Teradyne, Inc. (NASDAQ: TER) reported revenue of $684 million for
the second quarter of 2023 of which $475 million was in
Semiconductor Test, $94 million in System Test, $44 million in
Wireless Test and $72 million in Robotics. GAAP net income for the
second quarter was $120.1 million or $0.73 per diluted share. On a
non-GAAP basis, Teradyne’s net income in the second quarter was
$129.0 million, or $0.79 per diluted share, which excluded
restructuring and other charges, acquired intangible asset
amortization, and included the related tax impact on non-GAAP
adjustments.
“We delivered revenue at the high end of our guidance range with
higher semiconductor test shipments which more than offset weaker
robotics demand in the quarter while profits exceeded plan on
higher gross margins,” said Teradyne CEO Greg Smith. “As we enter
Q3, test demand for DRR5 and HBM memory devices for data center
applications remains strong and SOC test demand for automotive
applications is incrementally stronger. In robotics, we expect
order rates to decline as customers navigate slowing global
industrial activity and macro-economic headwinds.”
Guidance for the third quarter of 2023 is revenue of $650
million to $710 million, with GAAP net income of $0.57 to $0.77 per
diluted share and non-GAAP net income of $0.61 to $0.81 per diluted
share. Non-GAAP guidance excludes acquired intangible asset
amortization, restructuring and other charges and includes the
related tax impact on non-GAAP adjustments.
Webcast A conference call to discuss the second
quarter results, along with management's business outlook, will
follow at 8:30 a.m. ET, Thursday, July 27. Interested investors
should access the webcast at
http://investors.teradyne.com/events-presentations. Presentation
materials will be available starting at 8:30 a.m. ET. A replay will
also be available at the website.
Non-GAAP ResultsIn 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, stock compensation modification
expense, 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 TeradyneTeradyne (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
2022, Teradyne had revenue of $3.2 billion and today employs over
6,500 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, 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, the continued impact of the global COVID-19
pandemic, and the impact of U.S. and Chinese export and tariff
laws, including regulations published by the U.S. Department of
Commerce on October 7, 2022. 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, the impact of any tariffs or export controls
imposed by 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 of Commerce export control regulations for certain
U.S. products and technology sold to military end users or for
military end-use in China, or the impact of regulations published
by the U.S. Department of Commerce relating to the export of
semiconductors and semiconductor manufacturing equipment destined
to certain end users and for certain end uses in China. 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 2026 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 2026 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.
On October 7, 2022, the U.S. Department of Commerce published
regulations restricting the export to China of advanced
semiconductors, supercomputer technology, equipment for the
manufacturing of advanced semiconductors and components and
technology for the manufacturing in China of certain semiconductor
manufacturing equipment. The restrictions on the sale of
semiconductor testers in China to test certain advanced
semiconductors impact Teradyne’s sales to certain companies in
China. Several multinational companies manufacturing these advanced
semiconductors in China have obtained one-year licenses allowing
suppliers such as Teradyne to continue to provide testers to the
facilities operated by these companies. We expect that other
companies manufacturing advanced semiconductors in China will not
receive licenses, thereby restricting Teradyne’s ability to provide
testers to the facilities operated by these companies that do not
receive a license. The Company has filed license applications to
sell to and support certain customers in China for certain end
uses. Several applications have been denied or granted with
limitations so that our business will continue to be impacted by
the regulation restrictions. In addition to the specific
restrictions impacting Teradyne’s business, the regulations may
have an adverse impact on certain actual or potential customers and
on the global semiconductor industry. To the extent the regulations
impact actual and potential customers or disrupt the global
semiconductor industry, Teradyne’s business and revenues will be
adversely impacted.
The Company also has determined that the restrictions on the
export of certain US origin components and technology for use in
the development and production in China of certain semiconductor
manufacturing equipment impact its manufacturing and development
operations in China. Teradyne received a temporary authorization
from the Department of Commerce allowing the Company to continue
its manufacturing and development operations. On May 25, 2023, the
Department of Commerce issued an export license to replace this
temporary authorization. The license is effective through May 31,
2027.
