Cohu, Inc.

there will be a question and answer session. To ask a question during the session, you'll need to press star one one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to Jeff Jones, Chief Financial Officer. Please go ahead.

Good afternoon, and welcome to our conference call to discuss CoHUE's first quarter 2025 results and second quarter 2025 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 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 statement section of the slide presentation and the earnings release, as well as co-use filings with the SEC, including the most recently filed Form 10-K and Form 10-Q. Our comments speak only as of today, May 1st, 2025, And CoHUE 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?

Hello, and welcome to your quarterly earnings call. First quarter 2025 results were in line with guidance, with revenue approximately $97 million and non-GAAP gross margin approximately 44%. As previously announced, we implemented a restructuring program in late February to reduce manufacturing and operating expenses through this year. This program includes some incremental manufacturing transfers to our Asia factories, and related expense reductions in the U.S. and Europe. The majority of these will start benefiting the second quarter onwards. Jeff will provide more details as part of our financial results later. Quarter revenue was split 63% recurring in the balanced systems. Systems revenue increased sequentially in automotive and consumer segments, although offset by declines in computing, industrial, and mobile. Estimated test cell utilization at the end of March was down one point quarter over quarter to 72%. I won't comment further on utilization at this time as we plan to implement changes going forward that we anticipate will increase accuracy when segmenting utilization by market. On a positive note, recurring orders increased 28% quarter over quarter, demonstrating the value of Cohue's non-capital equipment revenue streams and indicating the possibility of utilization picking up in the coming quarters. Although Cohue factories in Malaysia and the Philippines have been running below nominal capacity, we are starting to selectively add resources to support recent customer requests for fast turn-on kits and contactors. On the customer design wins, In the first quarter, we landed three new opportunities for our handlers, including a leading package and test subcontractor in China supporting the local automotive industry. We also won a selection with our DiamondX tester at a European Fabless supplier of communications ICs. This DiamondX will ship for production to a test subcontractor in Asia. Additionally, We qualified and received the initial orders for Cohuse power probe cards from a leading European semiconductor company testing silicon carbide IGBT products. On customer expansion, we received a repeat multi-unit order for HBM inspection systems in the first quarter, continuing to increase our penetration in the memory market. We're excited about this opportunity to reposition and expand our vision inspection technology aligned with the growing data center market. Two customers expanded DiamondX application in the quarter, one targeting RF IoT devices and the other gallium nitride high voltage device test. Several customers expanded the use of our contactors, notably with Cohue's icon interface supporting tests of high-performance network switches. On the software front, this was our first quarter combining the recently acquired Tignes and Cohue's DI-Core predictive maintenance solutions. We have signed three new demonstration opportunities in the quarter to prove the value of our AI process monitoring platform, including with a front-end equipment company, a semiconductor materials supplier, and a U.S. Defense Military Research Group. The team has been asked to evaluate multiple applications for AI process monitoring in the back-end semiconductor manufacturing, which is an encouraging validation of our strategy to support and expand Cohu's own DI core solutions. We are optimistic about the business prospects of our design wins, pickup and recurring orders, and expansion into new market segments. The second quarter started with positive momentum from growing customer interest in our systems. And at this moment, we have not seen any meaningful change in customer buying patterns due to tariffs. Let me now turn it over to Jeff for further details on last quarter results and next quarter guidance. Jeff?