Teradyne Q4 Results Top Estimates, Guides Q1 EPS Below View

(RTTNews) - Automated test-equipment maker Teradyne, Inc. (TER) reported Wednesday a net loss for the fourth quarter compared to a profit last year, despite double-digit revenue growth, reflecting higher charges and lower margins.

However, both adjusted earnings per share and quarterly revenues topped analysts' expectations. The company provided earnings guidance for the first quarter, below Street view.

The company's board also declared a quarterly cash dividend of $0.06 per share, payable on March 24 to shareholders of record as of the close of business on February 27, 2015.

"The fourth quarter wraps up a very strong year for Teradyne from both a market share and cash flow perspective," President and CEO Mark Jagiela said in a statement.

The North Reading, Massachusetts-based company reported a net loss of $103.81 million or $0.48 per share for the fourth quarter, compared to net income of $22.34 million or $0.09 per share in the prior-year quarter.

Results for the latest quarter include a wireless test goodwill impairment charge of $0.45 per share, pension actuarial losses of $0.21 per share as well as acquired intangible asset amortization of $0.07 per share and discrete income tax adjustments.

Excluding items, adjusted net income for the quarter was $31.1 million or $0.14 per share, compared to $13.3 million or $0.07 per share in the year-ago quarter.

On average, 14 analysts polled by Thomson Reuters expected the company to report earnings of $0.12 per share for the quarter. Analysts' estimates typically exclude special items.

Net revenue for the quarter increased 13 percent to $323.24 million from $285.30 million in the same quarter last year, and topped twelve Wall Street analysts' consensus estimate of $318.67 million.

Revenues included $237 million from semiconductor test, $40 million from wireless test and $46 million from system test.

Gross margin for the quarter contracted 640 basis points to 49.6 percent from last year's 56.0 percent.

Operating expenses for the quarter grew to $286.40 million from $153.02 million in the year-ago quarter.

Orders in the fourth quarter were $332 million of which $226 million were in Semiconductor Test, $67 million in System Test. and $39 million in Wireless Test.

Looking ahead to the first quarter, the company expects adjusted earnings in a range of $0.09 to $0.14 per share, on projected quarterly revenues between $320 million and $345 million. Analysts expect the company to report earnings of $0.17 per share for the quarter, on revenues of $343.71 million.

"Despite an expected softening of SOC test demand in 2015, our cycle hardened operating model, combined with our long term outlook for the markets we serve, provides us the confidence to substantially increase our capital return plans for 2015," Jagiela added.

TER closed Wednesday's regular trading session at $18.74, down $0.14 or 0.74% on a volume of 2.15 million shares.