Varian Semiconductor posts better-than-expected 3rd-quarter profit, strong revenue growth

Varian Semi posts 3Q profit, revenue growth

GLOUCESTER, Mass. — Varian Semiconductor Equipment Associates Inc. said it returned to profit in the fiscal third quarter, reversing a year-ago loss, on strong revenue growth linked to recovering demand for computer chips.

The chip equipment maker late Thursday reported net income of $45.2 million, or 60 cents per share, for the three months that ended July 2. That compares with a loss of $12.5 million, or 17 cents per share, in the same quarter a year ago.

Revenue surged to $227.7 million from $73.4 million. The results topped the average estimates of analysts polled by Thomson Reuters who had forecast earnings of 58 cents per share on revenue of $226.1 million.

The company said initial response to its recently launched Solion implant product has been “very favorable” with significantly higher demand for demonstration tools and a growing potential customer base. The company said it expects several production tool shipments over the coming months.

Looking forward, the company said it expects to earn between 70 and 75 cents per share in the fourth fiscal quarter on revenue of $250 million to $260 million. That’s well above the earnings of 63 cents per share and revenue of $236.2 million expected by analysts, on average.

Shares fell 74 cents, or 2.5 percent, to $28.29 in afternoon trading.