cohu investor presentation

8/2/2019 Cohu Investor Presentation

1/19

November 16, 2011November 16, 2011

88thth Annual CitiAnnual Citi

Small/Mid Cap ConferenceSmall/Mid Cap Conference


2/19

Page 2

11-16-11

....Forward Looking Statements and Regulation FDForward Looking Statements and Regulation FD

Certain matters discussed in this presentation, includingCertain matters discussed in this presentation, including

statements concerning expectations of Cohustatements concerning expectations of Cohus future operatings future operating

performance, are forwardperformance, are forward--looking statements that are subject tolooking statements that are subject to

risks and uncertainties that could cause actual results to differisks and uncertainties that could cause actual results to differrmaterially from those projected or forecasted. Such risks andmaterially from those projected or forecasted. Such risks and

uncertainties include, but are not limited to; inventory, goodwiuncertainties include, but are not limited to; inventory, goodwill,ll,

and other intangible asset writeand other intangible asset write--downs, our ability to convert newdowns, our ability to convert new

products under development into production on a timely basis,products under development into production on a timely basis,support product development and meet customer delivery andsupport product development and meet customer delivery and

acceptance requirements for next generation equipment; andacceptance requirements for next generation equipment; and

customer orders may be cancelled or delayed. These and othercustomer orders may be cancelled or delayed. These and other

risks are discussed more fully in Cohurisks are discussed more fully in Cohus filings with the Securitiess filings with the Securitiesand Exchange Commission, including the most recently filed Formand Exchange Commission, including the most recently filed Form

1010--K and Form 10K and Form 10--Q. Cohu assumes no obligation to update theQ. Cohu assumes no obligation to update the

information in this presentation.information in this presentation.


3/19

Page 3

11-16-11

Cohu Investment SummaryCohu Investment Summary

Enabling technologies and industryEnabling technologies and industry--leading products toleading products to

drive market share growthdrive market share growth Operating leverage provides opportunity for significantOperating leverage provides opportunity for significant

growth in profits during upcyclesgrowth in profits during upcycles

Strong, debtStrong, debt--free balance sheet to enable future growthfree balance sheet to enable future growthopportunitiesopportunities

Track record of sound acquisitionsTrack record of sound acquisitions e.g. 2008 Rascoe.g. 2008 Rascopurchase expanded TAM, with no product overlap andpurchase expanded TAM, with no product overlap andstrong crossstrong cross--selling synergiesselling synergies

Cash dividend since 1977Cash dividend since 1977 -- currently $0.06/sharecurrently $0.06/share

Market leader in semiconductor test handling equipmentMarket leader in semiconductor test handling equipment


4/19

Page 4

11-16-11

Cohu, Inc. Operating UnitsCohu, Inc. Operating Units

Note: 2010 Results

10%10%

85%85%

5%5%

!""#


5/19

Page 5

11-16-11

CohuCohus largest businesss largest business

IC test handlers and thermal subIC test handlers and thermal sub--systemssystems

Semiconductor capital equipmentSemiconductor capital equipment

Dynamic, cyclical industry, with rapid and steep changes in demaDynamic, cyclical industry, with rapid and steep changes in dema

ndnd

December 2008 acquisition of Rasco GmbH increased TAM 70%,December 2008 acquisition of Rasco GmbH increased TAM 70%,expanded product portfolio and broadened customer baseexpanded product portfolio and broadened customer base

Semiconductor Test Handling EquipmentSemiconductor Test Handling Equipment

* Source: VLSI Research, Inc. and Company estimates

#2 in Gravity#2 in Gravity--FeedFeed

Test HandlersTest Handlers

A Cohu Company

*

#1 in Logic Pick&Place#1 in Logic Pick&Place

Test HandlersTest Handlers*


6/19

Page 6

11-16-11

SemiconductorSemiconductor Manufacturing ProcessManufacturing Process

WaferFab

The Front-End

ShipInspectionMarkTestAssembly

Cohu handlers, thermal subsystems and equipment areCohu handlers, thermal subsystems and equipment arean essential part of the IC manufacturing processan essential part of the IC manufacturing process -- usedused

with ATE to costwith ATE to cost--effectively test ICs for quality andeffectively test ICs for quality and

functionalityfunctionality

Final Manufacturing Processes

The Back-End

DeltaDelta EDGEEDGE


7/19

Page 7

11-16-11

Positioned for Continued GrowthPositioned for Continued Growth

Semiconductor Test Handler MarketSemiconductor Test Handler Market

Source: VLSI Research, Inc. and Company estimates

Key market drivers: IC unit volume, increasing IC content,Key market drivers: IC unit volume, increasing IC content,expanding applications, new IC package typesexpanding applications, new IC package types

