For fiscal 2004, sales were $1.79 billion, a 32% increase over 2003 sales of $1.35 billion. Net income for the year was $165.2 million, or $0.84 per share, compared to a loss of $194 million or $1.03 per share in 2003. Net income for the year includes pre-tax restructuring and other charges of $5.4 million in 2004 and $71.3 million in 2003.
“Despite a slight increase in orders in the fourth quarter, customer demand remains tentative”
"Despite a slight increase in orders in the fourth quarter, customer demand remains tentative," said Mike Bradley, Teradyne President and CEO. "Our competitive position in the System On a Chip test market was strengthened in 2004, and we're continuing to aggressively fund our FLEX R&D program. At the same time, we're reducing costs across a number of areas in the company."
Sales in the first quarter of 2005 are expected to be between $290 million and $310 million, with a loss per share between 24 and 31 cents. This guidance includes pre-tax restructuring and other charges of $13 million and a $2.5 million tax provision for foreign and state taxes.
Conference Call/Webcast
Teradyne will be conducting its conference call tomorrow, January 19, 2005, at 10:00 a.m. E.S.T. The call will be webcast at www.teradyne.com (click on "Investors"). A replay will be available via phone starting at Noon E.S.T. and continuing through February 2, 2005. The replay may be accessed by calling 1-800-642-1687 in the US and Canada, or 706-645-9291 outside the US and Canada, and providing conference code 3113595, or by visiting www.teradyne.com and clicking on "Investors" for a link to the replay.
About Teradyne
Teradyne (NYSE:TER) is a leading supplier of Automatic Test Equipment, and interconnection systems. The company's products deliver competitive advantage to the world's leading semiconductor, electronics, automotive and network systems companies. In 2004, Teradyne had sales of $1.8 billion, and currently employs about 5,900 people worldwide. For more information, visit www.teradyne.com. Teradyne(R) is a registered trademark of Teradyne, Inc. in the US and other countries. All product names are trademarks of Teradyne, Inc. (including its subsidiaries) or their respective owners.
Safe Harbor Statement
This release contains statements regarding expected future revenues and earnings and future market conditions which are "forward-looking statements" as defined under the Private Securities Litigation Reform Act of 1995. Such statements are based on the current assumptions and expectations of Teradyne's management and are neither promises nor guarantees but involve risks and uncertainties, both known and unknown, that could cause Teradyne's actual results to differ materially from those projected in the forward-looking statements. There can be no assurance that such estimates of future results will be achieved. Important factors that could cause actual results to differ materially from those presently expected include: adverse changes in general economic or market conditions, including market demand for electronics and the current downturn in the semiconductor industry; reductions or delays in capital investment by our customers; the decision by customers to cancel or defer orders that previously had been accepted; reduced bookings; the "hockey-stick" pattern of sales resulting in a disproportionately large percentage of total quarterly sales occurring in the last month and weeks of each quarter; the historically cyclical nature and volatility of the markets that Teradyne serves; war or the threat of terrorist attacks; disruptions or delays in Teradyne's supply chain; new product development introductions and transitions and any delays; uncertainty of customer acceptance of new product offerings including the timing, price and mix of new product acceptance; competitive pressures including new products, pricing and gross margin pressures; the effectiveness of our implementation of cost cutting and expense control measures, including facility consolidations, employee reductions, the centralization of certain shared services, seeking lower prices from suppliers and the outsourcing of selected manufacturing and engineering activities; insufficient, excess or obsolete inventory; disruptions, delays or shortages in an adequate supply of raw materials, components or internal and external manufacturing capability; incoming quality of components or raw materials; the impact of our ability to manage the effects of past or future acquisitions or divestitures; any material litigation against Teradyne; the increase in our debt service obligations and debt to capital ratio resulting from our issuance of $400 million aggregate principal amount of senior convertible notes in 2001; the availability of additional financing; Teradyne's obligations in the event of a change of control; the impact of being required to account for stock options as an expense; the ability to attract and retain key employees; the risks of potential environmental liability; the risks of operating internationally which include political and economic instability and unexpected changes in legal and regulatory requirements and in policy changes affecting international markets; and other events, factors and risks previously and from time to time disclosed in our filings with the Securities and Exchange Commission including, but not limited to, Teradyne's annual report on Form 10-K for the period ending December 31, 2003 and quarterly reports on Form 10-Q including that for the quarter ended October 3, 2004. The "forward-looking statements" included herein are made only as of the date of publication and Teradyne undertakes no obligation to update the information set forth in this release.
