Attention Bottom Fishers: Credence Systems Appoints CFO

For an update on bargain basement stocks, I bring you semiconductor test equipment maker Credence Systems (CMOS), which trades for $3.47 and which just appointed a new chief financial officer, about five months after appointing Lavi Liv as its president and chief executive officer.

The new CFO, Joy E. Leo, prior to coming to Credence, was CFO of ARM Holdings PLC (ARMHY), according to Credence’s press release. ARM makes “cores,” bits of circuitry which are licensed to be integrated into microprocessors. Credence, for its part, makes equipment that is used by Advanced Micro Devices (AMD) to test its microprocessors. So, it seems like Leo’s resume is in the right zone.

Does top management overhaul spell upturn? Well, sales are expected to grow a modest 9% next year, according to a Thomson Financial survey, and the company’s outlook in March regarding the current quarter’s sales was less than thrilling, with revenue continuing to fall year-over-year.

The company claims $150 million in cash and short-term investments, though a third of that has come from a recent sale of convertible bonds. The company has a total of $189 million in debt and a $351 million market capitalization. I guess it’s taking some time and a bunch of money to turn this little company around.

CMOS shares yesterday closed up 1.76% at $3.47. They are down 33% this year and 54% in the last 12 months.

CMOS 1-yr chart