) reported fourth-quarter 2012 earnings of 7 cents per share,
beating the Zacks Consensus Estimate of 1 cent. Adjusted earnings
per share exclude one-time items, but include stock-based
Revenues of $248.4 million were down 46.4% sequentially and 16.4%
year over year and within management's guidance of $235-$260
million. The sequential decline was due to seasonality and a weak
Around 74.1% of revenues in the quarter came from semiconductor
testing platforms, 16.2% from system testing and the remaining
9.7% from LitePoint wireless testing business.
Total bookings in the quarter amounted to $273 million, of which
$183 million were from Semiconductor Test, $64 million from
Systems Test Group and $26 million came from Wireless Test.
Though sales in the quarter were down sequentially, orders were
up 18% sequentially, indicating improving demand.
Reported gross margin for the quarter was 50.5%, down 570 basis
points (bps) sequentially but up 540 bps year over year. Lower
volumes impacted gross margins in the quarter.
Operating expenses of $132.1 million were up 8.9% from $121.3
million in the year-ago quarter. The reported operating margin
was (9.9%), down significantly from the year-ago quarter. Both
engineering and development (E&D) expenses and selling and
administrative (S&A) expenses increased as a percentage of
The quarter's GAAP net loss was $16.5 million or loss per share
of 9 cents, down from a net income of $127.3 million or 57 cents
in the comparable quarter last year. Excluding special items but
including stock-based compensation expense, non-GAAP net income
was $12.6 million or 7 cents per share compared with $32.3
million or 16 cents a share in the year-ago quarter.
The company has a fairly strong balance sheet, with cash and cash
equivalents, and marketable securities of $770.4 million, down
from $830.5 million in the prior quarter. Trade receivables were
$153.4 million, down from $205.5 million in the prior quarter.
Cash flow from operations was $42.3 million versus $59.2 million
in the year-ago quarter. Capex was $27.9 million versus $19.5
million in the year-ago quarter.
Management provided guidance for the first quarter of 2013.
Accordingly, revenue is expected to come in at around $260-$280
million, up 9.1% sequentially. Non-GAAP earnings (loss) from
continuing operations are expected to be (1) to 5 cents a share
and GAAP loss per share is expected to be 6 to 1 cents.
Teradyne is a leading provider of automated test equipment. The
company reported a decent quarter, with earnings beating the
Zacks Consensus Estimate.
In the last quarter, the company reported higher orders and also
announced first quarter guidance, indicating improved demand for
Teradyne products in the future.
We also believe the addition of LitePoint is a big positive going
forward, given the significant opportunities unfolding in the
high-growth wireless market. We remain optimistic about Teradyne
over the long term, given the popularity of its products, the
LitePoint acquisition that further rounds out its portfolio and
design win momentum that should continue.
Currently, Teradyne has a Zacks Rank #2 (Buy).
Investors should look out for some more stocks that are slated to
report this earnings season with positive Zacks Rank and Expected
Surprise Prediction or ESP (Read:
Zacks Earnings ESP: A Better Method
) has a Zacks Rank #1 (Strong Buy) with an ESP of +14.82%.
) has a Zacks Rank #2 (Buy) with an ESP of +350.0%, while
) has a Zacks Rank #2 (Buy) with an ESP of +1.9%. .
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