The company has reported sales of $195 million for the fourth quarter of 2008. On a non-GAAP basis, the company’s loss from the continuing operations in fourth quarter was $32.5 million, or $0.19 per diluted share, which excludes amortization of acquired intangible assets and the special items. These results include $2.5 million of sales and a $0.03 loss per diluted share as a result of the acquisition of Eagle Test Systems, Inc. (Eagle Test), which was concluded on November 14, 2008. The preliminary GAAP loss from continuing operations for the fourth quarter was $55.3 million, or $0.33 per diluted share.
The bookings for the fourth quarter were $169 million, and included a full quarter of Eagle Test bookings of $8 million.
For fiscal year 2008, the income from continuing operations for 2008 was $32.4 million, or $0.19 per diluted share on a non-GAAP basis. The preliminary GAAP loss from the continuing operations was $65.3 million, or $0.38 per diluted share. The bookings for 2008 were $996 million.
The guidance for first quarter of 2009 is for sales ranging from $125 million to $145 million, with a loss per share between $0.38 and $0.31 on a non-GAAP basis. The non-GAAP guidance excludes special items, and also acquired intangible asset amortization.
The company also announced that in the first quarter it will be decreasing its worldwide staff by about 14% and implementing the 10% broad-based temporary pay cut. These actions, along with the other cost reductions, will decrease the company’s expenses by about $140 million on an annualized basis.
“In 2008, we brought a record number of new products to market, gained market share for the third year in a row and significantly reduced our operating costs,” said Mike Bradley, Teradyne president and chief executive officer. “But worldwide economic conditions require that we reduce our fixed costs even further. We remain focused on our new product development and customer support priorities as we navigate through these very challenging times.
“Strategically, our market coverage has never been greater,” Bradley added. “We remain on schedule to compete in the High-Speed Memory (HSM) test market in 2009 with a highly differentiated offering in next-generation DRAM products. We entered FLASH memory with our Nextest Systems acquisition in early 2008, and their new Magnum II product met its customer penetration and share gain targets with new applications in MultiChip Package testing. Our most recent acquisition, Eagle Test, while facing tough market headwinds, provides us with a very strong analog System-On-a-Chip (SOC) platform. Couple this with our distribution and support muscle in Asia, and we’re well positioned to accelerate Eagle Test’s growth. In summary, our market expansion plans are on schedule, costs are being lowered significantly and we expect to continue our multi-year track record of gaining share in our core businesses.”
