Teradyne, Inc 8-K, filed Jan 30, 2025
Teradyne, Inc (TER)
About this 8-K
Teradyne, Inc filed this 8-K on January 30, 2025, reporting on events of January 29, 2025.
Items reported
- Item 2.02: Financial results
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d)
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
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Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On January 29, 2025, Teradyne, Inc. (“Teradyne”) issued a press release regarding its financial results for the fourth quarter ended December 31, 2024. Teradyne’s press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit |
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Description |
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99.1 |
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104 |
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Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
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TERADYNE, INC. |
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Dated: January 30, 2025 |
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By: |
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/s/ SANJAY MEHTA |
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Name: |
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Sanjay Mehta |
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Title: |
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Vice President, Chief Financial Officer and Treasurer |
Exhibit 99.1
Teradyne Reports Fourth Quarter 2024 Results
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Q4'24 |
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Q4'23 |
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Q3'24 |
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FY 2024 |
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FY 2023 |
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Revenue (mil) |
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$ |
753 |
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$ |
671 |
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$ |
737 |
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$ |
2,820 |
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$ |
2,676 |
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GAAP EPS |
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$ |
0.90 |
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$ |
0.72 |
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$ |
0.89 |
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$ |
3.32 |
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$ |
2.73 |
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Non-GAAP EPS |
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$ |
0.95 |
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$ |
0.79 |
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$ |
0.90 |
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$ |
3.22 |
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$ |
2.93 |
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NORTH READING, Mass. – January 29, 2025 – Teradyne, Inc. (NASDAQ: TER) reported revenue of $753 million for the fourth quarter of 2024 of which $561 million was in Semiconductor Test and $98 million in Robotics. GAAP net income for the fourth quarter of 2024 was $146.3 million or $0.90 per diluted share. On a non-GAAP basis, Teradyne’s net income in the fourth quarter of 2024 was $155.0 million, or $0.95 per diluted share, which excluded acquired intangible asset amortization, restructuring and other charges, amortization on our investment in Technoprobe, pension mark-to-market, and included the related tax impact on non-GAAP adjustments.
"Our Q4 results were toward the high end of our guidance range, driven by demand in our Semi Test business. For the quarter, AI compute and related memory remained strong while Mobile and Auto/Industrial exceeded our expectations,” said Teradyne CEO, Greg Smith. “In 2025, we expect year-over-year revenue acceleration with improving conditions in our test businesses. We expect the secular growth opportunities in AI compute and memory to remain, and we will continue to invest into these areas. Additionally, we plan to strategically realign our Robotics business to enhance customer experience and drive operational efficiency. Over the mid-term, we expect that this realignment will support our growth and profitability objectives.”
Guidance for the first quarter of 2025 is revenue of $660 million to $700 million, with GAAP net income of $0.48 to $0.59 per diluted share and non-GAAP net income of $0.58 to $0.68 per diluted share. Non-GAAP guidance excludes acquired intangible asset amortization, amortization on our investment in Technoprobe, restructuring and other costs, as well as the related tax impact on non-GAAP adjustments.
Note that the Semiconductor Test segment revenue includes the results of the Integrated Systems Test ("IST") component, with product lines for system level and hard disk drive testing, that was previously included in our System Test segment results. IST contributed $19 million to Semiconductor Test in the fourth quarter.
Webcast
A conference call to discuss the fourth quarter results, along with management’s business outlook, will follow at 8:30 a.m. ET, Thursday, January 30, 2025. 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 www.teradyne.com/investors.
Page 2
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, stock compensation modification expense, gains and losses on foreign exchange options in connection with acquisitions and divestitures, gain on sale of business, legal settlement, 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) designs, develops, and manufactures automated test equipment and advanced robotics systems. Its test solutions for semiconductors and electronics products enable Teradyne’s customers to consistently deliver on their quality standards. Its advanced robotics business includes collaborative robots and mobile robots that support manufacturing and warehouse operations for companies of all sizes. 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.
Page 3
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.
