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8-K - FORM 8-K - COHU INC | a58466e8vk.htm |
Exhibit 99.1
Cohu Reports Fourth Quarter and Full Year 2010 Operating Results
POWAY, Calif., January 26, 2011 Cohu, Inc. (NASDAQ:COHU) today reported fiscal 2010 fourth
quarter net sales of $96.9 million and GAAP net income of $9.4 million or $0.39 per share. Net
sales for the twelve months ended 2010 were $322.7 million and GAAP net income was $24.6 million or
$1.02 per share.
The Company also reported non-GAAP results, with fourth quarter 2010 net income of $11.7 million or
$0.48 per share and net income of $33.2 million or $1.38 per share for the twelve months ended
2010.
GAAP Results
Q4 FY 2010 | Q3 FY 2010 | Q4 FY 2009 | ||||
Net sales |
$96.9 million | $86.1 million | $52.2 million | |||
Net income |
$9.4 million | $7.6 million | $0.8 million | |||
Income per share |
$0.39 | $0.32 | $0.03 | |||
12 Months 2010 | 12 Months 2009 | |||||
Net sales |
$322.7 million | $171.3 million | ||||
Net income (loss) |
$24.6 million | $(28.2) million | ||||
Income (loss) per share |
$1.02 | $(1.20) |
Non-GAAP Results
Q4 FY 2010 | Q3 FY 2010 | Q4 FY 2009 | ||||
Non-GAAP net income |
$11.7 million | $9.8 million | $2.5 million | |||
Non-GAAP income per share |
$0.48 | $0.41 | $0.11 | |||
12 Months 2010 | 12 Months 2009 | |||||
Non-GAAP net income (loss) |
$33.2 million | $(1.9) million | ||||
Non-GAAP income (loss)
per share |
$1.38 | $(0.08) |
Sales of semiconductor equipment accounted for 79.0% of fiscal 2010 fourth quarter sales.
Microwave communications equipment and video cameras and related equipment contributed 15.9% and
5.1%, respectively, for the same period.
Orders were $75.8 million for the fourth quarter of 2010 and $90.0 million for the third quarter of
2010. Orders for semiconductor equipment were $67.1 million in the fourth quarter of 2010 compared
to $74.0 million in the third quarter of 2010. Total consolidated backlog was $99.6 million at
December 25, 2010 compared to $120.8 million at September 25, 2010. Cohu expects first quarter
2011 sales to be between $85 million and $90 million.
James A. Donahue, Chairman, President and Chief Executive Officer stated, Sales for the fourth
quarter and fiscal 2010 set new records for Cohu and this was the fourth consecutive quarter of
increased operating income and earnings per share, on a non-GAAP basis. For 2010, non-GAAP
earnings per share increased to $1.38 from a loss of $0.08 in 2009. Sales for Cohus Semiconductor
Equipment Group increased 128% year-over-year. Rasco achieved record sales, demonstrating the
competitive strength of their product line and synergies that have been realized following our
acquisition of the company in late 2008.
Donahue concluded, We are encouraged by last weeks report from SEMI, that showed December 2010
industry-wide orders for back-end semiconductor equipment increased sequentially for the first time
since last July.
Cohus Board of Directors approved a quarterly cash dividend of $0.06 per share payable on April
22, 2011 to shareholders of record on March 8, 2011. Cohu has paid consecutive quarterly cash
dividends since 1977.
Use of Non-GAAP Financial Information:
Included within this press release are non-GAAP financial measures that supplement the Companys
Condensed Consolidated Statements of Operations prepared under generally accepted accounting
principles (GAAP). These non-GAAP financial measures adjust the Companys actual results prepared
under GAAP to exclude charges and the related income tax effect for share-based compensation, the
amortization of acquired intangible assets, inventory step-up adjustments and the deferred tax
asset valuation allowance. 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.
These non-GAAP measures are not meant as a substitute for GAAP, but are included solely for
informational and comparative purposes. The Companys management believes that this information
can assist investors in evaluating the Companys operational trends, financial performance, and
cash generating capacity. Management believes these non-GAAP measures allow investors to evaluate
Cohus 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 Cohus new products and
expectations of business conditions, orders, sales, revenues and operating results are
forward-looking statements that are subject to risks and uncertainties that could cause actual
results to differ materially from those projected or forecasted. Such risks and uncertainties
include, but are not limited to, our ability to convert new products under development into
production on a timely basis, support product development and meet customer delivery and acceptance
requirements for next generation equipment; failure to obtain customer acceptance resulting in the
inability to recognize revenue and accounts receivable collection problems; customer orders may be
canceled or delayed; inventory, goodwill and other intangible asset write-downs; the concentration
of our revenues from a limited number of customers; intense competition in the semiconductor test
handler industry; our reliance on patents and intellectual property; compliance with U.S. export
regulations; and the cyclical and unpredictable nature of capital expenditures by semiconductor
manufacturers. These and other risks and uncertainties are discussed more fully in Cohus filings
with the Securities and Exchange Commission, including the most recently filed Form 10-K and Form
10-Q. Cohu assumes no obligation to update the information in this release.
