Teradyne Narrows Losses and Cuts Jobs
Teradyne Inc. (Boston, MA) reported second-quarter sales of $320.2 million, up five percent sequentially, but down 39 percent year-over-year. As a result, Teradyne recorded a net loss for the quarter of $45.5 million, or $0.23 per share, including $10.2 million in restructuring and other charges.
Teradyne cut about 240 jobs during the quarter, and plans to layoff some 400 more throughout the remainder of the calendar year. The layoffs, along with other cost-cutting measures, should lower Teradyne's break-even level to $336 million by the fourth quarter.
Teradyne's quarterly loss was narrowed slightly from the $52.6 million, or $0.27 per share, loss in the first quarter. In the year-ago period, however, Teradyne was still in the black, posting a net profit of $80.5 million, or $0.39 per share, in the year-ago period. Orders for the second quarter were $349 million, up two percent sequentially.
"In the second quarter, our Flex system-on-a-chip semiconductor tester continued to gather momentum, with a broadening of customers and applications driving record orders for the system," stated Teradyne President and CEO Mike Bradley. "The FLEX has now moved on to customer production floors in a wide range of parallel-test system-on-a-chip applications."
For the current quarter, Teradyne anticipates sales to grow to between $350 million and $370 million, with a loss per share of $0.08 to $0.15. The guidance includes approximately $17 million, or $0.09 per share, in net restructuring and other charges.