Adams Harkness Cuts Numerical Technologies to 'Market Perform'
Adams Harkness downgraded Numerical Technologies (NMTC ) to market perform from buy.
Analyst Dennis Wassung says the resignation of president and CEO Larry Hollatz after just four months presents a risk factor, and further shakes investors' near-term confidence in the chip equipment company. He notes Hollatz left because of differences with the board over the strategy and direction of the company going forward. He doesn't expect a meaningful recovery in the share price until visibility on the renewal of Cadence Design Systems' licensing agreement, or an announcement of a new production license elsewhere.
Wassung sees one cent earnings per share for the fourth quarter, and $11.2 million in revenues, in line with the company's guidance.