Teradyne Reports Third Quarter 2009 Results
More News related to TER
- Teradyne (TER) Posts Q3 EPS of $0.14; Guides
- Teradyne Reports Third Quarter 2009 Results
- Trading Radar for 10/28: First Solar (FSLR), ConocoPhillips (COP), WellPoint (WLP), Goodyear (GT), Int. Paper (IP) Report
- Galleon Shuttered On Insider Trading Charges
- Teradyne to Announce Third Quarter 2009 Results
More News related to Press Releases
- Jefferies & Co Upgrades Energy XXI (EXXI) to Hold
- Morgan Stanley Upgrades Iowa Telecom (IWA) to Equalweight
- Fox-Pitt Upgrades Eaton Vance (EV) to Outperform
- Vistaprint (VPRT): Upgraded to Buy from Hold at Citigroup - Short Squeeze Alert!
- Stifel Nicolaus Upgrades Hospitality Properties Trust (HPT) to Buy
-- Diluted non-GAAP earnings of $0.14 per share, up from loss of $0.21 in Q2'09 and up 56% from Q3'08
-- Revenue of $262M, up 55% from Q2'09 and down 12% from Q3'08
-- Q4'09 Revenue guidance of $255 million to $270 million
NORTH READING, Mass.--(BUSINESS WIRE)-- Teradyne, Inc. (NYSE: TER) reported revenue of $262 million for the third quarter of 2009. Semiconductor Test revenue totaled $173 million and Systems Test Group revenue totaled $89 million. On a non-GAAP basis, Teradyne's income from continuing operations in the third quarter was $24.8 million, or $0.14 per diluted share, which excluded restructuring charges, acquired intangible asset amortization and special items. GAAP income from continuing operations for the third quarter was $6.7 million, or $0.04 per diluted share.
Bookings in the third quarter of 2009 were $288 million of which $233 million was in Semiconductor Test and $55 million in Systems Test Group.
Guidance for the fourth quarter of 2009 is for revenue of $255 million to $270 million, with Non-GAAP net income per share of $0.12 to $0.17 and GAAP net income per share between $0.04 and $0.09. Non-GAAP guidance excludes restructuring charges, acquired intangible asset amortization and special items.
"Our Semiconductor and Systems Test businesses continued to gain strength through the quarter driving our return to operating profitability and positive outlook for Q4," said Teradyne President and CEO Mike Bradley. "We reached a major milestone in our expansion into new markets as we received initial orders for the UltraFLEX-M high-speed memory test system."
Webcast
A webcast to discuss third quarter 2009 results, along with management's business outlook will be held at 10 a.m. EDT, Thursday, October 29. 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 36016837. The replay will be available via phone and web site through November 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
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, Teradyne's 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 Teradyne's 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; 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 July 5, 2009. The forward-looking statements provided by Teradyne in this press release represent management's views as of the date of this release. Teradyne anticipates that subsequent events and developments may cause management's views to change. However, while Teradyne may elect to update these forward-looking statements at some point in the future, Teradyne specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Teradyne's views as of any date subsequent to the date of this release.
TERADYNE, INC. REPORT FOR THIRD FISCAL QUARTER OF 2009
CONDENSED CONSOLIDATED OPERATING STATEMENTS
(In thousands, except per share amounts)
Quarter Ended: Nine Months Ended:
October 4, July 5, September October 4, September
2009 2009 28, 2008 2009 28, 2008
Net Revenues $ 262,162 $ 169,580 $ 297,255 $ 552,350 $ 912,275
Cost of Revenues (1) 155,407 122,451 169,325 365,106 491,994
Gross Profit 106,755 47,129 127,930 187,244 420,281
Operating Expenses:
Engineering and 38,266 38,451 52,969 123,915 164,272
Development
Selling and 46,314 47,257 58,614 148,944 189,298
Administrative
Acquired Intangible 8,214 8,214 5,034 24,667 13,671
Asset Amortization
In-process Research - - - - 1,100
and Development
