAAP adjustments to cost of sales (as scheduled above) |
|
662 |
|
|
|
(272 |
) |
|
|
1,815 |
|
|
Gross profit - Non-GAAP basis |
$ |
102,867 |
|
|
$ |
90,969 |
|
|
$ |
57,899 |
|
|
|
|
|
|
|
|
|
|
|
||||
As a percentage of net sales: |
|
|
|
|
|
|
|
|
||||
GAAP gross profit |
|
45.3 |
% |
|
|
45.1 |
% |
|
|
40.4 |
% |
|
Non-GAAP gross profit |
|
45.6 |
% |
|
|
45.0 |
% |
|
|
41.7 |
% |
|
|
|
|
|
|
|
|
|
|
||||
Adjusted EBITDA Reconciliation |
|
|
|
|
|
|
|
|
||||
Net income (loss) attributable to |
$ |
27,607 |
|
|
$ |
14,861 |
|
|
$ |
(17,276 |
) |
|
Income from discontinued operations |
|
- |
|
|
|
- |
|
|
|
(42 |
) |
|
Income tax provision (benefit) |
|
3,575 |
|
|
|
405 |
|
|
|
(992 |
) |
|
Interest expense |
|
2,575 |
|
|
|
2,855 |
|
|
|
4,427 |
|
|
Interest income |
|
(50 |
) |
|
|
(14 |
) |
|
|
(147 |
) |
|
Amortization of purchased intangible assets |
|
9,244 |
|
|
|
9,898 |
|
|
|
9,538 |
|
|
Depreciation |
|
3,323 |
|
|
|
3,565 |
|
|
|
3,416 |
|
|
Amortization of cloud-based software implementation costs (2) |
|
370 |
|
|
|
360 |
|
|
|
205 |
|
|
Loss on extinguishment of debt |
|
1,761 |
|
|
|
25 |
|
|
|
- |
|
|
Other non-GAAP adjustments (as scheduled above) |
|
5,563 |
|
|
|
10,458 |
|
|
|
9,629 |
|
|
Adjusted EBITDA |
$ |
53,968 |
|
|
$ |
42,413 |
|
|
$ |
8,758 |
|
|
|
|
|
|
|
|
|
|
|
||||
As a percentage of net sales: |
|
|
|
|
|
|
|
|
||||
Net income (loss) attributable to |
|
12.2 |
% |
|
|
7.3 |
% |
|
|
(12.4 |
)% |
|
Adjusted EBITDA |
|
23.9 |
% |
|
|
21.0 |
% |
|
|
6.3 |
% |
|
|
|
|
|
|
|
|
|
|
||||
Operating Expense Reconciliation |
|
|
|
|
|
|
|
|
||||
Operating Expense - GAAP basis |
$ |
66,475 |
|
|
$ |
72,467 |
|
|
$ |
69,710 |
|
|
Non-GAAP adjustments to operating expenses (as scheduled above) |
|
(14,290 |
) |
|
|
(20,773 |
) |
|
|
(17,595 |
) |
|
Operating Expenses - Non-GAAP basis |
$ |
52,185 |
|
|
$ |
51,694 |
|
|
$ |
52,115 |
|
|
|
|
|
|
|
|
|
|
|
(1) |
Excludes amortization of |
|
(2) |
Represents amortization of capitalized implementation costs related to cloud-based software arrangements that are included within SG&A. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20210429005214/en/
858-848-8106
Source: