Teradyne, Inc 10-Q for FY2023 Q2

Teradyne, Inc 10-Q for FY2023 Q2

About this 10-Q

About this 10-Q

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Headline figures

Table of Contents

Teradyne, Inc (TER)

10-Q 2023-08-04 For: 2023-07-02

Added on April 10, 2026

Teradyne, Inc filed this 10-Q on August 4, 2023, covering the quarter ended July 2, 2023 (FY2023 Q2).

Quarter ended July 2, 2023, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $684.44M; down 18.6% from $840.77M a year earlier
Net income: $120.05M; down 39.3% from net income of $197.79M a year earlier
Diluted EPS: $0.73; down 37.1% from $1.16 a year earlier

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Massachusetts		04-2272148
(State or Other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification No.)

600 Riverpark Drive, North Reading, Massachusetts		01864
(Address of Principal Executive Offices)		(Zip Code)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.125 per share	TER	Nasdaq Stock Market LLC


		Page No.

PART I. FINANCIAL INFORMATION

Item 1.	Financial Statements (Unaudited):		1

	Condensed Consolidated Balance Sheets as of July 2, 2023 and December 31, 2022		1

	Condensed Consolidated Statements of Operations for the Three and Six Months ended July 2, 2023 and July 3, 2022		2

	Condensed Consolidated Statements of Comprehensive Income for the Three and Six Months ended July 2, 2023 and July 3, 2022		3

	Condensed Statements of Convertible Common Shares and Shareholders’ Equity for the Three and Six Months Ended July 2, 2023 and July 3, 2022		4

	Condensed Consolidated Statements of Cash Flows for the Six Months Ended July 2, 2023 and July 3, 2022		5

	Notes to Condensed Consolidated Financial Statements		6

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		28

Item 3.	Quantitative and Qualitative Disclosures about Market Risk		37

Item 4.	Controls and Procedures		38

PART II. OTHER INFORMATION

Item 1.	Legal Proceedings		38

Item 1A.	Risk Factors		38

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		39

Item 4.	Mine Safety Disclosures		39

Item 5.	Other Information		39

Item 6.	Exhibits		40


	July 2, 2023			December 31, 2022

	(in thousands, except per share amount)
ASSETS
Current assets:
Cash and cash equivalents	$	613,208		$	854,773
Marketable securities		95,199			39,612
Accounts receivable, less allowance for credit losses of $2,232 and $1,955 at July 2, 2023 and December 31, 2022, respectively		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
Current 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 incomes taxes payable		44,331			59,135

Total liabilities		960,013			1,049,958

Commitments and contingencies (Note P)
SHAREHOLDERS’ EQUITY
Common stock, $0.125 par value, 1,000,000 shares authorized; 154,148 and 155,759 shares issued and outstanding at July 2, 2023 and December 31, 2022, respectively		19,269			19,470
Additional paid-in capital		1,784,590			1,755,963
Accumulated other comprehensive loss		(30,472	)		(49,868	)
Retained earnings		661,496			725,729

Total shareholders’ equity		2,434,883			2,451,294

Total liabilities and shareholders’ equity	$	3,394,896		$	3,501,252


	For the Three Months Ended						For the Six Months Ended
	July 2, 2023			July 3, 2022			July 2, 2023			July 3, 2022

	(in thousands, except per share amount)
Revenues:
Products	$	540,375		$	697,954		$	1,013,793		$	1,323,829
Services		144,062			142,812			288,173			272,307

Total revenues		684,437			840,766			1,301,966			1,596,136
Cost of revenues:
Cost of products		217,011			274,674			415,675			517,690
Cost of services		64,934			59,703			127,379			117,124

Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below)		281,945			334,377			543,054			634,814

Gross profit		402,492			506,389			758,912			961,322
Operating expenses:
Selling and administrative		145,695			139,533			296,650			279,718
Engineering and development		105,706			111,951			211,468			220,067
Acquired intangible assets amortization		4,825			4,871			9,627			9,934
Restructuring and other		6,358			2,044			8,395			17,758

