Cohu, Inc. (NASDAQ:COHU) Q2 2023 Earnings Call Transcript

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Jeff Jones: Well, the way that we see it now, as Luis had said sequential increase in orders Q3 versus Q2, we think that translates into a sequential increase in revenue, but it is early for us to pin down a number. We think it’s an incremental increase, not a substantial increase. But it would – we at this point think it is incremental, but again, difficult to pin down a number.

Krish Sankar: Got it. Thanks, Jeff, for your help.

Operator: [Operator Instructions] Our next question comes from Charles Shi with Needham & Company.

Charles Shi: Hi. Thank you for letting me ask, maybe just one question. Test utilization, what is the current visibility into the trend, let’s say into Q3 and into the – into Q4, given your visibility today?

Luis Muller: Charles, we don’t try to forecast cell utilization. So it’s always a rear view mirror metric. It’s what we measure. And it did, like I said, it did come down in the second quarter just down to 73%. It did come down both at the IDMs and OSATs. But when we dug in a little bit more to understand, part of the reasons on that is we recognize we end up having there’s actually 99 handlers or close to a 100 handlers that were sitting, waiting for tester deliveries. So here becomes more of a question of if those testers really get delivered. And we do count systems that are waiting to be installed actually as part of the utilization metric. So if we do get those testers delivered on the third quarter, and not withstanding anything else happening in the market, I would expect test utilization to climb again in third quarter. But like I said, we don’t typically try to forecast test utilization.

Charles Shi: Thank you. Luis, can you provide a little bit color on your design win with a hyperscaler to the foundry because I thought your testers are more geared towards analog intensive applications, but the hyperscaler, my assumptions it is probably a digital intensive application. So almost feel like this would have been an [indiscernible] that kind of market, but you did have this design win. Can you correct any of the thoughts – any of the things I said wrong and provide a little bit more color on this one? Yes. Thank you.

Luis Muller: Yes, Charles, everything you said is correct, except the very beginning. This was a handler design win, not a tester. But everything else you said is actually correct, including the tester that goes with our handler. And – but it’s really a thermal handler design win, not a tester from us.

Charles Shi: Thank you.

Operator: That concludes today’s question-and-answer session. I’d like to turn the call back to Jeff Jones for closing remarks.

Jeff Jones: Thank you. And before we sign off, I’d just like to mention that we’ll be attending three investor conferences during the third quarter, and they are the Needham Virtual Conference on Tuesday, August 22, the Jefferies Conference in Chicago on Tuesday, August 29, and Citi’s Global Tech conference in New York on Friday, September 8. So if you plan to attend one or more of these conferences, would like to meet with us. Please reach out to your respective analyst or conference contact to schedule a meeting. Thank you for joining today’s call, and we look forward to speaking with you soon. Have a nice day.

Operator: This concludes today’s conference call. Thank you for participating. You may now disconnect.

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