StockCall Scans Teradyne and Lam Research: Mobile Semiconductor Companies to Grow at Slow Pace

Feb 14, 2013, 08:00 ET from

LONDON, February 14, 2013 /PRNewswire/ --

The semiconductor sector is in recovery phase. While the companies dealing with PC chipsets are still struggling to drive volumes and revenue, mobile chip companies are faring slightly better. Small companies like Teradyne Inc. (NYSE: TER) also seem to be doing better as these smaller size companies are more capable of restructuring their business strategy to suit the changed industrial scenario. Financial numbers are also improving as shown by Lam Research Corp.'s (NASDAQ: LRCX) quarterly results. The industry expects to expand this year, but the pace is likely to remain slow due to macroeconomic factors. StockCall has taken an interest in these companies and you can now sign up to download the free technical research on Teradyne and Lam Research at

LAM Research Announce Q2 Results

Lam Research announced its second quarter net income at 45 cents per share. It also posted better revenue figures at $860.9 million, up 47.4 percent from the previous year quarter. Breakdown of Lam Research's sales shows that the company is improving its revenue in the U.S. and Europe, while Asian markets show slight sluggishness. However, its overall shipments also decreased during the quarter as did its margins. Thus despite higher sales, the trend is still in the negative phase. This observation goes in line with the company's net income figure, which stands at $6.4 million, down from $33.2 million it had earned for the corresponding quarter of last year. Register to download the free technical analysis on Lam Research Corp. at

For the third quarter, Lam Research provided conservative outlook as it expects its revenue to be in the range of $800 million and $860 million. Its shipments are expected to improve marginally, likely to be between $800 and $860 million. Overall, Lam Research' results and guidance show that the chip industry is still in the recovery phase.

Lam Research is steering its efforts into a new direction. It recently announced the planned departure of its Chief Financial Officer. It is also carrying out acquisitions to grow its business. In 2012, the company acquired Novellus Systems in a stock deal. The deal will help Lam Research in vertically integrating its business and achieve more efficiency. Lam Research's stock remained sluggish in 2012 but grew 19 percent so far this year. On the back of good results, the stock still seems to have a decent upside left to it.

Teradyne Provides Low Guidance

Teradyne Inc. is mainly involved in semiconductor testing. Like the overall industry, the company's wireless test unit shows better growth. It is also showing improved financial numbers as the company managed to beat consensus estimates for its EPS in the past three quarters. However, it provided a rather grim outlook for its fiscal first quarter. The company's revenue for the fourth quarter stood at $248 million, down 46 percent from the third quarter. The company operates in a seasonal industry and thus the decline was expected. However, Teradyne also expects fiscal 2013 to be a slow year. Sign up today to read the free research report on Teradyne Inc. at

Teradyne expects its first quarter revenue in the range of $260 million and $280 million while projecting its EPS guidance to stand in the range of a penny per share in loss to 5 cents per share in income. The company's stock reacted negatively to the conservative guidance. However, things are likely to pick up from the second quarter. Investors can look at Teradyne as a long-term investment.

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