Page 4
TERADYNE, INC. REPORT FOR FOURTH FISCAL QUARTER OF 2024
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
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Quarter Ended |
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Year Ended |
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December 31, |
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September 29, |
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December 31, |
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December 31, |
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December 31, |
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Net revenues |
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$ |
752,884 |
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$ |
737,298 |
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$ |
670,600 |
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$ |
2,819,880 |
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$ |
2,676,298 |
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Cost of revenues (exclusive of acquired intangible assets amortization shown separately below) (1) |
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305,597 |
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300,784 |
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291,055 |
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1,170,953 |
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1,139,550 |
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Gross profit |
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447,287 |
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436,514 |
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379,545 |
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1,648,927 |
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1,536,748 |
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Operating expenses: |
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Selling and administrative (2) |
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155,739 |
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157,649 |
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142,336 |
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617,047 |
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577,315 |
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Engineering and development |
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128,387 |
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117,474 |
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102,207 |
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460,876 |
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418,089 |
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Acquired intangible assets amortization |
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4,656 |
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4,748 |
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4,651 |
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18,764 |
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18,999 |
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Restructuring and other (3) |
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4,554 |
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4,578 |
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6,027 |
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15,571 |
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21,277 |
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Loss (gain) on sale of business (4) |
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367 |
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— |
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— |
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(57,119 |
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— |
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Operating expenses |
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293,703 |
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284,449 |
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255,221 |
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1,055,139 |
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1,035,680 |
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Income from operations |
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153,584 |
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152,065 |
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124,324 |
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593,788 |
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501,068 |
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Interest and other (income) expense (5) |
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(4,213 |
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(6,919 |
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(15,482 |
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(15,298 |
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(24,504 |
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Income before income taxes and equity in net earnings of affiliate |
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157,797 |
