Teradyne Reports Second Quarter 2009 Results

Teradyne, Inc. (NYSE: TER) reported revenue of $170 million for the second quarter of 2009. Semiconductor Test revenue totaled $103 million and Systems Test Group revenue totaled $67 million, which included initial Hard Disk Drive test system revenues. On a non-GAAP basis, Teradyne’s net loss in the second quarter was $35.6 million, or $0.21 per diluted share, which excluded restructuring charges, acquired intangible asset amortization and special items. The GAAP net loss for the second quarter was $66.8 million, or $0.39 per diluted share.

The second quarter revenue of $170 million was $40 million above the high end of guidance while the non-GAAP net loss per share of $0.21 was slightly better than the guidance of $0.26 to $0.23. The higher revenue did not result in a smaller net loss per share due to the previously disclosed zero gross margin on the initial Hard Disk Drive test system shipments and due to inventory charges incurred in the quarter.

Bookings in the second quarter of 2009 were $227 million. Semiconductor Test orders were $138 million and Systems Test Group orders were $89 million, which included additional Hard Disk Drive test system orders.

Guidance for the third quarter of 2009 is for revenue of $190 million 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.

"We saw significant improvement in our System-On-Chip (SOC) test business in the second quarter from the trough in orders in Q1,” said Mike Bradley, Teradyne president and CEO. "In SOC, bookings in the quarter were driven by improving demand in wireless and analog/power management from both integrated device manufacturers (IDMs) and outsourced semiconductor assembly and test (OSAT) customers. In our Hard Disk Drive test business, customer acceptance for the majority of our initial shipments accelerated and our lead customer placed a second round of orders. We’re ramping the supply chain to meet the increased demand in SOC and Hard Disk Drive at the same time that we hold the line on costs.”

Webcast

A webcast to discuss second quarter 2009 results, along with management's business outlook will be held at 10 a.m. EDT, Thursday, July 30, 2009. Interested investors should access the webcast at www.teradyne.com and click on "Investors" at least five minutes before the call begins. The webcast replay will be available on www.teradyne.com. In addition, a conference call replay will be available approximately two hours after the call. The replay number in the U.S. & Canada is 800-642-1687. The replay number outside the U.S. & Canada is 706-645-9291. The pass code for both numbers is 20503616. The replay will be available via phone and web site through August 13, 2009.

Non-GAAP Results

In addition to disclosing results that are determined in accordance with GAAP, Teradyne also discloses non-GAAP results of operations that exclude certain income items and charges. These results are provided as a complement to results provided in accordance with GAAP. Teradyne reports non-GAAP results 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. A reconciliation of each available GAAP to non-GAAP financial measure discussed in this press release is contained in the attached exhibits and on the Teradyne website at www.teradyne.com by clicking on "Investors" and then selecting the "GAAP to Non-GAAP Reconciliation" link. 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. 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 a continued or further deterioration of the semiconductor equipment market; decreased product demand; delays in new product introductions; lack of customer acceptance of new products; unanticipated delays in or costs and expenses relating to the implementation of cost reduction plans; and other events, factors and risks 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 and Quarterly Report on Form 10-Q for the period ended April 5, 2009.