CUPERTINO, Calif., Feb. 19, 2009 - Verigy Ltd. (NASDAQ: VRGY), a premier semiconductor test company, today reported financial results for its first quarter, ended Jan. 31, 2009.
Revenues for the first quarter were $68 million, down $82 million or 55 percent from the prior quarter, and down $132 million or 66 percent from the prior year period.
Net loss for the first quarter was $64 million, or ($1.09) per share, compared to a net loss of $36 million, or ($0.60) per share last quarter, and net income of $32 million, or $0.52 per diluted share in the prior year period.
The results for the first quarter included approximately $23 million of charges for the company’s previously announced restructuring plans, additional impairment charges for its auction rate securities and a cost method investment, and the write off of purchased intellectual property.
After excluding these charges, Verigy reported a non-GAAP net loss of $41 million, or ($0.70) per share for its first quarter of fiscal 2009.
A reconciliation between GAAP and non-GAAP operating results is provided following the financial statements that are part of this press release. Non-GAAP results include the impact of stock-based compensation of $4.8 million, but exclude the impact of the items noted above.
"In anticipation of a challenging 2009 for the semiconductor industry, we have established organizational goals to ensure Verigy remains financially healthy and technologically competitive," said Keith Barnes, Verigy chairman, chief executive officer and president. "Verigy has the product leadership, financial strength and staying power to weather this downturn."
"The ongoing crisis in the global economy as well as the financial markets has driven companies across the semiconductor industry to rethink their use of cash and Verigy is no different," said Bob Nikl, Verigy chief financial officer. "We have implemented a number of cost-saving and restructuring actions to lower our cash burn and bring our operating expenses more in line with current market conditions."
Earnings Call
Verigy will discuss its first quarter fiscal 2009 results, along with its outlook, on a conference call today beginning at 1:30 p.m. (Pacific). This event will be webcast live in listen-only mode. Listeners may log on at
http://investor.verigy.com and select "Q1 Verigy Earnings Conference Call" in the "Webcasts & Presentations" section. The webcast will remain available on the company's Web site for fourteen days.
Financial Tables for First Quarter 2009
About Verigy
Verigy provides advanced semiconductor test systems and solutions used by leading companies worldwide in design validation, characterization, and high-volume manufacturing test. Verigy offers scalable platforms for a wide range of system-on-chip (SoC) test solutions, and memory test solutions for flash, DRAM including high-speed memories, as well as multi-chip packages (MCP). Advanced analysis tools accelerate design debug and yield ramp processes for Verigy’s customers. Information about Verigy can be found at
www.verigy.com.
Forward Looking Statements
This earnings release contains forward-looking statements, including statements about the anticipated benefits of our cost-saving and restructuring efforts. These statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. The risks and uncertainties include, but are not limited to, unforeseen changes in demand for semiconductors and thus for semiconductor test solutions, the strength of our customers’ businesses and unforeseen changes in the demand for current and new products and technologies. Additional factors that may cause results to differ materially from those in the forward-looking statements are discussed in our most recent SEC filings. In those filings you will find descriptions of risk factors that could impact our future results. These forward-looking statements are only valid as of this date, and Verigy undertakes no duty to update any forward-looking statements.
Information About Non-GAAP Measures
Verigy is supplementing its financial results presented on a GAAP basis by providing non-GAAP measures to evaluate the operating performance of the company. Non-GAAP net income for the quarter ended January 31, 2009 excludes the effects: of charges for the company's previously announced restructuring plans; additional impairment charges for auction rate securities and a cost method investment; and the write-off of purchased intellectual property during the quarter. Since management finds the non-GAAP information to be useful, the company believes that its investors also benefit from seeing the company's results "through the eyes" of management in addition to seeing its GAAP results. This information also facilitates management's internal comparisons to historical operating results as well as to the operating results of its competitors. A reconciliation between the company's GAAP and non-GAAP results is provided in the attached tables. Readers are reminded that non-GAAP numbers are merely a supplement to, and not a replacement for, GAAP financial measures. They should be read in conjunction with the GAAP financial measures.
View all Verigy press releases here.
Editorial Contact:
Judy Davies
VP, Investor Relations and Marketing Communications
+1 408.864.7549
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