Cohu, Inc.

Good day and thank you for standing by. Welcome to COU's third quarter 2025 financial results conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you'll need to press star 1 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1 1 again. Please be advised that today's conference is being recorded. I'd now like to hand the conference over to Jeff Jones, Chief Financial Officer. Please go ahead.

Good afternoon and welcome to our conference call discussing Cohue's third quarter 2025 financial results and our outlook for the fourth quarter of 2025. I'm joined today by Luis Mueller, Cohue's President and CEO. If you need a copy of our earnings release, it can be found on our website at cohue.com or by contacting Cohue Investor Relations. A slide presentation accompanying today's call is also available in the Investor Relations section of the website. Replays of this call will be accessible via the same page after the conclusion of the call. During this call, we will be making forward-looking statements that reflect management's current expectations concerning CoHUE's future business. These statements are based on the information available to us at this time, but they are subject to rapid and even abrupt changes. We encourage everyone to review the forward-looking statement section of our 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 are current as of today, October 29, 2025, and COHU does not assume any obligation to update these statements for events occurring after this call. Additionally, We will discuss certain non-GAAP financial measures during this call. Please refer to our earnings release and slide presentation for reconciliation to the most comparable GAAP measures. Now I'd like to turn the call over to Luis Mueller, COHU's President and CEO. Luis?

Good day, everyone. Thank you for joining our Q3 2025 earnings call. I'm pleased to share our latest results and provide guidance for Q4. First off, Let's talk about some highlights. Recurring revenue continued to grow for the third consecutive quarter, driven by strength in interface solutions and task handler spares. Systems revenue improved sequentially for the fourth quarter in a row, though it remains below normalized levels. We had several notable events in the third quarter. We announced an offering of convertible notes on favorable terms. which closed just after the quarter end, and will support future growth and strategic initiatives. Jeff will discuss this in more detail later. We welcomed Matthew Hutton, our new vice president of strategy, focused on advancing our growth initiatives, including mergers, acquisitions, and partnerships. Prior to joining Cohue, Matt was head of corporate development at AspenTAC. We communicated repeat orders for NEON HBM inspection tools, raising this year's revenue forecast for these systems to between $10 and $11 million. These systems are used for inspection and metrology of high bandwidth memory devices, which are critical components in high performance computing and generative artificial intelligence applications. We shipped our first system configured for HBM4 inspection, reinforcing our optimism for future market prospects in high bandwidth memory. Our Eclipse handler, equipped with proprietary active thermal control, was selected for production tests of next-generation AI processor devices by a leading U.S.-based semiconductor manufacturer. The Eclipse platform is designed to scale seamlessly across diverse power applications, providing the flexibility and operational efficiency required to support our customers' evolving high-performance processor roadmaps. This adaptability ensures that as processor technologies advance, our solution remains a reliable foundation for next generation computing needs. Our current thermal solution ensures optimal device temperature control and test repeatability up to 3,000 watts power dissipation with ultra-fast temperature ramp rates and tight thermal guard band, supporting demanding semiconductor test requirements. Now let's dive into the detailed results. Consolidated revenue reached $126 million with both systems and recurring revenue improving quarter over quarter. Revenue was split 45% systems and 55% recurring. Non-GAAP gross margin of 44.1% reflects the value differentiation of our products and the resilience of our recurring business model. Estimated test serialization remained stable quarter over quarter, ending September at 74.5%. While systems orders moderated last quarter, growth in recurring revenue and new wins positioned us well for Q4 and beyond. We secured new business wins, including orders for our automated test equipment and automated optical inspection for high-growth markets. During the quarter, We secured roughly $1.7 million in new business, highlighted by our first DiamondX order from a longstanding Cohue handler customer. This order will support the testing of application-specific analog power integrated circuits, serving key automotive and industrial market segments. This customer win marks the continuation of Cohue's growth in the mixed signal test market with DiamondX, as we push to diversify our test platform beyond RF and display driver IC test. We secured a new order of our Krypton system with a European customer enabling advanced optical inspection of devices used by a prominent US mobile phone brand. We booked a $2.3 million order for precision analog test contactors at a US IDM and continue to diversify our test platform portfolio with this customer. We anticipate a seasonal slowdown in Q4, partially offset by ongoing market recovery, and remain optimistic about long-term prospects, especially in computing and high-bandwidth memory inspection. As tariffs return to the spotlight in recent news, I want to reassure everyone that Kohu's current exposure to China remains very limited. Revenue from customers based in China accounts for only a low single-digit percentage of our total consolidated results. Additionally, a substantial share of our business is generated outside of the U.S., further diversifying our global footprint. Thank you for your attention and continued support. And I'll turn it over to Jeff for a deeper dive into our financial results and Q4 guidance. Jeff?