Total operating expenses		262,584			258,399			526,140			527,477

Income from operations		139,908			247,990			232,772			433,845
Non-operating (income) expense:
Interest income		(6,354	)		(951	)		(11,613	)		(1,653	)
Interest expense		1,045			913			2,031			1,925
Other (income) expense, net		815			9,436			868			14,622

Income before income taxes		144,402			238,592			241,486			418,951
Income tax provision		24,352			40,805			37,905			59,236

Net income	$	120,050		$	197,787		$	203,581		$	359,715

Net income per common share:
Basic	$	0.78		$	1.24		$	1.31		$	2.24

Diluted	$	0.73		$	1.16		$	1.23		$	2.07

Weighted average common shares—basic		154,760			159,563			155,332			160,805

Weighted average common shares—diluted		164,751			171,159			165,530			173,367


				Shareholders’ Equity
	Convertible Common Shares Value			Common Stock Shares			Common Stock Par Value			Additional Paid-in Capital			Accumulated Other Comprehensive (Loss) Income			Retained Earnings			Total Shareholders’ Equity

				(in thousands)
For the Three Months Ended July 2, 2023
Balance, April 2, 2023	$	—			155,445		$	19,431		$	1,772,352		$	(36,466	)	$	694,145		$	2,449,462
Net issuance of common stock under stock-based plans					52			7			161									168
Stock-based compensation expense											12,077									12,077
Repurchase of common stock					(1,349	)		(169	)								(135,668	)		(135,837	)
Cash dividends ($0.11 per share)																	(17,031	)		(17,031	)
Settlements of convertible notes					50			6			(6	)								—
Exercise of convertible notes hedge call options					(50	)		(6	)		6									—
Net income																	120,050			120,050
Other comprehensive income														5,994						5,994

Balance, July 2, 2023	$	—			154,148		$	19,269		$	1,784,590		$	(30,472	)	$	661,496		$	2,434,883

For the Three Months Ended July 3, 2022
Balance, April 3, 2022	$	—			161,053		$	20,132		$	1,711,690		$	(19,479	)	$	762,189		$	2,474,532
Net issuance of common stock under stock-based plans					33			4			(1,675	)								(1,671	)
Stock-based compensation expense											11,658									11,658
Repurchase of common stock					(3,206	)		(401	)								(333,933	)		(334,334	)
Cash dividends ($0.11 per share)																	(17,561	)		(17,561	)
Settlements of convertible notes					495			62			(149	)								(87	)
Exercise of convertible notes hedge call options					(495	)		(62	)		62									—
Cumulative-effect of change in accounting principle related to convertible debt																	1,752			1,752
Net income																	197,787			197,787
Other comprehensive loss														(33,480	)					(33,480	)

Balance, July 3, 2022	$	—			157,880		$	19,735		$	1,721,586		$	(52,959	)	$	610,234		$	2,298,596

For the Six Months Ended July 2, 2023
Balance, December 31, 2022	$	—			155,759		$	19,470		$	1,755,963		$	(49,868	)	$	725,729		$	2,451,294
Net issuance of common stock under stock-based plans					631			79			(3,782	)								(3,703	)
Stock-based compensation expense											32,409									32,409
Repurchase of common stock					(2,242	)		(280	)								(233,604	)		(233,884	)
Cash dividends ($0.22 per share)																	(34,210	)		(34,210	)
Settlements of convertible notes					375			47			(47	)								—
Exercise of convertible notes hedge call options					(375	)		(47	)		47									—
Net income																	203,581			203,581
Other comprehensive income														19,396						19,396

Balance, July 2, 2023	$	—			154,148		$	19,269		$	1,784,590		$	(30,472	)	$	661,496		$	2,434,883

