Cohu Reports 32.4% Increase in Q3 Net Sales, Reduces Net Loss

Cohu, Inc. reported its financial results for the third quarter and first nine months of fiscal 2025, revealing a significant increase in net sales and a reduction in net loss compared to the previous year. For the three months ended September 27, 2025, the company achieved net sales of $126.2 million, a 32.4% increase from $95.3 million in the same period of 2024. The nine-month figures also showed growth, with net sales rising to $330.7 million from $307.7 million year-over-year. Despite the increase in revenue, Cohu recorded a net loss of $4.1 million for the third quarter, down from a loss of $18.1 million in the prior year, and a nine-month net loss of $51.8 million compared to $48.5 million in 2024.

The company attributed its improved performance to stronger demand for mobile and AI-based computing applications, which helped offset challenges in other sectors such as automotive and industrial. Cohu's acquisition of Tignis, completed on January 7, 2025, is expected to enhance its analytics offerings in the semiconductor process control market, although Tignis' contribution to overall sales was not material in the latest quarter. The company has also initiated a global restructuring program aimed at improving profitability, with expected quarterly cost savings of approximately $2 million once fully implemented.

Operationally, Cohu's gross margin for the third quarter was 43.8%, down from 46.8% in the prior year, primarily due to the mix of systems sold and additional costs associated with transitioning manufacturing activities to lower-cost regions. Research and development expenses increased to $22.5 million, reflecting higher material costs and incremental expenses from Tignis. Selling, general, and administrative expenses decreased to $31.8 million, aided by cost control measures and lower incentive compensation.

Cohu's balance sheet showed total assets of $1.02 billion as of September 27, 2025, with cash and cash equivalents decreasing to $149.9 million from $206.4 million at the end of 2024. The company reported total debt of $17.8 million, which includes borrowings under various credit facilities. Looking ahead, Cohu's management expressed confidence in its liquidity position, bolstered by a recent $287.5 million offering of convertible senior notes, which is expected to enhance financial flexibility and support long-term growth initiatives. The company anticipates that its existing cash, cash equivalents, and available credit will be sufficient to meet operational needs for at least the next 12 months, although it remains cautious about potential declines in demand for its products.