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UPDATE 1-Verigy swings to profit, sets strong outlook; shares up
Thu Feb 22, 2007 5:24 PM ET
(Recasts, adds outlook, share movement)
Feb 22 (Reuters) - Verigy Ltd. <VRGY.O> swung to quarterly profit and forecast second-quarter earnings and revenue above analysts' estimates, sending shares up 21 percent in late electronic trade.
The maker of advanced test systems for the semiconductor industry reported first-quarter net income of $13 million, or 22 cents a share, compared with net loss of $16 million, or 32 cents a share in the year-ago period.
Excluding certain items, it posted earnings of 28 cents a share for the quarter.
Analysts on average were expecting first-quarter earnings of 25 cents a share, before special items, on revenue of $154.9 million, according to Reuters Estimates.
Despite a cyclically soft period in the semiconductor test industry, Verigy reported a strong quarter helped by its balanced product portfolio, which focused on both system-on-a-chip and memory device test, Chief Executive Keith Barnes said in a statement.
Looking ahead, the company expects second-quarter earnings to be 28 cents to 33 cents a share, on revenue of $170 million to $180 million.
Excluding certain items, earnings are expected to be 32 cents to 37 cents a share for the second quarter.
Analysts on average expect earnings of 24 cents a share, excluding items, on revenue of $146.5 million.
Shares of the company were trading at $22.98 in late electronic trade, after closing at $18.88 on the Nasdaq. (Reporting by Sweta Singh in Bangalore)
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