SmarTrend is bearish on shares of TER and our subscribers received a Downtrend alert on October 28, 2009 at $8.91, which has returned 8.6% to date.

Write to Chip Brian at cbrian@tradethetrend.com

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Teradyne, Inc. (NYSE: TER) reported revenue of $262 million for the third quarter of 2009. Semiconductor Test revenue totaled $173 million and Systems Test Group revenue totaled $89 million. On a non-GAAP basis, Teradyne's income from continuing operations in the third quarter was $24.8 million, or $0.14 per diluted share, which excluded restructuring charges, acquired intangible asset amortization and special items. GAAP income from continuing operations for the third quarter was $6.7 million, or $0.04 per diluted share.

Bookings in the third quarter of 2009 were $288 million of which $233 million was in Semiconductor Test and $55 million in Systems Test Group.

Guidance for the fourth quarter of 2009 is for revenue of $255 million to $270 million, with Non-GAAP net income per share of $0.12 to $0.17 and GAAP net income per share between $0.04 and $0.09. Non-GAAP guidance excludes restructuring charges, acquired intangible asset amortization and special items.

"Our Semiconductor and Systems Test businesses continued to gain strength through the quarter driving our return to operating profitability and positive outlook for Q4," said Teradyne President and CEO Mike Bradley. "We reached a major milestone in our expansion into new markets as we received initial orders for the UltraFLEX-M high-speed memory test system."

Webcast

A webcast to discuss third quarter 2009 results, along with management's business outlook will be held at 10 a.m. EDT, Thursday, October 29. Interested investors should access the webcast at www.teradyne.com and click on "Investors" at least five minutes before the call begins. The webcast replay will be available on www.teradyne.com. In addition, a conference call replay will be available approximately two hours after the call. The replay number in the U.S. & Canada is 800-642-1687. The replay number outside the U.S. & Canada is 706-645-9291. The pass code for both numbers is 36016837. The replay will be available via phone and web site through November 13, 2009.

Non-GAAP Results

In addition to disclosing results that are determined in accordance with GAAP, Teradyne also discloses non-GAAP results of operations that exclude certain income items and charges. These results are provided as a complement to results provided in accordance with GAAP. Teradyne reports non-GAAP results in order to better assess and reflect operating performance. Management believes the non-GAAP measures help indicate Teradyne's baseline performance before gains, losses or other charges that may not be indicative of our current core business or future outlook. Teradyne believes these non-GAAP measures will aid investors' overall understanding of its results by providing a higher degree of transparency for certain expenses and providing a level of disclosure that will help investors understand how Teradyne plans and measures its own business. A reconciliation of each available GAAP to non-GAAP financial measure discussed in this press release is contained in the attached exhibits and on the Teradyne website at www.teradyne.com by clicking on "Investors" and then selecting the "GAAP to Non-GAAP Reconciliation" link. The presentation of non-GAAP measures is not meant to be considered in isolation, as a substitute for, or superior to, financial measures or information provided in accordance with GAAP.

About Teradyne

Teradyne (NYSE:TER) is a leading supplier of Automatic Test Equipment used to test complex electronics used in the consumer electronics, automotive, computing, telecommunications, and aerospace and defense industries. In 2008, Teradyne had sales of $1.1 billion. For more information, visit www.teradyne.com. Teradyne(R) is a registered trademark of Teradyne, Inc. in the U.S. and other countries. All product names are trademarks of Teradyne, Inc. (including its subsidiaries) or their respective owners.

Safe Harbor Statement

The forward-looking statements included in this release are made only as of the date of publication. Teradyne disclaims any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this press release.

This release contains forward-looking statements regarding future business prospects, Teradyne's results of operations and market conditions. Such statements are based on the current assumptions and expectations of Teradyne's management and are neither promises nor guarantees of future performance. You can identify these forward-looking statements based on the context of the statements and by the fact that they use words such as "will," "anticipate," "expect," "project," "intend," "plan," "believe," "target" and other words and terms of similar meaning in connection with any discussion of future operating or financial performance. There can be no assurance that management's estimates of Teradyne's future results or other forward looking statements will be achieved. Important factors that could cause actual results to differ materially from those presently expected include: conditions affecting the markets in which Teradyne operates; decreased product demand; delays in new product introductions; lack of customer acceptance of new products; unanticipated delays in or costs and expenses relating to the implementation of cost reduction plans; and other events, factors and risks disclosed in filings with the SEC, including, but not limited to, the "Risk Factors" section of Teradyne's Annual Report on Form 10-K for the fiscal year ended December 31, 2008 and Quarterly Report on Form 10-Q for the period ended July 5, 2009. The forward-looking statements provided by Teradyne in this press release represent management's views as of the date of this release. Teradyne anticipates that subsequent events and developments may cause management's views to change. However, while Teradyne may elect to update these forward-looking statements at some point in the future, Teradyne specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Teradyne's views as of any date subsequent to the date of this release.

