Cohu updates its medium-term financial goal model

POWAY, Calif .– (COMMERCIAL THREAD) – Cohu, Inc. (NASDAQ: COHU), a global leader in back-end semiconductor equipment and services, today announced the update to its medium-term financial goal model(1) annual revenue of $ 1 billion and non-GAAP EPS of $ 4.00 to better reflect expected revenue and margin growth, primarily due to:

  1. Expansion in the inspection and metrology market where Cohu’s turnover increased from $ 35 million in 2020 to an estimated $ 70 million in 2021. This technology responds to the emergence of advanced packaging with several dies that require much more quality checking before integration.

  2. Penetration of semiconductor test equipment into the RF front-end, benefiting from increasing testing intensity of higher frequency and higher bandwidth communication devices, and winning designs for display driver and test drives. power management integrated circuits.

  3. Better traction in interface products with final test switches and newly introduced wafer-level chipscale (WLCSP) probe boards for front-end wafer testing aligned with accelerating in-box system adoption and investment by major IDM customers and semiconductor foundries.

  4. Introduction of the DI-Core platform, Cohu’s foray into software data analysis to improve customer test cell productivity in support of Industry 4.0 factory automation goals. DI-Core leverages Cohu’s proprietary equipment data and artificial intelligence to create value, adding to Cohu’s consumable-type recurring revenue stream.

Luis Müller, President and CEO of Cohu, said: “Fiscal year 2021 should be strong for Cohu, with record revenues and profitability. Demand for orders remains strong as we enter fiscal 2022 building on Cohu’s growth in inspection and metrology, expanding opportunities in RF, power management and testing of display driver ICs, the WLCSP probe and accelerating the deployment of DI-Core software services.

Müller continued, “We executed the shared growth strategy well at our last Analyst Day event about a year ago. With 2021 nearing completion, it’s time to increase Cohu’s target financial model to better reflect the opportunities ahead and to continue to build on our past five-year CAGR estimated at around 26%.

(1) “mid-term” means 3 to 5 year goals

About Cohu:

Cohu (NASDAQ: COHU) is a global leader in back-end semiconductor equipment and services, providing advanced solutions for semiconductor manufacturing. Additional information can be found at www.Cohu.com.

Use of non-GAAP financial information:

This press release and the accompanying documents contain non-GAAP financial measures, including non-GAAP earnings per share that supplement the Company’s condensed consolidated statements of earnings prepared in accordance with generally accepted accounting principles ( GAAP). These non-GAAP financial measures adjust the actual results of the Company prepared in accordance with GAAP to exclude the charges and the related tax impact for: gain on sale of business, gain on sale of facilities, related employer payroll taxes accelerated allocation of share-based awards, amortization of accounting adjustments for the purchase of property, plant and equipment, amortization of cloud-based software implementation costs (adjusted EBITDA only) and gain (loss) on extinction of debt (adjusted EBITDA only). Reconciliations of GAAP and non-GAAP amounts for the periods presented here are provided in the tables accompanying this press release and should be considered with the condensed consolidated statements of earnings. With respect to forward-looking non-GAAP figures, we are unable to provide without unreasonable efforts, at this time, a GAAP and non-GAAP reconciliation of all forward-looking figures due to their inherent uncertainty.

The use of non-GAAP measures is not intended to be a substitute for GAAP, but is included for information and comparison purposes only. Management of the Company believes that this information can help investors assess the operational trends, financial performance and cash generation capacity of the Company. Management uses non-GAAP measures for a variety of reasons, including making operational decisions, partially determining executive compensation, forecasting future operational results and for comparison with our annual operating plan. However, non-GAAP financial measures should not be considered to replace (or exceed) the corresponding GAAP measures, captioned in the same manner.

