By RTT News,
January 22, 2014, 07:50:00 PM EDT
(RTTNews.com) - Automated test-equipment maker Teradyne, Inc. ( TER ) reported Wednesday a profit for the fourth quarter compared to a loss last year, reflecting improved margins and revenue growth. Both adjusted earnings per share and quarterly revenues topped analysts' expectations. The company also provided earnings guidance for the first quarter, well below Street view.
"The fourth quarter capped a strong year of market share gains in both semiconductor and wireless test. While overall industry capital spending was at trough levels in the fourth quarter and was down for the full year, we delivered our 18th consecutive quarter of operating profits and exceeded our model profit rate for 2013 in total," CEO Mike Bradley said in a statement.
Further, the company announced in mid-November that Bradley will retire as CEO, effective January 31, with President Mark Jagiela succeeding him. Jagiela will also join the Board of Directors on the same date.
The North Reading, Massachusetts-based company reported net income of $22.34 million or $0.09 per share for the fourth quarter, compared to net loss of $16.54 million or $0.09 per share in the prior-year quarter.
Excluding items, adjusted net income for the quarter was $13.2 million or $0.07 per share, compared to $12.6 million or $0.07 per share in the year-ago quarter.
On average, 16 analysts polled by Thomson Reuters expected the company to earn $0.04 per share for the quarter. Analysts' estimates typically exclude special items.
Net revenue for the quarter increased 15 percent to $285.30 million from $248.40 million in the same quarter last year, and topped thirteen Wall Street analysts' consensus estimate of $275.30 million.
Bookings in the fourth quarter were $290 million of which $225 million were in Semiconductor Test, $47 million in the Systems Test Group and $18 million in Wireless Test.
Gross margin for the quarter improved 550 basis points to 56.0 percent from last year's 50.5 percent, and adjusted gross margin expanded 150 basis points to 55.1 percent from 53.6 percent a year ago.
The company also initiated a quarterly cash dividend of $0.06 per share, payable on June 2 to shareholders of record as of the close of business on May 9, 2014.
For fiscal 2013, the company reported net income of $164.95 million or $0.70 per share, lower than $217.05 million or $0.94 per share in the prior year.
Excluding items, adjusted net income for the year was $215.4 million or $1.06 per share, compared to $337.5 million or $1.67 per share last year. Analysts expected the company to report earnings of $1.03 per share for fiscal 2013.
Net revenues for the full year declined to $1.43 billion from $1.66 billion in the previous year. Street was looking for full-year 2013 revenues of $1.42 billion.
Looking ahead to the first quarter, the company expects adjusted earnings in a range of $0.02 to $0.09 per share on projected quarterly revenues between $300 million and $330 million.
Street is currently looking for earnings of $0.17 per share for the first quarter, on revenues of $327.75 million.
"In line with seasonal trends, orders improved in the fourth quarter and we expect that order trend to accelerate in the first quarter as customers build capacity for new consumer devices in 2014. Our 2013 market share gains have positioned us well for growth in 2014 and we've increased our first quarter production plans to reflect the improving demand environment," Jagiela stated.
TER closed Wednesday's regular trading session at $19.58, up $0.39 or 2.03% on a volume of 6.34 million shares. However, the stock lost $0.25 or 1.28% to $19.33 in after-hours trading.
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