Teradyne, the leading automatic testing equipment maker, saw a decline in shares during after-hours trading on Tuesday. The company warned of weaker demand for certain systems and predicted another drop in revenue.
Lower Revenue Forecasted for First Quarter
Teradyne expects first-quarter revenue to range from $540 million to $590 million, which is a decrease of about 4.5% to 12.5% compared to the same period last year. This projection falls short of analysts’ expectations of $625.5 million in revenue for the first quarter.
Profit Expectations Also Diminished
In addition to lower revenue, Teradyne projects a decline in per-share profit for the first quarter. They anticipate earnings to range from 19 cents to 35 cents per share, down from 50 cents per share in the same period last year and below what analysts were expecting.
When stripping out certain one-time items, Teradyne’s adjusted per-share profit is projected to be between 22 cents and 38 cents, which falls short of the 54 cents profit predicted by analysts.
Slump in Fourth Quarter Revenue
Teradyne also reported a larger-than-expected slump in fourth quarter revenue, along with a decrease in profit. This follows a trend of declining sales for the past two years.
Impacted by Weak Demand
According to Chief Executive Greg Smith, Teradyne’s results were significantly influenced by weaker demand in system-on-a-chip test systems. However, demand remained stronger for memory test systems and robotics.
