EXHIBIT 99.1
TERADYNE ANNOUNCES FOURTH QUARTER RESULTS
BOSTON--(BUSINESS WIRE)--Jan. 15, 2002--Teradyne, Inc. (NYSE: TER) reported
sales of $220.2 million for the fourth quarter of 2001, and a net loss of $75.6
million, or $0.42 per share, excluding special charges. Including special
charges, the net loss was $112.6 million ($0.63 per share). Gross bookings for
the quarter were $212 million, and net bookings after cancellations totaled $127
million.
Teradyne Chairman George Chamillard stated that while Teradyne's fourth
quarter results were in line with earlier guidance, 2001 was sobering, and that
the challenges faced by Teradyne are likely to continue. He noted that "in view
of the mixed messages we are receiving from the market place, we don't see an
imminent upturn." Chamillard stated that in the face of this situation, Teradyne
anticipates that revenue for the first quarter of 2002 will be between $200
million and $250 million and losses will be in the range of $0.40 to $0.50 per
share, excluding special charges.
"Our focus in recent months", said Chamillard, "has been on cost control,
cash management and positioning our businesses for the upturn. We will continue
to focus on those areas. We will also continue to lower our time to market and
our costs to produce the new products that we believe our customers will
demand."
Teradyne will be conducting its conference call tomorrow, January 16, 2002,
at 8:00 a.m. EST. The call will be webcast at Teradyne's web site.
TERADYNE, INC. REPORT FOR FOURTH FISCAL QUARTER OF 2001
CONDENSED CONSOLIDATED OPERATING STATEMENTS
(In thousands, except per share amounts)
Quarter Ended: Year Ended:
12/31/01 12/31/00(1) 12/31/01(1) 12/31/00(1)
Net Sales $ 220,214 $ 821,652 $ 1,440,581 $ 3,043,946
Cost of Sales(2) 257,141 452,369 1,182,397 1,607,374
Engineering and
Development 67,965 92,223 288,570 348,024
Selling and
Administrative(3) 79,801 100,888 322,459 377,783
Other and Interest (3,098) (12,452) (26,692) (28,883)
Net Expenses 401,809 633,028 1,766,734 2,304,298
Income (Loss)
Before Cumulative
Effect of Change
in Accounting
Principles and
Taxes (181,595) 188,624 (326,153) 739,648
Income (Loss)
Before Cumulative
Effect of Change
in Accounting
Principle (112,589) 132,037 (202,215) 517,754
Cumulative effect
on prior years
of the
application of
SAB 101 "Revenue
Recognition in
Financial
Statements," net
of taxes -- -- -- (64,138)
Net (Loss) Income $ (112,589) $ 132,037 $ (202,215) $ 453,616
Earnings per common
share - diluted:
Income (Loss)
Before Cumulative
Effect of change
in accounting
principle per
common share
- diluted $ (0.63) $ 0.74 $ (1.15) $ 2.86
Cumulative effect
on prior years of
the application
of SAB 101
"Revenue
Recognition in
Financial
Statements", per
common share
- diluted $ -- $ -- $ -- $ (0.35)
Net (Loss) Income
per Common Share
- Diluted $ (0.63) $ 0.74 $ (1.15) $ 2.51
Shares used in
calculation of
Net (Loss) Income
per Common Share
- Diluted 179,294 179,538 175,828 181,011
Net Orders $ 127,472 $ 651,621 $ 808,181 $ 3,320,948
(1) - Certain costs in 2001 and 2000 have been reclassified from Cost of Sales
into Engineering and Development and Selling and Administrative. These
reclassified costs consist of new product development costs incurred in
manufacturing engineering and applications engineering costs supporting sales.
The impact of the reclassifications are detailed below.
Quarter Ended: Nine Months Ended: Year Ended:
Increase / (Decrease) 12/31/00 9/30/01 12/31/00
Cost of Sales $(17,341) $(43,629) $(62,325)
Engineering and
Development $ 12,928 $ 31,221 $ 47,104
Selling and
Administrative $ 4,413 $ 12,408 $ 15,221
(2) - Included in Cost of Sales in the fourth quarter ended December 31, 2001 is
a provision of $50.4 million pretax, or $0.18 per share, related to excess
semiconductor test inventory of $40.3 million, certain impaired manufacturing
equipment and vacated space under operating leases of $7.8 million at Connection
Systems, and obsolete inventory due to duplicate product lines as a result of
the GenRad acquisition of $2.3 million related to Assembly Test.