About Cohu:
Cohu is a supplier of test handling, burn-in and thermal solutions used by the global semiconductor
industry, microwave communications and video equipment.
Cohu will be conducting their conference call on Wednesday, January 26, 2011 at 1:30
p.m. Pacific Time/4:30 p.m. Eastern Time. The call will be webcast at www.cohu.com. Replays of the
call can be accessed at www.cohu.com.
For press releases and other information of interest to investors, please visit Cohus website at
www.cohu.com. Contact: Jeffrey D. Jones Investor Relations (858) 848-8106
COHU, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(in thousands, except per share amounts)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(in thousands, except per share amounts)
Three Months Ended (1) | Twelve Months Ended (1) | |||||||||||||||
December 25, | December 26, | December 25, | December 26, | |||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Net sales |
$ | 96,902 | $ | 52,193 | $ | 322,667 | $ | 171,261 | ||||||||
Cost and expenses: |
||||||||||||||||
Cost of sales |
64,411 | 35,745 | 212,672 | 118,873 | ||||||||||||
Research and development |
9,741 | 7,942 | 36,201 | 31,964 | ||||||||||||
Selling, general and administrative |
12,252 | 9,088 | 44,117 | 35,519 | ||||||||||||
86,404 | 52,775 | 292,990 | 186,356 | |||||||||||||
Income (loss) from operations |
10,498 | (582 | ) | 29,677 | (15,095 | ) | ||||||||||
Interest and other, net |
122 | 172 | 561 | 1,300 | ||||||||||||
Income (loss) before income taxes |
10,620 | (410 | ) | 30,238 | (13,795 | ) | ||||||||||
Income tax provision (benefit) (2) |
1,192 | (1,180 | ) | 5,594 | 14,373 | |||||||||||
Net income (loss) |
$ | 9,428 | $ | 770 | $ | 24,644 | $ | (28,168 | ) | |||||||
Income (loss) per share: |
||||||||||||||||
Basic |
$ | 0.39 | $ | 0.03 | $ | 1.04 | $ | (1.20 | ) | |||||||
Diluted |
$ | 0.39 | $ | 0.03 | $ | 1.02 | $ | (1.20 | ) | |||||||
Weighted average shares used in
computing income (loss) per share (3): |
||||||||||||||||
Basic |
23,922 | 23,495 | 23,732 | 23,412 | ||||||||||||
Diluted |
24,323 | 23,746 | 24,097 | 23,412 | ||||||||||||
(1) | The three-month periods ended December 25, 2010 and December 26, 2009 were each comprised of 13 weeks and both twelve-month periods are comprised of 52 weeks. | |
(2) | The twelve-month period ended December 26, 2009 includes a provision of $20.6 million for an increase in the valuation allowance against deferred tax assets. | |
(3) | For the twelve-month period ended December 26, 2009, potentially dilutive securities were excluded from the per share computations due to their antidilutive effect. |
COHU, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands) (Unaudited)
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands) (Unaudited)
December 25, | December 26, | |||||||
2010 | 2009 | |||||||
Assets: |
||||||||
Current assets: |
||||||||
Cash and investments |
$ | 98,175 | $ | 84,906 | ||||
Accounts receivable |
66,801 | 43,389 | ||||||
Inventories |
63,224 | 52,428 | ||||||
Deferred taxes and other |
12,017 | 12,827 | ||||||
Total current assets |
240,217 | 193,550 | ||||||
Property, plant & equipment, net |
39,804 | 38,006 | ||||||
Goodwill |
58,498 | 61,764 | ||||||
Intangible assets, net |
26,523 | 35,483 | ||||||
Other assets |
1,001 | 1,315 | ||||||
Total assets |
$ | 366,043 | $ | 330,118 | ||||
Liabilities & Stockholders Equity: |
||||||||
Current liabilities: |
||||||||
Deferred profit |
$ | 14,834 | $ | 5,322 | ||||
Other current liabilities |
56,700 | 48,631 | ||||||
Total current liabilities |
71,534 | 53,953 | ||||||
Deferred taxes and other noncurrent liabilities |
19,784 | 18,916 | ||||||
Stockholders equity |
274,725 | 257,249 | ||||||
Total liabilities & stockholders equity |
$ | 366,043 | $ | 330,118 | ||||
COHU, INC.
