TERADYNE <TER.N> SAYS CUTS Q1 OUTLOOK, SEES SALES DOWN ABOUT 35 PCT VS Q4
:Teradyne Lowers 1Q Rev, Net Outlook >TER
( BW)(MA-TERADYNE)(TER) Teradyne Revises Outlook for March Quarter
Business/Technology Editors
BOSTON--(BUSINESS WIRE)--March 8, 2001--Teradyne Inc. (NYSE:TER) today
announced that it is lowering its guidance for sales and earnings for the
first quarter of 2001 and has put several expense control measures into
effect.
"The current economic environment has dramatically reduced demand for our
customers' products. They therefore need fewer products and services from
us. This is resulting in new order delays, as well as in rescheduling and
cancellation of some of our backlog " said George Chamillard, Teradyne's
chairman and chief executive officer. "Our sales and earnings for the March
quarter will therefore be lower than previously expected."
"Our previous guidance was for sales to be down about 20% from the $789
million of the fourth quarter (pre-SAB 101), and we anticipated about
$0.30/share in earnings. We also said that there would be an additional
$0.25/share in earnings from sales recorded in the first quarter due to the
effect of SAB 101, for a total of $0.55/share.
Our current view is for sales
to be down about 35% from the fourth quarter level (pre-SAB 101), with a
corresponding reduction in EPS. We expect that the additional $0.25/share
from sales recorded in the first quarter due to the effect of SAB 101 will
still be realized." Chamillard added that "Our visibility is very limited at
this point and we don't know how long the current downturn might last. We
are, therefore, also implementing a series of cost-cutting measures to bring
our expenses more in line with the conditions we find in the marketplace."
Some of the expense control measures which Teradyne has implemented include
a cutback of its temporary workforce by more than 1400 people since the peak
level; a company-wide hiring freeze; production furloughs in some areas; a
delay in several capital spending projects; and the imposition of tight
expense controls.
"Historically, our broad range of businesses -including semiconductor test,
connection systems, DSL line test and PC board inspection & test -- gives us
the ability to sustain our businesses more effectively in the down part of
the cycle. " In past downturns, the leaders in our customer base have
invested in next generation products to leverage themselves out of the
slowdown.
As the technology leader in our businesses, Teradyne has recently
introduced the largest collection of new products in our history, all of
which are shippable in volume in 2001. If this cycle is like past cycles, we
stand to benefit from this investment in technology to a greater degree than
most other companies," Chamillard concluded. |
