Chip Maker Teradyne Raises 3rd-quarter Outlook

NORTH READING, Mass. (AP) — Teradyne Inc., a chip maker, on Thursday raised its third-quarter guidance due to improving conditions in the industry and said it will end temporary salary reductions in the fourth quarter.

Shares rose 72 cents, or 7.8 percent, to $9.97 during premarket electronic trading.

The company now expects to report a profit of 10 cents to 13 cents per share, excluding one-time items, from a previous range of a loss of 2 cents per share to a profit of 2 cents per share.

Analysts polled by Thomson Reuters, on average, predict a profit of a penny per share. Analyst estimates typically exclude one-time items.

Teradyne now expects revenue of $250 million to $260 million, from a prior range of $190 million to $205 million. Analysts predict revenue of $201.5 million.

The North Reading, Mass.-based company said it will end temporary salary reductions implemented in 2008 and 2009 in the fourth quarter.

The company will release third-quarter results in late October.