Cohu Reports Fourth Quarter and Full Year 2005 Operating Results; Q4 Sales and Net Income Increase 95% and 399% Year over Year.POWAY Pow·ay A community of southern California north of San Diego. It is near a large naval air base. Population: 49,100. , Calif. -- Cohu, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :COHU) today announced that net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight were $74.1 million for the fourth quarter ended December December: see month. 31, 2005 compared to $38.1 million for the fourth quarter of 2004 and $68.6 million for the third quarter of 2005. Net income for the fourth quarter of 2005 was $12.3 million or $0.53 per share compared to net income of $2.5 million or $0.11 per share for the fourth quarter of 2004 and net income of $9.6 million or $0.42 per share for the third quarter of 2005. Sales for the year ended December 31, 2005 were $238.9 million with net income of $34.0 million and net income per share of $1.50, compared to net sales of $176.2 million with net income of $16.7 million and $0.76 per share for the year ended December 31, 2004. Fourth quarter 2005 sales of semiconductor test handling equipment accounted for 84% of total sales. Sales of television cameras and related equipment were 7% of sales and metal detection and microwave communications equipment contributed 9% of sales. Backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. was $83.2 million at December 31, 2005 compared to $85.9 million at September September: see month. 24, 2005. Orders for the fourth quarter of 2005 were $71.4 million compared to $72.7 million for the third quarter of 2005. Fourth quarter orders for semiconductor test handling equipment declined 19% from the third quarter, but were substantially offset by an increase in orders for microwave communications equipment, that are primarily scheduled to ship after the first quarter of 2006. Based on fourth quarter orders and an expected increase in deferred revenue in connection with the sale of new products that are subject to normal customer acceptance procedures, the Company expects to report sales of $50 million to $55 million in the first quarter, excluding existing deferred revenue from our $8.9 million contract for microwave communications equipment with the United Arab Emirates United Arab Emirates, federation of sheikhdoms (2005 est. pop. 2,563,000), c.30,000 sq mi (77,700 sq km), SE Arabia, on the Persian Gulf and the Gulf of Oman. . James James, person in the Bible James, in the Gospel of St. Luke, kinsman of St. Jude. The original does not specify the relationship. James, rivers, United States James. A. Donahue Donahue is a surname of Irish origin. It is a variant of O'Donoghue and therefore associated with the O'Donoghue Clan. The name Donahue may refer to one of several people:
persons involved in the handling of, for example, circus animals. Includes grooms, milkers, herdsmen, strappers. Used mostly in referring to persons handling animals for show or auction. were at record levels. Along with solid financial performance, we made important investments in new product development in both our high-performance Adj. 1. high-performance - modified to give superior performance; "a high-performance car" superior - of high or superior quality or performance; "superior wisdom derived from experience"; "superior math students" logic and high-speed high-speed adj. 1. Operated or designed for operation at high speed: a high-speed food processor. 2. Taking place at high speed: a high-speed chase. 3. handling product lines that are intended to position Cohu for profitable growth in future years." Donahue concluded, "Cohu's balance sheet is strong, with cash at a record $139 million and no bank debt. We continue to strengthen our intellectual property portfolio and believe that applications for our proprietary thermal technology are increasing. While short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. volatility remains an inherent characteristic of the back-end (programming) back-end - Any software performing either the final stage in a process, or a task not apparent to the user. A common usage is in a compiler. A compiler's back-end generates machine language and performs optimisations specific to the machine's architecture. semiconductor equipment industry, recent orders are encouraging as we begin 2006." Cohu's Board of Directors approved a quarterly cash dividend of $0.06 per share payable on April 28, 2006 to shareholders of record on March 14, 2006. Cohu has paid consecutive quarterly cash dividends since 1977. Certain matters discussed in this release including statements concerning Cohu's expectations of industry conditions and 2006 operations and performance are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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, failure to obtain customer acceptance resulting in the inability to recognize revenue and accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying collection problems; the concentration of our revenues from a limited number of customers; intense competition in the semiconductor test handler A software routine that performs a particular task. It often refers to a routine that "handles" an exception of some kind, such as an error, but it can refer to mainstream processes as well. The term is typically used in operating systems and other system software. industry; our reliance on patents and intellectual property; inventory write-offs; the cyclical cyclical Of or relating to a variable, such as housing starts, car sales, or the price of a certain stock, that is subject to regular or irregular up-and-down movements. and unpredictable nature of capital expenditures by semiconductor manufacturers; Cohu's 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; difficulties in integrating acquisitions and new technologies and other risks addressed in Cohu's filings with the Securities and Exchange Commission including the most recently filed Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and Form 10-Q Form 10-Q See 10-Q. . Cohu assumes no obligation to update the information in this release. Cohu is a leading supplier of test handling solutions used by the global semiconductor industry as well as a supplier of closed circuit television, metal detection and microwave communications equipment. Cohu will be conducting their conference call on Thursday Thursday: see week. , February February: see month. 2, 2006 at 2:00 p.m. Pacific Time. The call will be webcast at www.cohu.com. Replays of the call can be accessed at www.cohu.com.
