Teradyne Reports Second Quarter 2022 Results
[ Back ]   [ More News ]   [ Home ]
Teradyne Reports Second Quarter 2022 Results

 Q2'22Q2'21Q1'22
Revenue (mil)$841 $1,086  $755  
GAAP EPS$1.16 $1.76  $0.92  
Non-GAAP EPS$1.21 $1.91  $0.98  
Gross Margin60.2% 59.6% 60.2% 

NORTH READING, Mass., July 26, 2022 (GLOBE NEWSWIRE) -- Teradyne, Inc. (NASDAQ: TER) reported revenue of $841 million for the second quarter of 2022 of which $541 million was in Semiconductor Test, $135 million in System Test, $64 million in Wireless Test and $101 million in Industrial Automation (IA). GAAP net income for the second quarter was $197.8 million or $1.16 per diluted share. On a non-GAAP basis, Teradyne’s net income in the second quarter was $204.0 million, or $1.21 per diluted share, which excluded acquired intangible asset amortization, restructuring and other charges, and included the related tax impact on non-GAAP adjustments.

“We delivered sales and earnings above the mid-point of our second quarter guidance on strong test group shipments despite supply shortages and slowing industrial automation growth,” said Teradyne CEO Mark Jagiela. “As we enter Q3, we’re lowering our shipment plan to align with reduced mobility related test demand, slower industrial automation growth, and continued supply shortages.”

Guidance for the third quarter of 2022 is revenue of $760 million to $840 million, with GAAP net income of $0.86 to $1.12 per diluted share and non-GAAP net income of $0.90 to $1.16 per diluted share. Non-GAAP guidance excludes acquired intangible asset amortization.

Webcast
A conference call to discuss the second quarter results, along with management's business outlook, will follow at 8:30 a.m. ET, Wednesday, July 27. Interested investors should access the webcast at www.teradyne.com and click on "Investors" at least five minutes before the call begins. Presentation materials will be available starting at 8:30 a.m. ET. A replay will be available on the Teradyne website at https://investors.teradyne.com/events-presentations.

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. Non-GAAP income from operations and non-GAAP net income exclude acquired intangible assets amortization, restructuring and other, pension actuarial gains and losses, losses on convertible debt conversions, non-cash convertible debt interest, discrete income tax adjustments, and includes the related tax impact on non-GAAP adjustments. GAAP requires that these items be included in determining income from operations and net income. Non-GAAP income from operations, non-GAAP net income, non-GAAP income from operations as a percentage of revenue, non-GAAP net income as a percentage of revenue, and non-GAAP net income per share are non-GAAP performance measures presented to provide meaningful supplemental information regarding Teradyne’s baseline performance before gains, losses or other charges that may not be indicative of Teradyne’s current core business or future outlook. These non-GAAP performance measures are used to make operational decisions, to determine employee compensation, to forecast future operational results, and for comparison with Teradyne’s business plan, historical operating results and the operating results of Teradyne’s competitors. Non-GAAP diluted shares include the impact of Teradyne’s call option on its shares. Management believes each of these non-GAAP performance measures provides useful supplemental information for investors, allowing greater transparency to the information used by management in its operational decision making and in the review of Teradyne’s financial and operational performance, as well as facilitating meaningful comparisons of Teradyne’s results in the current period compared with those in prior and future periods. 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 “Investor Relations” and then selecting “Financials” and the “GAAP to Non-GAAP Reconciliation” link. The non-GAAP performance measures discussed in this press release may not be comparable to similarly titled measures used by other companies. 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 (NASDAQ:TER) brings high-quality innovations such as smart devices, life-saving medical equipment and data storage systems to market, faster. Its advanced test solutions for semiconductors, electronic systems, wireless devices and more ensure that products perform as they were designed. Its Industrial Automation offerings include collaborative and mobile robots that help manufacturers of all sizes improve productivity and lower costs. In 2021, Teradyne had revenue of $3.7 billion and today employs over 6,300 people worldwide. For more information, visit  teradyne.com. Teradyne® is a registered trademark of Teradyne, Inc. in the U.S. and other countries.

