BOSTON--Test equipment supplier Teradyne Inc. here posted $789.2 million in sales and a net income of $117.7 million for the fourth quarter of 2000, but the company also lowered projections for system shipments by 20% in Q1 this year from the just-ended period.
Teradyne's Q4 sales--excluding the impact of the adoption of Staff Accounting Bulletin 101--were 44% higher than $548.5 million in the period a year ago, but 7% sequentially lower than $848.0 million in the third quarter of 2000.
"As we begin 2001 in semiconductor test, the environment is much less favorable than was true at the beginning of 2000," cautioned George Chamillard, chairman and chief executive officer of the Boston company. "There appears to be excess capacity in the industry. There are concerns about the economies of several countries that drive technology spending, and many of the end markets that have been driving the industry for the last two years are forecasted to grow less than in the past."
Consequently, Teradyne is projecting a 20% reduction in shipments in the first quarter.
"We currently hold the view that 2001 will have a slow first half and a better second half, but the only thing that we know for certain is that the industry is very volatile and we therefore will remain flexible and will capitalize on the conditions that present themselves," Chamillard added.
Teradyne's net income for the fourth quarter 2000 period came in at $117.7 million, or $0.66 per share, compared to $75.2 million, or $0.42 per share, in Q4 of 1999. Teradyne said its first-quarter 2001 earnings will fall sharply to about $0.30 per share due to the expected slowdown in tester shipments.
For the entire year, Teradyne's sales reached $3.04 billion, a 70% jump from $1.79 billion in 1999. The company's net income last year totaled $517.9 million compared to $191.7 million in 1999.