Form 8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of Earliest Event Reported):    February 1, 2012

Cohu, Inc.

                                                                                       

(Exact name of registrant as specified in its charter)

 

Delaware    001-04298    95-1934119

                                           

(State or other jurisdiction

  

                         

(Commission

  

                               

(I.R.S. Employer

of incorporation)    File Number)    Identification No.)

 

12367 Crosthwaite Circle, Poway,
California

       

 

92064

                                                                  

(Address of principal executive offices)

       

                    

(Zip Code)

 

Registrant’s telephone number, including area code:    858-848-8100

 

Not Applicable

                                                                                                

Former name or former address, if changed since last report

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[  ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[  ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[  ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[  ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


Item 2.02 Results of Operations and Financial Condition.

On February 1, 2012, Cohu, Inc. (the “Company”) issued a press release regarding its financial results for the fourth quarter and full year ended December 31, 2011. The Company’s press release is attached as Exhibit 99.1 to this Current Report on Form 8-K and incorporated by reference herein.

The information in this Item 2.02 of this Current Report on Form 8-K and the Exhibit attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, regardless of any general incorporation language in such filing.

In addition to financial results determined in accordance with generally accepted accounting principles (“GAAP”), the earnings press release also contains financial information determined by methods other than in accordance with GAAP. The Company’s management uses these non-GAAP measures in their analysis of the Company’s performance. 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 and inventory step-up adjustments. 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 the Company’s financial performance using some of the same measures as management. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

The exhibit listed below is being furnished with this Current Report on Form 8-K.

Exhibit No. - 99.1

Description – Fourth Quarter 2011 Earnings Release, dated February 1, 2012, of Cohu, Inc.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

    Cohu, Inc.
February 2, 2012   By:       /s/ Jeffrey D. Jones
   

 

     Name: Jeffrey D. Jones
     Title: VP Finance and Chief Financial Officer


Exhibit Index

 

Exhibit No.

 

  

Description

 

   

 

 

99.1

  

 

Fourth Quarter 2011 Earnings Release, dated February 1, 2012, of Cohu, Inc.

 
Earnings Release

Exhibit 99.1

LOGO

Cohu Reports Fourth Quarter Operating Results

POWAY, Calif., February 1, 2012 -- Cohu, Inc. (NASDAQ:COHU) today reported fiscal 2011 fourth quarter net sales of $66.6 million and GAAP net income of $0.7 million or $0.03 per share. Net sales for the twelve months ended 2011 were $309.0 million and GAAP net income was $15.7 million or $0.64 per share.

The Company also reported non-GAAP results, with fourth quarter 2011 net income of $2.8 million or $0.12 per share and net income of $23.4 million or $0.96 per share for the twelve months ended 2011.

 

    GAAP Results                    
      Q4 FY 2011   Q3 FY 2011       Q4 FY 2010         
 

Net sales

  $ 66.6 million   $ 71.8 million   $ 96.9 million    
 

Net income

  $ 0.7 million   $ 3.4 million   $ 9.4 million    
 

Income per share

  $0.03   $0.14   $0.39    
     

 

  12 Months 2011  

 

 

  12 Months 2010  

        
 

Net sales

  $ 309.0 million   $ 322.7 million      
 

Net income

  $ 15.7 million   $ 24.6 million      
 

Income per share

  $0.64   $1.02        
         
    Non-GAAP Results                    
      Q4 FY 2011   Q3 FY 2011   Q4 FY 2010     
 

Non-GAAP net income

  $ 2.8 million   $ 5.1 million   $ 11.7 million    
 

Non-GAAP income per share

  $0.12   $0.21   $0.48    
     

 

12 Months 2011

 

 

12 Months 2010

        
 

Non-GAAP net income

  $ 23.4 million   $ 33.2 million      
 

Non-GAAP income per share

  $0.96   $1.38        

Sales of semiconductor equipment accounted for 78% of fiscal 2011 fourth quarter sales. Microwave communications equipment and video cameras and related equipment contributed 14% and 8%, respectively, for the same period.

Orders were $44.0 million for the fourth quarter of 2011 and $61.4 million for the third quarter of 2011. Orders for semiconductor equipment were $33.9 million in the fourth quarter of 2011 compared to $48.5 million in the third quarter of 2011. Total consolidated backlog was $51.9 million at December 31, 2011 compared to $74.5 million at September 24, 2011. Cohu expects first quarter 2012 sales to be approximately $50 million.

