Teradyne Inc. Earnings: Revenue Falls After Four Straight Quarters of Gains, Net Income Declines

S&P 500 (NYSE:SPY) component Teradyne Inc. (NYSE:TER) reported its results for the second quarter. Teradyne, Inc. develops, designs, manufactures and sells automatic test systems and solutions used to test complex electronics a variety of industries industries.

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Teradyne Earnings Cheat Sheet for the Second Quarter

Results: Net income for the semiconductor equipment and materials company fell to $89.1 million (39 cents per share) vs. $122.1 million (55 cents per share) a year earlier. This is a decline of 27.1% from the year earlier quarter.

Revenue: Fell 8.5% to $410.5 million from the year earlier quarter.

Actual vs. Wall St. Expectations: TER fell short of the mean analyst estimate of 41 cents per share. It beat the average revenue estimate of $391.4 million.

Quoting Management: “We delivered solid financial results in the second quarter marking the sixth quarter in a row of above model profitability,” said Mike Bradley, Teradyne President and CEO. “We saw continued strength in Hard Disk Drive Test orders as we expand both the performance and customer base of our Neptune product line. While System on a Chip (SOC) test orders slowed substantially in the quarter, the wireless and media processor, power management, and imaging segments were the strongest, driven by both design wins and capacity expansions.”

Key Stats:

A year-over-year revenue decrease last quarter snaps a streak of four consecutive quarters of revenue increases. The best quarter in that span was the second quarter of the last fiscal year, which saw revenue rise more than twofold.

The company fell short of forecasts after beating estimates in the previous two quarters. In the first quarter, it topped the mark by 3 cents, and in the fourth quarter of the last fiscal year, it was ahead by 13 cents.

Competitors to Watch: LTX-Credence Corporation (NASDAQ:LTXC), Verigy Ltd. (NASDAQ:VRGY), Advantest Corp. (NYSE:ATE), Aehr Test Systems (NASDAQ:AEHR), Nanometrics Incorporated (NASDAQ:NANO), Agilent Technologies Inc. (NYSE:A), Aetrium, Inc. (NASDAQ:ATRM), Cohu, Inc. (NASDAQ:COHU), Rudolph Technologies, Inc. (NASDAQ:RTEC), and inTEST Corporation (NASDAQ:INTT).

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(Source: Xignite Financials)