Restructuring and 5,189 15,270 28,589 36,424 53,100
Other, net (2)
Operating Expenses 97,983 109,192 145,206 333,950 421,441
Income/(Loss) from 8,772 (62,063 ) (17,276 ) (146,706 ) (1,160 )
Operations
Interest & Other (3) (3,597 ) (6,905 ) (3,111 ) (15,555 ) 4,419
Income/(Loss) from
Continuing Operations 5,175 (68,968 ) (20,387 ) (162,261 ) 3,259
Before Income Taxes
Income Tax (1,500 ) (2,200 ) 3,070 (11,500 ) 13,270
(Benefit)/Provision
Income/(Loss) from 6,675 (66,768 ) (23,457 ) (150,761 ) (10,011 )
Continuing Operations
Income from
Discontinued - - 768 - 768
Operations Before
Income Taxes
Income Tax - - - - -
(Benefit)/Provision
Income from
Discontinued - - 768 - 768
Operations
Net Income/(Loss) $ 6,675 $ (66,768 ) $ (22,689 ) $ (150,761 ) $ (9,243 )
Income/(Loss) per
Common Share from
Continuing Operations:
Basic $ 0.04 $ (0.39 ) $ (0.14 ) $ (0.87 ) $ (0.06 )
Diluted $ 0.04 $ (0.39 ) $ (0.14 ) $ (0.87 ) $ (0.06 )
Net Income/(Loss) per
Common Share:
Basic $ 0.04 $ (0.39 ) $ (0.13 ) $ (0.87 ) $ (0.05 )
Diluted $ 0.04 $ (0.39 ) $ (0.13 ) $ (0.87 ) $ (0.05 )
Weighted Average 174,495 173,022 168,769 173,216 171,058
Common Shares - Basic
Weighted Average
Common Shares - 180,792 173,022 168,769 173,216 171,058
Diluted
Net Orders $ 288,048 $ 227,331 $ 198,072 $ 651,725 $ 827,067
(1) Cost of Revenues Quarter Ended: Nine Months Ended:
includes:
October 4, July 5, September October 4, September
2009 2009 28, 2008 2009 28, 2008
Provision for Excess
and Obsolete $ 6,915 $ 11,491 $ 21,715 $ 27,003 $ 24,969
Inventory
Cost for Purchase
Accounting Inventory 5,700 3,924 - 10,863 4,346
Step-up
Sale of Previously
Written Down (588 ) - (528 ) (588 ) (1,442 )
Inventory
Insurance Recovery - (1,000 ) - (1,000 ) -
Gain
$ 12,027 $ 14,415 $ 21,187 $ 36,278 $ 27,873
(2) Restructuring and
other, net consists Quarter Ended: Nine Months Ended:
of:
October 4, July 5, September October 4, September
2009 2009 28, 2008 2009 28, 2008
Facility Related $ 4,419 $ - $ 3,404 $ 4,419 $ 16,424
Employee Severance 1,237 14,976 2,620 32,891 15,243
Eagle Test Purchase
Accounting (467 ) (774 ) - (1,954 ) -
Adjustment & Other
Long-Lived Asset - 1,068 - 1,068 550
Impairment
Loss on Sale of Real - - 22,565 - 20,883
Estate
$ 5,189 $ 15,270 $ 28,589 $ 36,424 $ 53,100
(3) Interest and Other Quarter Ended: Nine Months Ended:
includes:
October 4, July 5, September October 4, September
2009 2009 28, 2008 2009 28, 2008
Amortization of GAAP
Imputed Convertible $ 2,329 $ 2,251 $ - $ 4,580 $ -
Debt Discount
Expense for Deferred
Debt Financing Costs
as a Result of
Repayment and
Termination of the - 2,488 - 2,488 -
Revolving Line of
Credit
Other-Than-Temporary
Impairment and
Realized
(Gains)/Losses on
Marketable (572 ) - 8,437 2,000 8,437
Securities
Gain on Sale of an - - (2,811 ) - (2,811 )
Equity Investment
Gain on Life - - (1,352 ) - (1,352 )
Insurance
Charge for
Acquisition - - 1,227 - 1,227
Financing Fees
$ 1,757 $ 4,739 $ 5,501 $ 9,068 $ 5,501
CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands)
October 4, 2009 December 31, 2008
Assets
Cash and Cash Equivalents $ 406,741 $ 322,705
Marketable Securities 5,735 -
Accounts Receivable 139,693 109,625
Inventories (1) 111,970 168,451
Deferred Tax Assets 17,561 16,988
Prepayments and Other Current Assets 60,348 60,884
742,048 678,653
Net Property, Plant and Equipment 250,151 298,449
Long-Term Marketable Securities 55,033 51,613
Intangible Assets 160,592 186,998
Other Assets 18,669 19,534
$ 1,226,493 $ 1,235,247
Liabilities
Accounts Payable 70,613 61,164
Current Debt (2) 2,237 122,500
Accrued Employees' Compensation and 52,053 73,521
Withholdings
Deferred Revenue and Customer Advances 127,993 58,030
Other Accrued Liabilities 50,184 51,748
303,080 366,963
Retirement Plans Liabilities 134,465 125,877
Deferred Tax Liabilities 3,045 8,730
Other Long-Term Liabilities 23,623 27,565
Long-Term Debt (2) (3) 138,970 -
603,183 529,135
Shareholders' Equity 623,310 706,112
$ 1,226,493 $ 1,235,247
(1) As of October 4, 2009 and December 31, 2008, Inventories included
approximately $4.5 million and $15.4 million, respectively, for Eagle Test
inventory fair value step-up.
