Cohu, Inc. (NASDAQ:COHU) Q3 2023 Earnings Call Transcript

Luis Müller: Realistically speaking, Craig, I would give it three quarters.

Craig Ellis: Got it.

Luis Müller: I think a quarter two. A quarter two is when somebody is on an expedite mode and on a ramp mode and they want to get something done quickly. I think right now customers are taking their time until they’re pressed for time. So I’m going to say three quarters.

Craig Ellis: Sure. Okay. And then the last one is just a little cleanup item. Jeff, the deck usually has on the slide that shows the recurring and systems mix and some of the other stats, the gross margin for the two different businesses. I didn’t see that this time. Can you just hit us with recurring and systems gross margin?

Jeffrey Jones: Sure. Yeah, no problem. Recurring gross margin in the quarter was 55% and systems was 39%.

Craig Ellis: All right. And that systems number, I think, is down a little bit from the prior quarter. What was that?

Jeffrey Jones: It’s down 200 basis points. Yeah, just a matter of mix.

Luis Müller: Lower factory utilization as well, right? I mean, we got a – although, we are largely outsourced manufacturing, we still have factories in Malaysia, Philippines, and Japan. And so, with lower systems revenue, there’s less absorption of overhead on the system side.

Craig Ellis: Yeah, makes sense. Thanks, guys.

Luis Müller: 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.

Jeffrey Jones: I’d just like to say thank you to everybody for joining today’s call, and we look forward to speaking with you soon. Thanks, and have a nice day.

Luis Müller: Thank you.

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