SAN FRANCISCO—Automatic test equipment vendor Teradyne Inc. Wednesday (Jan. 25) reported fourth quarter sales that exceeded analysts' expectations and said order bookings improved by more than 50 percent compared with the previous quarter.
Mike Bradley, Teradyne's president and CEO, said through a statement that the company saw an upturn in customer orders in its system-on-chip business and all lines of its Systems Test Group in the fourth quarter.
"The new order increase was driven by very strong demand for leading-edge semiconductor testers for new mobile products and by a broadened storage test customer base," Bradley said.
Teradyne said it booked $376 million worth of orders in the fourth quarter, $233 million of which were semiconductor test systems. Bookings were up by 57 percent compared to $240 million in the third quarter.
Teradyne (North Reading, Mass.) reported fourth quarter sales of $297 million, down 14 percent from the third quarter and down 4 percent from the fourth quarter of 2010. Teradyne reported a net income for the quarter of $125 million, up 56 percent from the third quarter and up 52 percent compared to the fourth quarter of 2010.
Teradyne's sales for the quarter exceeded consensus analysts' expectations, which had pegged revenue at about $285 million, according to Yahoo Finance.
For the full year, Teradyne reported sales of $1.4 billion, down 10 percent from 2010. The company reported a net income for the year of $363.8 million, down 4 percent from 2010.
Teradyne also reported that the company determined it would likely be able to realize a significant portion of its deferred tax assets. The final tax benefit could increase or decrease its fourth quarter net income, the company said.