Teradyne reports loss, will cut workforce by 14%
Teradyne Inc., a North Reading company that makes automated test equipment for semiconductors, reported yesterday evening a loss in the fourth quarter amid weaker sales, and said it would slash about 14 percent of its work force and implement a temporary pay cut.
For the quarter ended Dec. 31, Teradyne posted a loss of $55.3 million, or 33 cents a share. That compares with a profit of $16.7 million, or 10 cents a share, in the prior-year period.
Revenue declined to $194.8 million from $260.4 million.
Analysts surveyed by Thomson Reuters, on average, expected a loss of 13 cents a share on revenue of $201.1 million.
Looking ahead, the company said it expects sales in the first quarter of $125 million and $145 million. It projects a per-share loss between 31 cents and 38 cents, excluding one-time items and other charges.
Mike Bradley, Teradyne's president and chief executive, said the company needed to reduce its fixed costs because of the global economic downturn.
As a result, the company will slash its worldwide staff by 14 percent and implement a temporary 10 percent pay cut. The moves will save the company $140 million annually, Teradyne said.
Bradley noted that the company remains on schedule to compete in the high-speed memory test market this year.
"In summary, our market expansion plans are on schedule, costs are being lowered significantly and we expect to continue our multiyear track record of gaining share in our core businesses," he said.
To read the company's press release, please click here. (AP)