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158,984 |
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139,806 |
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609,086 |
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525,572 |
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Income tax provision |
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5,408 |
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12,260 |
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22,752 |
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59,503 |
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76,820 |
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Income before equity in net earnings of affiliate |
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152,389 |
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146,724 |
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117,054 |
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549,583 |
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448,752 |
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Equity in net earnings of affiliate |
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(6,136 |
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(1,075 |
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— |
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(7,211 |
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— |
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Net income |
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$ |
146,253 |
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$ |
145,649 |
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$ |
117,054 |
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$ |
542,372 |
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$ |
448,752 |
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Net income per common share: |
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Basic |
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$ |
0.90 |
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$ |
0.89 |
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$ |
0.77 |
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$ |
3.41 |
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$ |
2.91 |
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Diluted |
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$ |
0.90 |
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$ |
0.89 |
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$ |
0.72 |
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$ |
3.32 |
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$ |
2.73 |
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Weighted average common shares - basic |
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162,478 |
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163,002 |
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152,812 |
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159,083 |
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154,310 |
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Weighted average common shares - diluted (6) |
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163,184 |
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164,253 |
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162,106 |
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163,314 |
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164,304 |
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Cash dividend declared per common share |
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$ |
0.12 |
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$ |
0.12 |
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$ |
0.11 |
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$ |
0.48 |
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$ |
0.44 |
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Quarter Ended |
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Year Ended |
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December 31, |
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September 29, |
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December 31, |
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December 31, |
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December 31, |
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Provision for excess and obsolete inventory |
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$ |
3,406 |
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$ |
6,078 |
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$ |
5,289 |
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$ |
18,921 |
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$ |
28,358 |
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Legal settlement |
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— |
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3,600 |
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— |
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3,600 |
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— |
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Sale of previously written down inventory |
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(441 |
