JULY 24--Cohu Inc. (Poway, CA; www.cohu.com) announced that sales were $32.1 million for the second quarter, ended June 30, 2003, compared to $38.3 million for the second quarter of 2002 and $31.1 million for the first quarter of 2003. Net income for the second quarter of 2003 was $4.1 million, or $0.19 per share, compared to net income of $822,000, or $0.04 per share for the second quarter of 2002 and a net loss of $1.4 million or $0.07 per share in the first quarter of 2003. The quarter ended June 30, 2003, includes a pretax gain of $7.9 million from the sale of land held for future development and a pretax charge of $2.5 million from an impairment write-down of an equity investment. Cohu also recorded pretax charges to operations in the second quarter of 2003 of approximately $250,000 related to the consolidation of its Littleton, MA, operations and $2.5 million for inventory.
Orders for the second quarter of 2003 were $43.7 million compared to $31.8 million for the first quarter of 2003. Backlog was $42.9 million at June 30, 2003 compared to $31.3 million at March 31, 2003. Second quarter 2003 sales of semiconductor test handling equipment accounted for 80% of total sales. Sales of television cameras and related equipment were 13% of sales and metal detection and microwave communications equipment contributed 7% of sales. Second quarter 2003 orders included 64% from semiconductor equipment, 9% from television cameras. and 27% from metal detection and microwave communications equipment. Our June 30, 2003 backlog includes a significant amount of deferred revenue and other orders that are not expected to be recognized as revenue in the third quarter of 2003.
James A. Donahue, president and chief executive officer, stated, "We were pleased that a significant number of the new thermal upgrades to our Summit Handlers were accepted during the second quarter, and this contributed to our improved operating performance. R&D costs were lower in Q2, in part because we completed the consolidation of our Columbus, OH, operations into our Poway headquarters in April. Sentiment in the IC industry may be slightly improved, but we remain cautious about the balance of the year. We will continue to focus on new product development, efficient manufacturing, cost control, and excellent customer support as we prepare for improved business conditions."
Cohu's board of directors approved a quarterly cash dividend of $0.05 per share payable on November 3, 2003, to shareholders of record on September 12, 2003. Cohu has paid consecutive quarterly cash dividends since 1977.
