Teradyne Raises Third Quarter 2009 Outlook

10/1/2009
Teradyne, Inc (NYSE-TER).today announced updated guidance for the third quarter ending on October 4. The company now expects revenue will be $250 to $260 million, a sequential increase of approximately 50 percent. Net income per share is expected to be $0.10 to $0.13 on a non-GAAP basis and a net loss per share of $0.03 to $0.00 on a GAAP basis.
Previous guidance for the third quarter, provided on July 29, was for revenue of $190 to $205 million, with a non-GAAP net loss per share of $0.02 to net income per share of $0.02 and a GAAP net loss per share between $0.13 and $0.09. Non-GAAP guidance excludes restructuring charges, acquired intangible asset amortization and special items.

In light of the expected return to profitability and generally improving conditions, the temporary salary reductions implemented in late 2008 and 2009 will be eliminated in the fourth quarter.
The gross margin and operating expenses by business segment are expected to be consistent with their models. Although both segments reflect greater than expected revenue, forecasted profitability will reflect a greater proportion of revenue from Systems Test Group than expected.

“We continue to see improving demand within our Systems Test and Semiconductor Test businesses,” said Teradyne President and CEO Mike Bradley. “Our supply chain is responding well to this step-up in demand in what remains a short lead time environment.”

Teradyne will discuss its third quarter results and provide guidance for the fourth quarter on a conference call in late October 2009.