Summary
Teradyne, Inc. (TER) has filed an 8-K report detailing two significant events. Firstly, the company is implementing workforce reductions, notifying approximately 185 employees of termination as part of an ongoing expense reduction strategy. These layoffs are expected to conclude by the end of Q1 2009 and will result in an estimated $10.0 million in cash severance charges, with the majority ($9.0 million) recognized in Q4 2008 and the remainder in Q1 2009. Secondly, Teradyne announced on November 11, 2008, that the Federal Trade Commission (FTC) has granted early termination of the waiting period under the Hart-Scott-Rodino (HSR) Antitrust Improvements Act for its previously announced merger with Eagle Test Systems, Inc. This signifies a key regulatory hurdle has been cleared for the transaction.
Key Highlights
- 1Teradyne is reducing its workforce by approximately 185 employees to lower expenses.
- 2Total cash severance charges for workforce reduction are estimated at $10.0 million.
- 3Approximately $9.0 million of severance costs will be expensed in Q4 2008.
- 4The remaining $1.0 million in severance costs will be expensed in Q1 2009.
- 5The FTC has granted early termination of the HSR waiting period for the merger with Eagle Test Systems, Inc.
- 6The early termination of the HSR waiting period is a positive development for the pending merger.