Company: COHU
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001437749-25-024281
Chunk: 59

Company: COHU INC
Filing Date: 2025-08-01
Form: 10-Q
Item: Item 1
Chunk 59
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% of net sales in 2025, compared to $43.7 million or 20.6% in 2024. R&D expense increased during the first six months of fiscal 2025 due to higher material costs associated with new product development during the current year. Additionally, the first six months of fiscal 2025 included $1.9 million of incremental costs from Tignis.

SG&A Expense

SG&A expense was $59.9 million or 29.3% of net sales in 2025, compared to $67.2 million or 31.6% in 2024. The relative decrease in SG&A expense as a percentage of net sales is a result of lower sales in the first six months of fiscal 2025. SG&A expense during the first six months of fiscal 2025 was down on a year-over-year basis due to lower incentive compensation due to current business conditions and a $1.7 million benefit from and adjustment made to contingent consideration related to the acquisition of Tignis. SG&A expense during the first six months of fiscal 2025 includes $0.1 million of one-time severance costs resulting from manufacturing transition related to the expansion of our factories in the Philippines and Malaysia, $1.2 million of incremental SG&A costs from the operations of Tignis, and $0.3 million of transaction costs related to our acquisition of Tignis. The first six months of fiscal 2024 included $2.9 million of one-time severance costs resulting from manufacturing transition related to the expansion of our factories in the Philippines and Malaysia and a $1.0 million impairment charge related to our investment in Fraes-und Technologiezentrum GmbH Frasdorf (“FTZ”), a company based in Germany that provides milling services to one of our wholly owned subsidiaries and $0.2 million of transaction costs related to our acquisition of MCT and EQT.

Amortization of Purchased Intangible Assets

Amortization of acquisition-related intangible assets was $19.9 million and $19.5 million for the first six months of 2025 and 2024, respectively. The increase in expense recorded during the first six months of fiscal 2025 was a result of the amortization of acquired intangible assets from Tignis.

Restructuring Charges

During the first six months of fiscal 2025, we began executing a strategic restructuring program designed to reposition our global