About Teradyne
Teradyne (NASDAQ: TER) test technology helps bring 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 robotics offerings include collaborative and mobile robots that help manufacturers of all sizes increase productivity, improve safety, and lower costs. In 2023, Teradyne had revenue of $2.7 billion and today employs over 6,400 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 including statements regarding Teradyne’s future business prospects, financial performance or position and results of operations. You can identify forward-looking statements by their use of forward-looking words such as “anticipate,” “expect,” “plan,” “could,” “may,” “will,” “believe,” “estimate,” “goal” or other comparable terms. Forward-looking statements in this press release address various matters, including statements regarding Teradyne’s financial guidance. Investors are cautioned that such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements due to known and unknown risks, uncertainties, assumptions, and other factors. Such factors include, but are not limited to, macroeconomic factors and slowdowns or downturns in economic conditions generally and in the markets in which Teradyne operates; decreased or delayed product demand from one or more significant customers; a slowdown or inability in the development, delivery and acceptance of new products; the ability to grow the Robotics business; the impact of increased research and development spending; the impact of epidemics or pandemics such as COVID-19; the impact of a supply shortage on our supply chain and contract manufacturers; the consummation and success of any mergers or acquisitions; unexpected cash needs; the business judgment of the board of directors that a declaration of a dividend or the repurchase of common stock is not in Teradyne’s best interests; changes to U.S. or global tax regulations or guidance; the impact of any tariffs or export controls imposed by the U.S. or China; 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; the impact of the current conflicts in Israel; the impact of regulations published by the U.S. Department of Commerce relating to semiconductors and semiconductor manufacturing equipment destined for certain end uses in China.
The risks included above are not exhaustive. For a more detailed description of the risk factors associated with Teradyne, please refer to Teradyne’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023. Many of these factors are macroeconomic in nature and are, therefore, beyond Teradyne’s control. We caution readers not to place undue reliance on any forward-looking statements included in this press release which speak only as to the date of this press release. Teradyne specifically disclaims any obligation to update any forward-looking information contained in this press release or with respect to the announcements described herein.
TERADYNE, INC. REPORT FOR THIRD FISCAL QUARTER OF 2024 |
||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||||||||||
|
|
Quarter Ended |
|
|
Nine Months Ended |
|
||||||||||||||
|
|
September 29,
|
|
|
June 30,
|
|
|
October 1,
|
|
|
September 29,
|
|
|
October 1,
|
|
|||||
Net revenues |
|
$ |
737,298 |
|
|
$ |
729,879 |
|
|
$ |
703,732 |
|
|
$ |
2,066,996 |
|
|
$ |
2,005,699 |
|
Cost of revenues (exclusive of acquired intangible assets amortization shown separately below) (1) |
|
|
300,784 |
|
|
|
304,035 |
|
|
|
305,441 |
|
|
|
865,357 |
|
|
|
848,495 |
|
| Gross profit |
|
|
436,514 |
|
|
|
425,844 |
|
|
|
398,291 |
|
|
|
1,201,639 |
|
|
|
1,157,204 |
|
| Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
| Selling and administrative (2) |
|
|
157,649 |
|
|
|
154,470 |
|
|
|
138,330 |
|
|
|
461,307 |
|
|
|
434,979 |
|
| Engineering and development |
|
|
117,474 |
|
|
|
111,816 |
|
|
|
104,413 |
|
|
|
332,489 |
|
|
|
315,881 |
|
| Acquired intangible assets amortization |
|
|
4,748 |
|
|
|
4,664 |
|
|
|
4,720 |
|
|
|
14,108 |
|
|
|
14,348 |
|
| Restructuring and other (3) |
|
|
4,578 |
|
|
|
2,012 |
|
|
|
6,856 |
|
|
|
11,018 |
|
|
|
15,251 |
|
| Gain on sale of business (4) |
|
|
— |
|
|
|
(57,486 |
) |
|
|
— |
|
|
|
(57,486 |
) |
|
|
— |
|
| Operating expenses |
|
|
284,449 |
|
|
|
215,476 |
|
|
|
254,319 |
|
|
|
761,436 |
|
|
|
780,459 |
|
| Income from operations |
|
|
152,065 |
|
|
|
210,368 |
|
|
|
143,972 |
|
|
|
440,203 |
|
|
|
376,745 |
|
| Interest and other (income) expense (5) |
|
|
(6,919 |
) |
|
|
(9,035 |
