This is a total caca rally..
* Cisco...previous guidance flat-to-negative 5% sequential growth, analyst at -15-20%, and they deliver -30% and a 2B inventory writeoff....no one saw it coming, and yet "it is priced into the stock"...gg
* TI lowers its sequential guidance down from -5% to -20%....AND says they are lowering the cap ex budget (did that get any play?)
* Linear Tech just lowered forward guidance (press release at 9:00 PM...give me a break)
Here's another beaut (below)...hell, AMAT should go to $55 tomorrow on this......
(BTW- Gotta love the reasons for lock-limit up: Intel says "things improved" at end of Q3...yet they are cutting P4 50% and lowering sequential guidance.....they expect a 2nd half turnaround...and yet, "it is difficult to give forward guidance")
Check out TER.... (the bozos come out at 6:30 PM so they can't mess up the party).....
Tuesday April 17, 6:32 pm Eastern Time
Press Release
Teradyne Announces First Quarter Results
BOSTON--(BUSINESS WIRE)--April 17, 2001--Teradyne, Inc. (NYSE:TER - news) reported sales of $605.2 million and income, excluding the impact of special charges of $8.2 million pretax, of $59.7 million ($0.33 per share) for the First Quarter of 2001. Orders for the First Quarter of 2001 totaled $357.1 million.
In commenting on the recent quarter, George Chamillard, Teradyne's chairman and chief executive officer, said that ``The numerous pre-announcements of sales and earnings reductions for the first quarter are a clear indication that many, if not most, technology companies today have less than one quarter's visibility. Going into January, Teradyne had a deteriorating environment in semiconductor test, but we had businesses in other segments that were bucking the trend and that we thought might escape the fall-off. Most of our European customers in all businesses were relatively bullish at that time, as were the customers for our backplane and connector products and our electronic manufacturing services. Over the course of the quarter, however, those conditions changed. By the end of March, the combination of a weakening U.S. economy, concern for the health for the economies of Japan and Korea, excess production capacity and weak demand increased inventory levels, which drove our customers for all of our businesses in every geographic region into a defensive position.''
``On March 8th, we lowered our estimates of sales and earnings for the first quarter. This was only the third pre-announcement in our forty-one year history. The other two were made back in 1981 and 1988, so it's been a while since we, and our customers, have had such a lack of visibility. Our results were in line with that guidance. Our sales were $605 million, including about $100 million in revenue related to non-recurring SAB 101 adjustments. Also, we earned $0.33/share, before special charges primarily related to the workforce reduction.''
``We had orders of $357 million in the first quarter - our lowest level since the third quarter of 1998. Our customers continue to struggle with excess inventory and with excess production capacity. As a result, we had about $25 million of cancellations in the first quarter and rescheduling of deliveries remains at a high level. We do not know if the current fall-off has bottomed, or how long it will last. Any definition of a recovery would have to involve capacity buying from our semiconductor customers and increased inventory pulls from our EMS customers. Based on that definition, there is no recovery in sight at this point.''
``Given all of this uncertainty, how is Teradyne dealing with the business environment? Our priority is to position the company to capitalize on the next upturn. To do that, we need to focus the organization on three things: supporting our customers, driving our new products into the market and controlling expenses.''
``The area of new products is a particularly exciting one for the company. A record number of new products was introduced over the past twelve months, positioning the company favorably for the technology buying that is characteristic of industry slowdowns. ''We are particularly pleased with the level of design-ins that we have seen so far in 2001,`` said Chamillard. ''In both our semiconductor test business and our connections systems business, design-ins are running at record levels, well ahead of our plans for this point in the year.``
``Our current plan for the second quarter,'' Chamillard concluded, ``is to ship between $425 and $450 million. We are working to lower our expenses to break-even at that volume.'' |
