) reported fourth-quarter 2013 earnings of 7 cents per share,
beating the Zacks Consensus Estimate of 4 cents. Adjusted
earnings per share exclude one-time items but include stock-based
Revenues of $285.3 million were down 34.2% sequentially but up
14.9% year over year. Revenues exceeded the Zacks Consensus
Estimate of $276 million and were slightly above management's
guided range of $260.0 million-$285.0 million.
Around 75.4% of revenues in the quarter came from semiconductor
testing platforms, 15.4% from system testing and the remaining
9.2% from wireless testing business.
Total bookings in the quarter amounted to $290.0 million, of
which $225.0 million were in Semiconductor Test, $47.0 million in
Wireless Test and $18.0 million in the Systems Test Group.
Total orders improved sequentially in the fourth quarter,
consistent with seasonal patterns.
Reported gross margin for the quarter was 56.0%, down 270 basis
points (bps) sequentially but up 550 bps year over year. The
sequential decrease was due to unfavorable mix.
Total operating expenses of $153.0 million were up 2.0% from
$150.0 million in the year-ago quarter. Both engineering and
development (E&D) expenses and selling and administrative
(S&A) expenses decreased as a percentage of sales.
As a result, the reported operating margin was 2.4% versus
(9.9%) in the year-ago quarter.
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TERADYNE INC (TER): Free Stock Analysis
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The quarter's GAAP net income was $22.3 million or earnings of 9
cents per share, up from net loss of $16.5 million or loss of 9
cents in the comparable quarter last year. Excluding special
items but including stock-based compensation expense, non-GAAP
net income was $13.2 million or 7 cents per share compared with
$12.6 million or 7 cents a share in the year-ago quarter.
The company ended the fourth quarter with cash and cash
equivalents, and marketable securities balance of $928.5 million,
down from $957.2 million in the prior quarter. Trade receivables
were $157.6 million, down from $209.4 million in the prior
The net cash at quarter-end was $741.9 million (excluding $186.7
million in short-term debt).
Cash flow from operations was $43.7 million versus $154.5 million
in the prior quarter. Capex was $23.6 million versus $32.1
million in the prior quarter.
During the quarter, the company initiated a quarterly cash
dividend of 6 cents per share, with the initial quarterly
dividend payable on Jun 2, 2014, to shareholders of record as of
the close of business on May 9, 2014.
Management provided guidance for the first quarter of 2014.
Revenues are expected in the range of $300 million-$330 million,
up 10.4% sequentially at the mid-point. Non-GAAP earnings from
continuing operations are expected in the range of 2 cents to 9
cents a share and GAAP earnings are expected to be (9) cents to
(3) cents per share.
Teradyne's fourth-quarter earnings exceeded the Zacks Consensus
Estimate on lower-than-expected operating expenses.
The company reported improving orders and also provided modest
first-quarter revenue guidance, indicating increasing demand for
Teradyne products in the future. The announcement of dividend
initiation is quite encouraging as it reflects the company's
strong cash generation capabilities and its commitment to return
value to shareholders.
However, we expect the shares to remain under pressure due to
weakness in key end markets.
Currently, Teradyne has a Zacks Rank #4 (Sell). Other stocks that
have been performing well and are worth a look include
Melco Crown Entertainment Ltd
). All these stocks sport a Zacks Rank #1 (Strong Buy).