Cohu, Inc.

Good day and thank you for standing by. Welcome to the CoHUE, Inc. fourth quarter and full year 2021 results conference call. At this time, all participants are in listen-only mode. After the presentation, there will be a question and answer session. To ask a question during the session, you'll need to press star then one on your telephone keypad. Please be advised today's conference may be recorded. If you require operator assistance during the call, please press star then zero. I'd now like to hand the conference over to Jeff Jones, Chief Financial Officer.

Good afternoon and welcome to our conference call to discuss Cohue's fourth quarter 2021 results and first quarter 2022 outlook. I'm joined today by our President and CEO, Luis Mueller. If you need a copy of our earnings release, you may access it from our website at cohue.com or by contacting CoHUE investor relations. There's also a slide presentation in conjunction with today's call that may be accessed on CoHUE'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 CoHUE'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, February 10, 2022, 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 Mueller, CoHUE's President and CEO. Luis?

Luis Mueller Good afternoon, everyone, and thanks for joining us. Fourth quarter revenue was approximately $192 million, and non-GAAP EPS was 72 cents. both higher than the midpoint of our guidance. Full-year 2021 revenue of $887 million grew 39% year-over-year, gapping a five-year revenue category of 26%, one of the strongest in our industry. Full-year non-GAAP EPS of $3.20 was up 169% year-over-year, demonstrating the scalability of our business model. We also had several design wins that expanded our products into new customers, achieved year-over-year revenue growth of 130% in inspection and metrology and 25% in interface products business, and supported a significant ramp in the automotive and industrial segments. Coming back to Q4, we had a multitude of customer design wins this past quarter. Our tester business, received volume orders for the Diamond X platform from a Japanese automotive semiconductor customer. Qualified and secured initial volume order and shipment of Diamond X tester to a Korean-based display driver customer, delivering on the goal to expand their presence in this device segment. Capture an important RF front-end module design win from a leading Japanese semiconductor manufacturer, that is adopting Cohuse PACS tester with the Redragon instrumentation suite, and got an initial PACS system order from a US-based RF semiconductor manufacturer for testing Wi-Fi 6E and Wi-Fi 7 devices, displacing this customer's internal Rack and Stack solution. In the interface business, we're gaining traction with a new line of power and precision analog contactors used in testing semiconductors for automotive and industrial applications. The handler business followed with capturing RF sales at a Taiwanese customer, being selected by a leading German customer, and receiving first order for testing automotive ADAS processors on our matrix handler equipped with T-Core active thermal control. receiving the first order for our Eclipse with T-Core Active Thermal Control for testing Tier 1 mobile processors at a leading Korean OSAT customer, and a few other design wins in the growing automotive and industrial semiconductor markets in China. Our DI Core Data Analytics capped the quarter with another win at a customer in Europe. In all, this was one of the longest list of single quarter design wins that I can remember in my tenure at Cohue and gives me confidence that we are on path to meet our midterm revenue target. We enter 2022 with an 87% estimated test serialization, strong backlog, and increasing demand for our products. We remain cautious about the tight supply chain environment and potential impact of Omicron in the next few months. But we're also excited by the customer traction and the opportunity to broaden our semi-task applications with our DiamondX tester, growing interest in our NEON inspection and metrology technology, expansion in test interface products, and many ongoing qualifications of our DI Core data analytics software solution. As a result, we recently increased Cohue's midterm financial targets to revenue of $1 billion in non-GAAP PPS of $4 per share. Additionally, Many of our customers have publicly announced the recent quarterly results and provided growth forecasts for 2022, which emboldens our view that this will be another good year for Cohue. We don't typically have a single large customer that drives revenue in a year, but count on aligning our product strategy to segments of the market and customers that have outsized growth prospects. We forecast 2022 to be a strong year for semiconductor tester group, which is starting to benefit from the many recent customer design wins and expansion within and beyond the RF mobility segment. Continue gains in inspection and metrology, working to qualify Neon at several new customers in 2022, and deploying new vision solutions later in the year that further align our products to tighter quality requirements in advanced packaging. We're also planning another growth year for the interface business, particularly in automotive and industrial power applications and high-performance RF mobility. DI Core business is lifting off at many automotive and industrial semiconductor manufacturers, augmenting our product portfolio and delivering value via mining sensor data in our products to improve our customers' productivity. Finally, we forecast handler demand to moderate in 2022, which we expect will drive sequential consolidated gross margin expansion this year. Water forecasts remain strong, and the challenge continues to be to secure enough from the supply chain to satisfy demand. And as always, we will continue to assess opportunities and make investments based on high ROI and strong future cash flow potential. Let me now turn it over to Jeff to share fourth quarter results and provide specifics about our Q1 guidance. Jeff?