Important factors that could cause actual results, the 2026
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 Robotics 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 a supply shortage on our
supply chain and contract manufacturers; the consummation and
success of any mergers or acquisitions; 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. or global tax regulations or guidance;
the impact of any tariffs or export controls imposed by 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; 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; and
other events, factors and risks disclosed in filings with the SEC,
including, but not limited to, the “Risk Factors” section of
Teradyne’s Annual Report on Form 10-K for the fiscal year ended
December 31, 2022 and Quarterly Report on Form 10-Q for the fiscal
quarter ended April 2, 2023. 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 2023 |
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|
|
|
|
Quarter Ended |
|
Six Months Ended |
|
|
|
July 2, 2023 |
|
April 2, 2023 |
|
July 3, 2022 |
|
July 2, 2023 |
|
July 3,2022 |
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues |
|
$ |
684,437 |
|
|
$ |
617,529 |
|
|
$ |
840,766 |
|
|
$ |
1,301,966 |
|
|
$ |
1,596,136 |
|
Cost of revenues (exclusive of acquired intangible assets
amortization shown separately below) (1) |
|
|
281,945 |
|
|
|
261,109 |
|
|
|
334,377 |
|
|
|
543,054 |
|
|
|
634,814 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
402,492 |
|
|
|
356,420 |
|
|
|
506,389 |
|
|
|
758,912 |
|
|
|
961,322 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
Selling and administrative (2) |
|
|
145,695 |
|
|
|
150,955 |
|
|
|
139,533 |
|
|
|
296,650 |
|
|
|
279,718 |
|
Engineering and development |
|
|
105,706 |
|
|
|
105,762 |
|
|
|
111,951 |
|
|
|
211,468 |
|
|
|
220,067 |
|
Acquired intangible assets amortization |
|
|
4,825 |
|
|
|
4,802 |
|
|
|
4,871 |
|
|
|
9,627 |
|
|
|
9,934 |
|
Restructuring and other (3) |
|
|
6,358 |
|
|
|
2,037 |
|
|
|
2,044 |
|
|
|
8,395 |
|
|
|
17,758 |
|
Operating expenses |
|
|
262,584 |
|
|
|
263,556 |
|
|
|
258,399 |
|
|
|
526,140 |
|
|
|
527,477 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations |
|
|
139,908 |
|
|
|
92,864 |
|
|
|
247,990 |
|
|
|
232,772 |
|
|
|
433,845 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and other (income) expense (4) |
|
|
(4,494 |
) |
|
|
(4,220 |
) |
|
|
9,398 |
|
|
|
(8,714 |
) |
|
|
14,894 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before
income taxes |
|
|
144,402 |
|
|
|
97,084 |
|
|
|
238,592 |
|
|
|
241,486 |
|
|
|
418,951 |
|
Income tax provision |
|
|
24,352 |
|
|
|
13,553 |
|
|
|
40,805 |
|
|
|
37,905 |
|
|
|
59,236 |
|
Net income |
|
$ |
120,050 |
|
|
$ |
83,531 |
|
|
$ |
197,787 |
|
|
$ |
203,581 |
|
|
$ |
359,715 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per
common share: |
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.78 |
|
|
$ |
0.54 |
|
|
$ |
1.24 |
|
|
$ |
1.31 |
|
|
$ |
2.24 |
|
Diluted |
|
$ |
0.73 |
|
|
$ |
0.50 |
|
|
$ |
1.16 |
|
|
$ |
1.23 |
|
|
$ |
2.07 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares - basic |
|
|
154,760 |
|
|
|
155,904 |
|
|
|
159,563 |
|
|
|
155,332 |
|
|
|
160,805 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares - diluted (5) |
