Benzinga | Apr 29, 2021 01:53PM EDT

Cohu Posts Upbeat Q1 Results From Auto, 5G-Driven Order Growth, Issues Robust Guidance

* Cohu Inc (NASDAQ: COHU) reported first-quarter FY21 revenue growth of 62.3% year-on-year to $225.5 million, beating the analyst estimate of $222.85 million. Robust automotive segment demand and broad market strength led to record order growth.

* The recurring business was benefiting from new semiconductor product designs leading to a 14% sequential contactor revenue growth, CEO Luis M?ller said. The systems business experienced robust automotive demand, driven by xEV and ADAS technologies, and continued mobility expansion with 5G proliferation.

* Non-GAAP gross margin expanded 390 basis points to 45.6%. Adjusted EBITDA expanded 1,760 basis points to 23.9%.

* Non-GAAP EPS of $0.89, beating the consensus estimate of $0.79.

* The company held $291 million in cash and equivalents. It raised $223.1 in a secondary share sale last month.

* Cohu reduced outstanding Term Loan B debt by $102 million during Q1.

* Guidance: Cohu's Q2 revenue estimate lies between $234 million and $250 million, versus the analyst estimate of $238.93 million.

* Price action: COHU shares traded lower by 16.5% at $39.07 on the last check Thursday.