Safe Harbor Statement
This release contains forward-looking statements regarding Teradyne’s future business prospects, the impact of the global pandemic of the novel strain of the coronavirus (COVID-19), results of operations, market conditions, earnings per share, the impact of supply chain conditions on the business, customer sales expectations, the payment of a quarterly dividend, the repurchase of Teradyne common stock pursuant to a share repurchase program, sanctions against Russia and Russian companies, and the impact of U.S. and Chinese export and tariff laws. Such statements are based on the current assumptions and expectations of Teradyne’s management and are neither promises nor guarantees of future performance, events, customer sales, supply chain conditions or improvements, earnings per share, use of cash, payment of dividends, repurchases of common stock, payment of the senior convertible notes, the impact of the COVID-19 pandemic, sanctions against Russia and Russian companies, the impact of any tariffs or export controls imposed in the U.S. or China; compliance with trade protection measures or export restrictions; the impact of U.S. Department of Commerce or other government agency regulations relating to Huawei, HiSilicon and other customers or potential customers; or the impact of U.S. Department Commerce export control regulations for certain U.S. products and technology sold to military end users or for military end-use in China, Russia and Venezuela. There can be no assurance that management’s estimates of Teradyne’s future results or other forward-looking statements will be achieved. Specifically, Teradyne’s 2024 earnings model is aspirational and includes many assumptions. There can be no assurance that these assumptions will be accurate or that model results will be achieved. As set forth below, there are many factors that could cause our 2024 earnings model and actual results to differ materially from those presently expected. Additionally, the current dividend and share repurchase programs may be modified, suspended or discontinued at any time.

Following Russia’s invasion of Ukraine in February 2022, the U.S. and other countries imposed significant sanctions against the Russian government and many Russian companies and individuals. Although Teradyne does not have significant operations in Russia, the sanctions could impact Teradyne’s business in other countries and could have a negative impact on the Company’s supply chain, either of which could adversely affect Teradyne’s business and financial results.

COVID-19 has resulted in authorities implementing numerous measures to try to contain the virus, such as travel bans and restrictions, quarantines, government vaccination mandates and other government regulations. These measures have impacted and may further impact Teradyne’s workforce and operations, the operations of its customers, and those of its contract manufacturers and suppliers. As Teradyne implements measures to comply with additional regulations, the Company may experience increased compliance costs, increased risk of non-compliance and increased risk of employee attrition.

The COVID-19 pandemic has adversely impacted the Company’s results of operations, including increased costs company-wide and constraints within the Company’s supply chain. The Company cannot accurately estimate the amount of the impact on Teradyne’s 2022 financial results and to its future financial results. The COVID-19 outbreak has significantly increased economic and demand uncertainty in Teradyne’s markets. This uncertainty resulted in a significant decrease in demand for certain Teradyne products and could continue to impact demand for an uncertain period of time. The spread of COVID-19 has caused Teradyne to modify its business practices (including employee travel, employees working remotely, and cancellation of in person participation in meetings, events and conferences) and the Company may take further actions as may be required by government authorities or that it determines are in the best interests of its employees, customers, contract manufacturers and suppliers. There is uncertainty that such measures will be sufficient to mitigate the risks posed by the virus, and Teradyne’s ability to perform critical functions could be impacted. The degree to which COVID-19 continues to impact Teradyne’s results will depend on future developments, which are highly uncertain and cannot be predicted, including, but not limited to, the duration and continued spread of the virus, its severity, the actions to contain the virus or the availability and impact of vaccines in countries where the Company does business, and how quickly and to what extent normal economic and operating conditions can resume.

