In a recent filing with the Securities and Exchange Commission, Cohu (NASDAQ:COHU) Inc. detailed significant changes in their executive team. On June 25, 2024, Thomas D. Kampfer, who has served as Senior Vice President Corporate Development, General Counsel, and Secretary, agreed to transition to a part-time role effective July 15, 2024. In his new capacity, Kampfer will dedicate 60% of his time to the company, focusing on Corporate Development and reporting directly to Luis A. Müller, the President and CEO.
As a result of this shift, Kampfer will no longer be considered an executive officer after the transition date. His annual base salary will be adjusted to $243,000, a 40% reduction from his current salary of $405,000. Although his role is changing, the terms of Kampfer's employment regarding the vesting of outstanding equity awards will continue as previously outlined in the proxy statement for the company's 2024 annual meeting.
Emily R. Lough, who joined Cohu in October 2023 as Vice President, Assistant General Counsel, and Assistant Secretary, will assume Kampfer's legal and corporate secretary responsibilities. The transition is part of Cohu's broader succession planning.
Cohu, headquartered in Poway, California, specializes in instruments for measuring and testing electricity and electronic signals. This announcement comes amid ongoing adjustments within the company's leadership structure and provides investors with updated information on the executive team's composition and compensation. The changes and salary adjustments are disclosed as part of the company's regulatory requirements and are based on a press release statement.
In other recent news, Cohu Inc., a semiconductor manufacturing optimization company, has announced several significant developments. The company recently appointed Karen M. Rapp to its Board of Directors. Rapp, a seasoned executive with extensive experience in financial management, corporate development, and information technology, is expected to bring valuable insights to her new role at Cohu.
In terms of financial performance, Cohu reported first-quarter 2024 earnings per share of $0.01 and a non-GAAP gross margin of 46%. The company's revenue for the quarter was $107.6 million, with recurring revenue representing 66% of the total. For the second quarter, Cohu is projecting revenues of approximately $105 million and a gross margin of around 45%.
However, both Needham and Citi have adjusted their price targets for Cohu following the company's updated second-quarter guidance. Needham cut its target from $36 to $34, maintaining a Buy rating, while Citi lowered its target from $40 to $36, also retaining a Buy rating. Both firms attributed their adjustments to a slower-than-anticipated recovery in the semiconductor sector.
Despite these adjustments, Cohu remains optimistic about its future. The company anticipates stable business conditions for the next few quarters, with potential improvements expected by the end of the year. Cohu also highlighted AI on-the-edge technology as a key factor in achieving its $1 billion revenue target.
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