Forward-looking statements:

Certain statements contained in this press release and the documents accompanying it may be considered as forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995, including statements concerning the model of medium-term financial goal set. day for annual revenue of $ 1 billion and non-BPA GAAP of $ 4.00, expansion of inspection and metrology market, penetration of semiconductor test equipment into RF front-end , greater traction in interface products, the DI-Core platform, FY2021 forecast for record revenue and profitability, strong demand for orders as we enter FY2022 building on on Cohu’s growth, the estimated five-year revenue growth CAGR and any other statements that are predictive in nature and which depend on or refer to future events or conditions, and / or include d words such as “may”, “will be,” should “,” should “,” expect “,” anticipate “,” plan “,” probably “,” believe “,” estimate “,” plan “, “Intend” and / or other similar expressions among others. Statements that are not historical facts are forward-looking statements. Forward-looking statements are based on current beliefs and assumptions which are subject to risks and uncertainties and are not guarantees of future performance.

Actual results could differ materially from those contained in any forward-looking statement due to various factors, including, but not limited to: the updated medium-term financial target model includes financial goals that may never be achieved, pandemic has affected and continues to negatively affect our business and operating results; continued increases in material, labor, supplier, logistics and other operating costs, or delays and shortages in the supply chain, could result in lower gross margins or lost sales and negatively impact our business, financial condition, results of operations and cash flow; increased market cyclicality may have a negative impact on our sales and gross margins; we invest in new products and product improvements, which may adversely affect our results of operations and such investments may not be commercially successful; we are exposed to the risks of operating a global business; we have manufacturing operations in Asia, and any failure to effectively manage multiple manufacturing sites and ensure raw materials meet our quality, cost and other requirements, or any failure in the performance of our suppliers, could adversely affect our sales, service levels and reputation; failure of critical suppliers to deliver sufficient quantities of parts in a timely and cost effective manner could negatively impact our operations; the semiconductor industry is seasonal, volatile and unpredictable; the semiconductor equipment industry is extremely competitive; semiconductor equipment is subject to rapid technological change, product introductions and transitions that can result in inventory cancellations, and our new product development involves many risks and uncertainties; the seasonal nature of the semiconductor equipment industry places enormous demands on our people, operations and infrastructure; a limited number of customers represent a substantial percentage of our net sales; a majority of our revenue is generated from exports to foreign countries, mainly in Asia, which are subject to economic and political instability and we compete with a number of test contactors, test managers and test suppliers. ‘automated test equipment based in Asia; Substantial indebtedness in connection with our financing of the acquisition of Xcerra may negatively impact Cohu’s liquidity, limit Cohu’s flexibility to respond to other business opportunities, and increase Cohu’s vulnerability to economic conditions and unfavorable industrial; our credit agreement contains various negative statements and covenants which limit, subject to certain exceptions and baskets, our ability and / or the ability of our subsidiaries to enter into financings and other transactions relating to our assets; due to high levels of indebtedness, we may not be able to repay our debts on their terms; dilution of earnings per share due to our March 2021 follow-on share offering; we are exposed to other risks associated with other acquisitions, investments and disposals; we plan to continue to assess and pursue disposals of non-core assets; our financial and operating results may fluctuate and fall below analysts’ estimates, or rating agencies may change their ratings on Cohu, which may cause the price of our common shares to fall or make it difficult to obtain another financing; potential goodwill impairments if our activities are underperforming; global economic and political conditions, including trade tariffs and export restrictions, and other regulatory requirements, have impacted our business and may continue to have a negative impact on our business and financial condition ; our business and operations could suffer in the event of a cybersecurity breach; and our stock price and the volatility of our price and earnings.

These and other risks and uncertainties are discussed in more detail in documents filed by Cohu with the SEC, including the most recently filed Forms 10-K and 10-Q, and other documents filed by Cohu with the SEC. from time to time, which are available through the SEC’s website at www.sec.gov. Unless required by applicable law, Cohu assumes no obligation to revise or update any forward-looking statement, or to make any other forward-looking statement, whether as a result of new information, future events or otherwise.

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