Automated test-equipment maker Teradyne, Inc. (TER) said Wednesday after the markets closed that it swung to a third quarter profit, as better cost control helped offset lower sales. The company's quarterly earnings per share, excluding items, also came in above analysts' expectations.
The company reported net income for the third quarter of $6.7 million or $0.04 per share, compared to a net loss of $22.7 million or $0.13 per share for the year-ago quarter.
Income from continuing operations for the third quarter was $6.7 million or $0.04 per share, compared to a loss from continuing operations of $23.5 million or $0.14 per share a year earlier.
Excluding items, adjusted earnings from continuing operations for the third quarter was $24.8 million or $0.14 per share, compared to $15.1 million or $0.09 per share in the prior year quarter.
On average, 13 analysts polled by Thomson Reuters expected the company to earn $0.11 per share for the third quarter.
Operating expenses for the quarter fell 32.5% to $98.0 million from $145.2 million in the third quarter of last year.
Net revenue for the third quarter dropped 12% to $262.16 million from $297.26 million in the same quarter last year. Eight analysts had a consensus revenue estimate of $255.92 million for the third quarter.
Earlier this month, Teradyne had raised its earnings and revenue outlook for the third quarter, citing improved demand within its businesses.
The company's total bookings in the third quarter were $288 million of which $233 million was in semiconductor test and $55 million in systems test group.
"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.
For the first nine months of 2009, the company reported a net loss of $150.8 million or $0.87 per share, compared to a net loss of $9.2 million or $0.05 per share for the same period last year.
Loss from continuing operations for the nine-month period was $150.8 million or $0.87 per share, compared to a loss from continuing operations of $10.0 million or $0.06 per share in the prior year quarter.
Adjusted loss from continuing operations for the nine-month period was $76.4 million or $0.44 per share, compared to adjusted earnings from continuing operations of $65.0 million or $0.37 per share last year.
Net revenue for the nine-month period fell to $552.35 million from $912.28 million in the corresponding year-ago period.
Looking forward to the fourth quarter, the company forecasts revenue of $255 million to $270 million, GAAP net income of $0.04 and $0.09 per share and non-GAAP net income of $0.12 to $0.17 per share. Analysts currently expect the company to earn $0.12 per share on revenue of $251.91 million for the fourth quarter.
Teradyne shares closed Wednesday's regular trading session at $8.66, down 48 cents or 5.25% but gained 19 cents or 2.19% in after hours trading.
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