Important factors that could cause actual results, the 2024 earnings model, earnings per share, use of cash, dividend payments, repurchases of common stock, or payment of the senior convertible notes to differ materially from those presently expected include: conditions affecting the markets in which Teradyne operates; decreased or delayed product demand from one or more significant customers; development, delivery and acceptance of new products; the ability to grow the Industrial Automation business; increased research and development spending; deterioration of Teradyne’s financial condition; the continued impact of the COVID-19 pandemic and related government responses on the market and demand for Teradyne’s products, on its contract manufacturers and supply chain, and on its workforce; the impact of the global semiconductor supply shortage on our supply chain and contract manufacturers; the consummation and success of any mergers or acquisitions; demand for products by the Company’s largest customers; unexpected cash needs; insufficient cash flow to make required payments and pay the principal amount on the senior convertible notes; the business judgment of the board of directors that a declaration of a dividend or the repurchase of common stock is not in the Company’s best interests; additional U.S. tax regulations or IRS guidance; the impact of any tariffs or export controls imposed in the U.S. or China; compliance with trade protection measures or export restrictions; the impact of U.S. Department of Commerce or other government agency regulations relating to Huawei, HiSilicon and other customers or potential customers; the impact of U.S. Department Commerce export control regulations for certain U.S. products and technology sold to military end users or for military end-use in China, Russia and Venezuela; sanctions imposed against the Russian government and certain Russian companies and individuals by the U.S., and other countries; and other events, factors and risks disclosed in filings with the SEC, including, but not limited to, the “Risk Factors” sections of Teradyne’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021 and Quarterly Report on Form 10-Q for the fiscal quarter ended April, 3, 2022. 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 SECOND FISCAL QUARTER OF 2022          
              
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS   
    
              
     Quarter Ended Six Months Ended
     July 3,
2022
 April 3,
2022
 July 4,
2021
 July 3,
2022
 July 4,
2021
              
Net revenues $840,766  $755,370  $1,085,728  $1,596,136  $1,867,334 
 Cost of revenues (exclusive of acquired intangible assets amortization shown separately below) (1)  334,377   300,437   438,739   634,814   758,727 
              
Gross profit  506,389   454,933   646,989   961,322   1,108,607 
              
Operating expenses:          
 Selling and administrative  139,533   140,185   140,187   279,718   269,984 
 Engineering and development  111,951   108,116   110,021   220,067   210,423 
 Acquired intangible assets amortization  4,871   5,063   5,402   9,934   10,938 
 Restructuring and other (2)  2,044   15,714   2,507   17,758   (4,623)
   Operating expenses  258,399   269,078   258,117   527,477   486,722 
              
Income from operations  247,990   185,855   388,872   433,845   621,885 
              
 Interest and other expense (3)  9,398   5,496   4,846   14,894   13,866 
              
Income before income taxes  238,592   180,359   384,026   418,951   608,019 
 Income tax provision  40,805   18,431   55,707   59,236   74,188 
Net income $197,787  $161,928  $328,319  $359,715  $533,831 
              
Net income per common share:          
Basic $1.24  $1.00  $1.98  $2.24  $3.21 
Diluted $1.16  $0.92  $1.76  $2.07  $2.85 
              
Weighted average common shares - basic  159,563   162,048   165,995   160,805   166,243 
              
Weighted average common shares - diluted (4)  171,159   175,575   186,750   173,367   187,245 
              
              
Cash dividend declared per common share $0.11  $0.11  $0.10  $0.22  $0.20 
              
              
              
(1)Cost of revenues includes: Quarter Ended Six Months Ended
     July 3,
2022
 April 3,
2022
 July 4,
2021
 July 3,
2022
 July 4,
2021
   Provision for excess and obsolete inventory $5,105  $1,590  $798  $6,695  $3,625 
   Sale of previously written down inventory  (449)  (262)  (428)  (711)  (1,218)
     $4,656  $1,328  $370  $5,984  $2,407 
              