James A. Donahue, Chairman, President and Chief Executive Officer stated, “During the fourth quarter, we received the first order for our next-generation gravity-feed handler, from a global automotive IC company. Additional evaluations are planned or underway.”

Donahue concluded, “Though SEMI reported that orders for back-end semiconductor equipment were essentially flat during the four months ended December, 2011, recent comments from certain semiconductor equipment and IC companies suggest that a bottom has been reached and that business conditions are expected to improve as we move past the Lunar New Year holiday. Recently we are seeing increased customer activity, particularly for automotive and consumer applications.”

Cohu’s Board of Directors approved a quarterly cash dividend of $0.06 per share payable on April 20, 2012 to shareholders of record on March 6, 2012. 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 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 and inventory step-up adjustments. 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 matters discussed in this release, including statements concerning Cohu’s 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, inventory, goodwill and other intangible asset write-downs; 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; our reliance on third-party contract manufacturers; failure to obtain customer acceptance resulting in the inability to recognize revenue and accounts receivable collection problems; customer orders may be canceled or delayed; 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 Cohu’s 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, thermal subsystems and MEMS test solutions used by the global semiconductor industry, microwave communications and video equipment.

Cohu will be conducting their conference call on Wednesday, February 1, 2012 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 Cohu’s website at www.cohu.com. Contact: Jeffrey D. Jones - Investor Relations (858) 848-8106


COHU, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(in thousands, except per share amounts)

 

     Three Months Ended (1)      Twelve Months Ended (1)  
       December 31,          December 25,          December 31,          December 25,    
     2011      2010      2011      2010  

Net sales

   $ 66,559       $ 96,902       $ 308,968       $ 322,667   

Cost and expenses:

           

Cost of sales

     45,147         64,411         208,839         212,672   

Research and development

     9,039         9,741         36,230         36,201   

Selling, general and administrative

     11,168         12,252         46,563         44,117   
  

 

 

    

 

 

    

 

 

    

 

 

 
     65,354         86,404         291,632         292,990   
  

 

 

    

 

 

    

 

 

    

 

 

 

Income from operations

     1,205         10,498         17,336         29,677   

Interest and other, net

     102         122         442         561   
  

 

 

    

 

 

    

 

 

    

 

 

 

Income before income taxes

     1,307         10,620         17,778         30,238   

Income tax provision

     588         1,192         2,059         5,594   
  

 

 

    

 

 

    

 

 

    

 

 

 

Net income

   $ 719       $ 9,428       $ 15,719       $ 24,644   
  

 

 

    

 

 

    

 

 

    

 

 

 

Income per share:

           

Basic

   $ 0.03       $ 0.39       $ 0.65       $ 1.04   
  

 

 

    

 

 

    

 

 

    

 

 

 

Diluted

   $ 0.03       $ 0.39       $ 0.64       $ 1.02   
  

 

 

    

 

 

    

 

 

    

 

 

 

Weighted average shares used in computing income per share:

           

Basic

     24,259         23,922         24,134         23,732   
  

 

 

    

 

 

    

 

 

    

 

 

 

Diluted

     24,559         24,323         24,501         24,097   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

 

 

  (1) The three- and twelve-month periods ended December 31, 2011 and December 25, 2010 were comprised of 14 weeks and 13 weeks and 53 weeks and 52 weeks, respectively.


COHU, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands) (Unaudited)

 

       December 31,  
2011
       December 25,  
2010
 
       

Assets:

     

Current assets:

     

Cash and investments

   $ 105,002       $ 98,175   

Accounts receivable

     41,922         66,801   

Inventories

     82,689         63,224   

Deferred taxes and other

     14,203         12,017   
  

 

 

    

 

 

 

Total current assets

     243,816         240,217   

Property, plant & equipment, net

     36,981         39,804   

Goodwill

     58,060         58,498   

Intangible assets, net

     21,828         26,523   

Other assets

     923         1,001   
  

 

 

    

 

 

 

Total assets

   $ 361,608       $ 366,043   
  

 

 

    

 

 

 

Liabilities & Stockholders’ Equity:

     

Current liabilities:

     

Deferred profit

   $ 2,821       $ 14,834   

Other current liabilities

     49,050         56,700   
  

 

 

    

 

 

 

Total current liabilities

     51,871         71,534   

Deferred taxes and other noncurrent liabilities

     18,706         19,784   

Stockholders’ equity

     291,031         274,725   
  

 

 

    

 

 

 

Total liabilities & stockholders’ equity

   $ 361,608       $ 366,043   
  

 

 

    

 

 

 


COHU, INC.

