COHU (COHU) risk factors, FY2024 10-K

COHU's FY2024 10-K, filed Feb 20, 2025. The risk counts for this filing are not shown yet. The filing itself is linked below.

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COHU's biggest risks in the FY2024 10-K

  • Semiconductor cycles and excess capacity can sharply reduce demand for Cohu’s capital equipment.
  • Customer order timing, cancellations, acceptance, and supplier parts affect the $138.0 million backlog.
  • Global manufacturing and outsourced production create operational and supply-chain exposure.

The risks most specific to COHU

  • Sales by Product Line and Related Marketing Efforts

    Sales depend increasingly on recurring revenues, which represented 65% of 2024 net sales, while system sales declined to 35%.

  • (1) Recurring revenues include interface products, spares, kits (not as part of system sales), DI-Core software and services

    Worldwide sales rely on direct employees and independent representatives, exposing Cohu to challenges managing global market coverage.

  • Our backlog of unfilled orders for products was $138.0 million at December 28, 2024 and $160.4 million at December 30, 2023

    The $138.0 million backlog may not convert into sales because customers can reschedule or cancel orders, shipments can be delayed, or acceptance requirements may not be met.

  • Our principal manufacturing operations are currently located in Melaka, Malaysia; Laguna, Philippines; Lincoln, Rhode Island; Osaka, Japan; and Singapore

    Cohu outsources many semiconductor automated test equipment products to Jabil in Penang, Malaysia, including significant material procurement, assembly, and testing.

  • Patents, Trademarks and Intellectual Property

    Rapid technological change means patents and other intellectual property protections may be insufficient without Cohu’s technical know-how and experience.

  • Seasonality and Cyclicality

    Semiconductor oversupply and excess capacity can cause cyclical and seasonal declines in demand for Cohu’s capital equipment.

Risk factor headings as read

Headings as the filing states them, in filing order.

Other

  1. 01Cohu was incorporated under the laws of California in 1947, as Kalbfell Lab, Inc. and commenced active operations in the same year. Our name was changed to Kay Lab in 1954. In 1957, Cohu was reincorporated under the laws of the State of Delaware as Cohu Electronics, Inc. and, in 1972, our name was changed to Cohu, Inc
  2. 02Sales by Product Line and Related Marketing Efforts
  3. 03(1) Recurring revenues include interface products, spares, kits (not as part of system sales), DI-Core software and services
  4. 04Our backlog of unfilled orders for products was $138.0 million at December 28, 2024 and $160.4 million at December 30, 2023
  5. 05Our principal manufacturing operations are currently located in Melaka, Malaysia; Laguna, Philippines; Lincoln, Rhode Island; Osaka, Japan; and Singapore
  6. 06Patents, Trademarks and Intellectual Property
  7. 07Seasonality and Cyclicality
  8. 08Information About Our Executive Officers
  9. 09Senior Vice President and Chief Customer Officer
  10. 10Management Engagement and Workplace Practices
  11. 11Compensation and Benefits
  12. 12Paid Time Off Programs covering time away from work due to employee and family illness, holidays, vacation, civic duties, and others

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.