Varian 4Q profit rises four-fold on cost cuts

Varian 4Q profit rises four-fold on cost cuts, offsetting revenue drop

• On 8:00 pm EDT, Thursday October 29, 2009

GLOUCESTER, Mass. (AP) -- Varian Semiconductor Equipment Associates Inc. more than quadrupled its net income for the fourth quarter, as the company offset a revenue drop with aggressive cost cuts.

The chip equipment maker on Thursday reported net income of $7.6 million, or 10 cents per share, compared with $1.8 million, or 2 cents, in the same quarter a year ago.

Revenue fell 17 percent to $117.5 million. Analysts were expecting earnings of 5 cents per share and revenue of $110 million.

Product revenue fell 14 percent to $105.5 million while service revenue plunged by 38 percent to $11.9 million.

For the year, Varian lost $38 million, or 53 cents per share, as revenue fell 56 percent to $362.1 million. Last year, it earned $99.5 million, or $1.33, on $834.1 million in revenue.

Varian said it expects to earn 15 to 20 cents per share in the first quarter on revenue of $134 million to $144 million. Analysts were forecasting 11 cents and $123.8 million.

Shares of Varian, based in Gloucester, Mass., rose by 44 cents to $31.12 in after-hours trading. The stock gained $1.20, or 4.1 percent, to $30.68 during the regular session.