Semiconductor test systems and solutions provider Verigy Ltd. (VRGY), Thursday reported a slip to loss in the third-quarter from a year ago, as revenues declined 51% reflecting weaknesses in the semiconductor industry, as well as one-time charges. Revenues and loss for the quarter, however, came in ahead of Street expectations. The company also provided its forecast for the fourth quarter.
Net loss for the third quarter was $21 million or $0.35 per share, compared to a net income of $18 million or $0.29 per share in the same quarter a year ago, primarily hurt by restructuring and manufacturing transaction charges of $7 million related to acquisition of Touchdown Technologies, and an impairment charge for an auction rate security.
Excluding charges, non-GAAP net loss for the quarter was $14 million or $0.24 per share, compared to non-GAAP net income of $18 million or $0.29 per share.
Non-GAAP results include the impact of share-based compensation of $4.9 million, but exclude the impact of the restructuring, transition, acquisition, and impairment charges.
On average, nine analysts polled by Thomson Reuters expected a loss of $0.30 per share for the third quarter. Analysts estimate typically excludes special items.
Loss from operations for the third quarter was $20 million, compared to income from operations of $15 million in the same quarter a year ago.
Revenues for the third quarter declined 51% to $87 million from $179 million in the same quarter last year, however, was above the analysts' estimate of $83.33 million.
For the nine-months period, the company slipped to a loss of $115 million or $1.96 per share from a profit of $64 million or $1.05 per share in the same period last year.
Revenues for the period declined to $226 million from $541 million in the same period last year.
Looking forward to the fourth quarter, the company expects GAAP loss in the range of $0.32 per share to $0.24 per share, with non-GAAP loss per share expected in the range of $0.25 to $0.17. Analysts currently expects the company to report a loss of $0.18 per share for the fourth quarter.
Revenues for the fourth quarter is expected in the range of $90 million to $100 million, while the Street sees revenues of $94.21 million for the fourth quarter.
The company also anticipates share-based compensation expense in the range of $4.7 million to $4.9 million for the fourth quarter.
Commenting on the results, Keith Barnes, chairman, chief executive officer and president, Verigy said, "While the recession continues to present challenges for the semiconductor industry, we are confident that Verigy remains in a strong competitive position,we believe Verigy can capture additional market share with our new V101 low-cost SOC system, our V6000 Flash/DRAM system and our acquisition of Touchdown Technologies' advanced probe cards."
VRGY closed Thursday's trading at $12.23, down $0.07 or 0.57%, on a volume of 1.119 million shares on the Nasdaq. In the after hours, the stock lost $0.93 or 7.60%, to trade at $11.30.
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