) |
|
|
(308 |
) |
|
|
(11,086 |
) |
|
|
(9,022 |
) |
| Income before income taxes and equity in net earnings of affiliate |
|
|
158,984 |
|
|
|
219,403 |
|
|
|
144,280 |
|
|
|
451,289 |
|
|
|
385,767 |
|
| Income tax provision |
|
|
12,260 |
|
|
|
33,130 |
|
|
|
16,164 |
|
|
|
54,095 |
|
|
|
54,069 |
|
| Income before equity in net earnings of affiliate |
|
|
146,724 |
|
|
|
186,273 |
|
|
|
128,116 |
|
|
|
397,194 |
|
|
|
331,698 |
|
| Equity in net earnings of affiliate |
|
|
(1,075 |
) |
|
|
— |
|
|
|
— |
|
|
|
(1,075 |
) |
|
|
— |
|
| Net income |
|
$ |
145,649 |
|
|
$ |
186,273 |
|
|
$ |
128,116 |
|
|
$ |
396,119 |
|
|
$ |
331,698 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
| Net income per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
| Basic |
|
$ |
0.89 |
|
|
$ |
1.18 |
|
|
$ |
0.83 |
|
|
$ |
2.51 |
|
|
$ |
2.14 |
|
| Diluted |
|
$ |
0.89 |
|
|
$ |
1.14 |
|
|
$ |
0.78 |
|
|
$ |
2.42 |
|
|
$ |
2.01 |
|
| Weighted average common shares - basic |
|
|
163,002 |
|
|
|
157,804 |
|
|
|
153,762 |
|
|
|
157,951 |
|
|
|
154,809 |
|
| Weighted average common shares - diluted (6) |
|
|
164,253 |
|
|
|
163,470 |
|
|
|
164,050 |
|
|
|
163,357 |
|
|
|
165,037 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
| Cash dividend declared per common share |
|
$ |
0.12 |
|
|
$ |
0.12 |
|
|
$ |
0.11 |
|
|
$ |
0.36 |
|
|
$ |
0.33 |
|
| (1) | Cost of revenues includes: |
|
|
|
Quarter Ended |
|
|
Nine Months Ended |
|
||||||||||||||
|
|
|
September 29,
|
|
|
June 30,
|
|
|
October 1,
|
|
|
September 29,
|
|
|
October 1,
|
|
|||||
| Provision for excess and obsolete inventory |
|
$ |
6,078 |
|
|
$ |
3,261 |
|
|
$ |
11,728 |
|
|
$ |
15,515 |
|
|
$ |
23,069 |
|
| Legal settlement |
|
|
3,600 |
|
|
|
— |
|
|
|
— |
|
|
|
3,600 |
|
|
|
— |
|
| Sale of previously written down inventory |
|
|
(472 |
) |
|
|
(592 |
) |
|
|
(1,198 |
) |
|
|
(1,787 |
) |
|
|
(4,046 |
) |
|
|
|
$ |
9,206 |
|
|
$ |
2,669 |
|
|
$ |
10,530 |
|
|
$ |
17,328 |
|
|
$ |
19,023 |
|
| (2) |
For the nine months ended September 29, 2024, selling and administrative expenses included an equity charge of $1.7 million for the modification of Teradyne executives' retirement agreements. For the nine months ended October 1, 2023, selling and administrative expenses included an equity charge of $5.9 million for the modification of Teradyne’s retired CEO’s outstanding equity awards in connection with his February 1, 2023, retirement. |
|
| (3) |
Restructuring and other consists of: |
|
|
|
Quarter Ended |
|
|
Nine Months Ended |
|
||||||||||||||
|
|
|
September 29,
|
|
|
June 30,
|
|
|
October 1,
|
|
|
September 29,
|
|
|
October 1,
|
|
|||||
| Employee severance |
|
$ |
1,280 |
|
|
$ |
2,012 |
|
|
$ |
4,658 |
|
|
$ |
5,319 |
|
|
$ |
11,835 |
|
| Acquisition and divestiture related expenses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,214 |
|
|
|
— |
|
| Contract termination |
|
|
— |
|
|
|
— |
|
|
|
1,511 |
|
|
|
— |
|
|
|
1,511 |
|
| Other |
|
|
3,298 |
|
|
|
— |
|
|
|
687 |
|
|
|
3,485 |
|
|
|
1,905 |
|
|
|
|
$ |
4,578 |
|
|
$ |
2,012 |
|
|
$ |
6,856 |
|
|
$ |
11,018 |
|
|
$ |
15,251 |
|
| (4) | On May 27, 2024, Teradyne sold Teradyne's Device Interface Solution ("DIS") business, a component of the Semiconductor Test segment, to Technoprobe S.p.A. ("Technoprobe"), for $85.0 million, net of cash and cash equivalents sold and a working capital adjustment. |
|
| (5) | Interest and other includes: |
|
|
|
Quarter Ended |
|
|
Nine Months Ended |
|
||||||||||||||
|
|
|
September 29,
|
|
|
June 30,
|
|
|
October 1,
|
|
|
September 29,
|
|
|
October 1,
|
|
|||||
| Pension actuarial losses (gains) |
|
$ |
(2,262 |
) |
|
$ |
(250 |
) |
|
$ |
72 |
|
|
$ |
(2,513 |
) |
|
$ |
125 |
|
| Loss (gain) on foreign exchange option |
|
|
— |
|
|
|
(4,154 |
) |
|
|
— |
|
|
|
9,765 |
|
|
|
— |
|
| (6) |
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 quarter ended October 1, 2023, 0.6 million shares have been included in diluted shares. For the nine months ended October 1, 2023, 0.8 million shares have been included in diluted shares. For the quarters ended September 29, 2024, June 30, 2024, and October 1, 2023, diluted shares included 0.5 million, 4.9 million, and 9.2 million shares, respectively, from the convertible note hedge transaction. For the nine months ended September 29, 2024, and October 1, 2023, diluted shares included 4.8 million and 9.0 million shares, respectively, from the convertible note hedge transaction.
