Teradyne Swings To 3Q Profit; 4Q Guidance Above Estimates
DOW JONES NEWSWIRES
Teradyne Inc. (TER) reversed a prior-year third-quarter loss on smaller
restructuring charges as automatic-testing-equipment demand continues to
rebound.
This is the company's first profit after four straight quarterly losses.
Shares rose 2.2%, to $8.85 in after-hours trading, as the results topped
guidance and Teradyne predicted fourth-quarter results generally above Wall
Street's expectations. It expects earnings of 12 cents to 17 cents on revenue of
$255 million to $270 million, while analysts projected 12 cents and $252
million, respectively. The stock has more than doubled this year.
"Our Semiconductor and Systems Test businesses continued to gain strength
through the quarter driving our return to operating profitability and positive
outlook for Q4," said President and Chief Executive Mike Bradley.
Many technology companies, particularly semiconductor firms, have reported
brightening prospects. In the current quarter, Teradyne was expected to end
temporary salary cuts enacted last year as slack consumer-electronics demand
rippled up the supply chain.
Teradyne reported a profit of $6.7 million, or 4 cents a share, compared with
a year-earlier loss of $22.7 million, or 13 cents a share.
The latest period included restructuring charges of $5.2 million, compared
with $28.6 million in the prior-year quarter. Excluding items, earnings were 14
cents a share.
Revenue decreased 12%, to $262.2 million.
The company early this month boosted its already robust forecast to earnings
of 10 cents to 13 cents on revenue of $250 million to $260 million.
Gross margin fell to 40.7% from %43.
Bookings climbed 46% to $288 million from a year earlier and 27% from the
second quarter.
-By Tess Stynes and Kathy Shwiff, Dow Jones Newswires; 212-416-2357;
Tess.Stynes@dowjones.com;
(END) Dow Jones Newswires
10-28-091919ET
Copyright (c) 2009 Dow Jones & Company, Inc.
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