For the Six Months Ended July 3, 2022
Balance, December 31, 2021	$	1,512			162,251		$	20,281		$	1,811,545		$	(5,948	)	$	736,566		$	2,562,444
Net issuance of common stock under stock-based plans					585			73			(16,318	)								(16,245	)
Stock-based compensation expense											25,862									25,862
Repurchase of common stock					(4,956	)		(619	)								(545,179	)		(545,798	)
Cash dividends ($0.22 per share)																	(35,470	)		(35,470	)
Settlements of convertible notes					1,004			125			(306	)								(181	)
Exercise of convertible notes hedge call options					(1,004	)		(125	)		125									—
Cumulative-effect of change in accounting principle related to convertible debt		(1,512	)								(99,322	)					94,602			(4,720	)
Net income																	359,715			359,715
Other comprehensive loss														(47,011	)					(47,011	)

Balance, July 3, 2022	$	—			157,880		$	19,735		$	1,721,586		$	(52,959	)	$	610,234		$	2,298,596


	For the Six Months Ended
	July 2, 2023			July 3, 2022

	(in thousands)
Cash flows from operating activities:
Net income	$	203,581		$	359,715
Adjustments to reconcile net income from operations to net cash provided by operating activities:
Depreciation		45,231			44,460
Stock-based compensation		32,449			25,122
Provision for excess and obsolete inventory		11,341			6,695
Amortization		9,580			10,095
Deferred taxes		(13,571	)		(23,597	)
(Gains) losses on investments		(4,745	)		8,973
Other		(92	)		522
Changes in operating assets and liabilities
Accounts receivable		(2,693	)		(146,384	)
Inventories		(13,845	)		(46,682	)
Prepayments and other assets		(29,584	)		(94,751	)
Accounts payable and other liabilities		(24,514	)		(43,611	)
Deferred revenue and customer advances		(34,938	)		14,163
Retirement plans contributions		(2,482	)		(2,618	)
Income taxes		(13,614	)		10,815

Net cash provided by operating activities		162,104			122,917

Cash flows from investing activities:
Purchases of property, plant and equipment		(80,702	)		(89,743	)
Purchases of marketable securities		(99,018	)		(247,881	)
Proceeds from sales of marketable securities		35,577			143,642
Proceeds from maturities of marketable securities		21,997			139,652
Proceeds from life insurance		460			—

Net cash used for investing activities		(121,686	)		(54,330	)

Cash flows from financing activities:
Repurchase of common stock		(227,845	)		(532,799	)
Dividend payments		(34,184	)		(35,442	)
Payments related to net settlement of employee stock compensation awards		(20,308	)		(32,780	)
Payments of convertible debt principal		(17,458	)		(42,292	)
Issuance of common stock under stock purchase and stock option plans		16,599			16,536

Net cash used for financing activities		(283,196	)		(626,777	)

Effects of exchange rate changes on cash and cash equivalents		1,213			8,014

Decrease in cash and cash equivalents		(241,565	)		(550,176	)
Cash and cash equivalents at beginning of period		854,773			1,122,199

Cash and cash equivalents at end of period	$	613,208		$	572,023

Non-cash investing activities:
Capital expenditures incurred but not yet paid:	$	1,741		$	1,855


	Semiconductor Test						Robotics

	System on-a-Chip		Memory		System Test		Universal Robots		Mobile Industrial Robots		Wireless Test		Corporate and Eliminations			Total

	(in thousands)
For the Three Months Ended July 2, 2023 (1)
Timing of Revenue Recognition
Point in Time	$	282,080	$	112,547	$	76,801	$	55,737	$	12,770	$	40,261	$	—		$	580,196
Over Time		72,614		7,467		17,471		2,116		1,011		3,562		—			104,241

Total	$	354,694	$	120,014	$	94,272	$	57,853	$	13,781	$	43,823	$	—		$	684,437

Geographical Market
Asia Pacific	$	303,062	$	115,250	$	41,644	$	14,883	$	2,291	$	22,362	$	—		$	499,492
Americas		32,191		4,286		40,163		22,832		6,086		19,491		—			125,049
Europe, Middle East and Africa		19,441		478		12,465		20,138		5,404		1,970		—			59,896

