This excerpt taken from the VRGY 8-K filed Feb 9, 2009.
Earnings Date and Conference Call for First Quarter of Fiscal 2009
CUPERTINO, Calif. Feb. 9, 2009 Verigy (NASDAQ: VRGY), a premier semiconductor test company, today lowered its revenue guidance for its first quarter of fiscal 2009, ended Jan. 31, 2009, and now expects total revenue for its first quarter to be in the range of $66 to $68 million.
The further deterioration of the global economic environment coupled with the sudden erosion of consumer demand have resulted in both memory and system-on-chip (SOC) semiconductor manufacturers significantly cutting their capital expenditures. In addition, non-payment for several systems previously shipped to a large memory customer contributed to the sharp shortfall in revenues for Verigys first quarter.
While Verigy cannot predict the length of this downturn, the company expects its business will be negatively impacted through at least the first half of calendar 2009. Accordingly, Verigy is implementing cost-cutting and restructuring actions in addition to those announced last quarter. These actions include further cuts in regular and contract personnel, shortened work time and temporary salary reductions. The specific timing and scope of the restructuring actions will be based on business needs and local legal requirements and, when fully implemented, are expected to yield annual cost savings of approximately $90 to $100 million. The company expects that its workforce reduction plans will be substantially completed by the end of calendar 2009.
In addition to these restructuring plans, Verigy is also in the process of evaluating the carrying value of its goodwill, intangible and other assets, which may lead to an impairment charge in the first quarter. Accordingly, the company is unable to provide a specific update to its earnings per share guidance at this time, but will report losses for its first fiscal quarter that are greater than the estimates included in its previously provided guidance. The actual amount of impairment charges, if any, will be communicated in Verigys first quarter earnings announcement. Investors should not rely upon previously provided earnings guidance for the companys first quarter results.
No conference call will be held in conjunction with this financial update. The company is currently observing the pre-earnings quiet period and will not make further comments about its first quarter results in the interim.