Automated test-equipment maker Teradyne Inc. (TER), Wednesday reported a swing to profit in the fourth quarter, helped by the absence of a goodwill impairment charge present in the year earlier quarter. The company provided revenue and earnings guidance for the first quarter.
North Reading, Massachusetts-based Teradyne's net income for the first quarter was $16.92 million or $0.09 per share, compared with a net loss of $384.98 million or $2.28 per share in the same quarter last year.
On an adjusted basis, fourth quarter non-GAAP net income from continuing operations was $30.1 million or $0.17 per share, compared with a non-GAAP net loss from continuing operations of $32.5 million or $0.19 per share in the year ago quarter. Adjustments include acquired intangible asset amortization, restructuring charges and special items
On average, twelve analysts polled by Thomson Reuters expected the company to earn $0.15 per share for the fourth quarter. Analysts' estimates typically exclude special items.
Quarterly revenue was $267.1 million, up from $194.77 million in the comparable quarter a year-ago. Analysts expected the company to report revenue of $266.91 million for the fourth quarter.
Mike Bradley, Teradyne president and Chief Executive Officer commenting on the fourth quarter results said, "The recovery in our System on a Chip (SOC) test business continued this past quarter as customer demand broadened across most product lines."
"In particular, we saw strong increases in wireless and microcontroller test applications," Bradley added.
In the sequentially preceding third quarter the company had reported net income of $6.7 million or $0.04 per share compared with net loss of $22.7 million or $0.13 per share for the year-ago quarter. Net revenue for the third quarter dropped 12% to $262.16 million from $297.26 million in the same quarter last year.
While cost of revenues for the fourth quarter rose to $142.67 million from $116.86 million a year earlier, operating expenses dropped significantly to $100.10 million from $457.49 million in the same period last year. The decline in operating expenses was mainly due to absence of a $329.67 million goodwill impairment charge which was recorded for the year earlier period.
Bookings in the fourth quarter was $303 million of which $263 million were in Semiconductor Test and $40 million in Systems Test Group.
For the full year, the company's net loss narrowed to $133.84 million or $0.77 per share from $394.23 million or $2.31 per share in the year earlier period. On adjusted basis, non-GAAP loss from continuing operations for 2009 was $46.3 million or $0.27 per share, compared with non-GAAP net income from continuing operations of $32.4 million or $0.19 per share in 2008. Analysts had expected loss per share of $0.30 for the full year.
Annual net revenues declined to $819.41 million from $1.11 billion for the same period last year. Analysts expected $817.87 million for the recent full year.
Looking ahead to the first quarter, the company expects revenue in the range of $290 million to $310 million with earnings in the range of $0.14 to $0.19 per share. On a non-GAAP basis, earnings are expected to be in the range of $0.20 to $0.26 per share.
Analysts currently expect the company to earn $0.13 per share on revenue of $268.67 million for the quarter.
Wednesday, TER closed at $10.26, up $0.14 or 1.38% on a volume of 6.75 million shares on the NYSE. In after hours, the stock further gained $0.44 or 4.29%, to trade at $10.70.
In the past 52 weeks, the stock trended in a broad range of $3.24 - $11.57, with a three-month average volume of 4.88 million shares.
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