Boston - Teradyne today dispelled a report that it plans to close its backplane manufacturing operations.

In a statement to Circuits Assembly, Tom Pursch, vice president of Teradyne Connection Systems and manager of its printed circuit board business, said: "Teradyne is committed to our printed circuit board business. Credit Suisse First Boston's reporting of a 'hint of a possibility' that we may exit this business is just plain wrong. Our strategy to lower our costs, reduce idle capacity and focus on the high-end domestic market is working."

On Thursday, Forbes reported a leading investment bank suggested the maker of semiconductor and assembly test gear and PCBs might be looking to exit the PCB business.

Credit Suisse First Boston said Teradyne planned to "significantly" increase outsourcing from about 58% to 96%, over the next four to five quarters.

"That said, we detected the hint of a possibility that Teradyne may seek to exit the business," CSFB said.

Teradyne is North America's second largest backplane manufacturer, with a 14% share, according to CSFB. Sanmina-SCI has a 18% share.