POWAY, CA – Cohu reported fiscal third quarter net sales of $86.2 million, down 8% year-over-year and 13.6% sequentially. GAAP income for the quarter was $4.8 million, down 45.5% compared to the same period last year and down 58.6% sequentially.

In October, Cohu closed on its acquisition of Xcerra, the parent company of atg Luther & Maelzer and Everett-Charles Technologies.

“Cohu delivered solid 14.8% adjusted EBITDA on sales of $86 million, demonstrating the resilience of our business model despite further softening conditions in the mobility market,” said president and CEO Luis Müller.

“With the completion of the Xcerra acquisition, Cohu is now a global leader in backend semiconductor equipment and services and printed circuit board test, with a breadth of products that is unmatched in the industry, serving an approximate $5 billion addressable market. We’ve received strong positive feedback from customers and are encouraged by the cross-selling opportunities across our product portfolio. The integration of the two companies is off to a good start, and we have already implemented $9.1 million in annual run rate cost synergies. We expect to meet our initial cost synergy target of $20 million within the first two years and later achieve our goal of $40 million within three to five years.”

Net sales for the first nine months of 2018 were $281.1 million, up 4.7% year-over-year. GAAP income was $24.6 million, down 6.1%.

Cohu expects fiscal fourth quarter sales, including Xcerra, to be between $168 million and $183 million.