Cohu, Inc. (NASDAQ:COHU) Q3 2024 Earnings Conference Call October 31, 2024 4:30 PM ET

Company Participants

Jeffrey Jones - CFO
Luis Muller - President and CEO

Conference Call Participants

Craig Ellis - B. Riley Securities
Christian Schwab - Craig-Hallum Capital Group
Ross Cole - Needham & Company
Krish Sankar - TD Cowen

Operator

Good day, and thank you for standing by. Welcome to Cohu's Third Quarter 2024 Financial Results Conference Call. [Operator Instructions]

Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Jeff Jones, Chief Financial Officer. Please go ahead.

Jeffrey Jones

Good afternoon, and welcome to our conference call to discuss Cohu's third quarter 2024 results and fourth 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 statements 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, October 31, 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

Hello, and welcome to our quarterly earnings call. Third quarter non-GAAP gross margin was strong at approximately 47%. Gross margin benefited from initial revenue of some new products and lower manufacturing costs. Jeff will get into more details on these later.

Revenue of $95.3 million was split 67% recurring in the balance systems, continuing to demonstrate the resilience of our business model during a market downturn. Systems revenue increased sequentially in automotive and mobile segments, although offset by declines in computing, consumer and industrial. The mobile segment was strongest in third quarter at 12% of consolidated revenue. Mobile also posted 13% year-over-year revenue growth, defining a turning point in a segment that was first into this market downturn.