|
|
164,751 |
|
|
|
166,308 |
|
|
|
171,159 |
|
|
|
165,530 |
|
|
|
173,367 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividend
declared per common share |
|
$ |
0.11 |
|
|
$ |
0.11 |
|
|
$ |
0.11 |
|
|
$ |
0.22 |
|
|
$ |
0.22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Cost of revenues includes: |
|
Quarter Ended |
|
Six Months Ended |
|
|
|
July 2, 2023 |
|
April 2, 2023 |
|
July 3, 2022 |
|
July 2, 2023 |
|
July 3,2022 |
|
Provision for excess and obsolete inventory |
|
$ |
5,731 |
|
|
$ |
5,610 |
|
|
$ |
5,105 |
|
|
$ |
11,341 |
|
|
$ |
6,695 |
|
|
Sale of previously written down inventory |
|
|
(2,463 |
) |
|
|
(385 |
) |
|
|
(449 |
) |
|
|
(2,848 |
) |
|
|
(711 |
) |
|
|
|
$ |
3,268 |
|
|
$ |
5,225 |
|
|
$ |
4,656 |
|
|
$ |
8,493 |
|
|
$ |
5,984 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) |
For the quarter ended April 2, 2023 and the six months ended July
2, 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 |
|
Six Months Ended |
|
|
|
July 2, 2023 |
|
April 2, 2023 |
|
July 3, 2022 |
|
July 2, 2023 |
|
July 3,2022 |
|
Employee severance |
|
$ |
5,140 |
|
|
$ |
2,037 |
|
|
$ |
383 |
|
|
$ |
7,177 |
|
|
$ |
934 |
|
|
Litigation settlement |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
14,700 |
|
|
Acquisition related expenses and compensation |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(201 |
) |
|
Other |
|
|
1,218 |
|
|
|
- |
|
|
|
1,661 |
|
|
|
1,218 |
|
|
|
2,325 |
|
|
|
|
$ |
6,358 |
|
|
$ |
2,037 |
|
|
$ |
2,044 |
|
|
$ |
8,395 |
|
|
$ |
17,758 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(4) |
Interest and other includes: |
|
Quarter Ended |
|
Six Months Ended |
|
|
|
July 2, 2023 |
|
April 2, 2023 |
|
July 3, 2022 |
|
July 2, 2023 |
|
July 3,2022 |
|
Pension actuarial losses |
|
$ |
53 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
53 |
|
|
$ |
- |
|
|
|
|
$ |
53 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
53 |
|
|
$ |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
(5) |
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 2, 2023, April 2, 2023 and July 3, 2022,
0.7 million, 0.9 million and 1.9 million shares, respectively, have
been included in diluted shares. For the six months ended July 2,
2023 and July 3, 2022, 0.8 million and 2.2 million shares,
respectively, have been included in diluted shares. For the
quarters ended July 2, 2023, April 2, 2023 and July 3, 2022,
diluted shares also included 8.9 million, 9.0 million and 9.0
million shares, respectively, from the convertible note hedge
transaction. For the six months ended July 2, 2023 and July 3,
2022, diluted shares included 8.9 million and 9.5 million shares,
respectively, from the convertible note hedge transaction. |
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) |
|
|
|
|
|
|
|
|
|
|
|
July 2, 2023 |
|
December 31, 2022 |
Assets |
|
|
|
|
Cash and cash equivalents |
|
$ |
613,208 |
|
|
$ |
854,773 |
|
Marketable securities |
|
|
95,199 |
|
|
|
39,612 |
|
Accounts receivable, net |
|
|
493,234 |
|
|
|
491,145 |
|
Inventories, net |
|
|
347,295 |
|
|
|
325,019 |
|
Prepayments |
|
|
560,682 |
|
|
|
532,962 |
|
Other current assets |
|
|
14,222 |
|
|
|
14,404 |
|
Total current assets |
|
|
2,123,840 |
|
|
|
2,257,915 |
