Cohu, Inc. (NASDAQ:COHU) Q2 2024 Earnings Conference Call July 31, 2024 4:30 PM ET

Company Participants

Jeff Jones - CFO
Luis Muller - President and CEO

Conference Call Participants

Brian Chin - Stifel
Ross Cole - Needham & Company
David Duley - Steelhead Securities

Operator

Good day, and thank you for standing by. Welcome to Cohu's Second Quarter 2024 Financial Results Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. [Operator Instructions]. Please be advised that today's conference is being recorded.

I would now like to hand the conference over to Jeff Jones, Chief Financial Officer. Please go ahead.

Jeff Jones

Good afternoon and welcome to our conference call to discuss Cohu's second quarter 2024 results and third quarter outlook. I'm joined today by our president and CEO, Luis Muller. If you need a copy of our earnings release, you may access it from our website at Cohu.com or by contacting Cohu Investor Relations. There's also a slide presentation in conjunction with today's call that may be accessed on Cohu's website in the Investor Relations section. Replays of this call will be available via the same page after the call concludes.

Now to the Safe Harbor. During today's call, we will make forward-looking statements reflecting management's current expectations concerning Cohu's future business. These statements are based on current information that we have assessed, but which by its nature is subject to rapid and even abrupt changes. We encourage you to review the forward-looking statement section of the slide presentation and the earnings release, as well as Cohu's filings with the SEC, including the most recently filed Form 10-K and Form 10-Q.

Our comments speak only as of today, July 31st, 2024, and Cohu assumes no obligation to update these statements for developments occurring after this call. Finally, during this call, we will discuss certain non-GAAP financial measures. Please refer to our earnings release and slide presentation for reconciliations to the most comparable GAAP measures.

Now I'd like to turn the call over to Luis Muller, Cohu's president and CEO. Luis?

Luis Muller

Good afternoon. Second quarter results were in line with guidance, with non-GAAP gross margin of approximately 45%, as we continue to navigate the trough of this semiconductor cycle. Revenue of nearly $105 million was split 66% recurring in the balanced systems.

Systems revenue increased sequentially in consumer, optoelectronic, and computing markets, although offset by declines in automotive, industrial, and mobile. Despite soft market conditions, we continue to execute well on new product developments and deliver on design wins to expand customer and addressable markets. The most notable validation of our strategy was a recent customer benchmark award of an estimated $100 million business over five years for test automation and inspection systems.