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(472 |
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(1,115 |
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(2,227 |
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(5,161 |
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$ |
2,965 |
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$ |
9,206 |
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$ |
4,174 |
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$ |
20,294 |
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$ |
23,197 |
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Page 5
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Quarter Ended |
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Year Ended |
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December 31, |
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September 29, |
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December 31, |
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December 31, |
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December 31, |
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Lease terminations |
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$ |
1,284 |
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$ |
— |
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$ |
— |
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$ |
1,284 |
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$ |
— |
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Employee severance |
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378 |
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1,280 |
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2,892 |
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5,234 |
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14,727 |
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Acquisition and divestiture related expenses |
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— |
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— |
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3,132 |
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2,214 |
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3,132 |
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Contract termination |
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— |
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— |
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— |
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— |
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1,511 |
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Other |
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2,892 |
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3,298 |
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3 |
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6,840 |
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1,907 |
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$ |
4,554 |
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$ |
4,578 |
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$ |
6,027 |
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$ |
15,572 |
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$ |
21,277 |
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Quarter Ended |
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Year Ended |
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December 31, |
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September 29, |
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December 31, |
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December 31, |
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December 31, |
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Pension actuarial losses (gains) |
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$ |
(1,842 |
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$ |
(2,262 |
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$ |
2,575 |
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$ |
(4,355 |
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$ |
2,703 |
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Loss (gain) on foreign exchange option |
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— |
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— |
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(7,464 |
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9,765 |
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(7,464 |
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Page 6
CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands)
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December 31, |
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December 31, |
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Assets |
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Cash and cash equivalents |
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$ |
553,354 |
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$ |
757,571 |
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Marketable securities |
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46,312 |
