Teradyne 4Q Beats Street, Outlook Tops Views


Salon Staff
January 26, 2012 6:45AM (UTC)

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.

Advertisement:

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.

Advertisement:

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.

Advertisement:

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.

Advertisement:

Salon Staff

MORE FROM Salon Staff


Related Topics ------------------------------------------


Fearless journalism
in your inbox every day

Sign up for our free newsletter

• • •