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| Share Name | Share Symbol | Market | Type |
|---|---|---|---|
| Verigy Ltd. (MM) | NASDAQ:VRGY | NASDAQ | Common Stock |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 15.00 | 0 | 01:00:00 |
From Jul 2019 to Jul 2024
Verigy Ltd. (NASDAQ:VRGY), a premier semiconductor test company, today reported financial results for its third quarter ended July 31, 2010. Revenue for the third quarter was $154 million, an increase of $34 million, or 28 percent from the prior quarter and an increase of $67 million, or 77 percent from the comparable prior year period.
Net income for the third quarter was $13 million, or $0.21 per share, compared to a net loss of $1 million, or ($0.02) per share last quarter, and a net loss of $21 million, or ($0.36) per share, in the prior year period.
Results for the third quarter included approximately $1.6 million of charges related to the company’s restructuring actions and manufacturing transition. After excluding these items, Verigy reported non-GAAP net income of $14 million, or $0.23 per share, including $5.2 million of share-based compensation expense.
A reconciliation between GAAP and non-GAAP net income is provided following the financial statements that are part of this press release.
“During the quarter, we continued our momentum in product innovation, customer wins, and strengthening our financial model,” said Keith Barnes, Verigy chairman and chief executive officer. “In Q3, we brought several new solutions and capabilities to market. The new offerings on our V93000 platform combined with the broad-based strength in the SOC test market, contributed to a 43 percent sequential revenue growth for our SOC products. In particular, V93000 Port Scale RF demand remained extremely strong throughout the quarter and generated more than 50 percent of our total SOC revenue in Q3.”
“We’re very pleased with the strong profitability achieved during the quarter and the continuing strength in sales of our SOC products,” added Bob Nikl, Verigy chief financial officer. “Our goal is to continue to improve the leverage in our operating model and generate higher profitability over a cycle.”
Outlook for Q4 2010
For the fourth quarter ending October 31, 2010, the company is providing the following outlook:
Conference Call and Webcast
Verigy’s management will present more details on its third 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 “Q3 FY’10 Verigy Earnings Conference Call” in the “Events & Webcast” section under “IR News & Events.” The webcast will remain available on the company’s web site for 14 days.
A telephone replay of the conference call will be available from 4:30 p.m. (Pacific) today through September 2, 2010. The replay number is +1 888-286-8010 toll-free, or international callers may dial +1 617-801-6888; enter passcode 62807308.
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 our estimated fourth quarter revenue, GAAP and non-GAAP earnings per share and share-based compensation expense. 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 about the global economic recovery, the conditions of the semiconductor and semiconductor test industries, the strength of our customers’ businesses, unforeseen changes in the demand for our products and unanticipated delays in meeting product demand and delivery requirements. Additional factors that may cause results to differ materially from those in the forward-looking statements are discussed in our most recent SEC filings. The forward-looking statements in this press release 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 measures presented on a GAAP basis by providing non-GAAP measures to provide additional meaningful comparisons between current results and results in prior operating periods to evaluate the operating performance of the company. Management believes that these non-GAAP financial measures can provide additional meaningful information of underlying trends of the business because they provide a comparison of historical information that excludes certain items that impact the overall comparability. Non-GAAP net income for the quarter ended July 31, 2010 excludes the effects of charges related to the company’s restructuring actions and manufacturing transition. Management uses this information to make operational decisions and for comparisons to historical operating results and the operating results of its competitors. Management finds the non-GAAP information to be useful and 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. A reconciliation between the company’s GAAP and non-GAAP measures is provided in the attached tables. Non-GAAP numbers are merely a supplement to, and not a replacement for, GAAP financial measures. They should be read and evaluated in conjunction with the GAAP financial measures.