Supplemental Reconciliation of GAAP Results to Non-GAAP Financial Measures (Unaudited)
(in thousands, except per share amounts)
Supplemental Reconciliation of GAAP Results to Non-GAAP Financial Measures (Unaudited)
(in thousands, except per share amounts)
Three Months Ended | ||||||||||||
December 25, | September 25, | December 26, | ||||||||||
2010 | 2010 | 2009 | ||||||||||
Income (loss) from operations GAAP basis (a) |
$ | 10,498 | $ | 8,781 | $ | (582 | ) | |||||
Non-GAAP adjustments: |
||||||||||||
Share-based compensation included in (b): |
||||||||||||
Cost of goods sold |
64 | 84 | 106 | |||||||||
Research and development |
334 | 321 | 320 | |||||||||
Selling, general and administrative |
602 | 557 | 478 | |||||||||
1,000 | 962 | 904 | ||||||||||
Amortization of intangible assets included in (c): |
||||||||||||
Cost of goods sold |
1,325 | 1,259 | 1,420 | |||||||||
Research and development |
| | | |||||||||
Selling, general and administrative |
210 | 200 | 226 | |||||||||
1,535 | 1,459 | 1,646 | ||||||||||
Income from operations non-GAAP basis (d) |
$ | 13,033 | $ | 11,202 | $ | 1,968 | ||||||
Net income GAAP basis |
$ | 9,428 | $ | 7,611 | $ | 770 | ||||||
Non-GAAP adjustments (as scheduled above) |
2,535 | 2,421 | 2,550 | |||||||||
Tax effect of non-GAAP adjustments (e) |
(285 | ) | (261 | ) | (773 | ) | ||||||
Net income non-GAAP basis |
$ | 11,678 | $ | 9,771 | $ | 2,547 | ||||||
GAAP net income per share diluted |
$ | 0.39 | $ | 0.32 | $ | 0.03 | ||||||
Non-GAAP net income per share diluted (f) |
$ | 0.48 | $ | 0.41 | $ | 0.11 |
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 Companys operating performance. Our management uses these non-GAAP financial measures in assessing the Companys operating results, as well as when planning, forecasting and analyzing future periods and these non-GAAP measures allow investors to evaluate the Companys financial performance using some of the same measures as management. Management views share-based compensation as an expense that is unrelated to the Companys 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) | 10.8%, 10.2% and (1.1)% 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 Tandberg Television AVS GmbH and the fiscal 2006 acquisition of Unigen. | |
(d) | 13.4%, 13.0% and 3.8% of net sales, respectively. | |
(e) | To adjust the provision (benefit) 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)
Supplemental Reconciliation of GAAP Results to Non-GAAP Financial Measures (Unaudited)
(in thousands, except per share amounts)
Twelve Months Ended | ||||||||
December 25, | December 26, | |||||||
2010 | 2009 | |||||||
Income (loss) from operations GAAP basis (a) |
$ | 29,677 | $ | (15,095 | ) | |||
Non-GAAP adjustments: |
||||||||
Share-based compensation included in (b): |
||||||||
Cost of goods sold |
297 | 347 | ||||||
Research and development |
1,121 | 1,145 | ||||||
Selling, general and administrative |
2,125 | 1,886 | ||||||
3,543 | 3,378 | |||||||
Amortization of intangible assets included in (c): |
||||||||
Cost of goods sold |
5,229 | 5,398 | ||||||
Research and development |
| | ||||||
Selling, general and administrative |
830 | 857 | ||||||
6,059 | 6,255 | |||||||
Inventory step-up included in costs of goods sold (d) |
180 | | ||||||
Income (loss) from operations non-GAAP basis (e) |
$ | 39,459 | $ | (5,462 | ) | |||
Net income (loss) GAAP basis |
$ | 24,644 | $ | (28,168 | ) | |||
Non-GAAP adjustments (as scheduled above) |
9,782 | 9,633 | ||||||
Tax effect of non-GAAP adjustments (f) |
(1,204 | ) | (2,916 | ) | ||||
Non-cash increase of valuation allowance (g) |
| 19,551 | ||||||
Net income (loss) non-GAAP basis |
$ | 33,222 | $ | (1,900 | ) | |||
GAAP net income (loss) per share diluted |
$ | 1.02 | $ | (1.20 | ) | |||
Non-GAAP net income (loss) per share diluted (h) |
$ | 1.38 | $ | (0.08 | ) |
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 Companys operating performance. Our management uses these non-GAAP financial measures in assessing the Companys operating results, as well as when planning, forecasting and analyzing future periods and these non-GAAP measures allow investors to evaluate the Companys financial performance using some of the same measures as management. Management views share-based compensation as an expense that is unrelated to the Companys 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. Additionally, management does not consider charges to the deferred tax valuation allowance as related to the Companys operational performance and, as such, has excluded them to provide a better understanding of the companys underlying operational results and a more meaningful basis for comparison with our historical and future results. 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) | 9.2% and (8.8)% 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, the fiscal 2007 acquisition of Tandberg Television AVS GmbH and the fiscal 2006 acquisition of Unigen. | |
(d) | To eliminate the inventory step-up associated with certain semiconductor test systems sold. | |
(e) | 12.2% and (3.2)% of net sales, respectively. | |
(f) | To adjust the provision (benefit) for income taxes related to the adjustments described in notes (b), (c) and (d) above based on applicable tax rates. | |
(g) | To exclude the non-cash net impact on the tax provision pertaining to the increase of the deferred tax asset valuation allowance. | |
(h) | Computed using number of GAAP diluted shares outstanding for each period presented. |