|
|
|
|
|
|
Property, plant and equipment, net |
|
|
437,077 |
|
|
|
418,683 |
|
Operating lease right-of-use assets, net |
|
|
75,889 |
|
|
|
73,734 |
|
Marketable securities |
|
|
104,685 |
|
|
|
110,777 |
|
Deferred tax assets |
|
|
152,471 |
|
|
|
142,784 |
|
Retirement plans assets |
|
|
11,514 |
|
|
|
11,761 |
|
Other assets |
|
|
32,699 |
|
|
|
28,925 |
|
Acquired intangible assets, net |
|
|
44,611 |
|
|
|
53,478 |
|
Goodwill |
|
|
412,110 |
|
|
|
403,195 |
|
Total assets |
|
$ |
3,394,896 |
|
|
$ |
3,501,252 |
|
|
|
|
|
|
Liabilities |
|
|
|
|
Accounts payable |
|
$ |
153,157 |
|
|
$ |
139,722 |
|
Accrued employees' compensation and withholdings |
|
|
163,653 |
|
|
|
212,266 |
|
Deferred revenue and customer advances |
|
|
120,085 |
|
|
|
148,285 |
|
Other accrued liabilities |
|
|
114,435 |
|
|
|
112,271 |
|
Operating lease liabilities |
|
|
20,212 |
|
|
|
18,594 |
|
Income taxes payable |
|
|
65,437 |
|
|
|
65,010 |
|
Current debt |
|
|
32,806 |
|
|
|
50,115 |
|
|
|
|
|
|
Total current liabilities |
|
|
669,785 |
|
|
|
746,263 |
|
|
|
|
|
|
Retirement plans liabilities |
|
|
124,040 |
|
|
|
116,005 |
|
Long-term deferred revenue and customer advances |
|
|
38,999 |
|
|
|
45,131 |
|
Long-term other accrued liabilities |
|
|
16,475 |
|
|
|
15,981 |
|
Deferred tax liabilities |
|
|
1,304 |
|
|
|
3,267 |
|
Long-term operating lease liabilities |
|
|
65,079 |
|
|
|
64,176 |
|
Long-term income taxes payable |
|
|
44,331 |
|
|
|
59,135 |
|
Total liabilities |
|
|
960,013 |
|
|
|
1,049,958 |
|
|
|
|
|
|
Shareholders' equity |
|
|
2,434,883 |
|
|
|
2,451,294 |
|
Total liabilities and shareholders’ equity |
|
$ |
3,394,896 |
|
|
$ |
3,501,252 |
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
Six Months Ended |
|
July 2, 2023 |
|
July 3, 2022 |
|
July 2, 2023 |
|
July 3, 2022 |
Cash flows from operating
activities: |
|
|
|
|
|
|
|
Net income |
$ |
120,050 |
|
|
$ |
197,787 |
|
|
$ |
203,581 |
|
|
$ |
359,715 |
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
|
|
|
|
Depreciation |
|
22,551 |
|
|
|
21,957 |
|
|
|
45,231 |
|
|
|
44,460 |
|
Stock-based compensation |
|
13,564 |
|
|
|
12,228 |
|
|
|
32,449 |
|
|
|
25,122 |
|
Provision for excess and obsolete inventory |
|
5,731 |
|
|
|
5,105 |
|
|
|
11,341 |
|
|
|
6,695 |
|
Amortization |
|
4,654 |
|
|
|
4,862 |
|
|
|
9,580 |
|
|
|
10,095 |
|
Deferred taxes |
|
(5,937 |
) |
|
|
(34,885 |
) |
|
|
(13,571 |
) |
|
|
(23,597 |
) |
(Gains) losses on investments |
|
(2,507 |
) |
|
|
6,972 |
|
|
|
(4,745 |
) |
|
|
8,973 |
|
Other |
|
(201 |
) |
|
|
345 |
|
|
|
(92 |
) |
|
|
522 |
|
|
|
|
|
|
|
|
|
Changes in operating assets and liabilities |
|
|
|
|
|
|
|
Accounts receivable |
|
(39,897 |
) |
|
|
(146,592 |
) |
|
|
(2,693 |
) |
|
|
(146,384 |
) |
Inventories |
|
9,852 |
|
|
|
(37,202 |
) |
|
|
(13,845 |
) |
|
|
(46,682 |
) |
Prepayments and other assets |
|
(14,204 |
) |
|
|
(25,597 |
) |
|
|
(29,584 |
) |
|
|
(99,902 |
) |
Accounts payable and other liabilities |
|
58,694 |
|
|
|
85,922 |
|
|
|
(24,514 |
) |
|
|
(38,460 |
) |
Deferred revenue and customer advances |
|
(2,233 |
) |
|
|
7,416 |
|
|
|
(34,938 |
) |
|
|
14,163 |
|
Retirement plans contributions |
|
(1,248 |
) |
|
|
(1,289 |
) |
|
|
(2,482 |
) |
|
|
(2,618 |
) |
Income taxes |
|
