Roundup: Teradyne Earnings On Target
(07/14/98; 8:56 p.m. ET)
By Sergio G. Non, TechInvestor
Intel may have missed earnings estimates for its second quarter, but three other chip companies that reported Tuesday made the grade.
Boston-based Teradyne (company profile) met the First Call consensus of 46 cents a share for the second quarter. The company, which makes testing equipment for the electronics and communications industries, posted net quarterly income of $39.4 million, up 57 percent from last year, on sales of $406.2 million.
Teradyne [TER] shares rose 3/16 to 26 in advance of the earnings report.
The company reported $341 million in new orders for the quarter, though net orders fell to $250 million after adjusting for cancellations of bookings from prior quarters.
Also reporting was Rambus (company profile), which met analyst expectations of 7 cents a share. The maker of technology for speeding up chip-to-chip data transfers posted net income of $1.7 million for its third quarter, up from $527,000 in the third quarter of 1997.
Rambus [RMBS] shares fell 2 to 58 3/4 in advance of the quarterly report.
Although the company did see a seasonal decline in orders for Nintendo-64 chips, Rambus did land some large customers, including Compaq and Dell.
DSP Communications also released quarterly results after market close. The company said second quarter earnings were 19 cents a share, right on target with the First Call consensus. For the three-month period ended June 30, DSP posted net income of $8.1 million on sales of $30.5 million, compared with earnings of $719,000 on $8.7 million in the second quarter of 1997.
Shares of DSP [DSP] fell 7/16 to 15 5/16 on the New York Stock Exchange, in trading prior to the earnings report. The company makes chip sets based on a number of wireless communication standards, including digital cellular, Code Division Multiple Access (CDMA), and Time Division Multiple Access (TDMA).
A strong Japanese market for digital cell phones helped fuel sales, chairman Nathan Hod said. DSP's customers include Fujitsu, Kyocera, Kokusai, NEC, Sanyo, Pioneer, Sharp, and Kenwood. "Based on orders received, we expect a significant ramp-up in sales of our CDMA and TDMA chip sets in the second half of 1998," Hod said.
|
