10-QPeriod: Q1 FY2003

TERADYNE, INC Quarterly Report for Q1 Ended Mar 30, 2003

Filed May 14, 2003For Securities:TER

Summary

Teradyne, Inc. reported a net loss of $76.5 million for the first quarter of 2003, a slight improvement from the $77.1 million loss in the same period of 2002. Revenue increased by 34.9% year-over-year to $334.6 million, primarily driven by a significant 91.4% surge in Semiconductor Test Systems revenue. Despite the revenue growth, the company continues to face challenges in a difficult economic environment, with net orders increasing by 37.4% but still reflecting customer caution and delayed purchasing decisions. The company's financial position shows total assets of $1.84 billion and total liabilities of $870 million as of March 30, 2003. Shareholders' equity stood at $972 million. Cash and cash equivalents decreased to $219.9 million from $251.5 million at the end of 2002, reflecting cash used in operating activities. Teradyne incurred significant restructuring and other charges of $19.5 million in the quarter, including asset impairments and severance costs, which are expected to yield future cost savings.

Key Highlights

  • 1Revenue increased by 34.9% to $334.6 million in Q1 2003 compared to Q1 2002.
  • 2Net loss slightly improved to $76.5 million in Q1 2003 from $77.1 million in Q1 2002.
  • 3Semiconductor Test Systems segment saw a substantial revenue increase of 91.4%.
  • 4Net orders grew by 37.4% year-over-year, indicating demand recovery but with continued customer caution.
  • 5The company incurred $19.5 million in restructuring and other charges during the quarter, including asset impairments and severance costs.
  • 6Cash and cash equivalents decreased by $31.6 million during the quarter, ending at $219.9 million.
  • 7Gross margin improved significantly to 25% from 13% in the prior year's quarter, driven by higher product sales and reduced manufacturing costs.

Frequently Asked Questions

Teradyne's net revenue increased by 34.9% to $334.6 million in the first quarter of 2003, compared to $248.0 million in the first quarter of 2002. This growth was primarily driven by a significant surge in the Semiconductor Test Systems segment.

Teradyne reported a net loss of $76.5 million for the first quarter of 2003, which is a slight improvement from the $77.1 million net loss reported in the first quarter of 2002. The company continues to operate at a loss but shows signs of margin improvement.

The primary driver for the revenue increase was the Semiconductor Test Systems segment, which experienced a 91.4% growth. The Connection Systems segment saw a slight decline of 4.1%, while Circuit Board Test and Inspection Systems and Other Test Systems segments showed positive growth of 12.8% and 21.4%, respectively.

Teradyne recorded $19.5 million in restructuring and other charges during the first quarter of 2003. This included $7.5 million for impaired long-lived assets, $6.2 million for severance and benefits related to employee terminations, and $5.8 million loss on the sale of product lines.