Credence Systems Reports Lower Earnings

Credence Systems Corp. shares fell 12% after the company said its fiscal fourth-quarter earnings fell below expectations and that its chief financial officer had resigned. Shares of the maker of automated semiconductor testing equipment fell $3.13 to close at $23.88 on Nasdaq. The Fremont-based company said it earned 32 cents a share in the quarter ended Oct. 31, less than the 33-cent average estimate of four analysts polled by IBES International Inc. Analysts said the company earned 34 cents before a charge of $700,000, or 2 cents a share. “At first blush, it looks like they missed the estimates,” said Philip Plateck, an analyst at Forum Capital Markets, who has a long-term “buy” rating on the stock. “In reality, they came in line with expectations.” The company didn’t disclose the charge, which was for a loss on the sale of a fixed asset, in its press release, said Tia-Min Pang, an analyst at Cowen & Co. Credence explained it in an analysts’ conference call, Plateck said. Credence also said in the call that Chief Financial Officer Richard Okumoto was leaving for a job in another industry, not because of internal problems, Plateck said. After the $700,000 charge, net income was $7.25 million, compared with $4.29 million, or 20 cents a share, a year earlier.