UPDATE 2-Verigy cuts Q1 rev outlook, shares tumble
(Adds analyst's comments, details, updates share movement)
By Purwa Naveen Raman
BANGALORE Feb 9 (Reuters) - Semiconductor testing company Verigy Ltd VRGY.O cut its first-quarter revenue outlook, hurt by non-payment for several systems previously shipped to a large memory customer, sending its shares down 15 percent.
"That memory customer, based on our checks, is Spansion Inc SPSN.O," Oppenheimer & Co analyst Gary Hsueh told Reuters.
Chipmaker Spansion, weighed down by an enormous debt, is exploring a possible sale of itself as it struggles for survival amid worsening market conditions.
Hsueh said checks suggest that Verigy's total exposure to Spansion is of 20 to 30 systems, each one worth about $1 million to $2 million.
Semiconductor makers around the world are grappling with a near two-year sector downturn, caused by chronic oversupply and weak demand exacerbated by the financial turmoil.
For the first quarter, the company now expects revenue of $66 million to $68 million, down from its prior estimate of $95 million to $110 million.
"The magnitude of the preannouncement was a surprise. However, the fact that they negatively preannounced was not," Hsueh said. Continuación...