Cohu Reports Third Quarter 2003 Operating Results.Business Editors POWAY Pow·ay A community of southern California north of San Diego. It is near a large naval air base. Population: 49,100. , Calif.--(BUSINESS WIRE)--Oct. 22, 2003 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 $34.5 million for the third quarter ended September September: see month. 30, 2003 compared to $36.8 million for the third quarter of 2002 and $32.1 million for the second quarter of 2003. The net loss for the third quarter of 2003 was $615,000, or $.03 per share, compared to a net loss of $555,000, or $.03 per share for the third quarter of 2002 and net income of $4.1 million or $.19 per share in the second quarter of 2003. Cohu recorded pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern charges to operations in the third quarter of 2003 of approximately $350,000 related to the consolidation of its Littleton, Massachusetts Littleton is a town in Middlesex County, Massachusetts, United States. The population was 8,184 at the 2000 census. For geographic and demographic information on the neighborhood of Littleton Common, please see the article Littleton Common, Massachusetts. operations ($250,000 in the second quarter of 2003) and $1.3 million for inventory ($2.5 million in the second quarter of 2003). The quarter ended June 30, 2003 also included a pretax gain of $7.9 million from the sale of land held for future development and a pretax charge of $2.5 million from an impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. of an equity investment. Net sales for the first nine months of 2003 were $97.7 million with net income of $2.1 million and net income per share of $.10 compared to net sales of $106.7 million with a net loss of $312,000 and a net loss per share of $.02 for the first nine months of 2002. Orders for the third quarter of 2003 were $34.5 million compared to $43.7 million for the second quarter of 2003. Orders for the second quarter of 2003 include an $8.5 million contract from 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. (UAE (Uninterruptible Application Error) The name given to a crash in Windows 3.0. In subsequent versions of Windows, a crash was called a "General Protection Fault," "Application Error" or "Illegal Operation." See crash in Windows and abend. ) Armed Forces for microwave communications equipment. 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 $42.9 million at both September 30, 2003 and June 30, 2003. Third quarter 2003 sales of semiconductor test handling equipment accounted for 82% of total sales. Sales of television cameras and related equipment were 11% of sales and metal detection and microwave communications equipment contributed 7% of sales. Third quarter 2003 orders included 80% from semiconductor equipment, 12% from television cameras and 8% from metal detection and microwave communications equipment. Our September 30, 2003 backlog includes certain orders, including the $8.5 million contract with the UAE, that we do not expect to be recognized as revenue in the fourth quarter of 2003 due to normal customer acceptance procedures. James A. Donahue, President and Chief Executive Officer, stated, "Cohu's results for the third quarter of 2003 were generally in line with our expectations. There are more signs that business conditions in the semiconductor equipment industry are improving. Capacity utilization Capacity Utilization measures the rate at which a firm makes use of their capital productive capacities, such as factories and machinery. Capacity Utilization generally rises when the economy is healthy and falls when demand softens. continues to rise and semiconductor unit production is approaching the record level of 2000, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. some industry analysts. These key metrics metrics Managed care A popular term for standards by which the quality of a product, service, or outcome of a particular form of Pt management is evaluated. See TQM. drive the need for capital equipment. While it's not clear whether strong sequential growth is imminent, we agree with those forecasters who expect at least a gradual improvement in the semiconductor equipment industry over the next few quarters. Throughout the downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. , we've continued to make investments in new product development and to improve our operations. Cohu's balance sheet remains strong, with $108 million in cash and no debt. We are in an excellent position to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. the expected recovery." Cohu's Board of Directors approved a quarterly cash dividend of $.05 per share payable on January 9, 2004 to shareholders of record on December 5, 2003. 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 future operations and financial results 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, 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; inventory write-downs; 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; goodwill and intangible asset Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. write-downs due to impairment testing required by accounting standards; the effect of competitive products; the concentration of revenues from a limited number of customers; order cancellations; failure to obtain customer acceptance and recognize revenue; 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 Wednesday, October 22, 2003 at 2:00 PM Pacific Time. A webcast and replay of the call can be accessed at www.cohu.com. For press releases and other information of interest to investors, please visit Cohu's website at www.cohu.com.
Cohu, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts) (unaudited)
Three Months Ended Nine Months Ended
September 30 September 30
2003 2002 2003 2002
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Net sales $34,512 $36,811 $97,675 $106,706
Cost and expenses:
Cost of sales 23,986 24,463 65,791 66,930
Research and development 5,577 8,136 18,071 24,094
Selling, general and administrative 6,347 6,015 18,290 18,530
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35,910 38,614 102,152 109,554
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Loss from operations (1,398) (1,803) (4,477) (2,848)
Gain from sale of land - - 7,873 -
Investment impairment writedown - - (2,500) -
Interest income 683 648 1,825 2,136
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Income (loss) before income taxes (715) (1,155) 2,721 (712)
Income tax provision (benefit) (100) (600) 600 (400)
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Net income (loss) $(615) $(555) $2,121 $(312)
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Income (loss) per share:
Basic $(.03) $(.03) $.10 $(.02)
Diluted $(.03) $(.03) $.10 $(.02)
Weighted average shares used in
computing income
(loss) per share:
Basic 21,255 20,795 21,088 20,722
Diluted 21,255 20,795 21,619 20,722
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Condensed Consolidated Balance Sheets
(in thousands) (unaudited) Sept. 30, Dec. 31,
2003 2002
Assets:
Current assets:
Cash and investments $107,589 $107,184
Accounts receivable 25,399 18,267
Inventories 29,840 24,317
Deferred taxes and other 16,049 16,530
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178,877 166,298
Note receivable 8,978 9,184
Property, plant & equipment, net 31,044 33,770
Other assets, primarily goodwill 9,637 12,551
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Total assets $228,536 $221,803
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Liabilities & Stockholders' Equity:
Current liabilities:
Deferred profit $7,845 $5,231
Other current liabilities 21,111 20,528
------------------
28,956 25,759
Deferred taxes and other noncurrent liabilities 6,035 5,950
Stockholders' equity 193,545 190,094
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Total liabilities & equity $228,536 $221,803
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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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