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Friday, November 20, 2009

Verigy Reports Stronger Fourth-Quarter Earnings

By Matt Egan

FOXBusiness

Verigy (VRGY) saw its stock climb 10% Friday after the semiconductor testing company reported fiscal fourth-quarter results that beat Wall Street’s expectations. The company also issued a better-than-expected outlook for the current quarter.

The company lost $12 million, or 20 cents a share, in its most recent quarter, compared to $36 million, or 60 cents a share, in the same period of 2008. Excluding-one-time items, Verigy lost 12 cents a share. Its revenue dropped 35% to $97 million.

The results surprised analysts, who had been projecting a loss of 20 cents a share excluding items and revenue of $96.4 million.

Meanwhile, Verigy projected a first-quarter non-GAAP loss of 2 cents to 9 cents a share, which would easily top the Street’s view of 14 cents a share. The company also said it sees first-quarter revenue of $105 million to $115 million, compared to consensus estimates for $105.6 million.

“We ended the fiscal year with a clearly improving business environment,” CEO Keith Barnes said in a statement. “We are feeling increasingly optimistic about both the SOC and memory markets and we expect to see significant revenue growth in 2010. After a very challenging 2009 we believe that our investments in new and innovative products will enable continued share gain.”

The earnings beat and upbeat guidance pushed Verigy’s shares up 10.4% Friday to $9.91. However, the company’s stock is still down 17% over the past month and 6.4% on the year.

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