TERADYNE, INC. REPORT FOR THIRD FISCAL QUARTER OF 2009
CONDENSED CONSOLIDATED OPERATING STATEMENTS
(In thousands, except per share amounts)
                                                                                          Quarter Ended:                                           Nine Months Ended:
                                                                                          October 4, 2009  July 5, 2009       September 28, 2008   October 4, 2009   September 28, 2008
Net Revenues                                                                              $     262,162    $    169,580       $      297,255       $     552,350     $      912,275
                     Cost of Revenues (1)                                                       155,407         122,451              169,325             365,106            491,994
Gross Profit                                                                                    106,755         47,129               127,930             187,244            420,281
Operating Expenses:
                     Engineering and Development                                                38,266          38,451               52,969              123,915            164,272
                     Selling and Administrative                                                 46,314          47,257               58,614              148,944            189,298
                     Acquired Intangible Asset Amortization                                     8,214           8,214                5,034               24,667             13,671
                     In-process Research and Development                                        -               -                    -                   -                  1,100
                     Restructuring and Other, net (2)                                           5,189           15,270               28,589              36,424             53,100
                                          Operating Expenses                                    97,983          109,192              145,206             333,950            421,441
Income/(Loss) from Operations                                                                   8,772           (62,063 )            (17,276 )           (146,706 )         (1,160  )
                     Interest & Other (3)                                                       (3,597  )       (6,905  )            (3,111  )           (15,555  )         4,419
Income/(Loss) from Continuing Operations Before Income Taxes                                    5,175           (68,968 )            (20,387 )           (162,261 )         3,259
                     Income Tax (Benefit)/Provision                                             (1,500  )       (2,200  )            3,070               (11,500  )         13,270
Income/(Loss) from Continuing Operations                                                        6,675           (66,768 )            (23,457 )           (150,761 )         (10,011 )
Income from Discontinued Operations Before Income Taxes                                         -               -                    768                 -                  768
                     Income Tax (Benefit)/Provision                                             -               -                    -                   -                  -
Income from Discontinued Operations                                                             -               -                    768                 -                  768
Net Income/(Loss)                                                                         $     6,675      $    (66,768 )     $      (22,689 )     $     (150,761 )  $      (9,243  )
Income/(Loss) per Common Share from
Continuing Operations:
Basic                                                                                     $     0.04       $    (0.39   )     $      (0.14   )     $     (0.87    )  $      (0.06   )
Diluted                                                                                   $     0.04       $    (0.39   )     $      (0.14   )     $     (0.87    )  $      (0.06   )
Net Income/(Loss) per Common Share:
Basic                                                                                     $     0.04       $    (0.39   )     $      (0.13   )     $     (0.87    )  $      (0.05   )
Diluted                                                                                   $     0.04       $    (0.39   )     $      (0.13   )     $     (0.87    )  $      (0.05   )
Weighted Average Common Shares - Basic                                                          174,495         173,022              168,769             173,216            171,058
Weighted Average Common Shares - Diluted                                                        180,792         173,022              168,769             173,216            171,058
Net Orders                                                                                $     288,048    $    227,331       $      198,072       $     651,725     $      827,067
(1) Cost of Revenues includes:                                                            Quarter Ended:                                           Nine Months Ended:
                                                                                          October 4, 2009  July 5, 2009       September 28, 2008   October 4, 2009   September 28, 2008
                                          Provision for Excess and Obsolete Inventory     $     6,915      $    11,491        $      21,715        $     27,003      $      24,969
                                          Cost for Purchase Accounting Inventory Step-up        5,700           3,924                -                   10,863             4,346
                                          Sale of Previously Written Down Inventory             (588    )       -                    (528    )           (588     )         (1,442  )
                                          Insurance Recovery Gain                               -               (1,000  )            -                   (1,000   )         -
                                                                                          $     12,027     $    14,415        $      21,187        $     36,278      $      27,873
(2) Restructuring and other, net consists of:                               Quarter Ended:                                          Nine Months Ended:
                                                                            October 4, 2009  July 5, 2009      September 28, 2008   October 4, 2009 September 28, 2008
                 Facility Related                                           $     4,419      $    -            $      3,404         $     4,419     $      16,424
                 Employee Severance                                               1,237           14,976              2,620               32,891           15,243
                 Eagle Test Purchase Accounting Adjustment & Other                (467  )         (774   )            -                   (1,954 )         -
                 Long-Lived Asset Impairment                                      -               1,068               -                   1,068            550
                 Loss on Sale of Real Estate                                      -               -                   22,565              -                20,883
                                                                            $     5,189      $    15,270       $      28,589        $     36,424    $      53,100
(3) Interest and Other includes:                                            Quarter Ended:                                          Nine Months Ended:
                                                                            October 4, 2009  July 5, 2009      September 28, 2008   October 4, 2009 September 28, 2008
                 Amortization of GAAP Imputed Convertible Debt Discount     $     2,329      $    2,251        $      -             $     4,580     $      -
                 Expense for Deferred Debt Financing Costs as a Result of
                 Repayment and Termination of the Revolving Line of Credit        -               2,488               -                   2,488            -
                 Other-Than-Temporary Impairment and Realized
                 (Gains)/Losses on Marketable Securities                          (572  )         -                   8,437               2,000            8,437
                 Gain on Sale of an Equity Investment                             -               -                   (2,811 )            -                (2,811 )
                 Gain on Life Insurance                                           -               -                   (1,352 )            -                (1,352 )
                 Charge for Acquisition Financing Fees                            -               -                   1,227               -                1,227
                                                                            $     1,757      $    4,739        $      5,501         $     9,068     $      5,501

CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands)
                                                             October 4, 2009     December 31, 2008
Assets
           Cash and Cash Equivalents                         $        406,741    $        322,705
           Marketable Securities                                      5,735               -
           Accounts Receivable                                        139,693             109,625
           Inventories (1)                                            111,970             168,451
           Deferred Tax Assets                                        17,561              16,988
           Prepayments and Other Current Assets                       60,348              60,884
                                                                      742,048             678,653
           Net Property, Plant and Equipment                          250,151             298,449
           Long-Term Marketable Securities                            55,033              51,613
           Intangible Assets                                          160,592             186,998
           Other Assets                                               18,669              19,534
                                                             $        1,226,493  $        1,235,247
Liabilities
           Accounts Payable                                           70,613              61,164
           Current Debt (2)                                           2,237               122,500
           Accrued Employees' Compensation and Withholdings           52,053              73,521
           Deferred Revenue and Customer Advances                     127,993             58,030
           Other Accrued Liabilities                                  50,184              51,748
                                                                      303,080             366,963
           Retirement Plans Liabilities                               134,465             125,877
           Deferred Tax Liabilities                                   3,045               8,730
           Other Long-Term Liabilities                                23,623              27,565
           Long-Term Debt (2) (3)                                     138,970             -
                                                                      603,183             529,135
Shareholders' Equity                                                  623,310             706,112
                                                             $        1,226,493  $        1,235,247
(1) As of October 4, 2009 and December 31, 2008, Inventories
included approximately $4.5 million and $15.4 million, respectively,
for Eagle Test inventory fair value step-up.
(2) On March 31, 2009, we entered into a loan agreement in Japan
for approximately $10 million. The loan has a term of 5 years and
a fixed interest rate of 1.4%. At October 4, 2009, $2.2 million of
the outstanding loan principal is included in current debt and
$7.8 million is classified as long-term debt.
(3) On March 31, 2009, in connection with our convertible note
offering, we entered into convertible note hedge and warrant
transactions. These transactions are expected to reduce the
potential dilution to Teradyne's common stock upon maturity of the
convertible notes. On April 6, 2009, the convertible note and
convertible note hedge and warrant transactions closed and we netted
approximately $163 million of cash, before paying off the $122.5
million bank revolver.
For information on possible dilution related to the convertible
note, investors should access Teradyne's website at www.teradyne.com
and click on "Investors" and then select the "Financial Data" link.