Total	$	354,694	$	120,014	$	94,272	$	57,853	$	13,781	$	43,823	$	—		$	684,437

For the Three Months Ended July 3, 2022 (1)
Timing of Revenue Recognition
Point in Time	$	395,211	$	74,790	$	118,692	$	80,409	$	17,801	$	60,765	$	(193	)	$	747,475
Over Time		64,253		7,094		16,010		2,104		741		3,089		—			93,291

Total	$	459,464	$	81,884	$	134,702	$	82,513	$	18,542	$	63,854	$	(193	)	$	840,766

Geographical Market
Asia Pacific	$	413,537	$	78,996	$	95,584	$	17,357	$	5,317	$	44,106	$	—		$	654,897
Americas		28,714		2,552		33,409		27,732		7,229		17,460		(193	)		116,903
Europe, Middle East and Africa		17,213		336		5,709		37,424		5,996		2,288		—			68,966

Total	$	459,464	$	81,884	$	134,702	$	82,513	$	18,542	$	63,854	$	(193	)	$	840,766

For the Six Months Ended July 2, 2023 (2)
Timing of Revenue Recognition
Point in Time	$	555,354	$	173,805	$	133,658	$	125,760	$	28,735	$	75,624	$	—		$	1,092,937
Over Time		146,173		14,384		35,245		4,124		2,229		6,874		—			209,029

Total	$	701,528	$	188,189	$	168,903	$	129,884	$	30,964	$	82,498	$	—		$	1,301,966

Geographical Market
Asia Pacific	$	586,321	$	178,945	$	81,234	$	28,100	$	3,793	$	45,593	$	—		$	923,986
Americas		73,759		7,230		69,143		43,273		17,898		32,337		—			243,640
Europe, Middle East and Africa		41,448		2,014		18,526		58,511		9,273		4,568		—			134,340

Total	$	701,528	$	188,189	$	168,903	$	129,884	$	30,964	$	82,498	$	—		$	1,301,966

For the Six Months Ended July 3, 2022 (2)
Timing of Revenue Recognition
Point in Time	$	718,666	$	163,513	$	223,981	$	163,591	$	34,545	$	109,194	$	(539	)	$	1,412,951
Over Time		127,382		14,127		29,390		4,206		1,902		6,178		—			183,185

Total	$	846,048	$	177,640	$	253,371	$	167,797	$	36,447	$	115,372	$	(539	)	$	1,596,136

Geographical Market
Asia Pacific	$	754,277	$	172,147	$	169,369	$	35,978	$	7,909	$	79,052	$	—		$	1,218,732
Americas		58,428		4,598		70,017		55,880		15,793		27,147		(539	)		231,324
Europe, Middle East and Africa		33,343		895		13,985		75,939		12,745		9,173		—			146,080

Total	$	846,048	$	177,640	$	253,371	$	167,797	$	36,447	$	115,372	$	(539	)	$	1,596,136


	July 2,		December 31,
	2023		2022

	(in thousands)
Maintenance, service and training	$	68,282	$	78,089
Customer advances, undelivered elements and other		46,380		59,147
Extended warranty		44,422		56,180

Total deferred revenue and customer advances	$	159,084	$	193,416


	July 2, 2023		December 31, 2022

	(in thousands)
Raw material	$	250,422	$	256,065
Work-in-process		43,685		37,982
Finished goods		53,188		30,972

	$	347,295	$	325,019


	July 2, 2023
	Quoted Prices in Active Markets for Identical Instruments (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total

	(in thousands)
Assets
Cash	$	311,803	$	—	$	—	$	311,803
Cash equivalents		290,548		10,857		—		301,405
Available-for-sale securities:
U.S. Treasury securities		—		52,238		—		52,238
Corporate debt securities		—		51,608		—		51,608
Commercial paper		—		30,882		—		30,882
Debt mutual funds		7,739		—		—		7,739
Certificates of deposit and time deposits		—		6,699		—		6,699
U.S. government agency securities		—		6,475		—		6,475
Non-U.S. government securities		—		544		—		544
Equity securities:
Mutual funds		43,699		—		—		43,699

