Company: COHU
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001437749-25-024281
Chunk: 58

Company: COHU INC
Filing Date: 2025-08-01
Form: 10-Q
Item: Item 1
Chunk 58
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 Our continuing practice is to recognize interest and/or penalties related to income tax matters in income tax expense.

Net Loss

As a result of the factors set forth above, our net loss was $16.9 million for the three months ended June 28, 2025 and $15.8 million for the three months ended June 29, 2024.

First Six Months of Fiscal 2025 Compared to First Six Months of Fiscal 2024

Net Sales

Our consolidated net sales decreased 3.7% to $204.5 million in 2025, compared to $212.3 million in 2024. The decrease in net sales recognized for the first six months of fiscal 2025 resulted from the current global macroeconomic environment which continues to show lower demand for automotive, industrial, and mobile applications partly offset by increased demand for AI-based computing applications. Cohu acquired Tignis on January 7, 2025, and the results of its operations are included since that date. For the first six months of fiscal 2025, Tignis’ net sales were not material to Cohu.

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Cohu, Inc.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

June 28, 2025

Gross Margin (exclusive of amortization of acquisition-related intangible assets described below)

Our gross margin, as a percentage of net sales, decreased to 43.7% in 2025 from 45.3% in 2024. Gross margin during the first six months of fiscal 2025 declined as it was impacted by the mix of systems sold to customers and $0.5 million of additional manufacturing employee compensation and inventory charges resulting from transitioning certain of our manufacturing activities from the U.S. and Europe to our factories in the Philippines and Malaysia.

In the first six months of fiscal 2025 and 2024 we recorded charges to cost of sales for excess and obsolete inventory of approximately $3.2 million and $2.0 million, respectively. We believe our reserves for excess and obsolete inventory and lower of cost or market concerns are adequate to cover known exposures as of June 28, 2025. Reductions in customer forecasts or continued modifications to products, or our failure to meet specifications or other customer requirements may result in additional charges to operations that could negatively impact our results of operations and gross margin in future periods.

R&D Expense

R&D expense was $46.3 million or 22.7