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62,154 |
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Accounts receivable, net |
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471,426 |
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422,124 |
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Inventories, net |
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298,492 |
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309,974 |
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Prepayments |
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429,086 |
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548,970 |
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Other current assets |
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17,727 |
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37,992 |
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Current assets held for sale |
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— |
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23,250 |
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Total current assets |
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1,816,397 |
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2,162,035 |
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Property, plant and equipment, net |
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508,171 |
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|
445,492 |
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Operating lease right-of-use assets, net |
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70,185 |
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73,417 |
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Marketable securities |
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124,121 |
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|
117,434 |
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Deferred tax assets |
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222,438 |
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|
175,775 |
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Retirement plans assets |
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11,994 |
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11,504 |
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Equity method investment |
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494,494 |
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— |
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Other assets |
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49,620 |
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|
38,580 |
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Acquired intangible assets, net |
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15,927 |
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35,404 |
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Goodwill |
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395,367 |
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|
415,652 |
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Assets held for sale |
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— |
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|
11,531 |
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Total assets |
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$ |
3,708,714 |
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$ |
3,486,824 |
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Liabilities |
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Accounts payable |
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$ |
134,792 |
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$ |
180,131 |
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Accrued employees’ compensation and withholdings |
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|
204,991 |
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|
191,750 |
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Deferred revenue and customer advances |
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|
107,710 |
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|
99,804 |
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Other accrued liabilities |
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|
90,777 |
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|
114,712 |
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Operating lease liabilities |
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|
18,699 |
|
|
|
17,522 |
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Income taxes payable |
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|
67,610 |
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|
48,653 |
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Current liabilities held for sale |
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— |
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|
7,379 |
|
Total current liabilities |
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|
624,579 |
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|
659,951 |
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Retirement plans liabilities |
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|
133,338 |