Teradyne, Inc. Report for Fourth Fiscal Quarter of 2004
----------------------------------------------------------------------
CONDENSED CONSOLIDATED OPERATING STATEMENTS
(In thousands, except per share amounts)
----------------------------------------------------------------------
Quarter Ended: Twelve Months Ended:
----------------------------- -----------------------
12/31/04 12/31/03 10/3/04 12/31/04 12/31/03
--------- --------- --------- -----------------------
Net Revenues $377,014 $357,590 $457,800 $1,791,880 $1,352,867
Cost of Revenues 244,200 229,955 269,344 1,068,007 953,968
--------- --------- --------- ----------- -----------
Gross Profit 132,814 127,635 188,456 723,873 398,899
Operating
Expenses:
Engineering and
Development 63,149 60,963 67,243 262,000 254,600
Selling and
Administrative 62,073 60,488 70,270 268,576 249,464
Restructuring
and Other
Charges 5,123 15,090 (46) 5,359 71,284
Gain on Sale of
Business - - - (865) -
--------- --------- --------- ----------- -----------
Operating
Expenses 130,345 136,541 137,467 535,070 575,348
Income/(Loss)
From Operations 2,469 (8,906) 50,989 188,803 (176,449)
Interest Income 4,542 3,025 3,784 15,387 14,013
Interest
Expense (4,529) (4,568) (4,696) (18,752) (20,883)
Other Income
and Expense,
Net 1,259 1,657 - 2,536 (2,874)
--------- --------- --------- ----------- -----------
Income/(Loss)
Before Income
Taxes 3,741 (8,792) 50,077 187,974 (186,193)
Income Tax
Expense 393 2,700 8,928 22,737 7,800
--------- --------- --------- ----------- -----------
Net
Income/(Loss) $3,348 $(11,492) $41,149 $165,237 $(193,993)
========= ========= ========= =========== ===========
Income/(Loss) per Common Share -
Basic and Diluted:
-------------------
Net Income/(Loss)
per Common Share
- Basic $0.02 $(0.06) $0.21 $0.85 $(1.03)
========= ========= ========= =========== ===========
Shares used in
calculation of
Net Income/(Loss)
per Common Share
- Basic 194,199 191,545 194,128 194,048 187,845
========= ========= ========= =========== ===========
Net Income/(Loss)
per Common Share
- Diluted $0.02 $(0.06) $0.21 $0.84 $(1.03)
========= ========= ========= =========== ===========
Shares used in
calculation of
Net Income/(Loss)
per Common Share
- Diluted 195,982 191,545 195,751 197,432 187,845
========= ========= ========= =========== ===========
Gross Orders $297,730 $490,017 $294,512 $1,701,643 $1,443,566
========= ========= ========= =========== ===========
Net Orders $297,633 $488,218 $284,060 $1,690,877 $1,418,144
========= ========= ========= =========== ===========
CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands)
------------------------------------------------------------------
12/31/04 12/31/03
----------- -----------
Assets
Cash and Cash Equivalents $216,882 $228,444
Marketable Securities 75,431 60,974
Accounts Receivable 223,491 229,532
Inventories 262,996 214,934
Other Current Assets 34,761 35,393
----------- -----------
813,561 769,277
Net Property, Plant and Equipment 547,075 544,369
Long-term Marketable Securities 398,880 296,618
Goodwill 116,176 118,203
Intangible and Other Assets 46,870 56,895
----------- -----------
$1,922,562 $1,785,362
=========== ===========
Liabilities
Notes Payable - Banks $4,826 $7,272
Current Portion of Long-term Debt 321 310
Accounts Payable 62,006 74,097
Accrued Employees' Compensation and
Withholdings 106,298 91,244
Deferred Revenue and Customer Advances 30,399 25,391
Other Accrued Liabilities 60,970 75,125
Income Taxes Payable 11,738 7,376
----------- -----------
276,558 280,815
Pension Liability 69,187 93,878
Other Long-term Liabilities 44,321 53,441
Convertible Senior Notes 391,500 400,000
Other Long-term Debt 7,432 7,658
----------- -----------
788,998 835,792
Shareholders' Equity 1,133,564 949,570
----------- -----------
$1,922,562 $1,785,362
=========== ===========
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