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Credence Systems posts Q4 profit;sees $16 mln Q1 charge
Tue Jan 8, 2008 8:42am EST

http://www.reuters.com/article/marketsNews/idUKBNG12206920080108?rpc=44

Jan 8 (Reuters) - Semiconductor testing equipment maker Credence Systems Corp (CMOS.O: Quote, Profile, Research), which has been in the middle of a restructuring, posted a fourth-quarter profit, helped by lower costs, and forecast a surprise loss for the first quarter of 2008, due to charges.

The company said it expects a 30 percent reduction in its workforce by the end of fiscal 2008 and sees a first-quarter charge of $16 million related to its restructuring.

Separately, Credence named Kevin Eichler chief financial officer, replacing Joy Leo, who resigned last November.

For the latest fourth quarter, Credence Systems reported earnings of $5.6 million, or 5 cents per share, compared with a net loss of $1.9 million, or 2 cents a share, a year ago. Sales fell 23 percent to $97.7 million.

Analysts were expecting earnings of 4 cents a share on revenue of $103.6 million, according to Reuters Estimates.

Costs in the quarter fell to 44.4 million from $60.6 million.

Milpitas, California-based Credence sees a loss of 37 cents to 39 cents a share, on net sales of $58 million to $62 million in the first quarter of 2008.

Analysts on average were expecting earnings of 3 cents a share, before exceptional items, on revenue of $102.1 million.

The company's stock closed at $2.26 Monday on the Nasdaq. (Reporting by Biswarup Gooptu in Bangalore; Editing by Amitha Rajan) (([e-mail]; within U.S. [phone]; outside U.S. [phone]; Reuters Messaging: [e-mail]))

From Briefing.com

6:18AM Credence reports EPS in-line, misses on revs; guides Q1 EPS below consensus, revs below consensus (CMOS) 2.26 : Reports Q4 (Oct) earnings of $0.05 per share, in-line with the First Call consensus of $0.05; revenues fell 23.1% year/year to $97.7 mln vs the $105.3 mln consensus. Co issues downside guidance for Q1, sees EPS of ($0.37)-($0.39) vs. $0.02 consensus; sees Q1 revs of $58-62 mln vs. $102.75 mln consensus. The company also outlined significant corporate changes intended to build on core technology strengths while simplifying its operations to meet increasing opportunities in Asia-driven consumer semiconductor markets. Credence intends to prioritize its research and development activities in the Diamond and industry-standard ASL platforms to accelerate their deployment in mainstream consumer semiconductor markets. The company intends to focus Sapphire platform development on configurations that support leading-edge applications for the high end of the consumer semiconductor markets. With the highest concentration of consumer semiconductor manufacturers located in Asia, Credence will seek to double its sales and support headcount in the region by the end of 2008. With the addition of approximately 100 employees related to the increased consumer focus, the company anticipates that these restructuring initiatives will result in a net worldwide headcount reduction of 400 people, or approximately 30 percent of the workforce by end of fiscal 2008. Credence intends to take charges of approximately $16 million in the first fiscal quarter of 2008 in connection with this restructuring.