Teradyne Raises Third Quarter 2009 Outlook

NORTH READING, Mass.--(BUSINESS WIRE)--Teradyne, Inc. (NYSE: TER - News) today announced updated guidance for the third quarter ending on October 4. The company now expects revenue will be $250 to $260 million, a sequential increase of approximately 50 percent. Net income per share is expected to be $0.10 to $0.13 on a non-GAAP basis and a net loss per share of $0.03 to $0.00 on a GAAP basis.

Previous guidance for the third quarter, provided on July 29, was for revenue of $190 to $205 million, with a non-GAAP net loss per share of $0.02 to net income per share of $0.02 and a GAAP net loss per share between $0.13 and $0.09. Non-GAAP guidance excludes restructuring charges, acquired intangible asset amortization and special items.

In light of the expected return to profitability and generally improving conditions, the temporary salary reductions implemented in late 2008 and 2009 will be eliminated in the fourth quarter.

The gross margin and operating expenses by business segment are expected to be consistent with their models. Although both segments reflect greater than expected revenue, forecasted profitability will reflect a greater proportion of revenue from Systems Test Group than expected.

“We continue to see improving demand within our Systems Test and Semiconductor Test businesses,” said Teradyne President and CEO Mike Bradley. “Our supply chain is responding well to this step-up in demand in what remains a short lead time environment.”

Teradyne will discuss its third quarter results and provide guidance for the fourth quarter on a conference call in late October 2009.

Non-GAAP Results

In addition to disclosing results that are determined in accordance with GAAP, Teradyne also discloses non-GAAP results of operations that exclude certain income items and charges. These results are provided as a complement to results provided in accordance with GAAP. Teradyne reports non-GAAP results in order to better assess and reflect operating performance. Management believes the non-GAAP measures help indicate Teradyne's baseline performance before gains, losses or other charges that may not be indicative of its current core business or future outlook. Teradyne believes these non-GAAP measures will aid investors' overall understanding of its results by providing a higher degree of transparency for certain expenses and providing a level of disclosure that will help investors understand how Teradyne plans and measures its own business. The presentation of non-GAAP measures is not meant to be considered in isolation, as a substitute for, or superior to, financial measures or information provided in accordance with GAAP. A detailed reconciliation between the non-GAAP and GAAP guidance has not been provided because certain factors that are materially significant to the Company’s ability to estimate in detail the excluded items are not accessible or practically estimable on a forward-looking basis.

About Teradyne, Inc.

Teradyne (NYSE:TER - News) is a leading supplier of Automatic Test Equipment used to test complex electronics used in the consumer electronics, automotive, computing, telecommunications, and aerospace and defense industries. In 2008, Teradyne had sales of $1.1 billion. For more information, visit www.teradyne.com. Teradyne(R) is a registered trademark of Teradyne, Inc. in the U.S. and other countries. All product names are trademarks of Teradyne, Inc. (including its subsidiaries) or their respective owners.

Safe Harbor Statement

The forward-looking statements included in this release are made only as of the date of publication. Teradyne disclaims any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this press release.

This release contains forward-looking statements regarding future business prospects, our results of operations and market conditions. Such statements are based on the current assumptions and expectations of Teradyne’s management and are neither promises nor guarantees of future performance. You can identify these forward-looking statements based on the context of the statements and by the fact that they use words such as “will,” “anticipate,” “expect,” “project,” “intend,” “plan,” “believe,” “target” and other words and terms of similar meaning in connection with any discussion of future operating or financial performance. There can be no assurance that management’s estimates of our future results or other forward looking statements will be achieved. Important factors that could cause actual results to differ materially from those presently expected include: conditions affecting the markets in which Teradyne operates; decreased product demand; delays in new product introductions; lack of customer acceptance of new products; and other events, factors and risks disclosed in filings with the SEC, including, but not limited to, the “Risk Factors” section of Teradyne’s Annual Report on Form 10-K for the fiscal year ended December 31, 2008 and Quarterly Report on Form 10-Q for the period ended July 5, 2009. The forward-looking statements provided by Teradyne in this press release represent management’s views as of the date of this release. Teradyne anticipates that subsequent events and developments may cause management's views to change. However, while Teradyne may elect to update these forward-looking statements at some point in the future, Teradyne specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Teradyne's views as of any date subsequent to the date of this release.

Teradyne, Inc.
Andy Blanchard, 978-370-2425
Investor Relations
investorrelations@teradyne.com