Cohu, Inc. · NASDAQ:COHU
Cohu — Q3 2023 Earnings Presentation
17 slides from Cohu's earnings presentation, Nov 2, 2023
Slide 1: Q3'23 Financial Results
November 2, 2023 Q3’23 Financial Results November 2, 2023 Page 1
Slide 2: Cautionary Statement Regarding Forward Looking Statements
Cautionary Statement Regarding Forward Looking Statements Forward Looking Statements: Certain statements contained in this presentation may be considered forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, including statements regarding acceler
Slide 3: Business Update
Business Update November 2, 2023 Page 3
Slide 4: Summary
Summary Revenue Non-GAAP Gross Margin(1) Adj. EBITDA(1) $206.7M 47.8% 24.5% 47.5% 47.1% 19.8% $168.9M $150.8M 16.5% Q3'22 Q2'23 Q3'23 Q3'22 Q2'23 Q3'23 Q3'22 Q2'23 Q3'23 • High ARR(2) Service business • GM holding stable; small • Est. test cell utilization flat • Soft systems business across variati
Slide 5: Diverse Revenue Profile
Diverse Revenue Profile Recurring Systems Key Business Drivers Key Business Drivers Automotive • More stable 14% • Weaker system recurring revenue Recurring Q3’23 demand across all Consumer • Acquired EQT 51% Revenue 8% markets adds to test $150.8M IoT & Opto • Focus on customer interface business 7
Slide 6: Cohu's Acquisition of EQT
Cohu’s Acquisition of EQT ❑ Cohu acquired Equiptest Engineering Pte. Ltd. (“EQT”) on October 2, 2023 ❑ A test contactor company with TTM rev. ~ $20M ❑ Rationale ● Accelerates profitable growth in test interface products ● Broadens product portfolio with mid- to high-power contactors for automotive a
Slide 7: EQT Worldwide Company Overview
EQT Worldwide Company Overview Products include E-Series contact ❑ Founded in 2001; headquartered in Singapore probes, Ultra cantilever and ❑ Designs and manufactures performance test Elastomer contactors contactors for mid-power applications ❑ Short design and manufacturing lead-times ❑ Tier 1 IDM
Slide 8: Resilient Recurring Business Model
Resilient Recurring Business Model $322M $146M > 24,600 310+ LTM(1) Recurring LTM(1) Service Systems Installed Highly Skilled Field Revenue Revenue Base Service Engineers 6.0% ~ 92% 108 ~ 12 year 3-year CAGR(2) 2023 YTD Renewal Rate Customers Average Tenure on service contracts Consumable products C
Slide 9: Q3'23 Financials and Q4'23 Guidance
Q3’23 Financials and Q4’23 Guidance November 2, 2023 Page 9
Slide 10: Q3'23 Non-GAAP Results
Q3’23 Non-GAAP Results Q2’23 Q3’23 Q3’23 Actual Guidance(2) Actual Revenue $168.9M ~ $150M $150.8M Gross Margin(1) 47.8% ~ 46% 47.1% Operating Expenses(1) $50.7M ~ $50M $49.0M Non-GAAP EPS(1) $0.48 $0.35 Adjusted EBITDA(1) 19.8% ~15% 16.5% ❑ Q3 revenue in-line with guidance; profitability better tha
Slide 11: Target Revenue of $1B and $4.00 Non-GAAP EPS
Target Revenue of $1B and $4.00 Non-GAAP EPS Q3’23 FY2022 Mid-Term Actuals Actuals Target(3) Revenue $150.8M $812.8M $1B Gross Margin(1) 47.1% 47.2% 49% Operating Expenses(1) 32.5% 25.6% 24% Non-GAAP EPS(1) $0.35 $2.91 $4.00 Adjusted EBITDA(1) 16.5% 23.7% 26% Free Cash Flow(2) $25.1M $98.1M $180M ❑
Slide 12: Balance Sheet
Balance Sheet [$Million] Q2’23 Q3’23 Cash and Investments(1) $372 $388 Accounts Receivable $144 $130 Total Debt $43 $42 Capital Additions $3.1 $4.0 Cash Flow From Operations $53.1 $29.1 ❑ Q3 cash flow from operations further strengthens balance sheet to support debt reduction, M&A investments and sh
Slide 13: Q4'23 Outlook
Q4’23 Outlook Q3’23 Q4’23 Actual Guidance Revenue $150.8M $136M +/- $6M Gross Margin(1) 47.1% ~ 46% Operating Expenses(1) $49M ~$50M Adjusted EBITDA(1) 16.5% ~ 12% ❑ Sequentially lower revenue on moderating automotive and industrial test demand, and continued soft mobility market ❑ Resilient gross m
Slide 14: Appendix
Appendix Use of Non-GAAP Financial Information: This presentation includes non-GAAP financial measures, including non-GAAP Gross Margin/Profit, Income and Income (adjusted earnings) per share, Operating Income, Operating Expense, effective tax rate, free cash flow, net cash per share and Adjusted EB
Slide 15: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation November 2, 2023 Page 15
Slide 16: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation November 2, 2023 Page 16
Slide 17: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation November 2, 2023 Page 17