Cohu Reports 2.8% Revenue Growth in Q2 2025, Net Loss Increases

Cohu, Inc. reported its financial results for the second quarter and first half of fiscal 2025, revealing a net sales increase of 2.8% year-over-year to $107.7 million for the three months ended June 28, 2025, compared to $104.7 million for the same period in 2024. However, for the first six months of fiscal 2025, net sales decreased by 3.7% to $204.5 million from $212.3 million in the prior year. The company attributed the decline in sales to a challenging global macroeconomic environment, which has led to reduced demand in automotive and industrial applications, although there was increased demand for mobile and AI-based computing applications.

Cohu's gross margin for the second quarter of fiscal 2025 was 43.7%, down from 44.8% in the same quarter of the previous year. The decrease was influenced by a less favorable product mix and additional costs associated with transitioning manufacturing activities from the U.S. and Europe to facilities in the Philippines and Malaysia. The company recorded restructuring charges of $1.2 million related to the transition of manufacturing out of Poway, California, and an additional $0.4 million for a strategic restructuring program aimed at improving cost structures.

In terms of operational developments, Cohu completed the acquisition of Tignis, Inc. on January 7, 2025, for approximately $34.9 million, which is expected to enhance its analytics offerings in the semiconductor process control market. The acquisition is anticipated to deepen Cohu's expertise in data science and add advanced analytics capabilities to its existing software solutions. The results from Tignis have been included in Cohu's financials since the acquisition date, although they were not material to the overall results for the second quarter.

Cohu's total liabilities increased to $100.6 million as of June 28, 2025, compared to $85.2 million at the end of the previous fiscal year. The company reported a net loss of $16.9 million for the second quarter of fiscal 2025, compared to a net loss of $15.8 million in the same quarter of 2024. For the first half of fiscal 2025, the net loss was $47.7 million, significantly higher than the $30.4 million loss reported in the first half of fiscal 2024. The company continues to focus on cost-saving measures and expects to achieve quarterly savings of approximately $2 million once its restructuring initiatives are fully implemented.

Looking ahead, Cohu remains optimistic about long-term growth prospects, driven by increasing semiconductor demand across various sectors, including automotive and AI technologies. The company is committed to enhancing its product offerings and expanding its customer base while navigating the current economic challenges. Cohu's management believes that its liquidity will be sufficient to meet anticipated cash requirements over the next 12 months, although they acknowledge that demand fluctuations could impact future performance.