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Verigy Reports First Quarter 2010 Financial Results; Year-over-Year Revenue Increase of 56%
CUPERTINO, Calif., Feb. 23, 2010 – Verigy Ltd. (NASDAQ: VRGY), a premier semiconductor test company, today reported financial results for its first quarter, ended January 31, 2010. Revenue for the first quarter was $106 million, an increase of $9 million, or 9 percent, from the prior quarter, and an increase of $38 million, or 56 percent, from the prior year period.
Net loss for the first quarter was $6 million, or ($0.10) per share, compared to a net loss of $12 million, or ($0.20) per share, last quarter, and a net loss of $64 million, or ($1.09) per share, in the prior year period.
The results for the first quarter included approximately $5.0 million of charges related to the company’s restructuring and manufacturing transition actions as well as an investment gain of approximately $0.5 million. After excluding these items, Verigy reported a non-GAAP net loss of $2 million, or ($0.03) per share, for its first quarter of fiscal 2010.
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 share-based compensation of $4.6 million, but exclude the items noted above.
“Over the past year, Verigy significantly expanded its product portfolio, and entered new markets,” said Keith Barnes, Verigy chairman, chief executive officer and president. “We are optimistic about the improving business environment and as the semiconductor industry emerges from the downturn, we believe that we are well-positioned to benefit. We expect our fiscal 2010 revenue to reflect more than 50 percent year-over-year growth.”
“First quarter results represented the fourth consecutive quarter of improvement in orders and revenue, and we achieved breakeven on a non-GAAP operating margin basis,” said Bob Nikl, Verigy chief financial officer. “Based on current revenue expectations, we believe that we will return to profitability in our third fiscal quarter.”
Outlook for Q2 2010
For the second quarter ending April 30, 2010, the company is providing the following outlook:
Verigy’s management will present more details on its first quarter fiscal year 2010 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 “Q1 FY’10 Verigy Earnings Conference Call” in the “Events & Webcast” 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 March 9, 2010. The replay number is +1 888-286-8010 toll-free, or international callers may dial +1 617-801-6888; enter passcode 54399489.
Financial Tables for First Quarter 2010
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). Verigy also provides advanced analysis tools that accelerate design debug and yield ramp processes. Additional information about Verigy can be found at www.verigy.com.
Forward Looking Statements
This earnings release contains forward-looking statements, including statements about the semiconductor and semiconductor test industries’ recovery, our estimated second quarter revenue and earnings (loss) per share, our expected share-based compensation expense, our expected fiscal 2010 revenue growth, and our return to profitability in the third quarter. 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 the semiconductor and semiconductor test industries, the strength of our customers’ businesses and unforeseen changes in the demand for our current and new products. 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 January 31, 2010 excludes the effects of charges for the company’s previously announced restructuring actions and manufacturing transition as well as an investment gain. 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.
Investor Contact:
Judy Davies
VP, Investor Relations and Marketing Communications
+1 408.864.7549
judy.davies@verigy.com
Net loss for the first quarter was $6 million, or ($0.10) per share, compared to a net loss of $12 million, or ($0.20) per share, last quarter, and a net loss of $64 million, or ($1.09) per share, in the prior year period.
The results for the first quarter included approximately $5.0 million of charges related to the company’s restructuring and manufacturing transition actions as well as an investment gain of approximately $0.5 million. After excluding these items, Verigy reported a non-GAAP net loss of $2 million, or ($0.03) per share, for its first quarter of fiscal 2010.
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 share-based compensation of $4.6 million, but exclude the items noted above.
“Over the past year, Verigy significantly expanded its product portfolio, and entered new markets,” said Keith Barnes, Verigy chairman, chief executive officer and president. “We are optimistic about the improving business environment and as the semiconductor industry emerges from the downturn, we believe that we are well-positioned to benefit. We expect our fiscal 2010 revenue to reflect more than 50 percent year-over-year growth.”
“First quarter results represented the fourth consecutive quarter of improvement in orders and revenue, and we achieved breakeven on a non-GAAP operating margin basis,” said Bob Nikl, Verigy chief financial officer. “Based on current revenue expectations, we believe that we will return to profitability in our third fiscal quarter.”
Outlook for Q2 2010
For the second quarter ending April 30, 2010, the company is providing the following outlook:
- Revenue is expected to be in the range of $107 million to $117 million.
- Loss per share on a GAAP basis is expected to be in the range of ($0.12) to ($0.03).
- After excluding restructuring and manufacturing transition-related charges, earnings per share on a non-GAAP basis are expected to be in the range of ($0.08) to $0.01.
- Share-based compensation expense is expected to be approximately $5.2 million to $5.4 million.
Verigy’s management will present more details on its first quarter fiscal year 2010 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 “Q1 FY’10 Verigy Earnings Conference Call” in the “Events & Webcast” 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 March 9, 2010. The replay number is +1 888-286-8010 toll-free, or international callers may dial +1 617-801-6888; enter passcode 54399489.
Financial Tables for First Quarter 2010
| Q110 Verigy Financial Tables.xls |  70 KB |
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| Q110 Verigy Financial Tables.pdf |  59 KB |
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). Verigy also provides advanced analysis tools that accelerate design debug and yield ramp processes. Additional information about Verigy can be found at www.verigy.com.
Forward Looking Statements
This earnings release contains forward-looking statements, including statements about the semiconductor and semiconductor test industries’ recovery, our estimated second quarter revenue and earnings (loss) per share, our expected share-based compensation expense, our expected fiscal 2010 revenue growth, and our return to profitability in the third quarter. 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 the semiconductor and semiconductor test industries, the strength of our customers’ businesses and unforeseen changes in the demand for our current and new products. 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 January 31, 2010 excludes the effects of charges for the company’s previously announced restructuring actions and manufacturing transition as well as an investment gain. 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.
Investor Contact:
Judy Davies
VP, Investor Relations and Marketing Communications
+1 408.864.7549
judy.davies@verigy.com
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