GAAP to Non-GAAP Earnings Reconciliation
References by the Company to non-GAAP income/(loss) and non-GAAP
income/(loss) per share refer to income/(loss) from continuing
operations or income/(loss) per common share from continuing
operations excluding goodwill impairment, in-process research and
development, amortization of the GAAP imputed convertible debt
discount, write-off of credit line debt issue costs, restructuring
and other, net, certain inventory provision reversals, fair value
inventory step-up related to Nextest and Eagle Test,
(losses)/gains on marketable securities and acquired intangible
asset amortization, as well as applicable adjustments to profit
sharing and income taxes due to these exclusions. GAAP requires
that these items be included in determining income/(loss) from
continuing operations. Non-GAAP income/(loss) from continuing
operations (which is the basis for non-GAAP income/(loss) from
continuing operations per share) gives an indication of Teradyne's
baseline performance before gains, losses or other charges that
may notbe indicative of our current core business or future
outlook.
The Company believes these non-GAAP measures will aid investors'
overall understanding of the Company's results by providing a higher
degree of transparency for certain expenses and providing a level of
disclosure that will help investors understand how the Company plans
and measures its own business. However, the presentation of non-GAAP
measures is not meant to be considered in isolation or as a
substitute for, or superior to, financial information provided in
accordance with GAAP.
(In millions, except per share amounts)
                                                                      Quarter Ended:                                                                  Nine Months Ended:
                                                                      October 4, 2009          July 5, 2009              September 28, 2008           October 4, 2009          September 28, 2008
Net Revenues                                                          $     262.2              $    169.6                $      297.3                 $     552.4              $      912.3
Gross Margin - GAAP                                                   $     106.8      40.7 %  $    47.1        27.8  %  $      127.9        43.0 %   $     187.2     33.9  %  $      420.3        46.1 %
                       Inventory step-up reversal (1)                       5.7                     3.9                         -                           10.9                      4.3
                       Insurance recovery                                   -                       (1.0  )                     -                           (1.0   )                  -
                       Inventory provision reversal (2)                     (0.6  )                 -                           (0.5   )                    (0.6   )                  (1.4   )
                       Profit sharing adjustment (3)                        (0.4  )                 -                           -                           (0.4   )                  (0.3   )
Gross Margin - non-GAAP                                               $     111.5      42.5 %  $    50.0        29.5  %  $      127.4        42.9 %   $     196.1     35.5  %  $      422.9        46.4 %
Income/(Loss) from Operations - GAAP                                  $     8.8        3.4  %  $    (62.1 )     -36.6 %  $      (17.3  )     -5.8 %   $     (146.7 )  -26.6 %  $      (1.2   )     -0.1 %
                       Acquired intangible asset amortization               8.2                     8.2                         5.0                         24.7                      13.7
                       Inventory step-up reversal (1)                       5.7                     3.9                         -                           10.9                      4.3
                       Restructuring and other, net (4)                     5.2                     15.3                        28.6                        36.4                      53.1
                       Inventory provision reversal (2)                     (0.6  )                 -                           (0.5   )                    (0.6   )                  (1.4   )
                       In-process research and development                  -                       -                           -                           -                         1.1
                       Insurance recovery                                   -                       (1.0  )                     -                           (1.0   )                  -
                       Profit sharing adjustment (3)                        (2.2  )                 -                           -                           (2.2   )                  (1.5   )
Income/(Loss) from Operations - non-GAAP                              $     25.1       9.6  %  $    (35.7 )     -21.0 %  $      15.8         5.3  %   $     (78.5  )  -14.2 %  $      68.1         7.5  %
Income/(Loss) from Continuing Operations - GAAP                       $     6.7        2.6  %  $    (66.8 )     -39.4 %  $      (23.5  )     -7.9 %   $     (150.8 )  -27.3 %  $      (10.0  )     -1.1 %
                       Acquired intangible asset amortization               8.2                     8.2                         5.0                         24.7                      13.7
                       Inventory step-up reversal (1)                       5.7                     3.9                         -                           10.9                      4.3
                       Restructuring and other, net (4)                     5.2                     15.3                        28.6                        36.4                      53.1
                       Interest and other (5)                               1.8                     4.7                         5.5                         9.1                       5.5
                       Inventory provision reversal (2)                     (0.6  )                 -                           (0.5   )                    (0.6   )                  (1.4   )
                       In-process research and development                  -                       -                           -                           -                         1.1
                       Insurance recovery                                   -                       (1.0  )                     -                           (1.0   )                  -
                       Profit sharing adjustment (3)                        (2.2  )                 -                           -                           (2.2   )                  (1.5   )
                       Income tax adjustment (6)                            -                       -                           -                           (2.9   )                  0.2
Income/(Loss) from Continuing Operations - non-GAAP                   $     24.8       9.5  %  $    (35.7 )     -21.0 %  $      15.1         5.1  %   $     (76.4  )  -13.8 %  $      65.0         7.1  %
GAAP Income/(Loss) per Common Share from Continuing Operations -      $     0.04               $    (0.39 )              $      (0.14  )              $     (0.87  )           $      (0.06  )
Basic
Non-GAAP Income/(Loss) per Common Share from Continuing Operations -  $     0.14               $    (0.21 )              $      0.09                  $     (0.44  )           $      0.38
Basic
GAAP and Non-GAAP Weighted Average Common Shares - Basic                    174.5                   173.0                       168.8                       173.2                     171.1
GAAP Income/(Loss) per Common Share from Continuing Operations -      $     0.04               $    (0.39 )              $      (0.14  )              $     (0.87  )           $      (0.06  )
Diluted
Non-GAAP Income/(Loss) per Common Share from Continuing Operations -  $     0.14               $    (0.21 )              $      0.09                  $     (0.44  )           $      0.37
Diluted
GAAP Weighted Average Common Shares - Diluted                               180.8                   173.0                       168.8                       173.2                     171.1
Non-GAAP Weighted Average Common Shares - Diluted                           179.0                   173.0                       170.3                       173.2                     173.4
(1) Reversal of Nextest and Eagle Test purchase accounting inventory
step-up.
(2) Reversal of previously written down inventory for non-FLEX
products in the Semiconductor Test Division.
(3) Profit sharing adjustment for non-GAAP items.
(4) Restructuring and other, net consists of (in millions):
                                                                      Quarter Ended:                                                                  Nine Months Ended:
                                                       October 4, 2009     July 5, 2009       September 28, 2008      October 4, 2009     September 28, 2008
    Facility Related                                   $     4.4           $    -             $      3.4              $     4.4           $      16.4
    Employee Severance                                       1.2                15.0                 2.6                    32.9                 15.2
    Eagle Test Purchase Accounting Adjustment & Other        (0.4  )            (0.8 )               -                      (2.0  )              -
    Long-Lived Asset Impairment                              -                  1.1                  -                      1.1                  0.6
    Loss on Sale of Real Estate                              -                  -                    22.6                   -                    20.9
                                                       $     5.2           $    15.3          $      28.6             $     36.4          $      53.1
(5) For the quarter and nine months ended October 4, 2009,
Interest and Other included amortization of the GAAP imputed
convertible debt discount. For the quarter ended July 5, 2009 and
nine months ended October 4, 2009, Interest and Other included a
charge to expense deferred debt financing costs as a result of the
repayment and termination of Teradyne's revolving line of credit.
For the nine months ended October 4, 2009, Interest and Other
included a charge for other-than-temporary impairment and realized
(losses)/gains on marketable securities.
(6) Income tax adjustment for non-GAAP items. For the nine months
ended October 4, 2009, the income tax adjustment related to a
discrete foreign exchange item.
For press releases and other information of interest to investors,
please visit Teradyne's homepage on the World Wide Web at http://www.teradyne.com.

