DOW JONES NEWSWIRES
Teradyne Inc.'s (TER) second-quarter profit fell 27% as the
company reported lower orders for its semiconductor-testing
equipment and predicted a sharply weaker performance in the current
quarter.
Looking ahead to the third quarter, Teradyne predicted adjusted
per-share earnings of 22 to 26 cents on revenue between $320
million and $340 million. Analysts polled by Thomson Reuters
recently expected 43 cents and $397 million, respectively.
Shares were off 3.6% at $13.27 after-hours as the downbeat
outlook overshadowed better-than-expected second-quarter results.
The stock was off 25% over the past three months through the
close.
Teradyne had posted surging profits in earlier quarters as its
chip-maker clients reported improving demand. Ahead of Wednesday's
report, a note from analysts at Stifel Nicolaus pointed to positive
signs from semiconductor-maker Texas Instruments Inc.'s (TXN)
recent report of strengths in its analog-device segment, which
accounts for a significant part of Teradyne's business.
Orders for hard-drive testing products also helped offset the
weaker demand for semiconductor-test equipment.
"With the softening order rate in semiconductor test dictating
lower shipments in the third quarter, we're pleased to see
increasing HDD test shipments offset some of that decline,"
President and Chief Executive Mike Bradley said.
Teradyne posted a profit of $89.1 million, or 39 cents a share,
down from $122.1 million, or 55 cents a share, a year earlier.
Excluding write-downs, restructuring costs and other items,
earnings from continuing operations were 50 cents, down from 69
cents. Revenue fell 7.8% to $410.5 million.
In April, the company projected earnings of 38 cents to 44 cents
and revenue of $375 million to $400 million, which was considered a
weak forecast at the time.
Gross margin narrowed to 52.4% from 56.3% as net orders slumped
34% from a year ago and dropped 23% sequentially.
-By Drew FitzGerald, Dow Jones Newswires; 212-416-2909;
Andrew.FitzGerald@dowjones.com