Verigy fiscal 1st-qtr loss narrows as product demand rises

Verigy fiscal 1st-qtr loss narrows

CUPERTINO, Calif. — Verigy Ltd. said Tuesday that its fiscal first-quarter loss narrowed as demand jumped for the chip testing equipment maker’s products.

Shares of Verigy, which also predicted second-quarter results below analyst views, fell $1.14, or 10.5 percent, in after-hours trading. The stock had finished regular trading down 44 cents, or 3.9 percent, at $10.84.

For the quarter that ended Jan. 31, Verigy reported a loss of $6 million, or 10 cents per share, compared with a loss of $64 million, or $1.09 per share, in the year-ago quarter.

When excluding one-time items, such as a $5 million restructuring and manufacturing charge, Verigy’s loss totaled 3 cents per share. Analysts polled by Thomson Reuters, who typically exclude one-time items, expected a loss of 4 cents per share.

Revenue rose 56 percent year over year to $106 million, but fell short of analyst expectations for $111.2 million.

Verigy said revenue from products more than doubled to $76 million, while revenue from services fell 14 percent to $30 million.