Teradyne Inc. (Ticker: TER)

Bought 2% position in Teradyne Inc., ticker TER, at $11.64.

Bought Teradyne for similar reasons as Kulicke & Soffa (Ticker: KLIC). Specifically, I bought TER due to a bearish street outlook on company after KLIC comments in early October (lower EPS estimate in 2011 relative to 2010 of $2.39 vs. $1.87), majority of revenue outside the U.S., should benefit from investing by semiconductor companies in new facilities and updated technologies, low valuation of 6x C2011 EPS consensus estimate, and healthy balance sheet with about $0.5 billion net cash.

Note: The company actively hedges currency risk and thus the impact of the weaker dollar is likely limited to improvements in the company's price competitiveness, as opposed to gains on reported financial information.

Teradyne announces its quarter after the close tomorrow. The consensus revenue and EPS estimates for the September quarter are $507 million and $0.79. The consensus estimates for the December quarter are $451 million and $0.59.

Teradyne is a supplier of automatic test equipment. The Company designs, develops, manufactures and sells automatic test systems and solutions used to test complex electronics in the consumer electronics, automotive, computing, telecommunications, and aerospace and defense industries. The Company’s automatic test equipment products and services include semiconductor test (Semiconductor Test) systems and military/aerospace test (Mil/Aero) test instrumentation and systems, hard disk drive test (HDD) systems, circuit-board test and inspection (Commercial Board Test) systems and automotive diagnostic and test (Diagnostic Solutions) systems, collectively these products represent Systems Test Group.