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On June 03, 2009,

LTX-Credence

(LTXC)

swung to a net loss during Q3 FY09, hurt by amortization of purchased intangible assets and restructuring expenses. Net loss stood at $27.82 million or $0.22 per share, compared to a net income of $2.17 million or $0.03 per share in Q3 FY08. Excluding the net impact of special items and merger-related costs of $1.04 million and an amortization charge of $4.45 million, net loss was $22.33 million or $0.18 per share. The most recent consensus estimate was a loss of $0.22 per share.

Revenue declined 37.3% to $24.67 million from $39.32 million a year ago. Cost of sales declined 6.5% to $17.67 million from $18.90 million. However, gross profit margin deteriorated to 28.35% from 51.93% in Q3 FY08. Engineering and product development expenses rose 40.4% to $16.56 million from $11.79 million, and selling, general, and administrative expenses surged 68.2% to $11.12 million from $6.61 million. The company also incurred a restructuring expense of $3.32 million during the quarter, decreasing the operating margin to a negative 115.31% from a positive 5.12% in the prior year's quarter.

Recently, the company approved a plan to terminate employees at various locations of the business in connection with ongoing efforts to reduce expenses. The company recently announced a business agreement that includes the selection of the Diamond platform as STS' preferred test platform for value-driven devices.

Looking forward to Q4 FY09, LTX-Credence expects its revenue to be in the range of $31.00 million to $34.00 million, an increase of approximately 26.0% to 38.0% over the previous quarter. It forecasts non-GAAP net loss, excluding amortization charges or one-time charges, to be in the range of $0.10 per share to $0.08 per share, assuming 127.50 million shares outstanding.