(26,102 |
) |
|
|
18,426 |
|
|
|
(13,614 |
) |
|
|
10,815 |
|
Net cash provided by operating
activities |
|
142,767 |
|
|
|
115,455 |
|
|
|
162,104 |
|
|
|
122,917 |
|
|
|
|
|
|
|
|
|
Cash flows from investing
activities: |
|
|
|
|
|
|
|
Purchases of property, plant and equipment |
|
(39,258 |
) |
|
|
(45,744 |
) |
|
|
(80,702 |
) |
|
|
(89,743 |
) |
Purchases of marketable securities |
|
(29,742 |
) |
|
|
(81,904 |
) |
|
|
(99,018 |
) |
|
|
(247,881 |
) |
Proceeds from sales of marketable securities |
|
27,648 |
|
|
|
113,061 |
|
|
|
35,577 |
|
|
|
143,642 |
|
Proceeds from maturities of marketable securities |
|
14,529 |
|
|
|
42,970 |
|
|
|
21,997 |
|
|
|
139,652 |
|
Proceeds from life insurance |
|
- |
|
|
|
- |
|
|
|
460 |
|
|
|
- |
|
Net cash (used for) provided
by investing activities |
|
(26,823 |
) |
|
|
28,383 |
|
|
|
(121,686 |
) |
|
|
(54,330 |
) |
|
|
|
|
|
|
|
|
Cash flows from financing
activities: |
|
|
|
|
|
|
|
Repurchase of common stock |
|
(134,537 |
) |
|
|
(331,334 |
) |
|
|
(227,845 |
) |
|
|
(532,799 |
) |
Dividend payments |
|
(17,019 |
) |
|
|
(17,547 |
) |
|
|
(34,184 |
) |
|
|
(35,442 |
) |
Payments of convertible debt principal |
|
(2,303 |
) |
|
|
(21,598 |
) |
|
|
(17,458 |
) |
|
|
(42,292 |
) |
Payments related to net settlement of employee stock compensation
awards |
|
(438 |
) |
|
|
(1,732 |
) |
|
|
(20,308 |
) |
|
|
(32,780 |
) |
Issuance of common stock under stock purchase and stock option
plans |
|
602 |
|
|
|
61 |
|
|
|
16,599 |
|
|
|
16,536 |
|
Net cash used for financing
activities |
|
(153,695 |
) |
|
|
(372,150 |
) |
|
|
(283,196 |
) |
|
|
(626,777 |
) |
|
|
|
|
|
|
|
|
Effects of exchange rate
changes on cash and cash equivalents |
|
1,751 |
|
|
|
5,732 |
|
|
|
1,213 |
|
|
|
8,014 |
|
Decrease in cash and cash
equivalents |
|
(36,000 |
) |
|
|
(222,580 |
) |
|
|
(241,565 |
) |
|
|
(550,176 |
) |
Cash and cash equivalents at
beginning of period |
|
649,208 |
|
|
|
794,603 |
|
|
|
854,773 |
|
|
|
1,122,199 |
|
Cash and cash equivalents at
end of period |
$ |
613,208 |
|
|
$ |
572,023 |
|
|
$ |
613,208 |
|
|
$ |
572,023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP to Non-GAAP Earnings Reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions, except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
July 2, 2023 |
|
% of Net Revenues |
|
|
|
|
|
April 2, 2023 |
|
% of Net Revenues |
|
|
|
|
|
July 3, 2022 |
|
% of Net Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues |
$ |
684.4 |
|
|
|
|
|
|
|
|
$ |
617.5 |
|
|
|
|
|
|
|
|
$ |
840.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit GAAP and non-GAAP |
$ |
402.5 |
|
|
|
58.8 |
% |
|
|
|
|
|
$ |
356.4 |
|
|
57.7 |
% |
|
|
|
|
|
$ |
506.4 |
|
|
60.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations - GAAP |
$ |
139.9 |
|
|
|
20.4 |
% |
|
|
|
|
|
$ |
92.9 |
|
|
15.0 |
% |
|
|
|
|
|
$ |
248.0 |
|
|
29.5 |
% |
|
|
|
|
Restructuring and other (1) |
|
6.4 |
|
|
|
0.9 |
% |
|
|
|
|
|
|
2.0 |
|
|
0.3 |
% |
|
|
|
|
|
|
2.0 |
|
|
0.2 |
% |
|
|
|
|
Acquired intangible assets amortization |
|
4.8 |
|
|
|
0.7 |
% |
|
|
|
|
|
|
4.8 |
|
|
0.8 |
% |
|
|
|
|
|
|
4.9 |
|
|
0.6 |
% |
|
|
|
|
Equity modification charge (2) |
|
- |
|
|
|
- |
|
|
|
|
|
|
|
5.9 |
|
|
1.0 |
% |
|
|
|
|
|
|
- |
|
|
- |
|
|
|
|
