COHU INC Segments Disclosure

11.	Segment and Geographic Information

 

We applied the provisions of ASC 280, which sets forth a management approach to segment reporting and establishes requirements to report selected segment information quarterly and to report annually entity-wide disclosures about products, major customers and the geographies in which the entity holds material assets and reports revenue. An operating segment is defined as a component that engages in business activities whose operating results are reviewed by the CODM, which is our Chief Executive Officer, Luis A. Müller and for which discrete financial information is available. We have determined that our three identified operating segments are: TH, ST and IS. Our three operating segments qualify for aggregation under ASC 280 due to similarities in their customers, their economic characteristics, and the nature of products and services provided. As a result, we report in one segment, Semiconductor Test & Inspection, which derives revenue from the design and manufacture of equipment and components used in the testing of semiconductors.

 

The CODM assesses performance of the Semiconductor Test & Inspection segment and decides how to allocate resources based on income (loss) before taxes. The table below summarizes selected financial information for our single reportable segment.

 

(in thousands)		2025				2024				2023
Net sales		$	452,956			$	401,779			$	636,322
Cost and expenses:
Cost of sales			257,941				220,436				332,609
Research and development			86,756				81,231				85,178
Selling			53,028				51,584				61,056
General & administrative			54,349				60,328				58,196
Amortization of purchased intangible assets			37,466				39,087				36,355
Stock-based compensation			23,042				20,740				17,237
Other segment items (1)			2,781				(6,681	)			(125	)
Income (loss) before taxes		$	(62,407	)		$	(64,946	)		$	45,816

 

(1) Other segment items include restructuring charges as well as miscellaneous non-operating items.

 

During the last three years, the following customers comprised 10% or greater of our consolidated net sales:

 

		2025				2024				2023
STMicroelectronics			*				*				12.0	%

* Less than 10% of consolidated net sales.

 

Net sales to customers, attributed to countries based on product shipment destination, were as follows:

 

(in thousands)		2025				2024				2023
Philippines		$	68,936			$	51,310			$	92,529
Taiwan			64,667				22,562				27,901
China			60,654				59,491				92,408
Malaysia			57,263				54,016				100,949
United States			46,957				56,663				76,995
Singapore			26,176				40,827				53,518
Rest of the world			128,303				116,910				192,022
Total, net		$	452,956			$	401,779			$	636,322

 

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The measure of segment assets is reported on the consolidated balance sheets as total consolidated assets. Geographic location of our property, plant and equipment and other long-lived assets was as follows:

 

(in thousands)		2025				2024
Property, plant and equipment:
Philippines		$	21,021			$	23,072
Germany			18,705				15,705
Malaysia			15,826				15,264
United States			13,902				13,601
Japan			5,778				6,051
Rest of the world			1,755				1,093
Total, net		$	76,987			$	74,786
Goodwill and other intangible assets:
Germany		$	132,356			$	128,513
United States			109,815				92,251
Malaysia			60,913				61,252
Singapore			51,753				56,276
Rest of the world			7,462				7,064
Total, net		$	362,299			$	345,356