Cohu, Inc.

Good day and thank you for standing by. Welcome to CoHUE's first quarter 2026 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 first quarter 2026 financial results and our outlook for the second quarter of 2026. I'm joined today by Luis Mueller, CoHUE's President and CEO, and Matt Hutton, CoHUE's VP of Strategy and Investor Relations. 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 information available to us at this time, but they are subject to rapid and sometimes abrupt changes. We encourage everyone to review the forward-looking statement section of our 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 are current as of today, April 30th, 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 the 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 Q1 2026 earnings call. We started the year with strong momentum across multiple product lines with orders up 57% year-over-year, reflecting both improved semiconductor market conditions and the increasing relevance of our technology portfolio across AI and high-performance compute applications. An important driver of this momentum is the expansion of AI workloads and inference processing, driving greater computing power density that has become a primary bottleneck. AI accelerators and HPC processors generate immense amounts of heat during operation. Testing these chips requires maintaining precise temperature environments to ensure functional accuracy and long-term reliability. If a chip is tested at the wrong temperature, its performance metrics may be skewed, leading to lower yields or worse, latent field failures. As a result, Cohue's proprietary and industry-leading thermal capabilities are highly valued by customers. Based on current engagements and design activity, we now see a computing segment opportunity pipeline of approximately $750 million. including roughly $650 million in test handlers and an additional $100 million from HBM inspection, and both growing at rapid rates. For fiscal 2026, we're now increasing our high-performance computing revenue outlook to approximately $80 to $100 million. We're emboldened by the opportunity pipeline across 12 customers with five customers in qualification stage and another seven in early engagement stage. During the first quarter, we continue to benefit from rising device complexity, higher power density, and accelerating AI adoption, trends that are reshaping tasks, inspection, and manufacturing requirements across the semiconductor value chain. In fact, semiconductor value is moving to the mid- and the back-end manufacturing driving substantial growth in the test arena. Estimated semiconductor test serialization also increased sequentially to 78% at the end of the first quarter. Automotive and industrial markets are gradually improving again as customers started investing in test capital. Many of our customers are broadening their product portfolio to serve AI data centers as these transition to 800-volt DC infrastructure And more power management efficient solutions with gallium nitride technology at rack-scale server boards such as the new Vera Rubin platform. Across each of these applications, our customers are prioritizing quality, performance, and scalability. At the same time, software platform gained traction as analytics moved from pilot deployments into broader production environments. These wins validate both the technical performance of our solution and the growing appetite for software-enabled yield and productivity investments. There's a significant SIEM opportunity for Cohue in this space and a significant lifetime value in software subscription. This is illustrated well in the first quarter, when a $20 million system order came together with $330,000 a year of software subscription, which over the course of the lifetime of these systems could yield approximately $5 million in recurring revenue. The financial implication of this shift is twofold. First, software subscriptions provide high margin, recurring revenue that is less susceptible to capex cycles. Second, by improving overall equipment efficiency and reducing mean time to repair for customers, we build deep operational stickiness that makes it difficult for competitors to displace our systems. I would now like to highlight a few customer wins in the first quarter. Starting with our test handler business, we've orders up 54% year over year. We secured two major Eclipse orders in the first quarter. The first win supports AI data center applications with a US Fabless customer developing server and inference devices. As power density and mechanical complexity increase, Eclipse, combined with our T-Core active thermal control, enables the customer to standardize on a common handler platform across multiple device generations. This reduces capital risk while extending the life and value of the installed base. Closed-loop junction temperature control was a key differentiator, ensuring consistent temperature test quality, higher yields, and faster production ramps. In addition, the customer is adopting CoHue-based prescriptive analytics software to improve equipment efficiency, increasing system value, enabling recurrent revenue for CoHue, and strengthening long-term engagement. Strategically, this win deepens our computing footprint, embeds Eclipse into the customer's roadmap, and positions us as the platform of record, representing an estimated $100 million incremental revenue opportunity at this account over the next three years. The second order supports data center computing, mobile, and automotive processors at another EUS-based Fabless customer using the Eclipse platform. Our solution allows both the customer and their OSATs to address multiple markets while leveraging T-Core thermal control to maximize yield and asset utilization. Together, these strengthen our engagement across high-performance computing and AI markets, driving near-term system revenue and long-term platform, software, and recurring value growth. Our customer engagement for Eclipse expanded in the first quarter, with an additional five customers in different stages of qualification, representing an incremental $200 million of revenue opportunity starting late this year and into next year. We're very bullish about the customer traction and the growing opportunities to expand our presence in this $750 million high-performance computing market. These opportunities are rapidly taking shape as compute power increases and with the need to actively manage silicon junction temperature at higher power and power densities. Now turning to our inspection and metrology business with orders up 64% year over year. In HBM memory, we continue to see strong momentum for final inspection of HBM3 and HBM4. We're investing in this market and keeping pace with design requirements to support next-generation HBM5. We're now forecasting revenue growing 80% year-over-year to approximately $20 million with our Neon HBM platform. In the first quarter, we also secured a a significant volume repeat order for our Eon inspection system from a U.S. headquarter and also from a Korean customer. Our inspection business is growing fast, and we estimate revenue at approximately $70 million this year. Semiconductor test orders recorded an impressive 163% increase year over year. Headlines around AI infrastructure typically focus on the massive compute devices required to train and run large language models, along with the memory and networking technologies that enable scale across the data center. Less visible, but equally critical, is power delivery. Every AI system depends on precise, efficient power management to sustain peak performance. This is where the DiamondX precision instrumentation becomes decisive. Our tester was qualified for testing power devices, strategically expanding our footprint in AI-related applications, and embedding it more deeply into our customers' roadmaps. As power density increases, customers are implementing GAN-based technology to minimize energy loss and thermal impact. While GAN offers a clean efficiency advantage, it remains less mature than traditional CMOS, creating technical and economic challenges as customers scale production to meet data center demand. Moving to our interface solutions group, We've seen increased adoption of our higher current contactors for AI power applications at existing customers. We also expanded our product offering and received multi-unit order for a new silicon photonics solution. These photonics switches form the backbone of cloud and AI Ethernet fabric, and we're now testing them. In closing, Q1 was a strong start for the year and a clear validation of our strategy. We see momentum rapidly build across AI infrastructure, high-performance compute, power management, and smart manufacturing, driven by rising device complexity and increasing power density. Our expanding presence in thermal handling, advanced inspection, precision test, and high-value software is translating into larger platform wins, recurrent revenue opportunities, and deeper customer engagement. With a $750 million computing segment opportunity in front of us and improving utilization across our core markets, we are accelerating R&D investments to capture new customers, and we are expanding production capacity to move confidently through the remainder of this year and into 2027. These secular tailwinds, combined with disciplined execution and continued investment in innovation, position Cohute to deliver durable value for our customers and shareholders. Thank you for your continued support. I will now turn the call over to Jeff for a deeper review of our financial results and forward-looking guidance. Jeff?