End-Market ChallengesThe restructuring reflects management's increasingly cautious view and suggests that auto/industrial semiconductors, the end market that would account for 50% of COHU's business in a normal environment, remain challenged.
Inventory ManagementCohu reported both 4Q24 results and 1Q25 guidance below the Street's estimates, both of which can be attributed to the weak end-market demand environment, as customers continue to digest excess inventory.
Utilization RatesTest Cell Utilization rate of 73% remains a near-term headwind.