Total cash and investments at the end of third quarter 2018 were $171.2 million.
Luis Müller, President and Chief Executive Officer of Cohu, stated, “Cohu delivered solid 14.8% adjusted EBITDA on sales of $86 million, demonstrating the resilience of our business model despite further softening conditions in the mobility market.”
Müller continued, “With the completion of the Xcerra acquisition, Cohu is now a global leader in back-end semiconductor equipment and services and printed circuit board test, with a breadth of products that is unmatched in the industry serving an approximate $5 billion addressable market. We’ve received strong positive feedback from customers and are encouraged by the cross-selling opportunities across our product portfolio. The integration of the two companies is off to a good start and we have already implemented $9.1 million in annual run rate cost synergies. We expect to meet our initial cost synergy target of $20 million within the first two years and later achieve our goal of $40 million within three to five years.”
Cohu expects fourth quarter 2018 sales, which include Xcerra, to be between $168 million and $183 million. Cohu's Board of Directors approved a quarterly cash dividend of $0.06 per share payable on January 2, 2019 to shareholders of record on November 16, 2018.
Conference Call Information:
The company will host a live conference call and webcast with slides to discuss third quarter 2018 results at 1:30 p.m. Pacific Time/4:30 p.m. Eastern Time on November 5, 2018. Interested investors and analysts are invited to dial into the conference call by using 1-866-434-5330 (domestic) or +1-213-660-0873 (international) and entering the pass code 9996488. Webcast access is available on the Investor Information section of the company’s website at www.cohu.com.
The teleconference replay will be available through December 6, 2018. The replay dial-in number is 1-855-859-2056 (domestic) or +1-404-537-3406 (international) using pass code 9996488. The webcast replay will be available on the Company’s website through November 5, 2019 at www.cohu.com.
About Cohu:
Cohu (NASDAQ: COHU) is a global leader in back-end semiconductor equipment and services, delivering leading-edge solutions for the manufacturing of semiconductors and printed circuit boards. Additional information can be found at www.cohu.com.
Use of Non-GAAP Financial Information:
Included within this press release are non-GAAP financial measures, including non-GAAP Gross Margin, Income, Income (adjusted earnings) per share and adjusted EBITDA percentage, 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, restructuring costs, manufacturing transition costs, acquisition related costs, fair value adjustment to contingent consideration and purchase accounting inventory step-up included in cost of sales. 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 statements contained in this release may be considered
forward-looking statements within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995, including statements regarding
the Xcerra acquisition, integration and cost synergy savings, timing and
targets; market conditions in the mobility market; long-term
cross-selling opportunities across our product portfolio; breadth of our
product portfolio; the addressable market size; Cohu’s fourth quarter
2018 sales forecast, guidance and effective tax rate; and any other
statements that are predictive in nature and depend upon or refer to
future events or conditions, and include words such as “may,” “will,”
“should,” “would,” “expect,” “anticipate,” “plan,” “likely,” “believe,”
“estimate,” “project,” “intend,” and 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 that 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 as a result of
various factors, including, without limitation: risks associated with
acquisitions; inventory, goodwill and other asset write-downs; our
ability to convert new products into production on a timely basis and to
support product development and meet customer delivery and acceptance
requirements for new products; our reliance on third-party contract
manufacturers and suppliers; failure to obtain customer acceptance
resulting in the inability to recognize revenue and accounts receivable
collection problems; revenue recognition impacts due to ASC 606; market
demand and adoption of our new products; customer orders may be canceled
or delayed; the concentration of our revenues from a limited number of
customers; intense competition in the semiconductor equipment industry;
our reliance on patents and intellectual property; compliance with U.S.
export regulations; impacts from the Tax Cuts and Jobs Act of 2017 and
ongoing tax examinations; geopolitical issues and trade wars; ERP system
implementation issues; the seasonal, volatile and unpredictable nature
of capital expenditures by semiconductor manufacturers; rapid
technological change; and significant risks associated with the Xcerra
acquisition including but not limited to (i) the ability of Cohu and
Xcerra to integrate their businesses successfully and to achieve
anticipated synergies and cost savings, (ii) the possibility that other
anticipated benefits of the transaction will not be realized, (iii)
litigation relating to the transaction that still could be instituted
against Cohu and/or Xcerra, (iv) possible disruptions from the
transaction that could harm Cohu’s and/or Xcerra’s respective
businesses, (v) the ability of Cohu or Xcerra to retain, attract and
hire key personnel, (vi) potential adverse reactions or changes to
relationships with customers, employees, suppliers or other parties
resulting from the completion of the acquisition, (vii) the adverse
impact to Cohu’s operating results from interest expense on the
financing debt, rising interest rates, and any restrictions on
operations related to such debt, and (viii) continued availability of
capital and financing and rating agency actions. These and other risks
and uncertainties are discussed more fully in Cohu’s filings with the
Securities and Exchange Commission, including the most recently filed
Form 10-K and Form 10-Q, in the Registration Statement on Form S-4 that
was filed by Cohu with the SEC containing a prospectus with respect to
the Cohu common stock that was issued in the transaction and the joint
proxy statement of Cohu and Xcerra in connection with the transaction
that is contained therein, and the other filings made by Cohu with the
SEC from time to time, which are available via the SEC’s website at
www.sec.gov .
Except as required by applicable law, Cohu does not undertake any
obligation to revise or update any forward-looking statement, or to make
any other forward-looking statements, whether as a result of new
information, future events or otherwise.
