Credence reduced EPS guidance for their Q2 from a loss of 9-11¢ to a loss of 14-17¢. They blame the shortfall on cutbacks at one of their large customers (AMD?) that were recently announced.
So the question is, is this an industry problem or is the competition, including LTX, simply kicking their butt?
From their comments, it seems to be pretty company specific: Thats the rason why I am buying LTXX..
"During the past week, a major customer announced shortfalls in their fiscal 2008 Q1 revenue. In addition, delays in certain of Credence's previously announced restructuring initiatives, which included divestitures, site closures and headcount reductions, will impact the Company's ability to achieve the previously announced breakeven revenue targets by the end of fiscal 2008. Based on these developments, Credence does not expect to achieve profitability during the fourth quarter of fiscal 2008. The Company is also revising its guidance regarding fiscal 2008 Q2 net loss from $9-11 million, or $0.09 to $0.11 per share, to be in the range of $14-17 million, or $0.14 to $0.17 per share. The Company will provide more specific guidance regarding anticipated Q3 revenue and earnings during its Q2 earnings announcement and call on June 2, 2008 after the close of market."
TECHNICAL ANALYSIS >>
UPTRADE QUALITY 70%, Good
Good trade quality is a combination of good profit, profit/loss ratio and target potential.
TARGET 1 Price: 3.58 Profit: 16.6% , for a typical rally.
Stop Limit/Trailing Stop Limit: 2.94 Loss: 4.2%
Profit/Loss Ratio: 4 : 1 - Excellent
Enviado: 17/4/2008 20:43
