July 23 (Reuters) - Shares of Cohu Inc (COHU.O) soared 37 percent on Thursday, a day after its quarterly results beat Wall Street expectations, as cost cutting measures kicked in and the semiconductor equipment business was stronger-than-expected.
Shares of the company, which makes handling equipment that protects semiconductors while testing, were up $2.63 at $12.70 in morning trade, making it one of the top gainers on Nasdaq.
In a statement, Chief Executive James Donahue said that while it was premature to say that chip equipment industry conditions had turned, it was encouraging that equipment utilization on IC test floors continued to improve, orders for spares and tooling rose and customer forecasts were trending up.
The company’s clientele includes global chipmakers like Intel (INTC.O), Advanced Micro Devices AMD.N and Texas Instruments TXN.N, who together accounted for over half of Cohu’s sales in fiscal 2008.
The company’s second-quarter fiscal 2009 adjusted loss of 13 cents a share was 9 cents better than the consensus forecast. Total revenue -- of which 64.4 percent was accounted for by semiconductor equipment -- was $38.4 million, beating two analysts’ average expectation by about $6 million. [ID:nWNAB0378]
Orders for semiconductor equipment rose about 65 percent sequentially in the quarter, while backlog rose to $51.6 million as at June 27, from $44.4 million on March 28. (Reporting by Savio D‘Souza in Bangalore; Editing by Anne Pallivathuckal)