|
| CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) |
||||||||
|
|
|
September 29,
|
|
|
December 31,
|
|
||
| Assets |
|
|
|
|
|
|
||
| Cash and cash equivalents |
|
$ |
510,036 |
|
|
$ |
757,571 |
|
| Marketable securities |
|
|
41,631 |
|
|
|
62,154 |
|
| Accounts receivable, net |
|
|
484,376 |
|
|
|
422,124 |
|
| Inventories, net |
|
|
297,340 |
|
|
|
309,974 |
|
| Prepayments |
|
|
489,548 |
|
|
|
548,970 |
|
| Other current assets |
|
|
15,935 |
|
|
|
37,992 |
|
| Current assets held for sale |
|
|
— |
|
|
|
23,250 |
|
| Total current assets |
|
|
1,838,866 |
|
|
|
2,162,035 |
|
| Property, plant and equipment, net |
|
|
491,704 |
|
|
|
445,492 |
|
| Operating lease right-of-use assets, net |
|
|
70,784 |
|
|
|
73,417 |
|
| Marketable securities |
|
|
125,944 |
|
|
|
117,434 |
|
| Deferred tax assets |
|
|
201,881 |
|
|
|
175,775 |
|
| Retirement plans assets |
|
|
13,114 |
|
|
|
11,504 |
|
| Equity method investment |
|
|
538,351 |
|
|
|
— |
|
| Other assets |
|
|
48,384 |
|
|
|
38,580 |
|
| Acquired intangible assets, net |
|
|
21,288 |
|
|
|
35,404 |
|
| Goodwill |
|
|
419,412 |
|
|
|
415,652 |
|
| Assets held for sale |
|
|
— |
|
|
|
11,531 |
|
| Total assets |
|
$ |
3,769,728 |
|
|
$ |
3,486,824 |
|
| Liabilities |
|
|
|
|
|
|
||
| Accounts payable |
|
$ |
158,459 |
|
|
$ |
180,131 |
|
| Accrued employees’ compensation and withholdings |
|
|
159,794 |
|
|
|
191,750 |
|
| Deferred revenue and customer advances |
|
|
99,776 |
|
|
|
99,804 |
|
| Other accrued liabilities |
|
|
105,150 |
|
|
|
114,712 |
|
| Operating lease liabilities |
|
|
19,175 |
|
|
|
17,522 |
|
| Income taxes payable |
|
|
52,542 |
|
|
|
48,653 |
|
| Current liabilities held for sale |
|
|
— |
|
|
|
7,379 |
|
| Total current liabilities |
|
|
594,896 |
|
|
|
659,951 |
|
| Retirement plans liabilities |
|
|
137,735 |
|
|
|
132,090 |
|
| Long-term deferred revenue and customer advances |
|
|
41,135 |
|
|
|
37,282 |
|
| Long-term other accrued liabilities |
|
|
8,373 |
|
|
|
19,998 |
|
| Deferred tax liabilities |
|
|
164 |
|
|
|
183 |
|
| Long-term operating lease liabilities |
|
|
60,287 |
|
|
|
65,092 |
|
| Long-term income taxes payable |
|
|
24,596 |
|
|
|
44,331 |
|
| Liabilities held for sale |
|
|
— |
|
|
|
2,000 |
|
| Total liabilities |
|
|
867,186 |
|
|
|
960,927 |
|
| Shareholders’ equity |
|
|
2,902,542 |
|
|
|
2,525,897 |
|
| Total liabilities and shareholders’ equity |
|
$ |
3,769,728 |
|
|
$ |
3,486,824 |
|
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) |
||||||||||||||||
|
|
|
Quarter Ended |
|
|
Nine Months Ended |
|
||||||||||
|
|
|
September 29,
|
|
|
October 1,
|
|
|
September 29,
|
|
|
October 1,
|
|
||||
| Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
| Net income |
|
$ |
145,649 |
|
|
$ |
128,116 |
|
|
$ |
396,119 |
|
|
$ |
331,698 |
|
| Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
| Depreciation |
|
|
25,553 |
|
|
|
23,627 |
|
|
|
74,480 |
|
|
|
68,858 |
|
| Stock-based compensation |
|
|
14,574 |
|
|
|
12,787 |
|
|
|
45,267 |
|
|
|
45,236 |
|
| Provision for excess and obsolete inventory |
|
|
6,078 |
|
|
|
11,728 |
|
|
|
15,516 |
|
|
|
23,069 |
|
| Amortization |
