Teradyne, Inc. (NYSE:TER) today announced that it is revising its guidance for the quarter ending April 5, 2009, and is taking steps to further reduce costs, reflecting the continued deterioration in the semiconductor equipment market.
Teradyne now projects that in the first quarter of 2009, its sales will be between $115 and $120 million and its net loss per share will be between $.42 and $.40 on a non-GAAP basis. Non-GAAP earnings per share guidance excludes special items, such as restructuring charges as well as acquired intangible asset amortization. Teradyne currently projects that its sales in the second quarter of 2009 will be about flat with the first quarter.
"Global economic conditions and consumer demand further weakened this quarter, causing our customers to reduce their test needs to unprecedented levels," said Mike Bradley, Teradyne president and CEO. "While there are some indicators suggesting that we have reached the bottom of this cycle, we cannot currently predict when we will see meaningful improvement in demand. In response to these very difficult market conditions, we are taking steps to further lower our annualized costs by approximately $50 million, with a majority of those savings estimated to be in place by the end of the second quarter. These new reductions will bring our total planned 2009 cost reductions to approximately $190 million. We will continue to adjust our costs as necessary, while pressing ahead with new products and supporting our customers in this challenging market."
Non-GAAP Guidance
In addition to disclosing financial measures in accordance with GAAP, Teradyne also discloses non-GAAP financial measures that exclude certain income items and charges. These financial measures are provided as a complement to financial measures provided in accordance with GAAP. Teradyne provides non-GAAP financial measures in order to better assess and reflect operating performance. Management believes the non-GAAP measures help indicate Teradyne's baseline performance before gains, losses or other charges that may not be indicative of our current core business or future outlook. Teradyne believes these non-GAAP measures will aid investors' overall understanding of its results by providing a higher degree of transparency for certain expenses and providing a level of disclosure that will help investors understand how Teradyne plans and measures its own business.
Teradyne’s loss per share guidance for the first quarter of 2009 is only provided on a non-GAAP basis due to the difficulty in forecasting and quantifying the amounts that would be required to be included in the comparable GAAP measure for all restructuring and other charges, net. Although Teradyne expects certain known charges in the first quarter, including approximately $25 million of estimated severance charges, other additional restructuring charges are dependent on unknown factors and future events which make it difficult to forecast and quantify such amounts. The presentation of non-GAAP measures is not meant to be considered in isolation, as a substitute for, or superior to, financial measures or information provided in accordance with GAAP.
About Teradyne, Inc.
Teradyne (NYSE:TER) is a leading supplier of Automatic Test Equipment used to test complex electronics used in the consumer electronics, automotive, computing, telecommunications, and aerospace and defense industries. In 2008, Teradyne had sales of $1.1 billion and currently employs about 3,300 people worldwide. For more information, visit www.teradyne.com. Teradyne (R) is a registered trademark of Teradyne, Inc. in the U.S. and other countries. All product names are trademarks of Teradyne, Inc. (including its subsidiaries) or their respective owners.
Safe Harbor Statement
The forward-looking statements included in this release are made only as of the date of publication. Teradyne disclaims any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this press release. This release contains forward-looking statements regarding future business prospects, our results of operations and market conditions. Such statements are based on the current assumptions and expectations of Teradyne’s management and are neither promises nor guarantees of future performance. You can identify these forward-looking statements based on the context of the statements and by the fact that they use words such as “will,” “anticipate,” “expect,” “project,” “intend,” “plan,” “believe,” “target” and other words and terms of similar meaning in connection with any discussion of future operating or financial performance. There can be no assurance that management’s estimates of our future results or other forward looking statements will be achieved. Important factors that could cause actual results to differ materially from those presently expected include: conditions affecting the markets in which Teradyne operates including uncertainties related to the global economy in general, including a continued or further deterioration of the semiconductor equipment market; continued volatility and further deterioration in the financial markets, including uncertainties and disruptions in credit markets and the availability of credit; decreased product demand; delays in new product introductions; lack of customer acceptance of new products; the ability to realize synergies and cost savings from the integration of Eagle Test Systems with Teradyne’s existing operations; difficulties by management in successfully implementing the cost reduction plans; unanticipated delays in or costs and expenses relating to the implementation of the cost reduction plans; the impairment of long-lived assets; and other events, factors and risks previously and from time to time disclosed in filings with the SEC, including, but not limited to, the “Risk Factors” section of Teradyne’s annual report on Form 10-K for the fiscal year ended December 31, 2008.
Contacts:
Teradyne, Inc.
Andy Blanchard, 978-370-2425
V.P. Corporate
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