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BOSTON -- Teradyne Inc. posted a quarterly profit compared with a year-earlier loss.

The company posted a profit of $3.3 million in the fourth quarter, compared with a loss of $11.5 million a year earlier. Sales rose to $377 million from $357.6 million a year earlier. For the quarter sales were down 18% sequentially and up 5% year-over-year.

The company said in a statement that despite the slight increase in orders in the fourth quarter, customer demand remains tentative.

Teradyne forecasts first-quarter sales of $290 million and $310 million, with a loss between 24 and 31 cents a share. This guidance includes pre-tax restructuring and other charges of $13 million and a $2.5 million tax provision for foreign and state taxes.

Analysts on average had forecast the company to post first-quarter revenue of $343.18 million, according to Reuters Estimates.

On a conference call with analysts president Mike Bradley said the company's Connection Systems division has downsized its manufacturing footprint in U.S. in the wake of a sharp downturn in orders in the third quarter. The moves should reduce the company's breakeven point by $10 million a quarter.

"Our U.S. operations will become epicenter of design capabilities. Future growth in volume manufacturing will occur in low cost regions," Bradley said.

Connection Systems' orders were down over 20% sequentially in the fourth quarter. The division grew 39% for the year.

Connection Systems includes PCB bare-board manufacturing and connectors.

The company, which earlier this month laid off 320 employees at its Connection Systems and Assembly Test divisions and took a $11 million charge, said the semiconductor test market continues to be soft, mostly at the subcontractor level.

 



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