Teradyne Announces Fourth-Quarter 2002 Results

January 20, 2003 by Jeff Shepard

Teradyne Inc. (Boston, MA) reported sales of $333.6 million for the fourth quarter of 2002, and a net loss on a generally accepted accounting principles (GAAP) basis of $423.8 million, or $2.31 per share. The pro-forma net loss for the fourth quarter of 2002 was $36.5 million, or $0.20 per share, before a valuation allowance on deferred tax assets, product inventory write downs, restructuring charges, asset impairments, product divestitures, and the impact of accelerated depreciation. The GAAP net loss includes a one-time, non-cash tax charge for the reversal of the opening balance of Teradyne's net-deferred tax asset of $280 million.

"The combination of a weak economy, weak demand for technology products and the uncertain world situation overwhelmed the recovery we had begun to see in the first half of 2002," said George Chamillard, Teradyne chairman and CEO. "Unfortunately, none of those negative factors has changed as we enter 2003. Therefore, our guidance is for sales in the first quarter to be between $310 and $340 million, about flat with the last two quarters. We expect to sustain a loss of between $0.25 and $0.33 per share, before any special items, and assuming no tax benefit from the losses."