Teradyne's long history has led to scattered operations and a high cost structure, said San Francisco-based analyst Bill Ong of Greenwich, Conn.-headquartered American Technology Research Inc.
"It's weird to see a (semiconductor) company have a corporate headquarters in a big metropolitan area," Ong said. "Teradyne is one of the few to have corporate headquarters in an expensive city."Reached at Massachusetts Institute of Technology's Sloan School of Management, Teradyne founder Alexander d'Arbeloff said the company acquired the Lincoln Street site in the late 1960s. The Harrison Avenue site became part of the company's portfolio in the late 1970s, but the company didn't move there until the late 1980s, he said.
Although Teradyne's Newman said the real estate move is "part of a larger plan to focus the company more on our core test business," he wouldn't say whether the company intends to sell its non-semiconductor test business.In June, Teradyne sold its printed circuit board manufacturing business in North Reading to a subsidiary of Milpitas, Calif.-based Solectron Corp. (NYSE: SLR).
Teradyne has cut its work force from about 10,200 workers at the end of 2000 to 5,700 last month. For the quarter that ended on July 3, Teradyne's sales plunged to $320.2 million, down from $526.5 million during the comparable 2004 period. Teradyne's second-quarter net loss widened to $45.5 million, compared with its $80.5 million profit during the second quarter of 2004.
It's always sad to see a major high tech firm leave the city. Obviously Teradyne's commitment to the city is over. It spent a lot of time in the heart of Chinatown and the city's Leather District and at great cost. If these valuable properties are converted into residential units, the loss of such commericial/light industrial space will be forever.
No comments:
Post a Comment