Our products address 62% of the marketOur products address 62% of the market

Rasco acquisition added gravityRasco acquisition added gravity--feed and strip handlersfeed and strip handlers GravityGravity--feed is wellfeed is well--suited for handling small IC packagessuited for handling small IC packages

critical to miniaturization of CE productscritical to miniaturization of CE products


8/19

Page 8

11-16-11

Market Share LeadershipMarket Share Leadership

IC Test HandlersIC Test Handlers

Logic Pick & PlaceLogic Pick & Place HandlersHandlers

Gravity Feed HandlersGravity Feed Handlers

Source: 2010 VLSI Research, Inc. and Company estimates

#1 Position#1 Position



#1 or #2 position in every test#1 or #2 position in every testhandler market served by Cohuhandler market served by Cohu


9/19

Page 9

11-16-11

Leading Technologies to Drive Market Share GainsLeading Technologies to Drive Market Share Gains

PRODUCTIVITYPRODUCTIVITY

X32 (X4 Chuck) 125C Thermal Testing

120.0

121.0

122.0

123.0

124.0

125.0

126.0

127.0

128.0

129.0

130.0

00.00 04.32 08.64 12.96 17.28 21.60 25.92 30.24 34.56 38.88Time(s)

Temperature(C)

SiteB1

SiteA1

SiteD1

SiteC1

SiteB2

SiteA2

SiteD2

SiteC2

SiteB3

SiteA3

SiteD3

SiteC3

SiteB4

SiteA4

SiteD4

SiteC4

SiteA5

SiteB5

SiteC5

SiteD5

SiteA6

SiteB6

SiteC6

SiteD6

SiteA7

SiteB7

SiteC7

SiteD7

SiteA8

SiteB8

SiteC8

SiteD8

- Tmin. =123.4C

- Tmax. = 127.9C- Temp. Range= 4.5C- SitesA5andA6 were notfunctioning,no temperaturereading.80

90

100

110

120

130

140

0 2 4 6 8 10 12 14 16 18 20

Time (sec)

Temp(C)

Temp Rise

6.0C

4.3C

3.9C

3.4C

2.6C

Thermal response at 125W

FLEXIBILITYFLEXIBILITY

IndustryIndustry--leading Parallelism & Throughputleading Parallelism & Throughput

Lowers costLowers cost--ofof--testtest

Vision AlignmentVision Alignment

Enables accurate testing of small formEnables accurate testing of small form

factor IC packagesfactor IC packages a fast growing marketa fast growing market

Thermal ManagementThermal Management

Proprietary thermal technology increasesProprietary thermal technology increasestest accuracy and yieldstest accuracy and yields

ChamberChamber--less Triless Tri--TemperatureTemperature

Allows onAllows on--line maintenance at temperature,line maintenance at temperature,reducing downtimereducing downtime


10/19

Page 10

11-16-11

Proprietary Thermal TechnologyProprietary Thermal Technology

Solves a Growing Problem in IC TestSolves a Growing Problem in IC Test Delta Design is the industry leader in highDelta Design is the industry leader in high--power/DUT thermalpower/DUT thermal

managementmanagement

Enabling capability that optimizes speed grading, increasinglyEnabling capability that optimizes speed grading, increasingly

important for GPUs as well as MPUsimportant for GPUs as well as MPUs Latest technology incorporated in nextLatest technology incorporated in next--gen Pyramid thermal handlergen Pyramid thermal handler

2.79

2.82

2.85

2.88

2.91

2.94

2.97

3.00

3.03

3.06

3.09

78

80

82

84

86

88

90

92

94

96

98

100

102

104

106

108

110

112

114

118

120

122

Fmax Uncertainty for MPUsFreq. vs. Temp

2% / 10oC Typical

2oC Tj errorFmax Uncertainty

10oC Tj errorFmax Uncertainty

Max.