|
|
4,736 |
|
|
|
4,503 |
|
|
|
14,133 |
|
|
|
14,083 |
|
| Equity in net earnings of affiliate |
|
|
1,075 |
|
|
|
— |
|
|
|
1,075 |
|
|
|
— |
|
| Gain on sale of business |
|
|
— |
|
|
|
— |
|
|
|
(57,486 |
) |
|
|
— |
|
| Deferred taxes |
|
|
(9,431 |
) |
|
|
(10,455 |
) |
|
|
(26,261 |
) |
|
|
(24,026 |
) |
| Losses (gains) on investments |
|
|
(2,951 |
) |
|
|
1,586 |
|
|
|
10,139 |
|
|
|
(3,159 |
) |
| Retirement plan actuarial losses (gains) |
|
|
(2,262 |
) |
|
|
— |
|
|
|
(2,512 |
) |
|
|
— |
|
| Other |
|
|
(6,282 |
) |
|
|
80 |
|
|
|
(5,041 |
) |
|
|
(13 |
) |
| Changes in operating assets and liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
||||
| Accounts receivable |
|
|
(11,055 |
) |
|
|
32,884 |
|
|
|
(65,266 |
) |
|
|
30,191 |
|
| Inventories |
|
|
(5,974 |
) |
|
|
20,240 |
|
|
|
11,127 |
|
|
|
6,395 |
|
| Prepayments and other assets |
|
|
39,248 |
|
|
|
(34,398 |
) |
|
|
61,438 |
|
|
|
(63,982 |
) |
| Accounts payable and other liabilities |
|
|
(10,657 |
) |
|
|
28,513 |
|
|
|
(63,666 |
) |
|
|
3,999 |
|
| Deferred revenue and customer advances |
|
|
885 |
|
|
|
(14,579 |
) |
|
|
3,624 |
|
|
|
(49,517 |
) |
| Retirement plans contributions |
|
|
(1,395 |
) |
|
|
(1,216 |
) |
|
|
(4,169 |
) |
|
|
(3,698 |
) |
| Income taxes |
|
|
(21,520 |
) |
|
|
(29,069 |
) |
|
|
(18,898 |
) |
|
|
(42,683 |
) |
| Net cash provided by operating activities |
|
|
166,271 |
|
|
|
174,347 |
|
|
|
389,619 |
|
|
|
336,451 |
|
| Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
| Purchases of property, plant and equipment |
|
|
(51,841 |
) |
|
|
(34,604 |
) |
|
|
(140,710 |
) |
|
|
(115,306 |
) |
| Purchases of marketable securities |
|
|
(7,340 |
) |
|
|
(38,768 |
) |
|
|
(35,097 |
) |
|
|
(137,786 |
) |
| Purchases of investment in a business |
|
|
(2,407 |
) |
|
|
— |
|
|
|
(527,060 |
) |
|
|
— |
|
| Issuance of convertible loan |
|
|
— |
|
|
|
(5,000 |
) |
|
|
— |
|
|
|
(5,000 |
) |
| Proceeds from maturities of marketable securities |
|
|
6,305 |
|
|
|
49,450 |
|
|
|
33,163 |
|
|
|
71,447 |
|
| Proceeds from the sale of a business, net of cash and cash equivalents sold |
|
|
3,176 |
|
|
|
— |
|
|
|
90,348 |
|
|
|
— |
|
| Proceeds from sales of marketable securities |
|
|
2,311 |
|
|
|
1,386 |
|
|
|
23,600 |
|
|
|
36,963 |
|
| Proceeds from life insurance |
|
|
— |
|
|
|
— |
|
|
|
873 |
|
|
|
460 |
|
| Net cash used for investing activities |
|
|
(49,796 |
) |
|
|
(27,536 |
) |
|
|
(554,883 |
) |
|
|
(149,222 |
) |
| Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
| Repurchase of common stock |
|
|
(24,747 |
) |
|
|
(118,647 |
) |
|
|
(55,053 |
) |
|
|
(346,492 |
) |
| Dividend payments |
|
|
(19,566 |
) |
|
|
(16,897 |
) |
|
|
(56,936 |
) |
|
|
(51,081 |
) |
| Payments related to net settlement of employee stock compensation awards |
|
|
(399 |
) |
|
|
(278 |
) |
|
|
(13,833 |
) |
|
|
(20,586 |
) |
| Payments of borrowings on revolving credit facility |
|
|
— |
|
|
|
— |
|
|
|
(185,000 |
) |
|
|
— |
|
| Payments of convertible debt principal |
|
|
— |
|
|
|
(9,277 |
) |
|
|
— |
|
|
|
(26,735 |
) |
| Proceeds from borrowings on revolving credit facility |
|
|
— |
|
|
|
— |
|
|
|