(2)Restructuring and other consists of: Quarter Ended Six Months Ended
     July 3,
2022
 April 3,
2022
 July 4,
2021
 July 3,
2022
 July 4,
2021
   Employee severance $383  $551  $436  $934  $624 
   Litigation settlement  -   14,700   -   14,700   - 
   Acquisition related expenses and compensation  -   (201)  275   (201)  38 
   Contingent consideration fair value adjustment  -   -   -   -   (7,227)
   Other  1,661   664   1,796   2,325   1,942 
     $2,044  $15,714  $2,507  $17,758  $(4,623)
              
(3)Interest and other includes: Quarter Ended Six Months Ended
     July 3,
2022
 April 3,
2022
 July 4,
2021
 July 3,
2022
 July 4,
2021
   Non-cash convertible debt interest $-  $-  $3,277  $-  $6,858 
   Loss on convertible debt conversions  -   -   1,175   -   5,244 
   Pension actuarial gains  -   -   (627)  -   (627)
     $-  $-  $3,825  $-  $11,475 
              
(4)Under GAAP, when calculating diluted earnings per share, convertible debt must be assumed to have converted if the effect on EPS would be dilutive. Diluted shares assume the conversion of the convertible debt as the effect would be dilutive. Accordingly, for the quarters ended July 3, 2022, April 3, 2022 and July 4, 2021, 1.9 million, 2.5 million and 9.6 million shares, respectively, have been included in diluted shares. For the six months ended July 3, 2022 and July 4, 2021, 2.2 million and 9.9 million shares, respectively, have been included in diluted shares. For the quarters ended July 3, 2022, April 3, 2022 and July 4, 2021, diluted shares also included 9.0 million, 10.0 million and 10.1 million shares, respectively, from the convertible note hedge transaction. For the six months ended July 3, 2022 and July 4, 2021, diluted shares included 9.5 million and 9.8 million shares, respectively, from the convertible note hedge transaction.
   
CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands)          
              
     July 3,
2022
 December 31,
2021
      
Assets            
 Cash and cash equivalents $572,023  $1,122,199       
 Marketable securities  209,846   244,231       
 Accounts receivable, net  683,739   550,749       
 Inventories, net  295,625   243,330       
 Prepayments  498,093   406,266       
 Other current assets  11,109   9,452       
   Total current assets  2,270,435   2,576,227       
              
 Property, plant and equipment, net  411,263   387,240       
 Operating lease right-of-use assets, net  71,812   68,807       
 Marketable securities  111,999   133,858       
 Deferred tax assets  126,639   102,428       
 Retirement plans assets  14,245   15,110       
 Other assets  26,942   24,096       
 Acquired intangible assets, net  62,509   75,635       
 Goodwill  397,733   426,024       
   Total assets $3,493,577  $3,809,425       
              
Liabilities           
 Accounts payable $175,606  $153,133       
 Accrued employees' compensation and withholdings  190,506   253,667       
 Deferred revenue and customer advances  163,127   146,185       
 Other accrued liabilities  133,881   124,187       
 Operating lease liabilities  17,770   19,977       
 Income taxes payable  106,863   88,789       
 Current debt  9,632   19,182       
   Total current liabilities  797,385   805,120       
              
 Retirement plans liabilities  141,884   151,141       
 Long-term deferred revenue and customer advances  50,357   54,921       
 Long-term other accrued liabilities  15,530   15,497       
 Deferred tax liabilities  3,143   6,327       
 Long-term operating lease liabilities  62,751   56,178       
 Long-term income taxes payable  59,135   67,041       
 Debt   64,796   89,244       
   Total liabilities  1,194,981   1,245,469       
              
Mezzanine equity  -   1,512       
Shareholders' equity  2,298,596   2,562,444       
   Total liabilities, convertible common shares and shareholders’ equity $3,493,577  $3,809,425       
              
              
              
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)          
              
     Quarter Ended Six Months Ended  
     July 3,
2022
 July 4,
2021
 July 3,
2022
 July 4,
2021
  
