Summary
Teradyne, Inc. (TER) has filed an 8-K report on October 16, 2008, to disclose material impairments, specifically an inventory charge of approximately $20 million to $22 million. This charge, impacting results for the third quarter of fiscal 2008 (which ended September 28, 2008), is attributed to a sharp decrease in forecasted semiconductor demand and a product transition. The estimated financial impact on diluted earnings per share is between ($0.12) and ($0.13). The company also anticipates future cash expenditures of roughly $6 million to $7 million related to this inventory write-down. Investors should note that these are forward-looking statements with inherent risks and uncertainties, as detailed in Teradyne's previous SEC filings.
Key Highlights
- 1Teradyne is recording an inventory charge of approximately $20 million to $22 million for Q3 2008.
- 2The charge is due to a significant decline in forecasted semiconductor demand and a product transition.
- 3The estimated impact on diluted EPS is between ($0.12) and ($0.13) per share.
- 4Future cash expenditures related to this inventory charge are estimated to be $6 million to $7 million.
- 5The Q3 2008 fiscal quarter ended on September 28, 2008.
- 6The company acknowledges these are forward-looking statements with potential risks and uncertainties.
- 7Investors are referred to Teradyne's Form 10-K for the period ending December 31, 2007, for a detailed discussion of risk factors.