Freq.-GHz

Tj Setpoint deg. C

Speed = $Speed = $

Core i3Core i3 3.1 Ghz3.1 Ghz $129$129

Core i3Core i3 3.3 Ghz3.3 Ghz $159$159 (+23%)(+23%)

Source: Computeredge.com

(November 2, 2011)


11/19

Page 11

11-16-11

$%&'

()

*+

,

,

&

InInProductionProduction

InInProductionProduction

InitialInitialCustomerCustomerEvaluationEvaluation

-Thermal Pick & Place HandlersThermal Pick & Place Handlers

-High Speed Pick & Place HandlersHigh Speed Pick & Place Handlers

-GravityGravity--Feed & Strip HandlersFeed & Strip Handlers

IndustryIndustry--leading systems in each product lineleading systems in each product line

Broad Product PortfolioBroad Product Portfolio

-

).

%

-

).

%


12/19

Page 12

11-16-11

Wide Customer BaseWide Customer Base

Realizing crossRealizing cross--selling opportunities, resulting in market share gainsselling opportunities, resulting in market share gains

RascoRascoDelta DesignDelta Design


13/19

Page 13

11-16-11

Largest global sales and service network in the industry...Largest global sales and service network in the industry...

24/7 Global Customer Support24/7 Global Customer Support

POWAY, CADelta 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, ORBoise, ID

Austin, TX

COSTA RICA

Houston, TX

Chandler, AZ

UNITEDKINGDOM

MALTA

Tyngsborough,MA

Dallas, TX

SINGAPOREDelta-Rasco

Asia Headquarters

KOLBERMOOR, DE

Rasco Headquarters

San Jose, CA

INDONESIA

Depth and Breadth is a Competitive AdvantageDepth and Breadth is a Competitive Advantage

Tooling Design/Mfg

PHILIPPINES- Manila- Baguio- Cavite

- Laguna

- Tokyo

- Batam


14/19

Financial UpdateFinancial Update

Poway, California Headquarters


15/19

Page 15

11-16-11

Semi/Semi Equipment UpdateSemi/Semi Equipment Update

Source: SEMI 2011

Most semiconductor equipment companies have guided toMost semiconductor equipment companies have guided tolower operating results in Q4lower operating results in Q4

Global macroGlobal macro--economic weakness and uncertainty iseconomic weakness and uncertainty is

slowing worldwide demand for semiconductorsslowing worldwide demand for semiconductors Equipment utilization rates in our customersEquipment utilization rates in our customers test facilitiestest facilities

are currently in the 70%are currently in the 70% -- 75% range75% range

$20

$70

$120

$170

$220

$270

$320

$370

$420

$470

Millions Orders

AugAug

2006 2007 2008 2009 2010 2011

0.45

0.55

0.65

0.750.85

0.95

1.05

1.15

1.25

1.35

1.45

1.55

2006 2007 2008 2009 2010 2011

Aug

Aug

Book to Bill


16/19

Page 16

11-16-11

Q3Q311 Results / Q411 Results / Q411 Guidance11 Guidance

Q3 HighlightsQ3 Highlights

Sales $71.8Sales $71.8

Orders $61.4MOrders $61.4M

NonNon--GAAP EPS $0.21GAAP EPS $0.21

Backlog of $74.5MBacklog of $74.5M

$0.06 cash dividend$0.06 cash dividend

Q4 GuidanceQ4 Guidance

Sales ~ $65MSales ~ $65M

Gross Margin ~ 32% (nonGross Margin ~ 32% (non--GAAP)GAAP)

Operating Expense ~ $19M (nonOperating Expense ~ $19M (non--GAAP)GAAP)

Cost reduction actions in response to softeningCost reduction actions in response to softeningbusiness conditionsbusiness conditions


17/19


18/19

Page 18

11-16-11

#1 in IC Test Handler Industry#1 in IC Test Handler Industry

Rasco acquisition expanded TAM and has been highlyRasco acquisition expanded TAM and has been highlysuccessfulsuccessful

Well positioned for market share growth from:Well positioned for market share growth from:

New, industryNew, industry--leading pick & place handlersleading pick & place handlers

Ramp of Pyramid, nextRamp of Pyramid, next--gen thermal handlergen thermal handler

NextNext--Gen gravityGen gravity--feed handlerfeed handler -- initial customer evaluationinitial customer evaluationexpected to begin in Q4expected to begin in Q41111

Significant cross selling opportunitiesSignificant cross selling opportunities

Strong balance sheet with no bank debtStrong balance sheet with no bank debt

Dividend provides return even during downcyclesDividend provides return even during downcycles(currently yielding >2%)(currently yielding >2%)

SummarySummary


19/19

November 16, 2011November 16, 2011

Thank you!Thank you!

88thth Annual CitiAnnual Citi

Small/Mid Cap ConferenceSmall/Mid Cap Conference

cohu investor presentation

Documents