The results for the first quarter included about $23 million of charges for the company’s previously announced restructuring plans, additional impairment charges for its auction rate securities and a cost method investment, and the write off of purchased intellectual property.
After excluding these charges, the company reported a non-GAAP net loss of $41 million, or $0.70 per share for its first quarter of fiscal 2009.
A reconciliation between GAAP and non-GAAP operating results is provided following the financial statements that are part of this press release. Non-GAAP results include the impact of stock-based compensation of $4.8 million, but exclude the impact of the items noted above.
In anticipation of a challenging 2009 for the semiconductor industry, we have established organizational goals to ensure Verigy remains financially healthy and technologically competitive, said Keith Barnes, Verigy chairman, chief executive officer and president. Verigy has the product leadership, financial strength and staying power to weather this downturn.
The ongoing crisis in the global economy as well as the financial markets has driven companies across the semiconductor industry to rethink their use of cash and Verigy is no different, said Bob Nikl, Verigy chief financial officer. We have implemented a number of cost-saving and restructuring actions to lower our cash burn and bring our operating expenses more in line with current market conditions.