(3) - Included in Selling and Administrative in the fourth quarter ended
December 31, 2001 is a provision of $9.3 million pretax, or $0.03 per share, for
workforce reduction costs of $7.6 million and vacated space under operating
leases of $1.7 million at Assembly Test.
CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands)
12/31/01 12/31/00
Assets
Cash, Cash Equivalents
and Marketable Securities $ 367,687 $ 302,575
Accounts Receivable 169,630 420,040
Inventories 406,989 512,563
Deferred Tax Assets 141,013 93,958
Other Current Assets 121,703 48,698
1,207,022 1,377,834
Net Property, Plant and Equipment 835,566 733,786
Long-term Marketable Securities 218,544 161,848
Long-term Deferred Tax Assets 4,313 --
Goodwill 192,433 56,765
Other Assets 84,513 25,635
$2,542,391 $2,355,868
Liabilities
Current Liabilities $ 326,325 $ 619,288
Long-term Deferred Tax Liabilities -- 21,257
Long-term Liabilities 451,682 8,352
Shareholders' Equity 1,764,384 1,706,971
$2,542,391 $2,355,868
ABOUT TERADYNE
Teradyne (NYSE: TER) is the world's largest supplier of automatic test
equipment and is also a leading supplier of high performance interconnection
systems. Teradyne's test products are used by manufacturers of semiconductors,
circuit assemblies, voice and broadband telephone networks. Teradyne's backplane
assemblies and high-density connectors are used by manufacturers of
communications and computing systems central to building networking
infrastructure. The company had sales of $1.4 billion in 2001 and currently
employs about 8000 people worldwide. For more information visit Teradyne's web
site.
SAFE HARBOR STATEMENT
Statements in this release, other than historical performance, include
forward-looking statements relating to future financial performance made under
the Safe Harbor provisions of the Private Securities Litigation Reform Act of
1995. These forward-looking statements include statements regarding our revenue
and profit expectations and future business strategies and market opportunities,
as well as statements regarding the possible future direction of the U.S.
economy. These statements are neither promises nor guarantees, but involve risks
and uncertainties that may cause actual results to differ materially from
expectations. In particular, our business is dependent on the current and
anticipated market demand for electronics, which has been impacted by the
economic slowdown that began in the latter portions of 2000. The uncertainty
regarding the future growth rate of worldwide economies has caused many
companies to reduce capital investment and may cause further reduction of such
investments in the future. These reductions have been particularly severe in the
electronics and semiconductor industry which Teradyne serves and have
contributed to Teradyne incurring losses in recent periods and may contribute to
further losses. In addition, the markets which Teradyne serves have historically
been quite cyclical and may continue to be so. Further, our backlog has and may
continue to be adversely affected as customers determine whether to defer or
cancel orders which previously had been accepted. All of these factors could
result in further decreased revenues. Our business is also affected by our
ability to develop and ship new and sometimes more complex products to address
changing customer needs, by new offerings by competitors and by intense
competition throughout the world in each of our operating segments from
competitors having substantial resources available for the engineering,
manufacturing, marketing and distribution of their products. The current
economic decline and the resulting oversupply could increase the possibility of
intensified price competition in certain markets and result in the need to lower
our prices, which could result in decreased revenues. In addition, our
acquisition of GenRad, Inc. during 2001 and any future acquisitions or
divestitures could affect our ability to manage and maintain our business.
Further, as a result of our issuance of $400 million aggregate principal amount
of convertible senior notes in October 2001, together with the approximately $45
million mortgage financing which we completed in December 2001, we have
substantially increased our debt service obligations and ratio of debt to total
capitalization. If our cash flow should be insufficient to meet these
obligations, we might have to reduce or curtail certain activities of our
business. Finally, our ongoing expense control measures may not have the
intended effect on our future financial results. These measures could have
long-term negative effects on our business by reducing our pool of technical
talent, decreasing improvements in our products and making it more difficult for
us to respond to large customer orders if the economy does not recover. Readers
should not place undue reliance on any such forward-looking statements, which
speak only as of the date they are made, and Teradyne undertakes no obligation
to update the information contained in this release. For further information
regarding risks and uncertainties associated with Teradyne's business, please
refer to Teradyne's filings with the Securities and Exchange Commission,
including, but not limited to, Teradyne's annual report on Form 10-K and
quarterly reports on Form 10-Q. Any forward-looking statements should be
considered in light of all these factors.