	$	653,789	$	159,303	$	—	$	813,092
Derivative assets		—		5,819		—		5,819

Total	$	653,789	$	165,122	$	—	$	818,911

Liabilities
Derivative liabilities	$	—	$	994	$	—	$	994

Total	$	—	$	994	$	—	$	994


Reported as follows:
	(Level 1)		(Level 2)		(Level 3)		Total

	(in thousands)
Assets
Cash and cash equivalents	$	602,351	$	10,857	$	—	$	613,208
Marketable securities		—		95,199		—		95,199
Long-term marketable securities		51,438		53,247		—		104,685
Prepayments		—		5,819		—		5,819

Total	$	653,789	$	165,122	$	—	$	818,911

Liabilities		.
Other current liabilities	$	—	$	994	$	—	$	994

Total	$	—	$	994	$	—	$	994


	December 31, 2022
	Quoted Prices in Active Markets for Identical Instruments (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total

	(in thousands)
Assets
Cash	$	632,417	$	—	$	—	$	632,417
Cash equivalents		161,767		60,589		—		222,356
Available-for-sale securities:								—
Corporate debt securities		—		50,856		—		50,856
U.S. Treasury securities		—		39,649		—		39,649
Commercial paper		—		7,159		—		7,159
Debt mutual funds		6,580		—		—		6,580
U.S. government agency securities		—		6,352		—		6,352
Certificates of deposit and time deposits		—		1,740		—		1,740
Non-U.S. government securities		—		535		—		535
Equity securities:
Mutual Funds		37,518		—		—		37,518

	$	838,282	$	166,880	$	—	$	1,005,162
Derivative assets		—		86		—		86

Total	$	838,282	$	166,966	$	—	$	1,005,248

Liabilities
Derivative liabilities		—		4,215		—		4,215

Total	$	—	$	4,215	$	—	$	4,215


	July 2, 2023				December 31, 2022
	Carrying Value		Fair Value		Carrying Value		Fair Value

	(in thousands)
Assets
Cash and cash equivalents	$	613,208	$	613,208	$	854,773	$	854,773
Marketable securities		199,884		199,884		150,389		150,389
Derivative assets		5,819		5,819		86		86
Liabilities
Derivative liabilities		994		994		4,215		4,215
Convertible debt		32,806		115,778		50,115		139,007


	July 2, 2023

	Available-for-Sale

	Cost		Unrealized Gain		Unrealized (Loss)			Fair Market Value		Fair Market Value of Investments with Unrealized Losses

	(in thousands)
U.S. Treasury securities	$	56,107	$	2	$	(3,871	)	$	52,238	$	42,716
Corporate debt securities		56,680		12		(5,084	)		51,608		50,455
Commercial paper		30,311		581		(10	)		30,882		19,840
Debt mutual funds		8,104		—		(365	)		7,739		3,161
Certificates of deposit and time deposits		6,699		—		—			6,699		—
U.S. government agency securities		6,520		—		(45	)		6,475		6,475
Non-U.S. government securities		544		—		—			544		—

	$	164,965	$	595	$	(9,375	)	$	156,185	$	122,647


	For the Three Months Ended						For the Six Months Ended
	July 2, 2023			July 3, 2022			July 2, 2023			July 3, 2022

	(in thousands)
Net income	$	120,050		$	197,787		$	203,581		$	359,715
Other comprehensive income, net of tax:
Foreign currency translation adjustment, net of tax of $0, $0, $0, $0, respectively		2,943			(29,230	)		12,250			(37,307	)
Available-for-sale marketable securities:
Unrealized (losses) gains on marketable securities arising during period, net of tax of $(180), $(1,240), $323, and $(2,573), respectively		(568	)		(4,522	)		1,726			(9,910	)
Less: Reclassification adjustment for losses included in net income, net of tax of $8, $77, $10, $59, respectively		28			274			33			209

