Presentation is loading. Please wait.

Presentation is loading. Please wait.

March 3-4, 2011 Investor Presentation Sidoti & Company.

Similar presentations


Presentation on theme: "March 3-4, 2011 Investor Presentation Sidoti & Company."— Presentation transcript:

1 March 3-4, 2011 Investor Presentation Sidoti & Company

2 Page Forward Looking Statements and Regulation FD Certain matters discussed in this presentation, including statements concerning expectations of Cohu’s future operating performance, 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; 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; inventory, goodwill, and other intangible asset write-downs, and customer orders may be cancelled or delayed. These and other risks 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 presentation.

3 Page Cohu Investment Summary  Market leader in semiconductor test handling equipment  Rasco acquisition in December 2008 extends market leadership and expands TAM  Key proprietary technology for temperature control: improves IC yield and ASPs  Operating leverage: provides opportunity for significant growth in profits during upcycle  Financial strength: strong, debt-free balance sheet  New products: 3 new handlers to fuel market share growth

4 Page Semiconductor Manufacturing Process Wafer Fab The “Front-End” Ship Inspection MarkTest Assembly Cohu handlers, burn-in thermal subsystems and equipment are an essential part of the IC manufacturing process - used with ATE to cost-effectively test ICs for quality and functionality Final Manufacturing Processes The “Back-End”

5 Page Cohu’s Semiconductor Equipment Group #1 in Logic Pick & Place Test Handlers #2 in Gravity-feed Test Handlers COHU Global Leader in IC Test Handling A Cohu Company MATRiX Pyramid SO1000 SO3000 X32 Tri-temp Next-Gen Thermal Handler X4 Tri-temp Test on Strip

6 Page  Rasco acquisition added gravity-feed and strip handlers Extends leadership in the test handler market Extends leadership in the test handler market Complementary products with no overlap Complementary products with no overlap  Gravity-Feed is well-suited for handling small IC packages – critical to miniaturization of CE products  Our products address 62% of the market  Rasco sales and orders at record levels in 2010 Expanded TAM Semiconductor Test Handler Market Source: VLSI Research, Inc. and Company estimates

7 Page Leading Technologies PRODUCTIVITY FLEXIBILITY Industry-leading Parallelism & Throughput Lowers cost-of-test Vision Alignment Enables accurate testing of small form factor IC packages – a fast growing market Thermal Management Proprietary thermal technology increases accuracy and yields Proprietary thermal technology increases accuracy and yields Chamber-less Tri-Temperature Allows on-line maintenance at temperature, reducing downtime

8 Page Proprietary Thermal Technology Solves a Growing Problem in IC Test  Delta Design is the industry leader in high-power/DUT thermal management  Enabling capability that optimizes speed grading, increasingly important for GPUs  Latest technology incorporated in next-gen Pyramid thermal handler Speed = $ Core i5 2.8 Ghz $189 Core i5 3.3 Ghz $249 (+32%) Source: Computeredge.com (February 28, 2011)

9 Page Market Share Leadership IC Test Handlers Logic Pick & PlaceHandlers Logic Pick & Place Handlers Gravity Feed Handlers Source: 2008 VLSI Research, Inc. and Company estimates COHU (Rasco) 23% COHU 24% (Primarily Logic) COHU (Delta Design) 48% COHU (Delta Design) 48% #1 Position #2 Position

10 Page Wide Customer Base  Realizing cross-selling opportunities, resulting in market share gains

11 Page Broad Product Portfolio u New industry-leading systems in each product line MATRiX Pyramid In Development

12 Page  Largest global sales and service network in the industry... 24/7 Global Customer Support POWAY, CA Delta Headquarters Long Island, NY MALAYSIA - Kuala Lumpur - Penang - Malacca - Kulim Burlington, VT TAIWAN - Taipei - Kaohsiung - Hsinchu SOUTH KOREA - Seoul JAPAN CHINA - Tianjin - Shanghai - Suzhou - Chengdu THAILAND - Bangkok Hillsboro, OR Boise, ID Austin, TX COSTA RICA Houston, TX Chandler, AZ UNITED KINGDOM MALTA Tyngsborough, MA Dallas, TX SINGAPORE Delta-Rasco Asia Headquarters KOLBERMOOR, DE Rasco Headquarters San Jose, CA INDONESIA Depth and Breadth is a Competitive Advantage Tooling Design/Mfg PHILIPPINES -Manila -Baguio - Cavite -Laguna - Tokyo - Batam

13 Financial Update Poway, California Headquarters

14 Page Strong Q4 Results  Q Highlights Sales grew 13% sequentially and 86% YoY to $96.9M, a Cohu record Sales grew 13% sequentially and 86% YoY to $96.9M, a Cohu record Non GAAP EPS $0.48 vs. $0.41 in Q3 and $0.11 in Q Non GAAP EPS $0.48 vs. $0.41 in Q3 and $0.11 in Q Orders $75.8M, down 16% from Q3 Orders $75.8M, down 16% from Q3  Semi-equipment orders declined 9% sequentially to $67.1M Backlog of $99.6M Backlog of $99.6M $0.06 cash dividend (quarterly dividend since 1977) $0.06 cash dividend (quarterly dividend since 1977)

15 Page Semi/Semi Equipment Update Source: SEMI 2011  Backend semi equipment have increased for the last two months  “2010 will likely be the strongest year ever for the semiconductor equipment industry, which will be a nice rebound from the worst year ever, growth will continue through 2012 as companies move from technology buys to capacity purchases.” (Klaus Rinnen, Gartner) Orders Book to Bill

16 Page Multiple Business Drivers Source: Company reports  Broad-based demand for our handlers  Production ramp of new thermal handler – Pyramid  Capacity additions as IC unit volume increases  Market share gains and sales synergies of expanded product line Sales Millions

17 Page Q1’11 Non GAAP Guidance Non GAAP excludes stock compensation expense and amortization of purchased intangibles  Gross margin subject to volume and product mix  Opex lower mainly as a result of variable selling expense on lower revenue Q4'10Q1'11 ResultsGuidance Quarterly Revenue ($M)$96.9$85 to $90 Gross Margin34.9%Consistent with Q4 Operating Expenses21.5%Slightly Lower

18 Page Strong Balance Sheet ($M, except per share amounts)  Cash increased $13.3M in 2010 despite volume-driven working capital requirements  ~10%+ sequential increase in Q4 shipments results in lower inventory  No bank debt Cash and Investments$84.7$89.9$91.3$98.2 Accounts Receivable$44.9$55.1$67.2$66.8 Inventory$59.4$61.9$66.0$63.2 Key Metrics Cash per share$3.59$3.79$3.82$4.09 DSO Inventory Days Mar ’10 Jun ’10Sep ’10Dec’10

19 Page  Rasco acquisition expanded TAM and has been highly successful  Well positioned for market share growth from: New, industry-leading pick & place handlers New, industry-leading pick & place handlers Ramp of Pyramid, next-gen thermal handler Ramp of Pyramid, next-gen thermal handler Gravity-feed handlers optimized for small IC testing – new product in 2011 Gravity-feed handlers optimized for small IC testing – new product in 2011 Significant cross selling opportunities Significant cross selling opportunities  Strong balance sheet to enable future growth opportunities Summary

20 March 3-4, 2011 Investor Presentation Sidoti & Company


Download ppt "March 3-4, 2011 Investor Presentation Sidoti & Company."

Similar presentations


Ads by Google