Cohu Inc. reported net income of $4.8 million or 16 cents per share on net sales of $86.2 million during the third quarter. The Poway based corporation reported its earnings on Nov. 5.

In the same quarter one year ago, Cohu (Nasdaq: COHU) reported net income of $8.8 million or 30 cents per share on net sales of $93.7 million.

The company produces test equipment for semiconductor factories and recently acquired Massachusetts-based Xcerra. Cohu reported that it has already implemented $9.1 million in annual run rate cost synergies, or savings from the merger. “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,” said CEO Luis Müller.

Cohu said it expects its fourth quarter sales, which include Xcerra, to be between $168 million and $183 million.