		(540	)		(4,248	)		1,759			(9,701	)
Cash flow hedges:
Unrealized gains arising during period, net of tax of $920, $0, $1,088, $ 0 respectively		3,270			—			3,866			—
Less: Reclassification adjustment for losses included in net income, net of tax of $91, $0, $428, $0 respectively		323			—			1,524			—

		3,593			—			5,390			—
Defined benefit post-retirement plan:
Amortization of prior service credit, net of tax of $0, $0, $(1), $(1), respectively		(2	)		(2	)		(3	)		(3	)

Other comprehensive income (loss)		5,994			(33,480	)		19,396			(47,011	)

Comprehensive income	$	126,044		$	164,307		$	222,977		$	312,704


	July 2, 2023

	Cost		Fair Market Value

	(in thousands)
Due within one year	$	95,482	$	95,199
Due after 1 year through 5 years		17,131		16,467
Due after 5 years through 10 years		6,012		5,559
Due after 10 years		38,236		31,221

Total	$	156,861	$	148,446


	Net Notional Value
	July 2, 2023		December 31, 2022

	(in millions)
Currency Hedged (Buy/Sell)


U.S. dollar/Japanese yen	$	66.3	$	37.1
U.S. dollar/Taiwan dollar		22.3		29.2
U.S. dollar/Korean won		8.1		6.4
U.S. dollar/British pound sterling		0.9		1.2
Euro/U.S. dollar		24.5		38.4
Singapore dollar/U.S. dollar		22.0		34
Philippine peso/U.S. dollar		2.5		2.7
Chinese yuan/U.S. dollar		1.8		2.2
Danish krone/U.S. dollar		0.6		—

Total	$	149.0	$	150.7


	Net Notional Value
	July 2, 2023		December 31, 2022

	(in millions)
Currency Hedged (Buy/Sell)


Japanese yen/U.S. dollar	$	52.8	$	23.4
Taiwan dollar/U.S. dollar		—		5.5
U.S. dollar/Japanese yen		—		61.2
U.S. dollar/Taiwan dollar		—		10.9

Total	$	52.8	$	101.0


	Balance Sheet Location	July 2, 2023			December 31, 2022

		(in thousands)
Derivatives not designated as hedging instruments:
Foreign exchange forward contracts	Prepayments	$	2,138		$	86
Foreign exchange forward contracts	Other current liabilities		(994	)		(990	)
Derivatives designated as hedging instruments:
Foreign exchange forward contracts	Prepayments		3,681			—
Foreign exchange option contracts	Other current liabilities		—			(3,225	)

Total derivatives		$	4,825		$	(4,129	)


		For the Three Months Ended						For the Six Months Ended
	Location of (Gains) Losses Recognized in Statement of Operations	July 2, 2023			July 3, 2022			July 2, 2023			July 3, 2022

		(in thousands)
Derivatives not designated as hedging instruments:
Foreign exchange forward contracts	Other (income) expense, net	$	(4,040	)	$	(1,703	)	$	(2,781	)	$	(3,455	)
Derivatives designated as hedging instruments:
Foreign exchange option contracts	Revenue		414			—			1,952			—

Total Derivatives		$	(3,626	)	$	(1,703	)	$	(829	)	$	(3,455	)


	For the Three Months Ended				For the Six Months Ended
	July 2, 2023		July 3, 2022		July 2, 2023		July 3, 2022

	(in thousands)				(in thousands)
Contractual interest expense on the coupon	$	100	$	121	$	238	$	432
Amortization of debt issuance fees recognized as interest expense		—		64		113		130

Total interest expense on the convertible debt	$	100	$	185	$	351	$	562


	For the Six Months Ended
	July 2,			July 3,
	2023			2022

Risk-free interest rate		3.9	%		1.4	%
Teradyne volatility-historical		50.2	%		47.1	%
NYSE Composite Index volatility-historical		24.8	%		22.7	%
Dividend yield		0.4	%		0.4	%


