(RTTNews) - Automatic test equipment maker Teradyne, Inc. (TER: News ) on Thursday lifted its earnings and revenue views for the third quarter, citing improved demand within its businesses. The company also said that temporary salary reductions implemented in late 2008 and 2009 will be eliminated in the fourth quarter. Shares of the company are currently up more than 4% in the regular trading session.

For the third quarter, the North Reading, Massachusetts-based company now forecasts non-GAAP net income per share in a range of $0.10-$0.13. This compares to the prior forecast in a range between net loss per share of $0.02 and net income per share of $0.02.

On a GAAP basis, Teradyne now projects net loss per share for the third quarter in a range of $0.03 to breakeven, compared to the prior forecast for loss per share between $0.13 and $0.09.

On average, twelve analysts polled by Thomson Reuters expect the company to report earnings of $0.01 per share for the quarter. Analysts' estimates typically exclude special items.

Teradyne also raised its outlook for third-quarter revenue to a range of $250 million-$260 million, representing a sequential increase of about 50%. Earlier, the company had forecast revenue for the quarter in a range of $190 million-$205 million. Analysts have a consensus revenue estimate for the quarter of $201.49 million.

Mike Bradley, President and CEO of Teradyne, said, "We continue to see improving demand within our Systems Test and Semiconductor Test businesses. Our supply chain is responding well to this step-up in demand in what remains a short lead time environment."
Teradyne said that temporary salary reductions that were implemented in late 2008 and 2009 will be eliminated in the fourth quarter. In April this year, the company had revealed several cost reduction measures, including 350 job cuts and executive salary cuts as part of its efforts to lower expenses and its cost structure amid the continued deterioration in the semiconductor equipment market.

In late July, Teradyne reported a GAAP net loss for the second quarter of $66.77 million, or $0.39 per share, compared to net income of $11.08 million, or $0.06 per share, in the same period of the prior year. Quarterly revenues dropped to $170 million from $317.71 million a year ago.

Teradyne and other automatic equipment test makers were hurt by the drop in demand for consumer electronics amid the recession, as they supply equipments to makers of consumer electronics and semiconductor companies. However, several technology companies, including semiconductor makers have recently recently raised their sales outlook, signaling a broad recovery in the chip business.

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