21535--2/25/2009--COHU

related topics

{product, market, service}

{customer, product, revenue}

{condition, economic, financial}

{operation, international, foreign}

{regulation, change, law}

{stock, price, operating}

{property, intellectual, protect}

{personnel, key, retain}

{interest, director, officer}

{stock, price, share}

{cost, regulation, environmental}

A limited number of customers account for a substantial percentage of our net sales. The semiconductor equipment industry in general and the test handler market in particular, is highly competitive. Semiconductor equipment is subject to rapid technological change, product introductions and transitions may result in inventory write-offs and our new product development involves numerous risks and uncertainties. If we cannot continue to develop, manufacture and market products and services that meet customer requirements for innovation and quality, our revenue and gross margin may suffer. We utilize contract manufacturers and changes to those relationships, expected or unexpected, may result in delays or disruptions that could cause us to lose revenue and damage our customer relationships. We have taken remedial measures to address slowdowns in the semiconductor equipment industry that may affect our ability to be competitive. Our backlog is limited and may not accurately reflect future business activity. The cyclical nature of the semiconductor equipment industry places enormous demands on our employees, operations and infrastructure. We do not participate in the DRAM test handler market. We are exposed to the risks of operating a global business. Compliance with regulations may impact sales to foreign customers. Failure of critical suppliers to deliver sufficient quantities of parts in a timely and cost-effective manner could adversely impact our operations. We cannot provide assurance that we will continue to declare dividends at all or in any particular amounts. Third parties may violate our proprietary rights or accuse us of infringing upon their proprietary rights. A majority of our revenues are generated from exports to foreign countries, primarily in Asia, that are subject to economic and political instability and we compete against a number of Asian test handling equipment suppliers. The loss of key personnel could adversely impact our business. Our non-semiconductor equipment businesses have generated losses or minimal profits. New accounting and tax rules will impact our future operating results. Our financial and operating results may vary and may fall below analysts estimates, which may cause the price of our common stock to decline.

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21535--2/25/2009--COHU_INC