DOW JONES NEWSWIRES
Teradyne Inc. (TER) boosted its already robust forecast for the
third quarter, saying demand for testing equipment continued to
rebound.
Shares jumped 9.1% premarket to $10.09. The stock through
Wednesday had more than doubled this year.
The company now expects earnings excluding items of 10 cents to
13 cents a share on revenue of $250 million to $260 million.
Teradyne in late July projected a profit of up to 2 cents and
revenue of as much as $205 million - a forecast which was far above
analysts' then-expectations.
The latest revenue view is some 50% above second-quarter
sales.
As a result of the rebound, Teradyne said temporary salary cuts
enacted in late 2008 and early this year will be eliminated in the
fourth quarter. A number of companies cut or froze salaries in the
wake of the financial crisis a year ago, but few have lifted those
efforts as of yet.
Teradyne suffered as slackening demand for consumer electronics
rippled up the supply chain, hurting sales of its products. The
company announced in January plans to cut 14% of its work force and
disclosed additional layoffs several months later. But many
technology companies, particularly semiconductor firms, have been
reporting brightening prospects in recent weeks.
-By Kevin Kingsbury, Dow Jones Newswires; 212-416-2354;
kevin.kingsbury@dowjones.com