MANHASSET, N.Y. Semiconductor test solutions provider Credence Systems Corp. posted a net loss of $14.2 million, or 14 cents per share on sales of $124.8 million for its second fiscal 2006 quarter ended April 30. In the year-ago quarter, Credence lost $19.5 million, or 21 cents per share on sales of $101.9 million.
Credence (Milpitas, Calif.) reported net orders of $109.8 million, corresponding to a book to bill ratio of 0.88. The net loss included charges of $19.4 million consisting of an inventory write-down of approximately $11.8 million, amortization of intangibles, restructuring charges and stock compensation.
"Increased demand for our consumer mixed-signal and wireless products allowed us to meet the revenue guidance that we provided last quarter," said Dave Ranhoff, president and chief executive officer of Credence Systems Corp, in a statement. "Continuing weakness in our memory business, however, required us to revalue our Kalos 2 inventory which adversely impacted our financial results.”
Ranhoff added that the company has decided to halt development of its next-generation memory tester in reaction to capital spending cuts by a major IDM customer.
For the third fiscal 2006 quarter, Credence forecasts sales of $125 million to $129 million, with a GAAP loss per share of 9 to 11 cents.