|
Income from operations - non-GAAP |
$ |
151.1 |
|
|
|
22.1 |
% |
|
|
|
|
|
$ |
105.6 |
|
|
17.1 |
% |
|
|
|
|
|
$ |
254.9 |
|
|
30.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income per Common Share |
|
|
|
|
|
Net Income per Common Share |
|
|
|
|
|
Net Income per Common Share |
|
|
July 2, 2023 |
|
% of Net Revenues |
|
Basic |
|
Diluted |
|
April 2, 2023 |
|
% of Net Revenues |
|
Basic |
|
Diluted |
|
July 3, 2022 |
|
% of Net Revenues |
|
Basic |
|
Diluted |
Net income - GAAP |
$ |
120.1 |
|
|
|
17.5 |
% |
|
$ |
0.78 |
|
|
$ |
0.73 |
|
|
$ |
83.5 |
|
|
13.5 |
% |
|
$ |
0.54 |
|
|
$ |
0.50 |
|
|
$ |
197.8 |
|
|
23.5 |
% |
|
$ |
1.24 |
|
|
$ |
1.16 |
|
Restructuring and other (1) |
|
6.4 |
|
|
|
0.9 |
% |
|
|
0.04 |
|
|
|
0.04 |
|
|
|
2.0 |
|
|
0.3 |
% |
|
|
0.01 |
|
|
|
0.01 |
|
|
|
2.0 |
|
|
0.2 |
% |
|
|
0.01 |
|
|
|
0.01 |
|
Acquired intangible assets amortization |
|
4.8 |
|
|
|
0.7 |
% |
|
|
0.03 |
|
|
|
0.03 |
|
|
|
4.8 |
|
|
0.8 |
% |
|
|
0.03 |
|
|
|
0.03 |
|
|
|
4.9 |
|
|
0.6 |
% |
|
|
0.03 |
|
|
|
0.03 |
|
Pension mark-to-market adjustment (3) |
|
0.1 |
|
|
|
0.0 |
% |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
- |
|
Equity modification charge (2) |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
5.9 |
|
|
1.0 |
% |
|
|
0.04 |
|
|
|
0.04 |
|
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
- |
|
Exclude discrete tax adjustments |
|
0.5 |
|
|
|
0.1 |
% |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
(2.5 |
) |
|
-0.4 |
% |
|
|
(0.02 |
) |
|
|
(0.02 |
) |
|
|
1.6 |
|
|
0.2 |
% |
|
|
0.01 |
|
|
|
0.01 |
|
Non-GAAP tax adjustments |
|
(2.9 |
) |
|
|
-0.4 |
% |
|
|
(0.02 |
) |
|
|
(0.02 |
) |
|
|
(2.4 |
) |
|
-0.4 |
% |
|
|
(0.02 |
) |
|
|
(0.01 |
) |
|
|
(2.3 |
) |
|
-0.3 |
% |
|
|
(0.01 |
) |
|
|
(0.01 |
) |
Convertible share adjustment (4) |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
0.01 |
|
Net income - non-GAAP |
$ |
129.0 |
|
|
|
18.8 |
% |
|
$ |
0.83 |
|
|
$ |
0.79 |
|
|
$ |
91.3 |
|
|
14.8 |
% |
|
$ |
0.59 |
|
|
$ |
0.55 |
|
|
$ |
204.0 |
|
|
24.3 |
% |
|
$ |
1.28 |
|
|
$ |
1.21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP and non-GAAP weighted average common shares - basic |
|
154.8 |
|
|
|
|
|
|
|
|
|
155.9 |
|
|
|
|
|
|
|
|
|
159.6 |
|
|
|
|
|
|
|
GAAP weighted average common shares - diluted |
|
164.8 |
|
|
|
|
|
|
|
|
|
166.3 |
|
|
|
|
|
|
|
|
|
171.2 |
|
|
|
|
|
|
|
Exclude dilutive shares related to convertible note
transaction |
|
(0.7 |
) |
|
|
|
|
|
|
|
|
(0.9 |
) |
|
|
|
|
|
|
|
|
(1.9 |
) |
|
|
|
|
|
|
Non-GAAP weighted average common shares - diluted |
|
164.1 |
|
|
|
|
|
|
|
|
|
165.4 |
|
|
|
|
|
|
|
|
|
169.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Restructuring and other consists of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
|
|
|
|
|
|
|
July 2, 2023 |
|
|
|
|
|
|
|
April 2, 2023 |
|
|
|
|
|
|
|
July 3, 2022 |
|
|
|
|
|
|
|
Employee severance |
$ |
5.1 |
|
|
|
|
|
|
|
|
$ |
2.0 |
|
|
|
|
|
|
|
|
$ |
0.4 |
|
|
|
|
|
|
|
|
Other |
|
1.2 |
|
|
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
|
|
1.7 |
|
|
|
|
|
|
|
|
|
$ |
6.4 |
|
|
|
|
|
|
|
|
$ |
2.0 |
|
|
|
|
|
|
|
|
$ |
2.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) |
For the quarter ended April 2, 2023, selling and administrative
