Markets & Finance

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.

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