Teradyne 3Q profit up but outlook disappoints
NORTH READING, Mass. (AP) — Teradyne Inc. reported Wednesday after the market closed that its third-quarter net income increased 56 percent on improved revenue.
But the company, which makes wireless products, data storage and equipment to test semiconductors, issued a disappointing fourth-quarter revenue forecast and its shares fell in after-hours trading.
Teradyne earned $88.6 million, or 39 cents per share, for the quarter that ended Sept. 30. That's up from $56.7 million, or 26 cents per share, in its third quarter of last year. Total revenue increased roughly 35 percent to $463.4 million from $344.4 million.
Analysts polled by FactSet were expecting the company to earn 35 cents per share on revenue of $439.8 million.
Teradyne said it made its gains on strong demand for both its Semiconductor Test and LitePoint products. The company's typical seasonal slowdown in new orders, however, was amplified by the tough global economy.
The North Reading, Mass.-based company now expects to post a loss of 5 to 12 cents per share from continuing operations for its fourth quarter, or 4 to 5 cents per share on an adjusted basis.
It forecast revenue of $235 million to $260 million for the period, well below Wall Street's expectation of revenue of $341.4 million.
Teradyne shares fell 18 cents to close regular trading at $13.62 but fell 5 percent to $13 in after-hours trading.