Shares of Credence Systems Corp. plunged Thursday after it issued a second-quarter profit warning because of delays in its cost-cutting program.
Milpitas, Calif.-based Credence said it expects a loss of 14 cents to 17 cents per share, roughly 6 cents lower than its original outlook.
It also said a major customer was experiencing production delays.
Its shares fell 41 cents or 23.5 percent to $1.33 in afternoon trading. They have traded in the last 12 months between $1.18 and $4.08.
Citigroup analyst Timothy M. Arcuri said in an analyst note that the announcement was consistent with his downgrade to "Sell" last November.
Arcuri said that Credence management has reworked its cost reduction targets 3 times in the last 6 quarters and has withdrawn its break-even target for the 2008 financial year.
Stifel Nicolaus & Co. analyst Patrick Ho said that the Credence preannoucement was "company-specific and not reflective of peer trends."
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