Slide 1: Q4'18 Financial Results
Q4’18 Financial Results A Leading Supplier of Back-end Semiconductor and PCB Test Equipment March 12, 2019 March 12, 2019 Page 1
Slide 2: Cautionary Statement Regarding Forward Looking Statements
Cautionary Statement Regarding Forward Looking Statements Use of Non-GAAP Financial Information: Included within this press release and accompanying materials are non-GAAP financial measures, including non-GAAP Gross Margin, Income and Income (adjusted earnings) per share, Adjusted EBITDA and Margin
Slide 3: Q4'18 and 2018 Summary
Q4’18 and 2018 Summary Quarter Revenue ($M) Annual Revenue ($M) Non-GAAP EPS1 ($) 170.6 451.8 1.54 1.49 352.7 282.1 84.1 86.2 0.68 Q4'17 Q3'18 Q4'18 FY2016 FY2017 FY2018 FY2016 FY2017 FY2018 • 3 years of consecutive • Q4’18 EPS $0.24 (non-GAAP), revenue growth better profitability than • Leader in H
Slide 4: Business Update and Outlook
Business Update and Outlook Near-term business environment uncertain • Soft Mobility market that began in Q3’18 persists into 1H19 • Slower growth in China impacting consumer market • U.S. / China trade tensions • Automotive and Industrial slowing down since beginning of 2019 Customers’ test cell ut
Slide 5: Financials
Financials March 12, 2019 March 12, 2019 Page 5
Slide 6: Q4'18 and Fiscal Year 2018 Non-GAAP Results
Q4’18 and Fiscal Year 2018 Non-GAAP Results Q4’18A Q4’18 Guide1 Q3’18A FY18 Sales $170.6M $168 - 183M $86.0M $451.8M Gross Margin* 44.5% ~43% 40.8% 42.9% Op. Expenses * $56.6M ~$59M $23.6M $130.1M Non-GAAP Op. Income* 11.3% 13.6% 14.1% Non-GAAP EPS* $0.24 $0.30 $1.49 EBITDA * 13.7% 11% 14.8% 16.5% Q
Slide 7: Cost Synergy To Enhance Business Model
Cost Synergy To Enhance Business Model Cumulative Annual Cost Savings Run Rate Q4 2018 synergies achieved $40M ● Executive management ● Public company costs Projecting $20M annual run-rate within first year ● Expect $20M by end of 2019; ahead of original plan ● Product rationalization $20M ● Supply
Slide 8: Recurring Business – A Solid Foundation
Recurring Business – A Solid Foundation Q4FY18 Revenue: ~ $78 million ~46% of Sales from more stable business Higher Gross Margins Combination of consumables and 54% equipment service and spares ● Test Contactors ● Handler Device Kits ● Equipment spares 46% ● Equipment service plans ● Equipment upgr
Slide 9: Balance Sheet
Balance Sheet Q2’18 Q3’18 Q4’18* Cash and Investments $151M $171M $165M Accounts Receivable $92M $79M $149M DSO 85 days 84 days 79 days Inventory $63M $64M $139M Inventory Days 104 days 120 days 106 days Total Debt $9M $8M $359M Capital Additions $0.9M $0.6M $2.5M Cash Flow From Ops $15M $23M $2M *
Slide 10: Q1'19 Guidance
Q1’19 Guidance Q4’18A Q1’19 Guide Mid-Term Target Sales $170.6.0M $145M $235M Gross Margin* 44.5% ~ 40% 48% Op. Expenses * $56.6M ~ $54M ~ $64M EBITDA * 13.7% ~ 6% 22% Sales guide reflects continued softness in mobility market ● Segment breakdown – 92% semiconductor test and inspection; 8% PCB test
Slide 11: Thank you
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Slide 12: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation (1) Includes operating results from Xcerra acquired on October1, 2018 Management believes the presentation of these non-GAAP financial measures, when taken together with the corresponding GAAP financial measures, provides meaningful supplemental information regarding
Slide 13: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation (1) Includes operating results from Xcerra acquired on October 1, 2018 Management believes the presentation of these non-GAAP financial measures, when taken together with the corresponding COHU, INC. GAAP financial measures, provides meaningful supplemental informatio
Slide 14: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation COHU, INC. Supplemental Reconciliation of GAAP Results to Non-GAAP Financial Measures (Unaudited) (in thousands) Three Months Ended December September December 29, 29, 30, 2018 2018 (1) 2017 (1) Gross Profit Reconciliation Gross profit - GAAP basis (excluding amortiza
Slide 15: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Twelve Months Ended December 29, December 30, 2018 2017 (1) Gross Profit Reconciliation Gross profit - GAAP basis (excluding amortization)(2) $ 159,308 $ 143,407 Non-GAAP adjustments to cost of sales (as scheduled above) 34,381 1,827 Gross profit - Non-GAAP basis $ 19