expenses include 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) |
For the quarter ended July 2, 2023 adjustment to exclude actuarial
loss recognized under GAAP in accordance with Teradyne's
mark-to-market pension
accounting. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4) |
For the quarters ended April 2, 2023, and July 3, 2022, the
non-GAAP diluted EPS calculation adds back $0.1 million, and $0.2
million, respectively, of convertible debt interest expense to
non-GAAP net income. For the quarters ended July 2, 2023, April 2,
2023, and July 3, 2022, non-GAAP weighted average diluted common
shares include 8.9 million, 9.0 million and 9.0 million shares,
respectively, from the convertible note hedge
transaction. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
|
|
|
|
|
|
|
|
|
July 2, 2023 |
|
% of Net Revenues |
|
|
|
|
|
July 3, 2022 |
|
% of Net Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenues |
$ |
1,302.0 |
|
|
|
|
|
|
|
|
$ |
1,596.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit GAAP and non-GAAP |
$ |
758.9 |
|
|
|
58.3 |
% |
|
|
|
|
|
$ |
961.3 |
|
|
60.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations - GAAP |
$ |
232.8 |
|
|
|
17.9 |
% |
|
|
|
|
|
$ |
433.8 |
|
|
27.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Acquired intangible assets amortization |
|
9.6 |
|
|
|
0.7 |
% |
|
|
|
|
|
|
9.9 |
|
|
0.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and other (1) |
|
8.4 |
|
|
|
0.6 |
% |
|
|
|
|
|
|
17.8 |
|
|
1.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Equity modification charge (2) |
|
5.9 |
|
|
|
0.5 |
% |
|
|
|
|
|
|
- |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations - non-GAAP |
$ |
256.7 |
|
|
|
19.7 |
% |
|
|
|
|
|
$ |
461.5 |
|
|
28.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income per Common Share |
|
|
|
|
|
Net Income per Common Share |
|
|
|
|
|
|
|
|
|
|
July 2, 2023 |
|
% of Net Revenues |
|
Basic |
|
Diluted |
|
July 3, 2022 |
|
% of Net Revenues |
|
Basic |
|
Diluted |
|
|
|
|
|
|
|
|
Net income - GAAP |
$ |
203.6 |
|
|
|
15.6 |
% |
|
$ |
1.31 |
|
|
$ |
1.23 |
|
|
$ |
359.7 |
|
|
22.5 |
% |
|
$ |
2.24 |
|
|
$ |
2.07 |
|
|
|
|
|
|
|
|
|
Acquired intangible assets amortization |
|
9.6 |
|
|
|
0.7 |
% |
|
|
0.06 |
|
|
|
0.06 |
|
|
|
9.9 |
|
|
0.6 |
% |
|
|
0.06 |
|
|
|
0.06 |
|
|
|
|
|
|
|
|
|
Restructuring and other (1) |
|
8.4 |
|
|
|
0.6 |
% |
|
|
0.05 |
|
|
|
0.05 |
|
|
|
17.8 |
|
|
1.1 |
% |
|
|
0.11 |
|
|
|
0.10 |
|
|
|
|
|
|
|
|
|
Equity modification charge (2) |
|
5.9 |
|
|
|
0.5 |
% |
|
|
0.04 |
|
|
|
0.04 |
|
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
Pension mark-to-market adjustment (3) |
|
0.1 |
|
|
|
0.0 |
% |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
Exclude discrete tax adjustments |
|
(1.9 |
) |
|
|
-0.1 |
% |
|
|
(0.01 |
) |
|
|
(0.01 |
) |
|
|
(8.8 |
) |
|
-0.6 |
% |
|
|
(0.05 |
) |
|
|
(0.05 |
) |
|
|
|
|
|
|
|
|
Non-GAAP tax adjustments |
|
(5.3 |
) |
|
|
-0.4 |
% |
|
|
(0.03 |
) |
|
|
(0.03 |
) |
|
|
(5.6 |
) |
|
-0.4 |
% |
|
|
(0.03 |
) |
|
|
(0.03 |
) |
|
|
|
|
|
|
|
|
Convertible share adjustment (4) |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
0.01 |
|
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
0.03 |
|
|
|
|
|
|
|
|
|