185,000 |
|
|
|
— |
|
| Issuance of common stock under stock purchase and stock option plans |
|
|
15,429 |
|
|
|
17,485 |
|
|
|
37,265 |
|
|
|
34,084 |
|
| Net cash used for financing activities |
|
|
(29,283 |
) |
|
|
(127,614 |
) |
|
|
(88,557 |
) |
|
|
(410,810 |
) |
| Effects of exchange rate changes on cash and cash equivalents |
|
|
940 |
|
|
|
4,556 |
|
|
|
6,286 |
|
|
|
5,769 |
|
| Increase (decrease) in cash and cash equivalents |
|
|
88,132 |
|
|
|
23,753 |
|
|
|
(247,535 |
) |
|
|
(217,812 |
) |
| Cash and cash equivalents at beginning of period |
|
|
421,904 |
|
|
|
613,208 |
|
|
|
757,571 |
|
|
|
854,773 |
|
| Cash and cash equivalents at end of period |
|
$ |
510,036 |
|
|
$ |
636,961 |
|
|
$ |
510,036 |
|
|
$ |
636,961 |
|
| GAAP to Non-GAAP Earnings Reconciliation (In millions, except per share amounts) |
|||||||||||||||||||||||||||||||||||
|
|
Quarter Ended |
|
|
|
|
|
|||||||||||||||||||||||||||||
|
|
September 29,
|
|
|
% of Net
|
|
|
|
|
|
|
June 30,
|
|
|
% of Net
|
|
|
|
|
|
|
October 1,
|
|
|
% of Net
|
|
|
|
|
|
||||||
| Net revenues |
$ |
737.3 |
|
|
|
|
|
|
|
|
|
$ |
729.9 |
|
|
|
|
|
|
|
|
|
$ |
703.7 |
|
|
|
|
|
|
|
|
|||
| Gross profit - GAAP |
|
436.5 |
|
|
|
59.2 |
% |
|
|
|
|
|
|
425.8 |
|
|
|
58.3 |
% |
|
|
|
|
|
|
398.3 |
|
|
|
56.6 |
% |
|
|
|
|
| Legal settlement (1) |
|
3.6 |
|
|
|
0.5 |
% |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|
| Gross profit - non-GAAP |
|
440.1 |
|
|
|
59.7 |
% |
|
|
|
|
|
|
425.8 |
|
|
|
58.3 |
% |
|
|
|
|
|
|
398.3 |
|
|
|
56.6 |
% |
|
|
|
|
| Income from operations - GAAP |
|
152.1 |
|
|
|
20.6 |
% |
|
|
|
|
|
|
210.4 |
|
|
|
28.8 |
% |
|
|
|
|
|
|
144.0 |
|
|
|
20.5 |
% |
|
|
|
|
| Acquired intangible assets amortization |
|
4.7 |
|
|
|
0.6 |
% |
|
|
|
|
|
|
4.7 |
|
|
|
0.6 |
% |
|
|
|
|
|
|
4.7 |
|
|
|
0.7 |
% |
|
|
|
|
| Restructuring and other (2) |
|
4.6 |
|
|
|
0.6 |
% |
|
|
|
|
|
|
2.0 |
|
|
|
0.3 |
% |
|
|
|
|
|
|
6.9 |
|
|
|
1.0 |
% |
|
|
|
|
| Legal settlement (1) |
|
3.6 |
|
|
|
0.5 |
% |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|
| Gain on sale of business (3) |
|
— |
|
|
|
— |
|
|
|
|
|
|
|
(57.5 |
) |
|
|
-7.9 |
% |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|
| Income from operations - non-GAAP |
$ |
165.0 |
|
|
|
22.4 |
% |
|
|
|
|
|
$ |
159.6 |
|
|
|
21.9 |
% |
|
|
|
|
|
$ |
155.6 |
|
|
|
22.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
|
|
|
|
|
|
|
Net Income
|
|
|
|
|
|
|
|
|
Net Income
|
|
|||||||||||||||||||||
|
|
September 29,
|
|
|
% of Net
|
|
|
Basic |
|
|
Diluted |
|
|
June 30,
|
|
|
% of Net
|
|
|
Basic |
|
|
Diluted |
|
|
October 1,
|
|
|
% of Net
|
|
|
Basic |
|
|
Diluted |
|
||||||||||||
| Net income - GAAP |
$ |
145.6 |
|
|
|
19.7 |
% |
|
$ |
0.89 |
|
|
$ |
0.89 |
|
|
$ |
186.3 |
|
|
|
25.5 |
% |
|
$ |
1.18 |
|
|
$ |
1.14 |
|
|
$ |
128.1 |
|
|
|
18.2 |
% |
|
$ |
0.83 |
|
|
$ |
0.78 |
|
| Acquired intangible assets amortization |
|
4.7 |
|
|
|
0.6 |
% |
|
|
0.03 |
|
|
|
0.03 |
|
|
|
4.7 |
|
|
|
0.6 |
% |
|
|
0.03 |
|
|
|
0.03 |
|
|
|
4.7 |
|
|
|
0.7 |
% |
|
|
0.03 |
|
|
|
0.03 |
|
| Restructuring and other (2) |
|
4.6 |
|
|
|
0.6 |
% |
|
|
0.03 |
|
|
|
0.03 |
|
