SANTA CRUZ, Calif. Former Cadence Design Systems executive Lavi Lev has been named president and CEO of Credence Systems Corp., a leading automatic test equipment (ATE) provider that's undergoing a challenging year. Credence also posted fiscal fourth-quarter and 2006 results Thursday (Dec. 7), citing a net $481.6 million loss for fiscal 2006.
Lev was previously executive vice president and general manager of the products and solution business at Cadence Design Systems, where he managed Cadence's worldwide product portfolio. He has also held positions at National Semiconductor, Intel, Sun Microsystems, Silicon Graphics, and MIPS Technologies. He replaces Dave Ranhoff, former Credence president and CEO, who has "stepped down," according to a company statement. Further details were not provided.
Credence has had a rough year. In its third fiscal quarter, the company reported a $461.4 million loss, with net sales of $109.6 million. Credence blamed the results on a shortfall of sales in the IC verification and system-on-a-chip (SoC) test businesses. It had also recently exited the flash-memory test business.
In August 2006, Credence announced it was cutting 14 percent of its staff, citing poor demand and the cancellation of an order at Intel Corp.
But the company's fourth fiscal quarter, which ended Oct. 31, looks better. The net loss was down to $1.9 million, including restructuring charges of $7.8 million related to the previously announced layoffs. Net sales were $121.9 million, up slightly from the prior year quarter revenue of $121.6 million.
For fiscal 2006, the company's net sales were $474.4 million, up 11 percent from the $429.3 million reported in the 2005 fiscal year. The net loss of $481.6 million for fiscal 2006 includes a $423.9 million write-down of goodwill on the company's books taken during the third fiscal quarter, and restructuring and inventory charges of $47.1 million.