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|
132,090 |
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Long-term deferred revenue and customer advances |
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|
40,505 |
|
|
|
37,282 |
|
Long-term other accrued liabilities |
|
|
7,442 |
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|
19,998 |
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Deferred tax liabilities |
|
|
1,038 |
|
|
|
183 |
|
Long-term operating lease liabilities |
|
|
57,922 |
|
|
|
65,092 |
|
Long-term income taxes payable |
|
|
24,596 |
|
|
|
44,331 |
|
Liabilities held for sale |
|
|
— |
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|
|
2,000 |
|
Total liabilities |
|
|
889,420 |
|
|
|
960,927 |
|
Shareholders’ equity |
|
|
2,819,294 |
|
|
|
2,525,897 |
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Total liabilities and shareholders’ equity |
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$ |
3,708,714 |
|
|
$ |
3,486,824 |
|
Page 7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)
|
|
Quarter Ended |
|
|
Twelve Months Ended |
|
||||||||||
|
|
December 31, |
|
|
December 31, |
|
|
December 31, |
|
|
December 31, |
|
||||
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income |
|
$ |
146,253 |
|
|
$ |
117,054 |
|
|
$ |
542,372 |
|
|
$ |
448,752 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Depreciation |
|
|
26,497 |
|
|
|
23,260 |
|
|
|
100,977 |
|
|
|
92,118 |
|
Stock-based compensation |
|
|
14,855 |
|
|
|
12,443 |
|
|
|
60,122 |
|
|
|
57,682 |
|
Equity in net earnings of affiliate |
|
|
6,136 |
|
|
|
— |
|
|
|
7,211 |
|
|
|
— |
|
Amortization |
|
|
4,631 |
|
|
|
4,685 |
|
|
|
18,764 |
|
|
|
18,768 |
|
Provision for excess and obsolete inventory |
|
|
3,406 |
|
|
|
5,289 |
|
|
|
18,922 |
|
|
|
28,358 |
|
Loss (gain) on sale of business |
|
|
367 |
|
|
|
— |
|
|
|
(57,119 |
) |
|
|
— |
|
Deferred taxes |
|
|
(20,099 |
) |
|
|
(13,616 |
) |
|
|
(46,360 |
) |
|
|
(37,642 |
) |
Retirement plan actuarial losses (gains) |
|
|
(1,842 |
) |
|
|
2,575 |
|
|
|
(4,355 |
) |
|
|
2,703 |
|
Losses (gains) on investments |
|
|
(83 |
) |
|
|
(11,756 |
) |
|
|
10,056 |
|
|
|
(14,915 |
) |
Other |
|
|
2,751 |
|
|
|
(811 |
) |
|
|
(2,290 |
) |
|
|
(955 |
) |
Changes in operating assets and liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Accounts receivable |
|
|
12,607 |
|
|
|
40,786 |
|
|
|
(52,659 |
) |
|
|
70,977 |
|
Inventories |
|
|
(2,420 |
) |
|
|
(1,068 |
) |
|
|
8,707 |
|
|
|
5,327 |
|
Prepayments and other assets |
|
|
58,016 |
|
|
|
20,881 |
|
|
|
119,454 |
|
|
|
(43,101 |
) |
Accounts payable and other liabilities |
|
|
9,279 |
|
|
|
42,783 |
|
|
|
(54,386 |
) |
|
|
46,782 |
|
Deferred revenue and customer advances |
|
|
8,552 |
|
|
|
(7,693 |
) |
|
|
12,176 |
|
|
|
(57,210 |
) |
Retirement plans contributions |
|
|
(1,645 |
) |
|
|
(1,794 |
) |
|
|
(5,814 |
) |
|
|
(5,492 |
) |
Income taxes |
|
|
15,296 |
|
|
|
15,762 |
|
|
|
(3,602 |
) |
|
|
(26,921 |
) |
Net cash provided by operating activities |
|
|
282,557 |
|
|
|
248,780 |
|
|
|
672,176 |
|
|
|
585,231 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Purchases of property, plant and equipment |
|
|
(57,385 |
) |
|
|
(44,336 |
) |
|
|
(198,095 |
) |
|
|
(159,642 |
) |
Purchases of marketable securities |
|
|
(10,700 |
) |
|
|
(24,120 |
) |
|
|
(45,796 |
) |
|
|
(161,906 |
) |
Purchases of investments in businesses |
|
|
(5,000 |
) |
|
|
— |
|
|
|
(532,060 |
) |
|
|
— |
|
Issuance of convertible loan |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(5,000 |
) |
Proceeds from maturities of marketable securities |
|
|
5,190 |
|
|
|
13,595 |
|
|
|
38,353 |
|
|
|
85,042 |
|
Proceeds from sales of marketable securities |
|
|
436 |
|
|
|
24,438 |
|
|
|
24,035 |
|
|
|
61,401 |
|
Proceeds from the sale of a business, net of cash and cash equivalents sold |
|
|
— |
|
|
|
— |
|
|
|
90,348 |
|
|
|
— |
|
Proceeds from life insurance |
|
|
— |
|
|
|
— |
|
|
|
873 |
|
|
|
460 |
|
Net cash used for investing activities |
|
|
(67,459 |
) |
|
|
(30,423 |
) |
|
|
(622,342 |
) |
|
|
(179,645 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Repurchase of common stock |
|
|
(143,521 |
) |
|
|
(50,749 |
) |
|
|
(198,574 |
) |
|
|
(397,241 |
) |
Dividend payments |
|
|
(19,487 |
) |
|
|
(16,797 |
) |
|
|
(76,423 |
) |
|
|
(67,878 |
) |
Payments related to net settlement of employee stock compensation awards |
|
|
(267 |
) |
|
|
(202 |
) |
|
|
(14,100 |
) |
|
|
(20,788 |
) |
Payments of borrowings on revolving credit facility |
|
|
— |
|
|
|
— |
|
|
|
(185,000 |
) |
|
|
— |
|
Payments of convertible debt principal |
|
|
— |
|
|
|
(23,529 |
) |
|
|
— |
|
|
|
(50,264 |
) |
Proceeds from borrowings on revolving credit facility |
|
|
— |
|
|
|
— |
|
|
|
185,000 |
|
|
|
— |
|
Issuance of common stock under stock purchase and stock option plans |
|
|
65 |
|
|
|
175 |
|
|
|
37,330 |
|
|
|
34,259 |
|
Net cash used for financing activities |
|
|
(163,210 |
) |
|
|
(91,102 |
) |
|
|
(251,767 |
) |
|
|
(501,912 |
) |
Effects of exchange rate changes on cash and cash equivalents |
|
|
(8,570 |
) |
|
|
(6,645 |
) |
|
|
(2,284 |
) |
|
|
(876 |
) |
Increase (decrease) in cash and cash equivalents |
|
|
43,318 |
|
|
|
120,610 |
|
|
|
(204,217 |
) |
|
|
(97,202 |
) |
Cash and cash equivalents at beginning of period |
|