Cohu, Inc.
Condensed Consolidated Statements of Income
(in thousands, except per share amounts) (unaudited)
Three Months
Ended (1) Twelve Months Ended
December 31, December 31,
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2005 2004 2005 2004
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Net sales $74,131 $38,092 $238,902 $176,237
Cost and expenses:
Cost of sales 43,936 23,233 143,371 105,178
Research and development 8,382 7,947 29,787 27,895
Selling, general and
administrative 9,793 7,368 35,285 29,124
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62,111 38,548 208,443 162,197
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Income (loss) from operations 12,020 (456) 30,459 14,040
Interest income 1,370 517 3,915 1,863
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Income before income taxes 13,390 61 34,374 15,903
Income tax provision (benefit)
(2) 1,100 (2,400) 400 (800)
----------------------------------------------------------------------
Net income $12,290 $2,461 $33,974 $16,703
----------------------------------------------------------------------
Income per share:
Basic $0.55 $0.11 $1.55 $0.78
Diluted $0.53 $0.11 $1.50 $0.76
Weighted average shares used in
computing income per share:
Basic 22,251 21,579 21,902 21,505
Diluted 23,112 21,981 22,585 21,986
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(1) As a result of a fiscal year end change, the three-month periods
ended December 31, 2005 and 2004 contain 14 weeks and 13 weeks,
respectively, while both twelve-month periods are comprised of 52
weeks.
(2) The income tax provision for the three months ended December 31,
2005 was reduced by, among other items, approximately $1.8 million
from a reduction in a deferred tax asset valuation allowance. The
income tax provision for the year ended December 31, 2005 was
reduced by, among other items, approximately $5.1 million from a
reduction in a deferred tax asset valuation allowance and
approximately $3.1 million from the reversal of accrued taxes as a
result of the completion of a tax examination in March 2005. The
income tax benefit in 2004 resulted from a reduction of
approximately $4.5 million in a deferred tax asset valuation
allowance.
Condensed Consolidated Balance Sheets
(in thousands) (unaudited)
December December
31, 31,
2005 2004
----------------------------------------------------------------------
Assets:
Current assets:
Cash and investments $138,949 $116,511
Accounts receivable 47,156 32,744
Inventories 44,832 41,515
Deferred taxes and other 25,680 19,906
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256,617 210,676
Property, plant & equipment, net 31,780 31,121
Goodwill 9,597 8,340
Other assets 8,983 631
----------------------------------------------------------------------
Total assets $306,977 $250,768
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Liabilities & Stockholders' Equity:
Current liabilities:
Deferred profit $13,816 $9,651
Other current liabilities 36,506 26,532
----------------------------------------------------------------------
50,322 36,183
Deferred taxes and other noncurrent liabilities 6,530 6,473
Stockholders' equity 250,125 208,112
----------------------------------------------------------------------
Total liabilities & stockholders' equity $306,977 $250,768
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For press releases and other information of interest to investors, please visit Cohu's website at www.cohu.com |
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