	Foreign Currency Translation Adjustment			Unrealized (Losses) Gains on Marketable Securities			Unrealized (Losses) Gains on Cash Flow Hedges			Retirement Plans Prior Service Credit			Total

	(in thousands)
Six Months Ended July 2, 2023
Balance at December 31, 2022, net of tax of $0, $(2,308), $(708), $(1,130), respectively	$	(39,849	)	$	(8,661	)	$	(2,517	)	$	1,159		$	(49,868	)
Other comprehensive gain before reclassifications, net of tax of $0, $323, $1,088, $0, respectively		12,250			1,726			3,866			—			17,842
Amounts reclassified from accumulated other comprehensive income, net of tax of $0, $10, $428, $(1), respectively		—			33			1,524			(3	)		1,554

Net current period other comprehensive gain (loss), net of tax of $0, $333, $1,516, $(1), respectively		12,250			1,759			5,390			(3	)		19,396

Balance at July 2, 2023, net of tax of $0, $(1,975), $808, $(1,131), respectively	$	(27,599	)	$	(6,902	)	$	2,873		$	1,156		$	(30,472	)

Six Months Ended July 3, 2022
Balance at December 31, 2021, net of tax of $0, $1,055, $0, $(1,128), respectively	$	(10,818	)	$	3,704		$	—		$	1,166		$	(5,948	)
Other comprehensive loss before reclassifications, net of tax of $0, $(2,573), $0, $0, respectively		(37,307	)		(9,910	)		—			—			(47,217	)
Amounts reclassified from accumulated other comprehensive income, net of tax of $0, $59, $0, $(1), respectively		—			209			—			(3	)		206

Net current period other comprehensive loss, net of tax of $0, $(2,514), $0, $(1), respectively		(37,307	)		(9,701	)		—			(3	)		(47,011	)

Balance at July 3, 2022, net of tax of $0, $(1,459), $0, $(1,129), respectively	$	(48,125	)	$	(5,997	)	$	—		$	1,163		$	(52,959	)


Details about Accumulated Other Comprehensive Income (Loss) Components	For the Three Months Ended						For the Six Months Ended						Affected Line Item in the Statements of Operations
	July 2,			July 3,			July 2,			July 3,
	2023			2022			2023			2022

	(in thousands)
Available-for-sale marketable securities:
Unrealized losses, net of tax of $(8), $(77), $(10), $(59), respectively	$	(28	)	$	(274	)	$	(33	)	$	(209	)	Other (income) expense, net
Cash flow hedges:
Unrealized losses, net of tax of $(91), $0, $(428), $0, respectively		(323	)		—			(1,524	)		—		Revenue
Defined benefit pension and postretirement plans:
Amortization of prior service credit, net of tax of $0, $0, $1, $1, respectively		2			2			3			3		(a)

Total reclassifications, net of tax of $(99), $(77), $(437), $(58), respectively	$	(349	)	$	(272	)	$	(1,554	)	$	(206	)	Net income


	Robotics		Wireless Test			Semiconductor Test			System Test			Total

	(in thousands)
Balance at December 31, 2022
Goodwill	$	383,166	$	361,819		$	262,077		$	158,699		$	1,165,761
Accumulated impairment losses		—		(353,843	)		(260,540	)		(148,183	)		(762,566	)

Total Goodwill		383,166		7,976			1,537			10,516			403,195

Foreign currency translation adjustment		8,857		—			58			—			8,915

Balance at July 2, 2023
Goodwill		392,023		361,819			262,135			158,699			1,174,676
Accumulated impairment losses		—		(353,843	)		(260,540	)		(148,183	)		(762,566	)

Total Goodwill	$	392,023	$	7,976		$	1,595		$	10,516		$	412,110


	Gross Carrying Amount (1)		Accumulated Amortization (1)			Foreign Currency Translation Adjustment			Net Carrying Amount