|
|
2.0 |
|
|
|
0.3 |
% |
|
|
0.01 |
|
|
|
0.01 |
|
|
|
6.9 |
|
|
|
1.0 |
% |
|
|
0.04 |
|
|
|
0.04 |
|
| Legal settlement (1) |
|
3.6 |
|
|
|
0.5 |
% |
|
|
0.02 |
|
|
|
0.02 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Amortization of equity method investment |
|
2.4 |
|
|
|
0.3 |
% |
|
|
0.01 |
|
|
|
0.01 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Loss (gain) on foreign exchange option |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(4.2 |
) |
|
|
-0.6 |
% |
|
|
(0.03 |
) |
|
|
(0.03 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Gain on sale of business (3) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(57.5 |
) |
|
|
-7.9 |
% |
|
|
(0.36 |
) |
|
|
(0.35 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Pension mark-to-market adjustment (4) |
|
(2.3 |
) |
|
|
-0.3 |
% |
|
|
(0.01 |
) |
|
|
(0.01 |
) |
|
|
(0.3 |
) |
|
|
0.0 |
% |
|
|
(0.00 |
) |
|
|
(0.00 |
) |
|
|
0.1 |
|
|
|
0.0 |
% |
|
|
0.00 |
|
|
|
0.00 |
|
| Exclude discrete tax adjustments |
|
(8.9 |
) |
|
|
-1.2 |
% |
|
|
(0.05 |
) |
|
|
(0.05 |
) |
|
|
10.5 |
|
|
|
1.4 |
% |
|
|
0.07 |
|
|
|
0.06 |
|
|
|
(4.8 |
) |
|
|
-0.7 |
% |
|
|
(0.03 |
) |
|
|
(0.03 |
) |
| Non-GAAP tax adjustments |
|
(2.1 |
) |
|
|
-0.3 |
% |
|
|
(0.01 |
) |
|
|
(0.01 |
) |
|
|
(1.5 |
) |
|
|
-0.2 |
% |
|
|
(0.01 |
) |
|
|
(0.01 |
) |
|
|
(3.5 |
) |
|
|
-0.5 |
% |
|
|
(0.02 |
) |
|
|
(0.02 |
) |
| Net income - non-GAAP |
$ |
147.6 |
|
|
|
20.0 |
% |
|
$ |
0.91 |
|
|
$ |
0.90 |
|
|
$ |
140.0 |
|
|
|
19.2 |
% |
|
$ |
0.89 |
|
|
$ |
0.86 |
|
|
$ |
131.5 |
|
|
|
18.7 |
% |
|
$ |
0.86 |
|
|
$ |
0.80 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
| GAAP and non-GAAP weighted average common shares - basic |
|
163.0 |
|
|
|
|
|
|
|
|
|
|
|
|
157.8 |
|
|
|
|
|
|
|
|
|
|
|
|
153.8 |
|
|
|
|
|
|
|
|
|
|
|||||||||
| GAAP weighted average common shares - diluted (6) |
|
164.3 |
|
|
|
|
|
|
|
|
|
|
|
|
163.5 |
|
|
|
|
|
|
|
|
|
|
|
|
164.1 |
|
|
|
|
|
|
|
|
|
|
|||||||||
| Exclude dilutive shares related to convertible note transaction |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
(0.6 |
) |
|
|
|
|
|
|
|
|
|
|||||||||
| Non-GAAP weighted average common shares - diluted |
|
164.3 |
|
|
|
|
|
|
|
|
|
|
|
|
163.5 |
|
|
|
|
|
|
|
|
|
|
|
|
163.4 |
|
|
|
|
|
|
|
|
|
|
|||||||||
| (1) | For the three months ended September 29, 2024, legal settlement includes charges for a settlement following a judgment against the Company for infringement of expired patents. |
|
| (2) | Restructuring and other consists of: |
|
|
Quarter Ended |
|
|
|
|
|
|
|
|||||||||||||||||||||
|
|
September 29,
|
|
|
|
|
|
|
|
|
June 30,
|
|
|
|
|
|
|
|
|
October 1,
|
|
|
|
|
|
|
|
|||
| Employee severance |
$ |
1.3 |
|
|
|
|
|
|
|
|
$ |
2.0 |
|
|
|
|
|
|
|
|
$ |
4.7 |
|
|
|
|
|
|
|
| Contract termination |
|
— |
|
|
|
|
|
|
|
|
|
— |
|
|
|
|
|
|
|
|
|
1.5 |
|
|
|
|
|
|
|
| Other |
|
3.3 |
|
|
|
|
|
|
|
|
|
— |
|
|
|
|
|
|
|
|
|
0.6 |
|
|
|
|
|
|
|
|
|
$ |
4.6 |
|
|
|
|
|
|
|
|
$ |
2.0 |
|
|
|
|
|
|
|
|
$ |
6.9 |
|
|
|
|
|
|
|
| (3) |
On May 27, 2024, Teradyne sold DIS, a component of the Semiconductor Test segment, to Technoprobe, for $85.0 million, net of cash and cash equivalents sold and a working capital adjustment. |