VERIGY LTD. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except share and per share amounts) (Unaudited) Three Months Ended Nine Months Ended July 31, July 31, 2010 2009 2010 2009 Net revenue: Products $ 122 $ 58 $ 286 $ 133 Services 32 29 94 93 Total net revenue 154 87 380 226 Cost of sales: Cost of products (*) 55 32 137 98 Cost of services (*) 23 20 63 62 Total cost of sales 78 52 200 160 Operating expenses: Research and development (*) 25 25 70 70 Selling, general and administrative (*) 35 29 96 88 Restructuring Charges - 1 2 7 Total operating expenses 60 55 168 165 Income (loss) from operations 16 (20 ) 12 (99 ) Other (expense) income, net (1 ) 1 (3 ) 4 Impairment of investments - (2 ) (1 ) (16 ) Income (loss) before income taxes 15 (21 ) 8 (111 ) Provision for income taxes 2 - 2 4 Net Income (loss) $ 13 $ (21 ) $ 6 $ (115 ) Net income (loss) per share- basic: $ 0.21 $ (0.36 ) $ 0.09 $ (1.97 ) Net income (loss) per share- diluted (#): $ 0.21 $ (0.36 ) $ 0.09 $ (1.97 ) Weighted average shares (presented in thousands) used in computing net income (loss) per share: Basic 59,755 58,583 59,421 58,307 Diluted 70,462 58,583 59,790 58,307 * Share-based compensation expense by function: Cost of products $ 0.7 $ 0.6 $ 1.8 $ 1.6 Cost of services $ 0.3 $ 0.3 $ 0.8 $ 0.9 Research and development $ 0.7 $ 0.6 $ 1.7 $ 1.6 Selling, general and administrative $ 3.5 $ 3.4 $ 10.5 $ 10.0 # In accordance with accounting guidance, the computation of diluted EPS for the three months ended July 31, 2010 includes the dilutive effect of our convertible senior notes and as a result net income is adjusted to add back the related interest expense of approximately $1.9 million. The convertible senior notes are antidilutive for nine months ended July 31, 2010. VERIGY LTD. CONDENSED CONSOLIDATED BALANCE SHEETS (In millions, except share data) (Unaudited) July 31, October 31, 2010 2009 ASSETS Current assets: Cash and cash equivalents $ 247 $ 197 Short-term marketable securities 146 167 Trade accounts receivable, net 86 54 Inventory 80 55 Other current assets 44 42 Total current assets 603 515 Property, plant and equipment, net 41 41 Long-term marketable securities 52 75 Goodwill and other intangibles, net 19 20 Other long-term assets 62 62 Total assets $ 777 $ 713 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 70 $ 40 Employee compensation and benefits 25 32 Deferred revenue, current 40 26 Other current liabilities 20 27 Total current liabilities 155 125 Long-term liabilities: Convertible senior notes 138 138 Income taxes payable 17 15 Other long-term liabilities 42 33 Total liabilities 352 311 Shareholders' equity Ordinary shares, no par value, 59,893,983 and 58,841,248 issued and outstanding at July 31, 2010 and October 31, 2009, respectively Additional paid in capital 447 429 Retained earnings (17 ) (23 ) Accumulated other comprehensive loss (5 ) (4 ) Total shareholders' equity 425 402 Total liabilities and shareholders’ equity $ 777 $ 713 VERIGY LTD. RECONCILIATION OF GAAP TO NON-GAAP MEASURES (In millions, except per share amounts) (Unaudited) Three Months Ended Nine Months Ended July 31, 2010 July 31, 2010 Net income EPS (*) Gross profit Gross marginOperatingexpenses
Net income EPS (*) Gross profit Gross marginOperatingexpenses
GAAP $ 13 $ 0.21 $ 76 49 % $ 60 $ 6 $ 0.09 $ 180 47 % $ 168 Non-GAAP adjustments: Restructuring charges in cost of sales 0.6 0.01 0.6 0.4 % - 1.4 0.02 1.4 0.4 % - Restructuring charges in operating expenses 0.4 0.01 - - (0.4 ) 2.1 0.03 - - (2.1 ) Impairment of auction rate securities - - - - - 1.0 0.02 - - - Gain on sale of investments (0.0 ) - - - - (0.6 ) (0.01 ) - - - Non-Recurring operating expenses - - - - - 0.4 0.01 - - (0.4 ) Acquisition related charges in cost of sales 0.1 - 0.1 0.1 % - 0.2 - 0.2 0.1 % - Acquisition related charges in operating expenses 0.1 - - - (0.1 ) 0.2 - - - (0.2 ) Transition related charges in cost of sales 0.1 - 0.1 0.1 % - 4.2 0.07 4.2 1.1 % - Transition related charges in operating expenses 0.4 - - - (0.4 ) 0.9 0.02 - - (0.9 ) Non-GAAP $ 14 $ 0.23 $ 77 50 % $ 59 $ 15 $ 0.25 $ 186 49 % $ 164 Three Months Ended Nine Months Ended July 31, 2009 July 31, 2009 Net loss EPS Gross profit Gross margin Operating expenses Net loss EPS Gross profit Gross margin Operating expenses GAAP $ (21 ) $ (0.36 ) $ 35 40 % $ 55 $ (115 ) $ (1.97 ) $ 66 29 % $ 165 Non-GAAP adjustments: Restructuring charges in cost of sales 1.0 0.02 1.0 1.1 % - 4.6 0.08 4.6 2.0 % - Restructuring charges in operating expenses 1.1 0.02 - - (1.1 ) 7.4 0.12 - - (7.4 ) Impairment of auction rate securities 1.5 0.03 - - - 9.1 0.16 - - - Impairment of cost method investment - - - - - 6.2 0.11 - - - Non-Recurring operating expenses - - - - - 2.6 0.05 - - (2.6 ) Acquisition related charges in cost of sales - - - 0.0 % - 0.2 - 0.2 0.1 % - Acquisition related charges in operating expenses 3.9 0.07 - - (3.9 ) 4.0 0.07 - - (4.0 ) Transition related charges in cost of sales 0.6 0.01 0.6 0.7 % - 0.6 0.01 0.6 0.3 % - Transition related charges in operating expenses 0.1 - - - (0.1 ) 0.1 - - - (0.1 ) Tax impact for transfer of intellectual property - - - - - 1.2 0.02 - - - Tax impact related to acquisition (1.5 ) (0.03 ) - - - (1.5 ) (0.03 ) - - - Non-GAAP $ (14 ) $ (0.24 ) $ 37 42 % $ 50 $ (80 ) $ (1.38 ) $ 71 32 % $ 151 * In accordance with accounting guidance, the computation of diluted EPS for the three months ended July 31, 2010 includes the dilutive effect of our convertible senior notes and as a result net income is adjusted to add back the related interest expense of approximately $1.9 million. The convertible senior notes are antidilutive for nine months ended July 31, 2010. VERIGY LTD. RECONCILIATION OF GAAP TO NON-GAAP GUIDANCE (In millions, except per share amounts) (Unaudited) Guidance for the three months ended October 31, 2010 Three Months Ended October 31, 2010 Revenue GAAP and Non-GAAP revenue guidance: $ 157 $ 167 Earnings per share GAAP net income per diluted share $ 0.22 $ 0.27 Exclude restructuring charges in cost of sales 0.01 0.01 Exclude transition and acquisition related charges 0.01 0.01 Non-GAAP net income per diluted share $ 0.24 $ 0.29
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1 Month Verigy Ltd. (MM) Chart |
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