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.