(2) On March 31, 2009, we entered into a loan agreement in Japan for
approximately $10 million. The loan has a term of 5 years and a fixed
interest rate of 1.4%. At October 4, 2009, $2.2 million of the outstanding
loan principal is included in current debt and $7.8 million is classified
as long-term debt.
(3) On March 31, 2009, in connection with our convertible note offering, we
entered into convertible note hedge and warrant transactions. These
transactions are expected to reduce the potential dilution to Teradyne's
common stock upon maturity of the convertible notes. On April 6, 2009, the
convertible note and convertible note hedge and warrant transactions closed
and we netted approximately $163 million of cash, before paying off the
$122.5 million bank revolver.
For information on possible dilution related to the convertible note,
investors should access Teradyne's website at www.teradyne.com and click on
"Investors" and then select the "Financial Data" link.
GAAP to Non-GAAP Earnings Reconciliation
References by the Company to non-GAAP income/(loss) and non-GAAP income/(loss) per share refer to income/(loss)
from continuing operations or income/(loss) per common share from continuing operations excluding goodwill
impairment, in-process research and development, amortization of the GAAP imputed convertible debt discount,
write-off of credit line debt issue costs, restructuring and other, net, certain inventory provision reversals,
fair value inventory step-up related to Nextest and Eagle Test, (losses)/gains on marketable securities and
acquired intangible asset amortization, as well as applicable adjustments to profit sharing and income taxes due
to these exclusions. GAAP requires that these items be included in determining income/(loss) from continuing
operations. Non-GAAP income/(loss) from continuing operations (which is the basis for non-GAAP income/(loss) from
continuing operations per share) gives an indication of Teradyne's baseline performance before gains, losses or
other charges that may not be indicative of our current core business or future outlook.
The Company believes these non-GAAP measures will aid investors' overall understanding of the Company's results
by providing a higher degree of transparency for certain expenses and providing a level of disclosure that will
help investors understand how the Company plans and measures its own business. However, the presentation of
non-GAAP measures is not meant to be considered in isolation or as a substitute for, or superior to, financial
information provided in accordance with GAAP.
(In millions, except per share amounts)
Quarter Ended: Nine Months Ended:
October July 5, September October 4, September
4, 2009 2009 28, 2008 2009 28, 2008
Net Revenues $ 262.2 $ 169.6 $ 297.3 $ 552.4 $ 912.3
Gross Margin - $ 106.8 40.7 % $ 47.1 27.8 % $ 127.9 43.0 % $ 187.2 33.9 % $ 420.3 46.1 %
GAAP
Inventory
step-up 5.7 3.9 - 10.9 4.3
reversal (1)
Insurance - (1.0 ) - (1.0 ) -
recovery
Inventory
provision (0.6 ) - (0.5 ) (0.6 ) (1.4 )
reversal (2)
Profit
sharing (0.4 ) - - (0.4 ) (0.3 )
adjustment
(3)
Gross Margin - $ 111.5 42.5 % $ 50.0 29.5 % $ 127.4 42.9 % $ 196.1 35.5 % $ 422.9 46.4 %
non-GAAP
Income/(Loss)
from $ 8.8 3.4 % $ (62.1 ) -36.6 % $ (17.3 ) -5.8 % $ (146.7 ) -26.6 % $ (1.2 ) -0.1 %
Operations -
GAAP
Acquired
intangible 8.2 8.2 5.0 24.7 13.7
asset
amortization
Inventory
step-up 5.7 3.9 - 10.9 4.3
reversal (1)
Restructuring
and other, 5.2 15.3 28.6 36.4 53.1