Cash flows from operating activities:          
 Net income $197,787  $328,319  $359,715  $533,831   
                    
 Adjustments to reconcile net income to net cash provided by operating activities:          
  Depreciation  21,957   21,938   44,460   45,848   
  Stock-based compensation  12,228   10,999   25,122   23,231   
  Amortization  4,862   9,521   10,095   19,343   
  Provision for excess and obsolete inventory  5,105   798   6,695   3,625   
  Deferred taxes  (34,885)  257   (23,597)  (800)  
  Losses (gains) on investments  6,972   (2,159)  8,973   (4,650)  
  Retirement plans actuarial gains  -   (627)  -   (627)  
  Contingent consideration fair value adjustment  -   -   -   (7,227)  
  Loss on convertible debt conversions  -   1,175   -   5,244   
  Other  345   (1)  522   199   
              
  Changes in operating assets and liabilities         
   Accounts receivable  (146,592)  (285,186)  (146,384)  (372,698)  
   Inventories  (37,202)  56,320   (46,682)  19,908   
   Prepayments and other assets  (25,597)  (31,285)  (99,902)  (117,416)  
   Accounts payable and other liabilities  85,922   97,361   (38,460)  86,790   
   Deferred revenue and customer advances  7,416   7,237   14,163   15,189   
   Retirement plans contributions  (1,289)  (814)  (2,618)  (2,739)  
   Income taxes  18,426   (7,569)  10,815   (2,628)  
Net cash provided by operating activities  115,455   206,284   122,917   244,423   
              
Cash flows from investing activities:          
 Purchases of property, plant and equipment  (45,744)  (34,707)  (89,743)  (73,957)  
 Purchases of marketable securities  (81,904)  (186,482)  (247,881)  (398,086)  
 Proceeds from maturities of marketable securities  42,970   265,985   139,652   460,213   
 Proceeds from sales of marketable securities  113,061   54,819   143,642   116,112   
 Purchase of investment  -   (12,000)  -   (12,000)  
Net cash provided by (used for) investing activities  28,383   87,615   (54,330)  92,282   
              
Cash flows from financing activities:          
 Issuance of common stock under stock purchase and stock option plans  61   15,437   16,536   32,581   
 Repurchase of common stock  (331,334)  (151,396)  (532,799)  (196,584)  
 Dividend payments  (17,547)  (16,604)  (35,442)  (33,271)  
 Payments of convertible debt principal  (21,598)  (15,553)  (42,292)  (66,828)  
 Payments related to net settlement of employee stock compensation awards  (1,732)  (1,119)  (32,780)  (31,794)  
Net cash used for financing activities  (372,150)  (169,235)  (626,777)  (295,896)  
              
Effects of exchange rate changes on cash and cash equivalents  5,732   (1,372)  8,014   (489)  
Decrease (increase) in cash and cash equivalents- (222,580)  123,292   (550,176)  40,320   
Cash and cash equivalents at beginning of period  794,603   831,149   1,122,199   914,121   
Cash and cash equivalents at end of period $572,023  $954,441  $572,023  $954,441   
              


GAAP to Non-GAAP Earnings Reconciliation                       
                          
(In millions, except per share amounts)                       
           Quarter Ended            
   July 3,
2022
 % of Net Revenues     April 3,
2022
 % of Net Revenues     July 4,
2021
 % of Net Revenues    
                          
Net revenues $840.8        $755.4        $1,085.7       
                          
Gross profit GAAP and non-GAAP$506.4   60.2%     $454.9  60.2%     $647.0  59.6%    
                          
Income from operations - GAAP$248.0   29.5%     $185.9  24.6%     $388.9  35.8%    
 Restructuring and other (1) 2.0   0.2%      15.7  2.1%      2.5  0.2%    
 Acquired intangible assets amortization 4.9   0.6%      5.1  0.7%      5.4  0.5%    
Income from operations - non-GAAP$254.9   30.3%     $206.7  27.4%     $396.8  36.5%    
                          
