Orders in the fourth quarter of 2015 were $522 million of which $408 million was in Semiconductor Test, $66 million in System Test, $30 million in Wireless Test and $18 million in Industrial Automation.
For the fiscal year, Teradyne reported revenue of $1,640 million of which $1,202 million was in Semiconductor Test, $211 million in System Test, $185 million in Wireless Test and $42 million in Industrial Automation. On a non-GAAP basis, Teradyne’s net income for 2015 was $271.2 million, or $1.27 per diluted share, which excluded acquired intangible asset amortization, pension actuarial losses, and discrete income tax adjustments. GAAP net income for the year was $206.5 million or $0.97 per diluted share. Cash provided by operating activities for 2015 was $413 million and purchases of property, plant and equipment were $90 million.
“We closed 2015 with exceptionally strong Semiconductor Test demand as orders for our flagship UltraFLEX product line were pulled into the fourth quarter to meet 2016 production ramps for new mobile products,” said CEO and President Mark Jagiela. “At Universal Robots, we set quarterly and annual revenue records as customers serving a broad swath of industrial markets continue to embrace collaborative robots.”
“For the year, revenues again topped $1.6 billion despite the cyclical softness of the Semiconductor Test market in 2015. In addition, we generated $323 million in free cash flow, returned $350 million to shareholders through share repurchases and dividends, and added a new growth dimension to Teradyne in the fast expanding collaborative robot (cobot) market with the acquisition of Universal Robots. We enter 2016 well positioned to grow share in our core test businesses, broaden the range of applications for cobots, and continue our balanced capital allocation strategy,” continued Mr. Jagiela.
Teradyne’s Board of Directors also declared a quarterly cash dividend of $0.06 per share, payable on March 21, 2016 to shareholders of record as of the close of business on February 26, 2016.
Guidance for the first quarter of 2016 is revenue of $410 million to $440 million, with non-GAAP net income of $0.23 to $0.29 per diluted share and GAAP net income of $0.15 to $0.21 per diluted share. Non-GAAP guidance excludes acquired intangible asset amortization.
Webcast
A conference call to discuss the fourth quarter and
2015 results, along with management's business outlook, will occur at 10
a.m. ET, Thursday, January 28, 2016. 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 at
www.teradyne.com/investors
at 10 a.m. ET. A replay of the call will also be available on the
Teradyne website.
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 asset amortization, pension actuarial
losses, fair value inventory step-up related to Universal Robots,
goodwill impairment, retired CEO equity charge, non-cash convertible
debt interest, discrete income tax adjustments, restructuring and other,
and a gain from the sale of an equity investment. 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 and non-GAAP net income as a percentage of
revenue, and non-GAAP net income per share are non-GAAP 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 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 gross margin excludes fair value inventory step-up related to
Universal Robots and pension actuarial losses. GAAP requires that these
items be included in determining gross margin. Non-GAAP gross margin
dollar amount and percentage are non-GAAP measures that management
believes provide useful supplemental information for management and the
investor. Management uses non-GAAP gross margin as a performance measure
for Teradyne’s current core business and future outlook and for
comparison with Teradyne’s business plan, historical gross margin
results and the gross margin results of Teradyne’s competitors. Prior to
September 29, 2014, non-GAAP diluted shares included the impact of
Teradyne’s call option and warrant on its shares. Management believes
each of these non-GAAP 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 "Investors" and then selecting the "GAAP to Non-GAAP
Reconciliation" link. The non-GAAP financial 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.
