Benzinga | Aug 31, 2020 04:28PM EDT

Cohu Sees 'expects a net neutral to positive impact from the newly introduced U.S. export restrictions to Huawei and expanded list of affiliated companies'

POWAY, Calif.--(BUSINESS WIRE)-- Cohu, Inc. (NASDAQ:COHU), a global leader in back-end semiconductor equipment and services, today provided a business update and an upward revision to its fiscal third quarter 2020 guidance:

* Cohu expects a net neutral to positive impact from the newly introduced U.S. export restrictions to Huawei and expanded list of affiliated companies, as market share and demand is expected to shift to other customers.

* Order forecast has improved through third quarter with continued positive customer momentum in mobility and strong demand for Cohu's RF testers.

* Cohu now expects third quarter revenue at the high-end of guidance at approximately $146 million.

* The company commenced reduction of the term loan B debt associated with the financing of the Xcerra acquisition in October 2018, recently reducing such debt by $17.3 million.

Luis M?ller, President and Chief Executive Officer of Cohu, commented, "We are encouraged by our customers' acceptance and ramp of our RF test solutions, and this drives our increased optimism about near-term business conditions."