The Company also reported non-GAAP results, with fourth quarter 2011 net
income of
GAAP Results | |||||||
Q4 FY 2011 | Q3 FY 2011 | Q4 FY 2010 | |||||
Net sales | $ 66.6 million | $ 71.8 million | $ 96.9 million | ||||
Net income | $ 0.7 million | $ 3.4 million | $ 9.4 million | ||||
Income per share | $0.03 | $0.14 | $0.39 | ||||
12 Months 2011 | 12 Months 2010 | ||||||
Net sales | $ 309.0 million | $ 322.7 million | |||||
Net income | $ 15.7 million | $ 24.6 million | |||||
Income per share | $0.64 | $1.02 | |||||
Non-GAAP Results | |||||||
Q4 FY 2011 | Q3 FY 2011 | Q4 FY 2010 | |||||
Non-GAAP net income | $ 2.8 million | $ 5.1 million | $ 11.7 million | ||||
Non-GAAP income per share | $0.12 | $0.21 | $0.48 | ||||
12 Months 2011 | 12 Months 2010 | ||||||
Non-GAAP net income | $ 23.4 million | $ 33.2 million | |||||
Non-GAAP income per share | $0.96 | $1.38 | |||||
Sales of semiconductor equipment accounted for 78% of fiscal 2011 fourth quarter sales. Microwave communications equipment and video cameras and related equipment contributed 14% and 8%, respectively, for the same period.
Orders were
Donahue concluded, “Though SEMI reported that orders for back-end
semiconductor equipment were essentially flat during the four months
ended December, 2011, recent comments from certain semiconductor
equipment and IC companies suggest that a bottom has been reached and
that business conditions are expected to improve as we move past the
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 Income 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 and inventory step-up adjustments. 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 Income.
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
About
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 INCOME | |||||||||||||
(Unaudited) | |||||||||||||
(in thousands, except per share amounts) | |||||||||||||
Three Months Ended (1) | Twelve Months Ended (1) | ||||||||||||
December 31, | December 25, | December 31, | December 25, | ||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||
Net sales | $ | 66,559 | $ | 96,902 | $ | 308,968 | $ | 322,667 | |||||
Cost and expenses: | |||||||||||||
Cost of sales | 45,147 | 64,411 | 208,839 | 212,672 | |||||||||
Research and development | 9,039 | 9,741 | 36,230 | 36,201 | |||||||||
Selling, general and administrative | 11,168 | 12,252 | 46,563 | 44,117 | |||||||||
65,354 | 86,404 | 291,632 | 292,990 | ||||||||||
Income from operations | 1,205 | 10,498 | 17,336 | 29,677 | |||||||||
Interest and other, net | 102 | 122 | 442 | 561 | |||||||||
Income before income taxes | 1,307 | 10,620 | 17,778 | 30,238 | |||||||||
Income tax provision | 588 | 1,192 | 2,059 | 5,594 | |||||||||
Net income | $ | 719 | $ | 9,428 | $ | 15,719 | $ | 24,644 | |||||
Income per share: | |||||||||||||
Basic | $ | 0.03 | $ | 0.39 | $ | 0.65 | $ | 1.04 | |||||
Diluted | $ | 0.03 | $ | 0.39 | $ | 0.64 | $ | 1.02 | |||||
Weighted average shares used in | |||||||||||||
computing income per share: | |||||||||||||
Basic | 24,259 | 23,922 | 24,134 | 23,732 | |||||||||
Diluted | 24,559 | 24,323 | 24,501 | 24,097 | |||||||||
(1) The three- and twelve-month periods ended December 31, 2011 and December 25, 2010 were comprised of 14 weeks and 13 weeks and 53 weeks and 52 weeks, respectively.
COHU, INC. | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(in thousands) (Unaudited) | ||||||||
December 31, | December 25, | |||||||
2011 | 2010 | |||||||
Assets: | ||||||||
Current assets: | ||||||||
Cash and investments | $ | 105,002 | $ | 98,175 | ||||
Accounts receivable | 41,922 | 66,801 | ||||||
Inventories | 82,689 | 63,224 | ||||||
Deferred taxes and other | 14,203 | 12,017 | ||||||
Total current assets | 243,816 | 240,217 | ||||||
Property, plant & equipment, net | 36,981 | 39,804 | ||||||
Goodwill | 58,060 | 58,498 | ||||||
Intangible assets, net | 21,828 | 26,523 | ||||||
Other assets | 923 | 1,001 | ||||||
Total assets | $ | 361,608 | $ | 366,043 | ||||
Liabilities & Stockholders’ Equity: | ||||||||
Current liabilities: | ||||||||
Deferred profit | $ | 2,821 | $ | 14,834 | ||||
Other current liabilities | 49,050 | 56,700 | ||||||
Total current liabilities | 51,871 | 71,534 | ||||||
Deferred taxes and other noncurrent liabilities | 18,706 | 19,784 | ||||||
Stockholders’ equity | 291,031 | 274,725 | ||||||
Total liabilities & stockholders’ equity | $ | 361,608 | $ | 366,043 | ||||
COHU, INC. | ||||||||||||||
Supplemental Reconciliation of GAAP Results to Non-GAAP Financial Measures (Unaudited) | ||||||||||||||
(in thousands, except per share amounts) | ||||||||||||||
Three Months Ended | ||||||||||||||
December 31, | September 24, | December 25, | ||||||||||||
2011 | 2011 | 2010 | ||||||||||||
Income from operations - GAAP basis (a) | $ | 1,205 | $ | 2,660 | $ | 10,498 | ||||||||
Non-GAAP adjustments: | ||||||||||||||
Share-based compensation included in (b): | ||||||||||||||
Cost of goods sold | 138 | 101 | 64 | |||||||||||
Research and development | 491 | 262 | 334 | |||||||||||
Selling, general and administrative | 749 | 560 | 602 | |||||||||||
