Verigy shares rise on better-than-expected 4Q

AP News
Posted: Nov 20, 2009 4:13 PM

Shares of Verigy Ltd. rose Friday after the maker of chip testing equipment turned in a stronger-than-expected performance in the fourth quarter.

Late Thursday, Verigy reported a net loss of $12 million, or 20 cents per share, in the quarter, compared with a loss of $36 million, or 60 cents per share, in the same quarter a year earlier.

The quarter included $3 million in charges related to restructuring and manufacturing changes, as well as $1.6 million in impairment charges from investments.

Excluding these charges, Verigy lost $7 million, or 12 cents per share, in the quarter.

Revenue fell to $97 million from $150 million.

Analysts were expecting a loss of 20 cents per share on revenue of $96.4 million, according to Thomson Reuters. Analysts' estimates typically exclude one-time items.

For the year, Verigy said it lost $127 million, or $2.17 per share, compared with net income of $28 million, or 47 cents per share. Revenue fell 53 percent to $323 million.

Looking ahead, the company said it expects to lose 6 cents to 13 cents per share in the first quarter on revenue of $105 million to $115 million.

Excluding one-time items, Verigy expects to lose between 2 cents and 9 cents per share. Analysts were forecasting a loss of 14 cents per share on revenue of $105.6 million.

Shares of the Cupertino, Calif., company rose 68 cents, or 7.6 percent, to close at $9.68.