SOURCE: Teradyne, Inc.

Teradyne, Inc. 
Andy Blanchard, 978-370-2425 
Investor Relations 
investorrelations@teradyne.com

- Semiconductor Test revenue totaled $173 million and Systems Test Group revenue totaled $89 million. On a non-GAAP basis, Teradyne's income from continuing operations in the third quarter was $24.8 million, or $0.14 per diluted share, which excluded restructuring charges, acquired intangible asset amortization and special items. GAAP income from continuing operations for the third quarter was $6.7 million, or $0.04 per diluted share.

- Bookings in the third quarter of 2009 were $288 million of which $233 million was in Semiconductor Test and $55 million in Systems Test Group.

- Guidance for the fourth quarter of 2009 is for revenue of $255 million to $270 million, with Non-GAAP net income per share of $0.12 to $0.17 and GAAP net income per share between $0.04 and $0.09. Non-GAAP guidance excludes restructuring charges, acquired intangible asset amortization and special items.

"Our Semiconductor and Systems Test businesses continued to gain strength through the quarter driving our return to operating profitability and positive outlook for Q4," said Teradyne President and CEO Mike Bradley. "We reached a major milestone in our expansion into new markets as we received initial orders for the UltraFLEX-M high-speed memory test system."

Teradyne is a provider of Automatic Test Equipment used to test complex electronics used in the consumer electronics, automotive, computing, telecommunications, and aerospace and defense industries.

((Comments on this story may be sent to newsdesk@closeupmedia.com))

SmarTrend is bullish on shares of TER and our subscribers received an Uptrend alert on July 24, 2009 at $7.79, which has returned 29.7% to date.

Write to Chip Brian at cbrian@tradethetrend.com

---------------------------------------------------------------------------------------------

SmarTrend analyzes over 5,000 securities simultaneously throughout the trading day and provides its subscribers with trend change alerts in real time. To get a free trial of our trading calls and maximize your trading results, please visit http://www.TradeTheTrend.com.

Get exclusive, actionable insight into how the market is expected to trend prior to market open with our free morning newsletter. Sign up at: http://www.TradeTheTrend.com/signup.html