Financial Performance - For the fiscal year ended December 28, 2024, Cohu's net sales decreased 36.9% year-over-year to 401.8millionduetolowerdemandinautomotive,industrial,andmobileapplications[198].−Cohu′sconsolidatednetsalesdecreased36.9636.3 million in fiscal 2023 to 401.8millioninfiscal2024,primarilyduetolowerdemandinvarioussectors[220].−Grossmargindecreasedto44.969.8 million, compared to net income of 28.2millioninfiscal2023[239].−Cashprovidedbyoperatingactivitiesinfiscal2024totaled2.8 million, a significant decrease from 101.5millioninfiscal2023[247].Acquisitions−CohucompletedtheacquisitionofMCTonJanuary30,2023,andEQTonOctober2,2023,bothofwhichareincludedintheconsolidatedresultsofoperations[197].−CohuacquiredMCTonJanuary30,2023,andEQTonOctober2,2023,contributingtoconsolidatedresultsfromtheacquisitiondates[218].−Amortizationofpurchasedintangibleassetsincreasedto39.1 million in fiscal 2024 from 36.4millioninfiscal2023,drivenbyEQT′sacquisition[226].DebtandFinancing−Cohurepaid29.3 million of its Term Loan Credit Facility on February 9, 2024, and repurchased 915,504 shares of common stock for approximately 27.0millionduringfiscal2024[198].−TotalindebtednessasofDecember28,2024,was8.8 million, including 1.7millionundertermloansand6.5 million under construction loans [242]. - Cash used in financing activities in fiscal 2024 totaled 59.0million,adecreasefrom68.1 million in fiscal 2023 [249]. - Repayments of short-term borrowings and long-term debt in fiscal 2024 totaled 31.3million,including29.3 million in cash prepayments of the Term Loan Credit Facility [249]. - As of December 30, 2023, the company had approximately 29.3millionoflong−termdebtunderaTermLoanCreditFacility,withinterestpaymentsbasedonabaserateplusamarginofupto2.029.3 million on February 9, 2024 [274]. Cash Flow and Investments - In fiscal 2024, net cash provided by investing activities totaled 21.9million,comparedtoanetcashusedof30.2 million in fiscal 2023 [248]. - Cash used for purchases of short-term investments in fiscal 2024 was 78.6million,whilecashgeneratedfromsalesandmaturitieswas114.2 million [248]. - Additions to property, plant, and equipment in fiscal 2024 amounted to 10.6million,downfrom16.1 million in fiscal 2023 [248]. - The company expects to continue making capital expenditures to support its business and anticipates that current working capital will be sufficient for at least the next twelve months [263]. - At December 28, 2024, the investment portfolio included short-term, fixed-income investment securities with a fair value of approximately 55.7million[271].TaxandValuation−Thecompanymaintainsagrossdeferredtaxassetbalanceofapproximately138.2 million, with a valuation allowance of approximately 114.5millionasofDecember28,2024[206].−ThecompanyhasdeterminedtherewasnoimpairmentofgoodwillasofOctober1,2024,astheestimatedfairvaluesofreportingunitsexceededtheircarryingvalues[210].ForeignCurrencyandRiskManagement−Fluctuationsinforeigncurrencyexchangeratesimpactedthecompany′sstockholders′equity,whichdecreasedby16.8 million due to foreign currency translation as of December 28, 2024, compared to December 30, 2023 [277]. - A hypothetical 10% devaluation of the U.S. dollar would result in an approximate 28.3millionpositivetranslationadjustmentrecordedinothercomprehensiveincomewithinstockholders′equity[278].−Conversely,ahypothetical1028.3 million negative translation adjustment recorded in other comprehensive income within stockholders' equity [278]. - The company has entered into foreign currency forward contracts to hedge against future movements in foreign exchange rates affecting U.S. Dollar denominated assets and liabilities [276]. - The company began hedging foreign currency risk associated with net investment positions in certain foreign subsidiaries in the third quarter of fiscal 2024 [277]. - The company’s strategy aims to mitigate risks and volatility associated with foreign currency transaction gains or losses through foreign currency forward contracts [276]. Operational Focus - Cohu's long-term market drivers remain intact, with optimism about the increasing use of semiconductors, particularly in artificial intelligence applications [199]. - The company continues to focus on developing innovative products and capturing new customers, driven by increasing semiconductor complexity and quality demands [199]. - Cohu's inventory valuation includes reserves for estimated excess and obsolete inventory, which may impact gross margin if future demand is lower than projected [204]. Expenses - Research and development (R&D) expenses in fiscal 2024 were 84.8million,or21.188.6 million, or 13.9% of net sales in fiscal 2023 [223]. - Selling, general and administrative (SG&A) expenses as a percentage of net sales increased to 31.9% in fiscal 2024 from 20.8% in fiscal 2023, despite a decrease in total SG&A expenses from 132.2millionto128.0 million [225]. - Cohu's share-based compensation expense is calculated based on the market price of common stock on the grant date, affecting financial results [216].