NORTH READING, Mass (AP) — Semiconductor-testing equipment maker Teradyne Inc. said Wednesday that its fourth-quarter net income more than doubled from a year ago. It said chances were good that it would be able to realize a big chunk of deferred tax assets in the quarter.
Even without the large tax windfall, the quarter earnings and first-quarter outlook topped expectations.
Shares jumped $1.30, or 8 percent, to $17.43 in after-hours trading, after dropping 17 cents, or 1 percent, to close at $16.13 in the regular session.
Net income in the three months to Dec. 31 came to $125.1 million, or 56 cents per share, compared to $60.1 million, or 27 cents per share, a year ago.
Most of the jump came in the form of a $134 million tax benefit. The company said it was "more likely than not that a significant portion of its deferred tax assets are realizable" and booked the benefit accordingly.
Excluding that benefit and other items, adjusted earnings came to 16 cents per share, beating the 11 cents per share expected by analysts polled by FactSet.
Revenue fell 4 percent to $297 million from $310 million, topping the $285 million expected by analysts polled by FactSet.
CEO Mike Bradley said the company saw an increase in customer orders for its system-on-a-chip business and all lines of its systems test group in the quarter. He cited strong demand from the mobile device sector and a broadened customer base for its storage test product.
The company said it now expects first quarter revenue of $360 million to $400 million and adjusted earnings of 22 cents to 33 cents per share.
That is significantly higher than analysts' first-quarter estimates of revenue of $306 million and 17 cents per share of earnings.