       Net Income
per Common Share
     Net Income
per Common Share
     Net Income
per Common Share
   July 3,
2022
 % of Net Revenues Basic  Diluted April 3,
2022
 % of Net Revenues Basic  Diluted July 4,
2021
 % of Net Revenues Basic  Diluted
Net income - GAAP$197.8   23.5% $1.24  $1.16  $161.9  21.4% $1.00  $0.92  $328.3  30.2% $1.98  $1.76 
 Restructuring and other (1) 2.0   0.2%  0.01   0.01   15.7  2.1%  0.10   0.09   2.5  0.2%  0.02   0.01 
 Acquired intangible assets amortization 4.9   0.6%  0.03   0.03   5.1  0.7%  0.03   0.03   5.4  0.5%  0.03   0.03 
 Loss on convertible debt conversions (2) -   -   -   -   -  -   -   -   1.2  0.1%  0.01   0.01 
 Interest and other (2) -   -   -   -   -  -   -   -   3.3  0.3%  0.02   0.02 
 Pension mark-to-market adjustment (2) -   -   -   -   -  -   -   -   (0.6) -0.1%  (0.00)  (0.00)
 Exclude discrete tax adjustments 1.6   0.2%  0.01   0.01   (10.4) -1.4%  (0.06)  (0.06)  (1.1) -0.1%  (0.01)  (0.01)
 Non-GAAP tax adjustments (2.3)  -0.3%  (0.01)  (0.01)  (3.3) -0.4%  (0.02)  (0.02)  (1.5) -0.1%  (0.01)  (0.01)
 Convertible share adjustment (3) -   -   -   0.01   -  -   -   0.01   -  -   -   0.10 
Net income - non-GAAP$204.0   24.3% $1.28  $1.21  $169.0  22.4% $1.04  $0.98  $337.5  31.1% $2.03  $1.91 
                          
GAAP and non-GAAP weighted average common shares - basic 159.6         162.0         166.0       
GAAP weighted average common shares - diluted 171.2         175.6         186.8       
 Exclude dilutive shares related to convertible note transaction (1.9)        (2.5)        (9.6)      
Non-GAAP weighted average common shares - diluted 169.3         173.1         177.2       
                          
(1)Restructuring and other consists of:                       
   Quarter Ended      
   July 3,
2022
       April 3,
2022
       July 4,
2021
      
 Employee severance$0.4        $0.6        $0.4       
 Litigation settlement -         14.7         -       
 Acquisition related expenses and compensation -         (0.2)        0.3       
 Other  1.7         0.7         1.8       
   $2.0        $15.7        $2.5       
                          
                          
(2)For the quarter ended July 4, 2021, adjustment to exclude loss on convertible debt conversions. For the quarter ended July 4, 2021, Interest and other included non-cash convertible debt interest expense. For the quarter ended July 4, 2021, adjustments to exclude actuarial (gain) loss recognized under GAAP in accordance with Teradyne's mark-to-market pension accounting.     
                          
(3)For the quarters ended July 3, 2022, April 3, 2022, and July 4, 2021, the non-GAAP diluted EPS calculation adds back $0.2 million, $0.3 million, and $0.9 million, respectively, of convertible debt interest expense to non-GAAP net income. For the quarters ended July 3, 2022, April 3, 2022, and July 4, 2021, non-GAAP weighted average diluted common shares include 9.0 million, 10.0 million and 10.1 million shares, respectively, from the convertible note hedge transaction.     
                          
