Verigy posts 2006 results
-- Test & Measurement World, 12/4/2006 6:27:00 AM
Verigy has reported financial results for its fourth quarter and fiscal year 2006 ended October 31, 2006. Fiscal fourth quarter revenue was $202 million, a 6% decrease from the prior quarter revenue of $214 million and a 27% increase over revenue of $159 million in the fourth quarter of fiscal year 2005.
On a GAAP basis, net income for the quarter was $14 million, or $0.25 per share, compared with net income of $13 million, or $0.23 per share in the prior quarter. Net income for the fourth quarter included $17 million of charges related principally to separation and restructuring activities undertaken in connection with Verigy's spin-off from Agilent Technologies. The spin-off was completed on October 31 with Agilent Technologies' distribution of the 50 million Verigy ordinary shares it previously owned. Excluding the charges related to the spin-off and $2.2 million of share-based compensation expense, on a non-GAAP basis net income was $33 million, or $0.56 per share.
For fiscal year 2006, revenue was $778 million, an increase of 71 percent from revenue of $456 million in fiscal year 2005. On a GAAP basis for fiscal year 2006 the company broke even, compared to a net loss of $119 million, or $2.38 per share, for fiscal year 2005.
Orders for the fourth quarter of fiscal 2006 were $164 million, down approximately 18% from the prior quarter. For fiscal year 2006, orders were $852 million, up approximately 63% from fiscal year 2005.
"The strong revenue in our fourth quarter was fueled primarily by robust sales of our V5000 Series memory and V93000 Pin Scale products, and continued acceptance of our RF test capability on the V93000 Series platform," said Keith Barnes, Verigy president and CEO. "Fiscal year 2006 was a record year for Verigy from a revenue perspective. We are pleased with this milestone particularly because it was achieved while we were undergoing a substantial transition for the company in terms of our spin-off from Agilent and our manufacturing move to Flextronics. As we enter our fiscal year 2007, we will continue to focus on profitable growth, product innovation, and customer satisfaction as our top priorities."
"We are very proud of the fact that the company broke even for the fiscal year 2006 on a GAAP basis, particularly given the $97 million of restructuring and separation charges we incurred as a result of the spin-off from Agilent," added Bob Nikl, Verigy chief financial officer. "Operationally, we performed to our financial guidance for the fiscal fourth quarter and strengthened our cash balance to $300 million with zero debt."
For the fiscal first quarter ending Jan. 31, 2007, the company provided the following guidance:
• Revenue is expected to be in the range of $150 to $160 million.
• GAAP net income is expected to be in the range of $10 to $12 million, or $0.16 to $0.21 per share, and will include between $3 to $3.5 million of share-based compensation expense.
• On a non-GAAP basis, the company expects to report net income of $13 to $16 million, or $0.22 to $0.27 per share. To reconcile first quarter GAAP and non-GAAP net income and net income per share, the company expects to exclude $3 to $4 million of charges related principally to separation and restructuring activities undertaken in connection with Verigy’s spin-off from Agilent Technologies from the GAAP results.