|
| (4) |
For the quarters ended September 29, 2024, June 30, 2024 and October 1, 2023, adjustments to exclude actuarial gains and losses, respectively, recognized under GAAP in accordance with Teradyne’s mark-to-market pension accounting. |
|
| (5) |
For the quarters ended September 29, 2024, June 30, 2024, and October 1, 2023, non-GAAP weighted average diluted common shares included 0.5 million, 4.9 million and 9.2 million shares, respectively, from the convertible note hedge transaction. |
|
|
Nine Months Ended |
|
|
|
|
|
|||||||||||||||||
|
|
September 29,
|
|
|
% of Net Revenues |
|
|
|
|
|
|
October 1,
|
|
|
% of Net Revenues |
|
|
|
|
|
||||
| Net Revenues |
$ |
2,067.0 |
|
|
|
|
|
|
|
|
|
$ |
2,005.7 |
|
|
|
|
|
|
|
|
||
| Gross profit - GAAP |
|
1,201.6 |
|
|
|
58.1 |
% |
|
|
|
|
|
|
1,157.2 |
|
|
|
57.7 |
% |
|
|
|
|
| Legal settlement (1) |
|
3.6 |
|
|
|
0.2 |
% |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|
| Gross profit - non-GAAP |
|
1,205.2 |
|
|
|
58.3 |
% |
|
|
|
|
|
|
1,157.2 |
|
|
|
57.7 |
% |
|
|
|
|
| Income from operations - GAAP |
|
440.2 |
|
|
|
21.3 |
% |
|
|
|
|
|
|
376.7 |
|
|
|
18.8 |
% |
|
|
|
|
| Acquired intangible assets amortization |
|
14.1 |
|
|
|
0.7 |
% |
|
|
|
|
|
|
14.3 |
|
|
|
0.7 |
% |
|
|
|
|
| Restructuring and other (2) |
|
11.0 |
|
|
|
0.5 |
% |
|
|
|
|
|
|
15.3 |
|
|
|
0.8 |
% |
|
|
|
|
| Legal settlement (1) |
|
3.6 |
|
|
|
0.2 |
% |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|
| Equity modification charge (3) |
|
1.7 |
|
|
|
0.1 |
% |
|
|
|
|
|
|
5.9 |
|
|
|
0.3 |
% |
|
|
|
|
| Loss (gain) on sale of business (4) |
|
(57.5 |
) |
|
|
-2.8 |
% |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|
| Income from operations - non-GAAP |
$ |
413.1 |
|
|
|
20.0 |
% |
|
|
|
|
|
$ |
412.2 |
|
|
|
20.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
|
|
|
|
|
|
|
Net Income
|
|
||||||||||||||
|
|
September 29,
|
|
|
% of Net Revenues |
|
|
Basic |
|
|
Diluted |
|
|
October 1,
|
|
|
% of Net Revenues |
|
|
Basic |
|
|
Diluted |
|
||||||||
| Net income - GAAP |
$ |
396.1 |
|
|
|
19.2 |
% |
|
$ |
2.51 |
|
|
$ |
2.42 |
|
|
$ |
331.7 |
|
|
|
16.5 |
% |
|
$ |
2.14 |
|
|
$ |
2.01 |
|
| Acquired intangible assets amortization |
|
14.1 |
|
|
|
0.7 |
% |
|
|
0.09 |
|
|
|
0.09 |
|
|
|
14.3 |
|
|
|
0.7 |
% |
|
|
0.09 |
|
|
|
0.09 |
|
| Restructuring and other (2) |
|
11.0 |
|
|
|
0.5 |
% |
|
|
0.07 |
|
|
|
0.07 |
|
|
|
15.3 |
|
|
|
0.8 |
% |
|
|
0.10 |
|
|
|
0.09 |
|
| Loss (gain) on foreign exchange option |
|
9.8 |
|
|
|
0.5 |
% |
|
|
0.06 |
|
|
|
0.06 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Legal settlement (1) |
|
3.6 |
|
|
|
0.2 |
% |
|
|
0.02 |
|
|
|
0.02 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Amortization of equity method investment |
|
2.4 |
|
|
|
0.1 |
% |
|
|
0.02 |
|
|
|
0.01 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Equity modification charge (3) |
|
1.7 |
|
|
|
0.1 |
% |
|
|
0.01 |
|
|
|
0.01 |
|
|
|
5.9 |
|
|
|
0.3 |
% |
|
|
0.04 |
|
|
|
0.04 |
|
| Pension mark-to-market adjustment (5) |
|
(2.5 |
) |
|
|
-0.1 |
% |
|
|