Net income - non-GAAP |
$ |
220.4 |
|
|
|
16.9 |
% |
|
$ |
1.42 |
|
|
$ |
1.34 |
|
|
$ |
373.0 |
|
|
23.4 |
% |
|
$ |
2.32 |
|
|
$ |
2.18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP and non-GAAP weighted average common shares - basic |
|
155.3 |
|
|
|
|
|
|
|
|
|
160.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP weighted average common shares - diluted |
|
165.5 |
|
|
|
|
|
|
|
|
|
173.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exclude dilutive shares from convertible note |
|
(0.8 |
) |
|
|
|
|
|
|
|
|
(2.2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP weighted average common shares - diluted |
|
164.7 |
|
|
|
|
|
|
|
|
|
171.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Restructuring and other consists of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
July 2, 2023 |
|
|
|
|
|
|
|
July 3, 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee severance |
$ |
7.2 |
|
|
|
|
|
|
|
|
$ |
0.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Litigation settlement |
|
- |
|
|
|
|
|
|
|
|
|
14.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition related expenses and compensation |
|
- |
|
|
|
|
|
|
|
|
|
(0.2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other |
|
1.2 |
|
|
|
|
|
|
|
|
|
2.3 |
|
|
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
|
|
$ |
8.4 |
|
|
|
|
|
|
|
|
$ |
17.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) |
For the six months ended July 2, 2023, selling and administrative
expenses include 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) |
For the six months ended July 2, 2023 adjustment to exclude
actuarial loss recognized under GAAP in accordance with Teradyne's
mark-to-market pension
accounting. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4) |
For the six months ended July 2, 2023 and July 3, 2022, the
non-GAAP diluted EPS calculation adds back $0.2 million and $0.5
million, respectively, of convertible debt interest expense to
non-GAAP net income. For the six months ended July 2, 2023 and July
3, 2022, non-GAAP weighted average diluted common shares include
8.9 million and 9.5 million shares, respectively, related to the
convertible debt hedge
transaction. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP to Non-GAAP Reconciliation of Third Quarter 2023
guidance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP and non-GAAP third quarter revenue guidance: |
|
|
$650 million to $710 million |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income per diluted share |
|
|
$ |
0.57 |
|
|
$ |
0.77 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exclude acquired intangible assets amortization |
|
|
|
0.03 |
|
|
|
0.03 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exclude acquired restructuring and other charges |
|
|
|
0.02 |
|
|
|
0.02 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP tax adjustments |
|
|
|
(0.01 |
) |
|
|
(0.01 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income per diluted share |
|
|
$ |
0.61 |
|
|
$ |
0.81 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 978-370-2425Vice President of Corporate
Relations |
Grafico Azioni Teradyne (NASDAQ:TER)
Storico
Da Mag 2024 a Giu 2024
Grafico Azioni Teradyne (NASDAQ:TER)
Storico
Da Giu 2023 a Giu 2024