Verigy Beats on Top and Bottom Line (VRGY)

Verigy, Ltd. (VRGY) reports Q2 EPS of $0.21 versus estimates of $0.16. Verigy, Ltd. reports revenues of $154 million versus estimates of $147.57 million. Revenue increased 77% year over year and 28% sequentially. For the fourth quarter ending October 31, 2010, the company is providing the following outlook: Revenue is expected to be in the range of $157 million to $167 million. Earnings per share are expected to be in the range of $0.22 to $0.27. "During the quarter, we continued our momentum in product innovation, customer wins, and strengthening our financial model," said Keith Barnes, Verigy chairman and chief executive officer. "In Q3, we brought several new solutions and capabilities to market. The new offerings on our V93000 platform combined with the broad-based strength in the SOC test market, contributed to a 43 percent sequential revenue growth for our SOC products. In particular, V93000 Port Scale RF demand remained extremely strong throughout the quarter and generated more than 50 percent of our total SOC revenue in Q3." "We're very pleased with the strong profitability achieved during the quarter and the continuing strength in sales of our SOC products," added Bob Nikl, Verigy chief financial officer. "Our goal is to continue to improve the leverage in our operating model and generate higher profitability over a cycle." Shares of VRGY are higher in the after-hours by 1.48%.