CUPERTINO, Calif., May 21, 2009 (BUSINESS WIRE) - Verigy Ltd. (NASDAQ:VRGY), a premier semiconductor test company, today reported financial results for its second quarter, ended Apr. 30, 2009.
Revenue for the second quarter was $71 million, an increase of $3 million, or 4 percent, from the prior quarter, and down $91 million, or 56 percent, from the prior year period.
Net loss for the second quarter was $30 million, or ($0.52) per share, compared to a net loss of $64 million, or ($1.09) per share, last quarter, and net income of $14 million, or $0.23 per share, in the prior year period.
The results for the second quarter included approximately $4 million of charges related to the company's restructuring actions, as well as a one-time tax adjustment of $1 million. After excluding these charges, Verigy reported a non-GAAP net loss of $25 million, or ($0.44) per share, for its second 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 $4.4 million, but exclude the impact of the restructuring charges and tax adjustment noted above.
"Visibility is still limited, and it is too early to predict a recovery with any certainty," said Keith Barnes, Verigy chairman, chief executive officer and president. "We believe, however, that the worst is now behind us. In the meantime, we will continue to manage our business with a focus on lowering costs and reducing cash usage, while at the same time investing in new products and markets that we expect will position us well as the industry recovers."
"Revenue was in-line with our expectations, orders were better than expected, and backlog increased," said Bob Nikl, Verigy chief financial officer. "Both our gross margin and operating expense profile improved significantly, and we remain on track with our restructuring actions."
Outlook for Q3 2009
For the third quarter ending July 31, 2009, the company is providing the following outlook:
- Revenue is expected to grow sequentially 10 percent to 25 percent.
- Gross margins are expected to improve by two to five points, while operating expenses should remain relatively unchanged. We expect to incur between $4.3 to $4.7 million of share-based compensation expense.
Conference Call and Webcast
Verigy's management will present more details on its second quarter fiscal year 2009 financial results on a conference call with investors 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 "Q2 FY'09 Verigy Earnings Conference Call" in the "Webcasts & Presentations" section. The webcast will remain available on the company's web site for fourteen days.
A telephone replay of the conference call will be available from 4:30 p.m. (Pacific) today through June 4, 2009. The replay number is +1 888-286-8010 toll-free, or international callers may dial +1 617-801-6888; enter pass code 79149133.
Financial Tables for Second 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 lowering costs and reducing cash usage, and our expected revenue, gross margin and operating expenses. Forward-looking 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, uncertainty surrounding the timing and strength of the global economic recovery and the impact on our industry, 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 affect 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 loss for the quarter ended April 30, 2009 excludes the effects of charges for the company's previously announced restructuring actions, a favorable adjustment for a non-recurring operating expense, and a one-time income tax charge. Since management finds the non-GAAP information to be useful, the company believes that its investors may 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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