Supplemental Reconciliation of GAAP Results to Non-GAAP Financial Measures (Unaudited)

(in thousands, except per share amounts)

 

     Three Months Ended  
       December 31,  
2011
       September 24,  
2011
       December 25,  
2010
 
          

Income from operations - GAAP basis (a)

   $ 1,205       $ 2,660       $ 10,498   

Non-GAAP adjustments:

        

Share-based compensation included in (b):

        

Cost of goods sold

     138         101         64   

Research and development

     491         262         334   

Selling, general and administrative

     749         560         602   
  

 

 

    

 

 

    

 

 

 
     1,378         923         1,000   

Amortization of intangible assets included in (c):

        

Cost of goods sold

     875         919         1,325   

Research and development

                       

Selling, general and administrative

     162         170         210   
  

 

 

    

 

 

    

 

 

 
     1,037         1,089         1,535   
  

 

 

    

 

 

    

 

 

 

Income from operations - non-GAAP basis (d)

   $ 3,620       $ 4,672       $ 13,033   
  

 

 

    

 

 

    

 

 

 

Net income - GAAP basis

   $ 719       $ 3,376       $ 9,428   

Non-GAAP adjustments (as scheduled above)

     2,415         2,012         2,535   

Tax effect of non-GAAP adjustments (e)

     (303)         (317)         (285)   
  

 

 

    

 

 

    

 

 

 

Net income - non-GAAP basis

   $ 2,831       $ 5,071       $ 11,678   
  

 

 

    

 

 

    

 

 

 

GAAP net income per share - diluted

   $ 0.03       $ 0.14       $ 0.39   

Non-GAAP net income per share - diluted (f)

   $ 0.12       $ 0.21       $ 0.48   

 

 

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 Company’s operating performance. Our management uses these non-GAAP financial measures in assessing the Company’s operating results, as well as when planning, forecasting and analyzing future periods and these non-GAAP measures allow investors to evaluate the Company’s financial performance using some of the same measures as management. Management views share-based compensation as an expense that is unrelated to the Company’s 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) 1.8%, 3.7% and 10.8% 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 for the three months ended December 31, 2011 and September 24, 2011 and 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 for the three months ended December 25, 2010.

 

(d) 5.4%, 6.5% and 13.4% of net sales, respectively.

 

(e) To adjust the provision 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)

 

     Twelve Months Ended  
       December 31,  
2011
       December 25,  
2010
 
       

Income from operations - GAAP basis (a)

   $ 17,336       $ 29,677   

Non-GAAP adjustments:

     

Share-based compensation included in (b):

     

Cost of goods sold

     421         297   

Research and development

     1,355         1,121   

Selling, general and administrative

     2,511         2,125   
  

 

 

    

 

 

 
     4,287         3,543   

Amortization of intangible assets included in (c):

     

Cost of goods sold

     3,946         5,229   

Research and development

               

Selling, general and administrative

     699         830   
  

 

 

    

 

 

 
     4,645         6,059   

Inventory step-up included in cost of goods sold (d)

             180   
  

 

 

    

 

 

 

Income from operations - non-GAAP basis (e)

   $ 26,268       $ 39,459   
  

 

 

    

 

 

 

Net income - GAAP basis

   $ 15,719       $ 24,644   

Non-GAAP adjustments (as scheduled above)

     8,932         9,782   

Tax effect of non-GAAP adjustments (f)

     (1,221)         (1,204)   
  

 

 

    

 

 

 

Net income - non-GAAP basis

   $ 23,430       $ 33,222   
  

 

 

    

 

 

 

GAAP net income per share - diluted

   $ 0.64       $ 1.02   

Non-GAAP net income per share - diluted (g)

   $ 0.96       $ 1.38   

 

 

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 Company’s operating performance. Our management uses these non-GAAP financial measures in assessing the Company’s operating results, as well as when planning, forecasting and analyzing future periods and these non-GAAP measures allow investors to evaluate the Company’s financial performance using some of the same measures as management. Management views share-based compensation as an expense that is unrelated to the Company’s 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. 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) 5.6% and 9.2% 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) 8.5% and 12.2% of net sales, respectively.

 

(f) To adjust the provision for income taxes related to the adjustments described in notes (b), (c) and (d) above based on applicable tax rates.

 

(g) Computed using number of GAAP diluted shares outstanding for each period presented.