Teradyne, a testing-technology company based in North Reading, Massachusetts, experienced a decrease in profit during the fourth quarter of the previous year. The decline was attributed to weaker demand for its chip test systems, which ultimately impacted revenue.
In the quarter ending on December 31, the company recorded a profit of $117.1 million, or 72 cents per share. This figure was lower than the $172.3 million, or $1.04 per share, reported during the same period the previous year. Though analysts surveyed by FactSet had expected per-share earnings of 70 cents, the adjusted per-share earnings turned out to be 79 cents - surpassing the analysts' forecast.
However, Teradyne's revenue fell 8% to $670.6 million, missing expectations. Analysts surveyed by FactSet had anticipated revenue of $675 million.
Despite the weaker demand for system-on-a-chip test systems, Chief Executive Greg Smith noted that the company achieved strong results from memory test systems and robotics.
Looking ahead to the first quarter, Teradyne predicts revenue ranging from $540 million to $590 million. This forecast falls short of the analysts' expectation of $625.5 million.
Furthermore, Teradyne projects a per-share profit of 19 cents to 35 cents for the first quarter. This estimate is lower than the analysts' expected 55 cents.
Overall, Teradyne's financial results reflect the challenges posed by declining demand for its chip test systems while also highlighting positive performances in other sectors of the business.
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