POWAY, Calif. - Cohu , Inc. (NASDAQ:COHU), a key player in semiconductor testing, has announced securing an order from a top automotive semiconductor manufacturer for its Diamondx platform, designed for power management device testing. The order includes an integrated test cell solution comprising the Diamondx tester equipped with the new VI100 instrument and enhancements to its mixed signal platform, alongside Cohu's NY32 handler and cCompact interface.
The VI100 instrument is a four-quadrant voltage and current source and measure tool, featuring high-accuracy DC source and measure capabilities. It is specifically engineered to cater to the growing complexity of analog and power management integrated circuits (ICs). The Diamondx platform, now upgraded with multi-core test computer architectures and a new databus, promises up to 80% reduction in test time and less than half the cost-of-test compared to traditional competitive-liquid cooled systems.
Cohu’s President and CEO, Luis Müller, expressed enthusiasm about the Diamondx tester's traction in the mixed signal market, particularly with this new adoption by a leading automotive semiconductor manufacturer. Müller highlighted the scalable nature of the Diamondx platform for testing next-generation mixed signal semiconductors, tapping into an estimated $860 million addressable market.
Cohu, recognized globally for providing test, automation, inspection, and metrology products and services, aims to enhance semiconductor manufacturing yield and productivity. The company's diverse product portfolio is tailored to meet the optimization needs of its customers' manufacturing processes.
The press release also included forward-looking statements regarding product performance and financial impacts, as well as Cohu's outlook for FY2024. These statements, as per the U.S. Private Securities Litigation Reform Act of 1995, are not guarantees of future performance and are subject to risks and uncertainties. Cohu does not endorse any third-party industry analyst forecasts referenced in the release.
This announcement is based on a press release statement, and for investors, the new order represents Cohu's continued penetration into the semiconductor testing market, potentially impacting its financial performance and market position.
In other recent news, Cohu, Inc., a global leader in back-end semiconductor equipment and services, reported Q2 revenues of nearly $105 million, in line with its guidance. The company also announced the opening of a new engineering design center for test instrumentation, aiming to increase interface revenue penetration. Despite experiencing declines in the automotive and industrial markets, Cohu won a significant customer benchmark award, projecting about $100 million over five years.
Furthermore, Cohu's Q3 revenue is expected to be around $95 million with a gross margin of approximately 45%. The company is also anticipating a recovery in the first half of 2025, with the industrial market expected to pick up in Q1 2025. However, the timing for the recovery of the automotive market, Cohu's largest segment, remains uncertain.
Analysts note that while the company is facing challenges with the sale of spare parts due to equipment cannibalization, there are signs of strengthening demand in the computing and mobile markets. Additionally, Cohu has qualified two new customers for its Krypton product in the automotive and aerospace sectors. These recent developments indicate Cohu's strategic focus on expanding its customer base and product offerings despite current market challenges.
InvestingPro Insights
Cohu, Inc. (NASDAQ:COHU) has been demonstrating strategic moves in the semiconductor testing market, as evidenced by their recent order for the Diamondx platform. This development could be a signal for investors to watch the company's performance closely. According to InvestingPro data, Cohu holds a market capitalization of approximately $1.18 billion and maintains a Price to Book ratio of 1.31, suggesting a potentially reasonable valuation relative to its assets. However, it's important to note that the company's revenue has seen a significant decline of nearly 33% over the last twelve months as of Q2 2024, which aligns with analysts' expectations of a sales decline in the current year.
InvestingPro Tips highlight that Cohu has been aggressively buying back shares and holds more cash than debt on its balance sheet, which could be interpreted as a sign of management's confidence in the company's future and financial stability. Nonetheless, the company is trading near its 52-week low and has been marked by analysts as having a volatile stock price. Moreover, seven analysts have revised their earnings estimates downwards for the upcoming period, and the consensus does not anticipate the company will be profitable this year.
For investors seeking a deeper dive into Cohu's financial health and future prospects, InvestingPro offers additional tips. Currently, there are 12 more InvestingPro Tips available for Cohu at https://www.investing.com/pro/COHU, providing valuable insights for those considering an investment in the company.
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