net (4)
Inventory
provision (0.6 ) - (0.5 ) (0.6 ) (1.4 )
reversal (2)
In-process
research and - - - - 1.1
development
Insurance - (1.0 ) - (1.0 ) -
recovery
Profit
sharing (2.2 ) - - (2.2 ) (1.5 )
adjustment
(3)
Income/(Loss)
from $ 25.1 9.6 % $ (35.7 ) -21.0 % $ 15.8 5.3 % $ (78.5 ) -14.2 % $ 68.1 7.5 %
Operations -
non-GAAP
Income/(Loss)
from
Continuing $ 6.7 2.6 % $ (66.8 ) -39.4 % $ (23.5 ) -7.9 % $ (150.8 ) -27.3 % $ (10.0 ) -1.1 %
Operations -
GAAP
Acquired
intangible 8.2 8.2 5.0 24.7 13.7
asset
amortization
Inventory
step-up 5.7 3.9 - 10.9 4.3
reversal (1)
Restructuring
and other, 5.2 15.3 28.6 36.4 53.1
net (4)
Interest and 1.8 4.7 5.5 9.1 5.5
other (5)
Inventory
provision (0.6 ) - (0.5 ) (0.6 ) (1.4 )
reversal (2)
In-process
research and - - - - 1.1
development
Insurance - (1.0 ) - (1.0 ) -
recovery
Profit
sharing (2.2 ) - - (2.2 ) (1.5 )
adjustment
(3)
Income tax
adjustment - - - (2.9 ) 0.2
(6)
Income/(Loss)
from
Continuing $ 24.8 9.5 % $ (35.7 ) -21.0 % $ 15.1 5.1 % $ (76.4 ) -13.8 % $ 65.0 7.1 %
Operations -
non-GAAP
GAAP Income/
(Loss) per
Common Share
from $ 0.04 $ (0.39 ) $ (0.14 ) $ (0.87 ) $ (0.06 )
Continuing
Operations -
Basic
Non-GAAP
Income/(Loss)
per Common
Share from $ 0.14 $ (0.21 ) $ 0.09 $ (0.44 ) $ 0.38
Continuing
Operations -
Basic
GAAP and
Non-GAAP
Weighted 174.5 173.0 168.8 173.2 171.1
Average Common
Shares - Basic
GAAP Income/
(Loss) per
Common Share
from $ 0.04 $ (0.39 ) $ (0.14 ) $ (0.87 ) $ (0.06 )
Continuing
Operations -
Diluted
Non-GAAP
Income/(Loss)
per Common
Share from $ 0.14 $ (0.21 ) $ 0.09 $ (0.44 ) $ 0.37
Continuing
Operations -
Diluted
GAAP Weighted
Average Common 180.8 173.0 168.8 173.2 171.1
Shares -
Diluted
Non-GAAP
Weighted
Average Common 179.0 173.0 170.3 173.2 173.4
Shares -
Diluted
(1) Reversal of Nextest and Eagle Test purchase accounting inventory step-up.
(2) Reversal of previously written down inventory for non-FLEX products in the Semiconductor Test Division.
(3) Profit sharing adjustment for non-GAAP items.
(4) Restructuring and other, net consists of (in millions):
Quarter Ended: Nine Months Ended:
October July 5, September October 4, September
4, 2009 2009 28, 2008 2009 28, 2008
Facility $ 4.4 $ - $ 3.4 $ 4.4 $ 16.4
Related
Employee 1.2 15.0 2.6 32.9 15.2
Severance
Eagle Test
Purchase
Accounting (0.4 ) (0.8 ) - (2.0 ) -
Adjustment &
Other
Long-Lived
Asset - 1.1 - 1.1 0.6
Impairment
Loss on Sale
of Real - - 22.6 - 20.9
Estate
$ 5.2 $ 15.3 $ 28.6 $ 36.4 $ 53.1
(5) For the quarter and nine months ended October 4, 2009, Interest and Other included amortization of the GAAP
imputed convertible debt discount. For the quarter ended July 5, 2009 and nine months ended October 4, 2009,
Interest and Other included a charge to expense deferred debt financing costs as a result of the repayment and
termination of Teradyne's revolving line of credit. For the nine months ended October 4, 2009, Interest and Other
included a charge for other-than-temporary impairment and realized (losses)/gains on marketable securities.
(6) Income tax adjustment for non-GAAP items. For the nine months ended October 4, 2009, the income tax
adjustment related to a discrete foreign exchange item.
For press releases and other information of interest to investors, please visit Teradyne's homepage on the World
Wide Web at http://www.teradyne.com.
Source: Teradyne, Inc.
Related Categories
Press ReleasesStocks Mentioned
+0.02Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
