Teradyne Reports Strong Increase In Fourth Quarter 2011 Orders; Raises Outlook For First Quarter Of 2012

Teradyne, Inc. (NYSE: TER) reported revenue of $297 million for the fourth quarter of 2011 of which $202 million was in Semiconductor Test, $66 million in the Systems Test Group and $28 million in Wireless Test. On a non-GAAP basis, Teradyne’s income from continuing operations in the fourth quarter was $30.3 million, or $0.16 per diluted share, which excluded acquired intangible asset and inventory fair value amortization, non-cash convertible debt interest, and restructuring and other charges. Preliminary GAAP income from continuing operations for the fourth quarter was $125.1 million, or $0.56 per diluted share.

Bookings in the fourth quarter of 2011 were $376 million of which $233 million were in Semiconductor Test, $123 million in the Systems Test Group and $19 million in Wireless Test.

For fiscal year 2011, revenue was $1.4 billion. Income from continuing operations for the year was $276.4 million or $1.39 per diluted share on a non-GAAP basis. The preliminary GAAP income from continuing operations was $337.8 million or $1.49 per diluted share. Bookings for the year were $1.4 billion.

“We saw an upturn in customer orders in our System-on-a-Chip (SOC) business and in all lines of our Systems Test Group in the fourth quarter," said Mike Bradley, President and CEO. "The new order increase was driven by very strong demand for leading-edge semiconductor testers for new mobile products and by a broadened storage test customer base. As a result, we're increasing our first quarter revenue guidance. We closed 2011 with very solid operating results in both Semiconductor Test and Systems Test and we added an exciting growth engine late in the year with the acquisition of LitePoint."

Guidance for the first quarter of 2012 is revenue of $360 million to $400 million, with non-GAAP income from continuing operations per diluted share of $0.22 to $0.33 and GAAP income from continuing operations per diluted share of $0.05 to $0.13. Non-GAAP guidance excludes acquired intangible asset and inventory fair value amortization, non-cash convertible debt interest, and restructuring and other charges.

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