Oct 28, 2026 earnings call — Eclipse HPC ramp and recurring revenue
Company reported revenue of $173 million, up 37% year-over-year, and raised HPC revenue outlook to approximately $120 million.
Revenue $0.2B (est $0.2B) · EPS $0.43 (est $0.35)
Key quotes
"We are raising our fiscal year 2026 high-performance computing revenue outlook to approximately $120 million."
"To support growing customer interest and an expanding opportunity funnel, we're scaling manufacturing capacity and working closely with supply partners with the goal of delivering approximately 3x as many Eclipse handlers in 2027 as in 2026."
"Annual recurring revenue in software analytics increased 85% sequentially, contributing to record bookings and revenue for the business."
Analyst Q&A 9
hyperscaler testing and capacity
Q (David Duley · Steelhead): He asked about interface wins with hyperscale customers that could lead to final test and SLT sales, and how Eclipse shipments will be timed next year. He also asked for more detail on the capacity plan through this year and into next year.
A: Luis said it is too soon to talk about SLT but hyperscale customers are qualifying the Eclipse handler and some are in late-stage qualification. He said shipments will ramp through the year with increasing volume from Q1 into the summer and into Q2 and Q3, and they plan capacity to ship 3x more Eclipse systems next year than this year in 2026. He said they are exiting the year at twice the output per week versus June and will continue ramping through June of next year.
"We have them qualifying the Eclipse handler, a couple of them actually in late-stage qualification." — Luis Müller (CEO)
HPC share and test utilization
Q (Quinn Fredrickson · Baird): He asked how much of the 30%–40% growth for 2027 is from HPC versus recovery in other businesses, and how test cell utilization should be thought about going forward.
A: Jeffrey said HPC is likely at the higher end of the previous $200 million to $250 million range given plans to triple Eclipse capacity and output. He said test cell utilization was about 82% at the end of third quarter, with compute at 84%, industrial 83% and automotive 80%. He added they do not forecast utilization for coming quarters and core markets show more seasonality than compute.
"We don't really forecast utilization for the coming quarters, Quinn." — Jeffrey Jones (CFO)
pipeline growth and supply parts
Q (Robert Mertens · TD Cowen): He asked whether the raised HPC pipeline came from clearer customer forecasts or new customer qualifications, and whether supply chain tightness is a concern when adding capacity.
A: Luis said the increase mainly reflects better clarity from customers on their 2027 needs, not many net new customers, and that the funnel size is growing as customers provide specific need dates. He said they see some tightness on specialty components, are working with suppliers and alternatives, and currently do not see it as a constraint but suppliers must ramp for the planned tripling.
"Largely, we're gaining more clarity on the customer forecast for 2027, Robert." — Luis Müller (CEO)
computing pipeline, conversion, cycle time
Q (Craig Ellis · B. Riley): He asked what is driving the computing pipeline growth and how conversion from engagement to qualified and revenue is progressing. He also asked about cycle time from engagement to revenue and implications from mobile seasonality.
A: Luis said the pipeline grew because qualified and late-stage customers gave better visibility into 2027 capacity needs, and demand is larger than previously anticipated. He gave an example of a network processing customer that qualified an initial device in Q3 and will get a new thermal head for final qualification before a 2027 production ramp. He said the typical timeline from initial qualification to active production is approximately 9 to 12 months and thermal head qualification takes about 6 to 8 weeks. He added mobile is the smallest segment now and unlikely to change the total portfolio materially in the near term.
"approximately 9 to 12 months has been the cycle that we observed for some of these qualifications all the way to being actively in production." — Luis Müller (CEO)
Malaysia capacity and IC program
Q (Kevin Garrigan · Jefferies): He asked how much extra capacity Malaysia will add beyond the 3x Eclipse plan and what would be the bottleneck to increase capacity further. He also asked whether Diamondx is replacing competition on the power management IC program.
A: Luis clarified the 3x comment applies specifically to Eclipse and that Malaysia retains capacity for the core business similar to 2021–2022, with the ability to flex labor and supply chain. He said if they used entire capacity for handlers they could ship over 2,000 systems next year, and that Eclipse is expanding to 3x for HPC. He said Diamondx is replacing an incumbent supplier on the power management IC program.
"With that said, if you put it all together, we'll be in a position to I think, ship over 2,000 systems next year if we were to utilize the entire capacity for handlers, right?" — Luis Müller (CEO)
in-qualification mix and Neon win
Q (Denis Pyatchanin · Needham & Company): He asked whether the $165 million increase in in-qualification customers is mostly Eclipse and which customer groups drive it. He also asked if the Neon advanced packaging business is with a new customer or a new application.
A: Luis said the increase is exclusively Eclipse related and that the in-qualification bucket includes a couple of hyperscalers and a number of fabless companies, some partnering with hyperscalers. He said Neon is for a new customer for that product (but not a new Cohu customer); it's a computing customer that does not currently buy inspection systems and will use Neon for die level inspection in advanced packaging.
"We have a number of fabless companies in that in qualification bucket as well, including fabless that are partnering with and supporting hyperscalers in the process." — Luis Müller (CEO)
recurring revenue and supplier splits
Q (Daniela Talio · Stifel): She asked whether upgrades drive higher dollar content per upgrade or more frequent upgrades, and whether customers prefer one or multiple suppliers for next year.
A: Luis said computing upgrade cycles are starting as devices launched over a year ago need new thermal heads, and devices often have roughly 1.5 to 2 year lifecycles with device application kits and sometimes full thermal head replacements. He said he would expect an increase in recurring revenue from Eclipse because of thermal head replacements but noted they are new to the market and have limited evidence so far. He said customer sourcing is mixed: some place an entire product line on their system while not much split by device family has been observed yet.
"I would expect -- I would hope that we will see an increase in recurring revenue associated with Eclipse because of those thermal heads." — Luis Müller (CEO)
room for more customers and markets
Q (Benjamin Taxdahl · Craig-Hallum): He asked if there is still a large opportunity to add new customers beyond the current engagement pipeline or whether the opportunity is capped.
A: Luis said final test shows about $1 billion of opportunity pipeline and about $1.5 billion in addressable market right now. He said they are exploring adding another vertical in the test space to create an additional opportunity pipeline on top of final test, and they will discuss that more in 2027, but for now focus remains on the $1 billion final test pipeline.
"So with final test, Ben, what we're seeing is about $1 billion of opportunity pipeline as we put in our deck here and about $1.5 billion in sort of addressable market." — Luis Müller (CEO)
automotive vs industrial bookings
Q (Denis Pyatchanin · Needham & Company): He asked what key customers are saying about automotive and industrial demand, and whether bookings are picking up in those markets.
A: Luis said bookings are picking up, especially in industrial, with a pickup in automotive as well. He said industrial system orders have grown much faster quarter-over-quarter and the industrial market from a booking perspective is now almost the same size as automotive and is trending toward surpassing automotive as customers pivot toward industrial and data center power applications.
"If you look at both side by side, we're now at a point that the industrial market from a booking perspective is almost the same size as automotive." — Luis Müller (CEO)