8-KEarnings & ResultsFinancial Events

TERADYNE, INC 8-K Report, Financial Results (Oct 16, 2008)

Filed October 16, 2008For Securities:TER

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.

Frequently Asked Questions

The inventory charge is a result of a sharp decrease in forecasted semiconductor demand and a product transition that Teradyne is experiencing.

The inventory charge is expected to reduce Teradyne's diluted earnings per share by approximately $0.12 to $0.13 for the third quarter of fiscal 2008.

Yes, Teradyne estimates that future cash expenditures, subsequent to September 28, 2008, related to this inventory charge will be approximately $6 million to $7 million.

Teradyne refers investors to the discussion of risk factors detailed in its filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the period ending December 31, 2007.