bottom line swung to a net loss Tuesday as the beleaguered chip-equipment maker's sales fell a whopping 39%. But the company projected that third-quarter sales should exceed the latest Wall Street estimates.
Shares of Teradyne, which released the results late after the bell Tuesday, were up 6 cents to $13.77 in recent after-hours trading.
Boston-based Teradyne reported a net loss of $45.5 million, or 23 cents a share, in the second quarter, which ended July 3. That included net restructuring and other charges of $10.6 million, or 5 cents a share. A year ago, the company posted a net profit of $80.5 million, or 39 cents a share.
Analysts were expecting the company to lose 20 cents a share in the second quarter, according to Thomson First Call.
Teradyne's revenue plummeted 39% to $320.2 million from $526.5 million a year ago but still exceeded the consensus estimate of $308 million.
Looking forward, Teradyne projected third-quarter sales to range from $350 million to $370 million, with a loss of 8 cents to 15 cents a share. That includes about $17 million, or 9 cents a share, in net restructuring and other charges. Analysts were forecasting that the company would lose 8 cents a share on $334 million in revenue in the third quarter.
A week ago Teradyne, which makes testing equipment used in semiconductor manufacturing, announced it would
slash 7% of its workforce, or 400 employees. Teradyne also makes testing equipment used on circuit boards, automotive electronic systems and broadband networks.
But all of the cuts announced last week were in the semiconductor test division, offering yet another signal of the challenging times still confronting the chip industry.
The company has scheduled a conference call for 10 a.m. EDT Wednesday to discuss the results.