   Six Months Ended        
   July 3,
2022
 % of Net Revenues     July 4,
2021
 % of Net Revenues            
                          
Net Revenues $1,596.1        $1,867.3                 
                          
Gross profit GAAP and non-GAAP$961.3   60.2%     $1,108.6  59.4%            
                          
Income from operations - GAAP$433.8   27.2%     $621.9  33.3%            
 Restructuring and other (1) 17.8   1.1%      (4.6) -0.2%            
 Acquired intangible assets amortization 9.9   0.6%      10.9  0.6%            
Income from operations - non-GAAP$461.5   28.9%     $628.2  33.6%            
                              
       Net Income
per Common Share
     Net Income
per Common Share
        
   July 3,
2022
 % of Net Revenues Basic  Diluted July 4,
2021
 % of Net Revenues Basic  Diluted        
Net income - GAAP$359.7   22.5% $2.24  $2.07  $533.8  28.6% $3.21  $2.85         
 Restructuring and other (1) 17.8   1.1%  0.11   0.10   (4.6) -0.2%  (0.03)  (0.02)        
 Acquired intangible assets amortization 9.9   0.6%  0.06   0.06   10.9  0.6%  0.07   0.06         
 Loss on convertible debt conversions (2) -   -   -   -   5.2  0.3%  0.03   0.03         
 Interest and other (2) -   -   -   -   6.9  0.4%  0.04   0.04         
 Pension mark-to-market adjustment (2) -   -   -   -   (0.6) -0.0%  (0.00)  (0.00)        
 Exclude discrete tax adjustments (8.8)  -0.6%  (0.05)  (0.05)  (16.3) -0.9%  (0.10)  (0.09)        
 Non-GAAP tax adjustments (5.6)  -0.4%  (0.03)  (0.03)  (1.9) -0.1%  (0.01)  (0.01)        
 Convertible share adjustment (3) -   -   -   0.03   -  -   -   0.16         
Net income - non-GAAP$373.0   23.4% $2.32  $2.18  $533.4  28.6% $3.21  $3.02         
                          
GAAP and non-GAAP weighted average common shares - basic 160.8         166.2               
GAAP weighted average common shares - diluted 173.4         187.2               
 Exclude dilutive shares from convertible note (2.2)        (9.9)              
Non-GAAP weighted average common shares - diluted 171.2         177.3               
                          
(1)Restructuring and other consists of:                       
   Six Months Ended              
   July 3,
2022
       July 4,
2021
              
 Litigation settlement$14.7        $-               
 Employee severance 0.9         0.6               
 Acquisition related expenses and compensation (0.2)        -               
 Contingent consideration fair value adjustment -         (7.2)              
 Other  2.3         1.9         -       
   $17.8        $(4.6)              
                          
(2)For the six months ended July 4, 2021, adjustment to exclude loss on convertible debt conversions. For the six months ended July 4, 2021, Interest and other included non-cash convertible debt interest expense. For the six months ended July 4, 2021, adjustments to exclude actuarial (gain) loss recognized under GAAP in accordance with Teradyne's mark-to-market pension accounting.        
                          
(3)For the six months ended July 3, 2022 and July 4, 2021, the non-GAAP diluted EPS calculation adds back $0.5 million and $2.1 million, respectively, of convertible debt interest expense to non-GAAP net income. For the six months ended July 3, 2022 and July 4, 2021, non-GAAP weighted average diluted common shares include 9.5 million and 9.8 million shares, respectively, related to the convertible debt hedge transaction.        
                          
GAAP to Non-GAAP Reconciliation of Third Quarter 2022 guidance:                      
                          
GAAP and non-GAAP third quarter revenue guidance:  $760 millionto$840 million                  
GAAP net income per diluted share  $0.86  $1.12                   
 Exclude acquired intangible assets amortization   0.03   0.03                   
 Convertible share adjustment   0.01   0.01                   
Non-GAAP net income per diluted share  $0.90  $1.16                   
                          
For press releases and other information of interest to investors, please visit Teradyne's homepage at http://www.teradyne.com.           
 Contact: Teradyne, Inc.                       
                Andy Blanchard 978-370-2425                
                Vice President of Corporate Relations              

Primary Logo