|
510,036 |
|
|
|
636,961 |
|
|
|
757,571 |
|
|
|
854,773 |
|
Cash and cash equivalents at end of period |
|
$ |
553,354 |
|
|
$ |
757,571 |
|
|
$ |
553,354 |
|
|
$ |
757,571 |
|
Page 8
GAAP to Non-GAAP Earnings Reconciliation
(In millions, except per share amounts)
|
Quarter Ended |
|
|
|
|
|
|||||||||||||||||||||||||||||
|
December 31, |
|
|
% of Net Revenues |
|
|
|
|
|
|
September 29, |
|
|
% of Net Revenues |
|
|
|
|
|
|
December 31, |
|
|
% of Net Revenues |
|
|
|
|
|
||||||
Net revenues |
$ |
752.9 |
|
|
|
|
|
|
|
|
|
$ |
737.3 |
|
|
|
|
|
|
|
|
|
$ |
670.6 |
|
|
|
|
|
|
|
|
|||
Gross profit - GAAP |
|
447.3 |
|
|
|
59.4 |
% |
|
|
|
|
|
|
436.5 |
|
|
|
59.2 |
% |
|
|
|
|
|
|
379.5 |
|
|
|
56.6 |
% |
|
|
|
|
Legal settlement (1) |
|
— |
|
|
|
— |
|
|
|
|
|
|
|
3.6 |
|
|
|
0.5 |
% |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|
Gross profit - non-GAAP |
|
447.3 |
|
|
|
59.4 |
% |
|
|
|
|
|
|
440.1 |
|
|
|
59.7 |
% |
|
|
|
|
|
|
379.5 |
|
|
|
56.6 |
% |
|
|
|
|
Income from operations - GAAP |
|
153.6 |
|
|
|
20.4 |
% |
|
|
|
|
|
|
152.1 |
|
|
|
20.6 |
% |
|
|
|
|
|
|
124.3 |
|
|
|
18.5 |
% |
|
|
|
|
Acquired intangible assets amortization |
|
4.7 |
|
|
|
0.6 |
% |
|
|
|
|
|
|
4.7 |
|
|
|
0.6 |
% |
|
|
|
|
|
|
4.7 |
|
|
|
0.7 |
% |
|
|
|
|
Restructuring and other (2) |
|
4.6 |
|
|
|
0.6 |
% |
|
|
|
|
|
|
4.6 |
|
|
|
0.6 |
% |
|
|
|
|
|
|
6.0 |
|
|
|
0.9 |
% |
|
|
|
|
Legal settlement (1) |
|
— |
|
|
|
— |
|
|
|
|
|
|
|
3.6 |
|
|
|
0.5 |
% |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|
Loss (Gain) on sale of business (3) |
|
0.4 |
|
|
|
0.0 |
% |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|
Income from operations - non-GAAP |
$ |
163.2 |
|
|
|
21.7 |
% |
|
|
|
|
|
$ |
165.0 |
|
|
|
22.4 |
% |
|
|
|
|
|
$ |
135.0 |
|
|
|
20.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
Net Income |
|
|
|
|
|
|
|
|
Net Income |
|
|
|
|
|
|
|
|
Net Income |
|
|||||||||||||||||||||
|
December 31, |
|
|
% of Net Revenues |
|
|
Basic |
|
|
Diluted |
|
|
September 29, |
|
|
% of Net Revenues |
|
|
Basic |
|
|
Diluted |
|
|
December 31, |
|
|
% of Net Revenues |
|
|
Basic |
|
|
Diluted |
|
||||||||||||
Net income - GAAP |
$ |
146.3 |
|
|
|
19.4 |
% |
|
$ |
0.90 |
|
|
$ |
0.90 |
|
|
$ |
145.6 |
|
|
|
19.7 |
% |
|
$ |
0.89 |
|
|
$ |
0.89 |
|
|
$ |
117.1 |
|
|
|
17.5 |
% |
|
$ |
0.77 |
|
|
$ |
0.72 |
|
Amortization of equity method investment |
|
8.0 |
|
|
|
1.1 |
% |
|
|
0.05 |
|
|
|
0.05 |
|
|
|
2.4 |
|
|
|
0.3 |
% |
|
|
0.01 |
|
|
|
0.01 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
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 |
|
|
|
4.6 |
|
|
|
0.6 |
% |
|
|
0.03 |
|
|
|
0.03 |
|
|
|
6.0 |
|
|
|
0.9 |
% |
|
|
0.04 |
|
|
|
0.04 |
|
Loss (gain) on sale of business (3) |
|
0.4 |
|
|
|
0.1 |
% |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Legal settlement (1) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3.6 |
|
|
|
0.5 |
% |
|
|
0.02 |
|
|
|
0.02 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Loss (gain) on foreign exchange option |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(7.5 |
) |
|
|
-1.1 |
% |
|
|
— |
|
|
|
(0.05 |
) |
Pension mark-to-market adjustment (4) |
|
(1.8 |
) |
|
|
-0.2 |
% |
|
|
(0.01 |
) |
|
|
(0.01 |
) |
|
|
(2.3 |
) |
|
|
-0.3 |
% |
|
|
(0.01 |
) |
|
|
(0.01 |
) |
|
|
2.6 |
|
|
|
0.4 |
% |
|
|
0.02 |
|
|
|
0.02 |
|
Exclude discrete tax adjustments |
|
(8.0 |
) |
|
|
-1.1 |
% |
|
|
(0.05 |
) |
|
|
(0.05 |
) |
|
|
(8.9 |
) |
|
|
-1.2 |
% |
|
|
(0.05 |
) |
|
|
(0.05 |
) |
|
|
3.3 |
|
|
|
0.5 |
% |
|
|
0.02 |
|
|
|
0.02 |
|
Non-GAAP tax adjustments |
|
0.9 |
|
|
|
0.1 |
% |
|
|
0.01 |
|
|
|
0.01 |
|
|
|
(2.1 |
) |
|
|
-0.3 |
% |
|
|
(0.01 |
) |
|
|
(0.01 |
) |
|
|
1.0 |
|
|
|
0.1 |
% |
|
|
0.01 |
|
|
|
0.01 |
|
Net income - non-GAAP |
$ |
155.0 |
|
|
|
20.6 |
% |
|
$ |
0.95 |
|
|
$ |
0.95 |
|
|
$ |
147.6 |
|
|
|
20.0 |
% |
|
$ |
0.91 |
|
|
$ |
0.90 |
|
|
$ |
127.2 |
|
|
|
19.0 |
% |
|
$ |
0.83 |
|
|
$ |
0.79 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
GAAP and non-GAAP weighted average common shares - basic |
|
162.5 |
|
|
|
|
|
|
|
|
|
|
|
|
163.0 |
|
|
|
|
|
|
|
|
|
|
|
|
152.8 |
|
|
|
|
|
|
|
|
|
|
|||||||||
GAAP weighted average common shares - diluted (6) |
|
163.2 |
|
|
|
|
|
|
|
|
|
|
|
|
164.3 |
|
|
|
|
|
|
|
|
|
|
|
|
162.1 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Exclude dilutive shares related to convertible note transaction |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
(0.2 |
) |
|
|
|
|
|
|
|
|
|
|||||||||
Non-GAAP weighted average common shares - diluted |
|
163.2 |
|
|
|
|
|
|
|
|
|
|
|
|
164.3 |
|
|
|
|
|
|
|
|
|
|
|
|
161.9 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Page 9
|
Quarter Ended |
|
|
|
|
|
|
|
|||||||||||||||||||||
|
December 31, |
|
|
|
|
|
|
|
|
September 29, |
|
|
|
|
|
|
|
|
December 31, |
|
|
|
|
|
|
|
|||
Lease terminations |
$ |
1.3 |
|
|
|
|
|
|
|
|
$ |
— |
|
|
|
|
|
|
|
|
$ |
— |
|
|
|
|
|
|
|
Employee severance |
|
0.4 |
|
|
|
|
|
|
|
|
|
1.3 |
|
|
|
|
|
|
|
|
|
2.9 |
|
|
|
|
|
|
|
Acquisition and divestiture related expenses |
|
— |
|
|
|
|
|
|
|
|
|
— |
|
|
|
|
|
|
|
|
|
3.1 |
|
|
|
|
|
|
|
Other |
|
2.9 |
|
|
|
|
|
|
|
|
|
3.3 |
|
|
|
|
|
|
|
|
|
— |
|
|
|
|
|
|
|
|
$ |
4.6 |
|
|
|
|
|
|
|
|
$ |
4.6 |
|
|
|
|
|
|
|
|
$ |
6.0 |
|
|
|
|
|
|
|
Page 10
|
Twelve Months Ended |