(0.02 |
) |
|
|
(0.02 |
) |
|
|
0.1 |
|
|
|
0.0 |
% |
|
|
0.00 |
|
|
|
0.00 |
|
| Loss (gain) on sale of business (4) |
|
(57.5 |
) |
|
|
-2.8 |
% |
|
|
(0.36 |
) |
|
|
(0.35 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Exclude discrete tax adjustments |
|
(0.7 |
) |
|
|
0.0 |
% |
|
|
(0.00 |
) |
|
|
(0.00 |
) |
|
|
(6.7 |
) |
|
|
-0.3 |
% |
|
|
(0.04 |
) |
|
|
(0.04 |
) |
| Non-GAAP tax adjustments |
|
(7.9 |
) |
|
|
-0.4 |
% |
|
|
(0.05 |
) |
|
|
(0.05 |
) |
|
|
(8.8 |
) |
|
|
-0.4 |
% |
|
|
(0.06 |
) |
|
|
(0.05 |
) |
| Convertible share adjustment (6) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.01 |
|
| Net income - non-GAAP |
$ |
370.1 |
|
|
|
17.9 |
% |
|
$ |
2.34 |
|
|
$ |
2.27 |
|
|
$ |
351.8 |
|
|
|
17.5 |
% |
|
$ |
2.27 |
|
|
$ |
2.14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| GAAP and non-GAAP weighted average common shares - basic |
|
158.0 |
|
|
|
|
|
|
|
|
|
|
|
|
154.8 |
|
|
|
|
|
|
|
|
|
|
||||||
| GAAP weighted average common shares - diluted (6) |
|
163.4 |
|
|
|
|
|
|
|
|
|
|
|
|
165.0 |
|
|
|
|
|
|
|
|
|
|
||||||
| Exclude dilutive shares from convertible note |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
(0.8 |
) |
|
|
|
|
|
|
|
|
|
||||||
| Non-GAAP weighted average common shares - diluted |
|
163.4 |
|
|
|
|
|
|
|
|
|
|
|
|
164.2 |
|
|
|
|
|
|
|
|
|
|
||||||
| (1) | For the nine months ended September 29, 2024, a legal settlement includes charges for a settlement following a judgment against the Company for infringement of expired patents. |
|
| (2) | Restructuring and other consists of: |
|
|
Nine Months Ended |
|
|
|
|
|
|
|
|||||||||||
|
|
September 29,
|
|
|
|
|
|
|
|
|
October 1,
|
|
|
|
|
|
|
|
||
| Employee severance |
$ |
5.3 |
|
|
|
|
|
|
|
|
$ |
11.8 |
|
|
|
|
|
|
|
| Acquisition and divestiture related expenses |
|
2.2 |
|
|
|
|
|
|
|
|
|
— |
|
|
|
|
|
|
|
| Contract termination |
|
— |
|
|
|
|
|
|
|
|
|
1.5 |
|
|
|
|
|
|
|
| Other |
|
3.5 |
|
|
|
|
|
|
|
|
|
1.9 |
|
|
|
|
|
|
|
|
|
$ |
11.0 |
|
|
|
|
|
|
|
|
$ |
15.3 |
|
|
|
|
|
|
|
| (3) |
For the nine months ended September 29, 2024, selling and administrative expenses included an equity charge of $1.7 million for the modification of Teradyne’s executives' retirement agreements. For the nine months ended October 1, 2023, selling and administrative expenses included an equity charge of $5.9 million for the modification of Teradyne’s retired CEO’s outstanding equity awards in connection with his February 1, 2023, retirement. |
|
| (4) |
On May 27, 2024, Teradyne sold DIS, a component of the Semiconductor Test segment, to Technoprobe, for $85.0 million, net of cash and cash equivalents sold and a working capital adjustment. |
|
| (5) |
For the nine months ended September 29, 2024, and October 1, 2023, adjustments to exclude actuarial gains and losses, respectively, recognized under GAAP in accordance with Teradyne’s mark-to-market pension accounting. |
|
| (6) |
For the nine months ended September 29, 2024 and October 1, 2023, non-GAAP weighted average diluted common shares included 4.8 million and 9.0 million shares, respectively, from the convertible note hedge transaction. |