1,378 | 923 | 1,000 | ||||||||||||
Amortization of intangible assets included in (c): | ||||||||||||||
Cost of goods sold | 875 | 919 | 1,325 | |||||||||||
Research and development | - | - | - | |||||||||||
Selling, general and administrative | 162 | 170 | 210 | |||||||||||
1,037 | 1,089 | 1,535 | ||||||||||||
Income from operations - non-GAAP basis (d) | $ | 3,620 | $ | 4,672 | $ | 13,033 | ||||||||
Net income - GAAP basis | $ | 719 | $ | 3,376 | $ | 9,428 | ||||||||
Non-GAAP adjustments (as scheduled above) | 2,415 | 2,012 | 2,535 | |||||||||||
Tax effect of non-GAAP adjustments (e) | (303 | ) | (317 | ) | (285 | ) | ||||||||
Net income - non-GAAP basis | $ | 2,831 | $ | 5,071 | $ | 11,678 | ||||||||
GAAP net income per share - diluted | $ | 0.03 | $ | 0.14 | $ | 0.39 | ||||||||
Non-GAAP net income per share - diluted (f) | $ | 0.12 | $ | 0.21 | $ | 0.48 | ||||||||
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 charges provides better comparability of pre and post-acquisition operating results and to results of businesses utilizing internally developed intangible assets. However, the non-GAAP financial measures should not be regarded as a replacement for corresponding, similarly captioned, GAAP measures. The presentation of non-GAAP financial measures above may not be comparable to similarly titled measures reported by other companies and investors should be careful when comparing our non-GAAP financial measures to those of other companies.
(a) 1.8%, 3.7% and 10.8% of net sales, respectively.
(b) To eliminate compensation expense for employee stock options, restricted stock units and our employee stock purchase plan.
(c) To eliminate the amortization of intangible assets acquired in the
fiscal 2008 acquisition of Rasco for the three months ended
(d) 5.4%, 6.5% and 13.4% of net sales, respectively.
(e) To adjust the provision for income taxes related to the adjustments described in notes (b) and (c) above based on applicable tax rates.
(f) Computed using number of GAAP diluted shares outstanding for each period presented.
COHU, INC. | ||||||||||
Supplemental Reconciliation of GAAP Results to Non-GAAP Financial Measures (Unaudited) | ||||||||||
(in thousands, except per share amounts) | ||||||||||
Twelve Months Ended | ||||||||||
December 31, | December 25, | |||||||||
2011 | 2010 | |||||||||
Income from operations - GAAP basis (a) | $ | 17,336 | $ | 29,677 | ||||||
Non-GAAP adjustments: | ||||||||||
Share-based compensation included in (b): | ||||||||||
Cost of goods sold | 421 | 297 | ||||||||
Research and development | 1,355 | 1,121 | ||||||||
Selling, general and administrative | 2,511 | 2,125 | ||||||||
4,287 | 3,543 | |||||||||
Amortization of intangible assets included in (c): | ||||||||||
Cost of goods sold | 3,946 | 5,229 | ||||||||
Research and development | - | - | ||||||||
Selling, general and administrative | 699 | 830 | ||||||||
4,645 | 6,059 | |||||||||
Inventory step-up included in cost of goods sold (d) | - | 180 | ||||||||
Income from operations - non-GAAP basis (e) | $ | 26,268 | $ | 39,459 | ||||||
Net income - GAAP basis | $ | 15,719 | $ | 24,644 | ||||||
Non-GAAP adjustments (as scheduled above) | 8,932 | 9,782 | ||||||||
Tax effect of non-GAAP adjustments (f) | (1,221 | ) | (1,204 | ) | ||||||
Net income - non-GAAP basis | $ | 23,430 | $ | 33,222 | ||||||
GAAP net income per share - diluted | $ | 0.64 | $ | 1.02 | ||||||
Non-GAAP net income per share - diluted (g) | $ | 0.96 | $ | 1.38 | ||||||
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 charges provides better comparability of pre and post-acquisition operating results and to results of businesses utilizing internally developed intangible assets. Management has excluded inventory step-up costs associated with our acquisition of Rasco, primarily because it is not reflective of our ongoing operating results, and is not used by management to assess the core profitability of our business operations. However, the non-GAAP financial measures should not be regarded as a replacement for corresponding, similarly captioned, GAAP measures. The presentation of non-GAAP financial measures above may not be comparable to similarly titled measures reported by other companies and investors should be careful when comparing our non-GAAP financial measures to those of other companies.
(a) 5.6% and 9.2% of net sales, respectively.
(b) To eliminate compensation expense for employee stock options, restricted stock units and our employee stock purchase plan.
(c) To eliminate the amortization of intangible assets acquired in the
fiscal 2008 acquisition of Rasco, the fiscal 2007 acquisition of
(d) To eliminate the inventory step-up associated with certain semiconductor test systems sold.
(e) 8.5% and 12.2% of net sales, respectively.
(f) To adjust the provision for income taxes related to the adjustments described in notes (b), (c) and (d) above based on applicable tax rates.
(g) Computed using number of GAAP diluted shares outstanding for each period presented.
Source:
Cohu, Inc.
Jeffrey D. Jones - Investor Relations
858-848-8106