|
|
|
|
|
|||||||||||||||||
|
December 31, |
|
|
% of Net Revenues |
|
|
|
|
|
|
December 31, |
|
|
% of Net Revenues |
|
|
|
|
|
||||
Net Revenues |
$ |
2,819.9 |
|
|
|
|
|
|
|
|
|
$ |
2,676.3 |
|
|
|
|
|
|
|
|
||
Gross profit - GAAP |
|
1,648.9 |
|
|
|
58.5 |
% |
|
|
|
|
|
|
1,536.7 |
|
|
|
57.4 |
% |
|
|
|
|
Legal settlement (1) |
|
3.6 |
|
|
|
0.1 |
% |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|
Gross profit - non-GAAP |
|
1,652.5 |
|
|
|
58.6 |
% |
|
|
|
|
|
|
1,536.7 |
|
|
|
57.4 |
% |
|
|
|
|
Income from operations - GAAP |
|
593.8 |
|
|
|
21.1 |
% |
|
|
|
|
|
|
501.1 |
|
|
|
18.7 |
% |
|
|
|
|
Acquired intangible assets amortization |
|
18.8 |
|
|
|
0.7 |
% |
|
|
|
|
|
|
19.0 |
|
|
|
0.7 |
% |
|
|
|
|
Restructuring and other (2) |
|
15.6 |
|
|
|
0.6 |
% |
|
|
|
|
|
|
21.3 |
|
|
|
0.8 |
% |
|
|
|
|
Legal settlement (1) |
|
3.6 |
|
|
|
0.1 |
% |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|
Equity modification charge (3) |
|
1.7 |
|
|
|
0.1 |
% |
|
|
|
|
|
|
5.9 |
|
|
|
0.2 |
% |
|
|
|
|
Loss (gain) on sale of business (4) |
|
(57.1 |
) |
|
|
-2.0 |
% |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|
Income from operations - non-GAAP |
$ |
576.3 |
|
|
|
20.4 |
% |
|
|
|
|
|
$ |
547.3 |
|
|
|
20.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
Net Income |
|
|
|
|
|
|
|
|
Net Income |
|
||||||||||||||
|
December 31, |
|
|
% of Net Revenues |
|
|
Basic |
|
|
Diluted |
|
|
December 31, |
|
|
% of Net Revenues |
|
|
Basic |
|
|
Diluted |
|
||||||||
Net income - GAAP |
$ |
542.4 |
|
|
|
19.2 |
% |
|
$ |
3.39 |
|
|
$ |
3.32 |
|
|
$ |
448.8 |
|
|
|
16.8 |
% |
|
$ |
2.91 |
|
|
$ |
2.73 |
|
Acquired intangible assets amortization |
|
18.8 |
|
|
|
0.7 |
% |
|
|
0.12 |
|
|
|
0.11 |
|
|
|
19.0 |
|
|
|
0.7 |
% |
|
|
0.12 |
|
|
|
0.12 |
|
Restructuring and other (2) |
|
15.6 |
|
|
|
0.6 |
% |
|
|
0.10 |
|
|
|
0.10 |
|
|
|
21.8 |
|
|
|
0.8 |
% |
|
|
0.14 |
|
|
|
0.13 |
|
Amortization of equity method investment |
|
10.4 |
|
|
|
0.4 |
% |
|
|
0.07 |
|
|
|
0.06 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Loss (gain) on foreign exchange option |
|
9.8 |
|
|
|
0.3 |
% |
|
|
0.06 |
|
|
|
0.06 |
|
|
|
(7.5 |
) |
|
|
-0.3 |
% |
|
|
(0.05 |
) |
|
|
(0.05 |
) |
Legal settlement (1) |
|
3.6 |
|
|
|
0.1 |
% |
|
|
0.02 |
|
|
|
0.02 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Equity modification charge (3) |
|
1.7 |
|
|
|
0.1 |
% |
|
|
0.01 |
|
|
|
0.01 |
|
|
|
5.9 |
|
|
|
0.2 |
% |
|
|
0.04 |
|
|
|
0.04 |
|
Pension mark-to-market adjustment (5) |
|
(4.4 |
) |
|
|
-0.2 |
% |
|
|
(0.03 |
) |
|
|
(0.03 |
) |
|
|
2.7 |
|
|
|
0.1 |
% |
|
|
0.02 |
|
|
|
0.02 |
|
Loss (gain) on sale of business (4) |
|
(57.1 |
) |
|
|
-2.0 |
% |
|
|
(0.36 |
) |
|
|
(0.35 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Exclude discrete tax adjustments |
|
(8.7 |
) |
|
|
-0.3 |
% |
|
|
(0.05 |
) |
|
|
(0.05 |
) |
|
|
(3.4 |
) |
|
|
-0.1 |
% |
|
|
(0.02 |
) |
|
|
(0.02 |
) |
Non-GAAP tax adjustments |
|
(6.9 |
) |
|
|
-0.2 |
% |
|
|
(0.04 |
) |
|
|
(0.04 |
) |
|
|
(7.7 |
) |
|
|
-0.3 |
% |
|
|
(0.05 |
) |
|
|
(0.05 |
) |
Convertible share adjustment (6) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.01 |
|
Net income - non-GAAP |
$ |
525.1 |
|
|
|
18.6 |
% |
|
$ |
3.29 |
|
|
$ |
3.22 |
|
|
$ |
479.6 |
|
|
|
17.9 |
% |
|
$ |
3.11 |
|
|
$ |
2.93 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
GAAP and non-GAAP weighted average common shares - basic |
|
159.8 |
|
|
|
|
|
|
|
|
|
|
|
|
154.3 |
|
|
|
|
|
|
|
|
|
|
||||||
GAAP weighted average common shares - diluted (6) |
|
163.3 |
|
|
|
|
|
|
|
|
|
|
|
|
164.3 |
|
|
|
|
|
|
|
|
|
|
||||||
Exclude dilutive shares from convertible note |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
(0.6 |
) |
|
|
|
|
|
|
|
|
|
||||||
Non-GAAP weighted average common shares - diluted |
|
163.3 |
|
|
|
|
|
|
|
|
|
|
|
|
163.7 |
|
|
|
|
|
|
|
|
|
|
||||||
Page 11
|
Twelve Months Ended |
|
|
|
|
|
|
|
|||||||||||
|
December 31, |
|
|
|
|
|
|
|
|
December 31, |
|
|
|
|
|
|
|
||
Employee severance |
$ |
5.2 |
|
|
|
|
|
|
|
|
$ |
14.8 |
|
|
|
|
|
|
|
Acquisition and divestiture related expenses |
|
2.2 |
|
|
|
|
|
|
|
|
|
3.1 |
|
|
|
|
|
|
|
Lease terminations |
|
1.3 |
|
|
|
|
|
|
|
|
|
— |
|
|
|
|
|
|
|
Contract termination |
|
— |
|
|
|
|
|
|
|
|
|
1.5 |
|
|
|
|
|
|
|
Other |
|
6.8 |
|
|
|
|
|
|
|
|
|
1.9 |
|
|
|
|
|
|
|
|
$ |
15.6 |
|
|
|
|
|
|
|
|
$ |
21.3 |
|
|
|
|
|
|
|
Page 12
GAAP to Non-GAAP Reconciliation of First Quarter 2025 guidance:
GAAP and non-GAAP first quarter revenue guidance: |
|
|
$660 million |
|
to |
$700 million |
|
|
|
|
|
|
|
||
GAAP net income per diluted share |
|
|
$ |
0.48 |
|
|
$ |
0.59 |
|
|
|
|
|
|
|
Exclude acquired intangible assets amortization |
|
|
|
0.03 |
|
|
|
0.03 |
|
|
|
|
|
|
|
Exclude restructuring and other charges |
|
|
|
0.03 |
|
|
|
0.03 |
|
|
|
|
|
|
|
Exclude equity method investment amortization |
|
|
|
0.05 |
|
|
|
0.05 |
|
|
|
|
|
|
|
Non-GAAP tax adjustments |
|
|
|
(0.01 |
) |
|
|
(0.01 |
) |
|
|
|
|
|
|
Non-GAAP net income per diluted share |
|
|
$ |
0.58 |
|
|
$ |
0.68 |
|
|
|
|
|
|
|
For press releases and other information of interest to investors, please visit Teradyne’s homepage at http://www.teradyne.com.
Contact: |
Teradyne, Inc. |
|
Traci Tsuchiguchi 978-370-2444 |
|
Vice President of Corporate Relations |