	(in thousands)
Balance at July 2, 2023
Developed technology	$	267,708	$	(237,078	)	$	(5,444	)	$	25,186
Customer relationships		52,109		(46,699	)		200			5,610
Tradenames and trademarks		59,007		(43,904	)		(1,288	)		13,815

Total intangible assets	$	378,824	$	(327,681	)	$	(6,532	)	$	44,611

Balance, December 31, 2022
Developed technology	$	270,967	$	(234,208	)	$	(5,935	)	$	30,824
Customer relationships		57,739		(51,186	)		172			6,725
Tradenames and trademarks		59,387		(41,930	)		(1,528	)		15,929

Total intangible assets	$	388,093	$	(327,324	)	$	(7,291	)	$	53,478


Year	Amortization Expense
	(in thousands)
2023	$	9,443
2024		18,834
2025		11,352
2026		2,379
2027		1,162
Thereafter		1,441


	For the Three Months Ended

	July 2, 2023						July 3, 2022
	United States			Foreign			United States			Foreign

	(in thousands)
Service cost	$	272		$	110		$	397		$	180
Interest cost		1,714			263			1,221			120
Expected return on plan assets		(1,286	)		(9	)		(732	)		(18	)
Net actuarial loss (gain)		24			—			(45	)		—

Total net periodic pension cost	$	724		$	364		$	841		$	282

Large accelerated filer

Accelerated filer

Non-accelerated
filer

Emerging growth company

Smaller reporting company


	Semiconductor Test		System Test		Robotics			Wireless Test		Corporate and Eliminations			Consolidated

	(in thousands)
Three Months Ended July 2, 2023
Revenues	$	474,708	$	94,272	$	71,634		$	43,823	$	—		$	684,437
Income (loss) before income taxes (1)(2)		129,040		28,599		(26,401	)		12,020		1,144			144,402
Total assets (3)		1,416,109		191,002		685,132			88,869		1,013,784			3,394,896
Three Months Ended July 3, 2022
Revenues	$	541,348	$	134,702	$	101,055		$	63,854	$	(193	)	$	840,766
Income (loss) before income taxes (1)(2)		177,782		54,042		(6,406	)		25,393		(12,219	)		238,592
Total assets (3)		1,449,878		229,359		644,099			118,445		1,046,645			3,488,426
Six Months Ended July 2, 2023
Revenues	$	889,717	$	168,903	$	160,848		$	82,498	$	—		$	1,301,966
Income (loss) before income taxes (1)(2)		225,225		43,874		(44,891	)		21,372		(4,094	)		241,486
Total assets (3)		1,416,109		191,002		685,132			88,869		1,013,784			3,394,896
Six Months Ended July 3, 2022
Revenues	$	1,023,688	$	253,371	$	204,244		$	115,372	$	(539	)	$	1,596,136
Income (loss) before income taxes (1)(2)		327,487		95,365		(11,504	)		44,012		(36,409	)		418,951
Total assets (3)		1,449,878		229,359		644,099			118,445		1,046,645			3,488,426


Hypothetical Change in Teradyne Stock Price	Fair Value		Estimated change in fair value			Hypothetical percentage increase (decrease) in fair value

10% Increase	$	127,385	$	11,607			10.0	%
No Change		115,778		—			—
10% Decrease		104,171		(11,607	)		(10.0	)


Period	Total Number of Shares (or Units) Purchased			Average Price Paid per Share (or Unit)			Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs		Maximum Number (or Approximate Dollar Value) of Shares (or Units) that may Yet Be Purchased Under the Plans or Programs (2)

April 3, 2023 – April 30, 2023		410		$	100.73			409	$	1,865,063
May 1, 2023 – May 28, 2023		469		$	92.88			467	$	1,821,664
May 29, 2023 – July 2, 2023		474		$	108.31			473	$	1,770,455

		1,354	(1)	$	100.66	(1)		1,349


Exhibit Number		Description

31.1		Certification of Principal Executive Officer, pursuant to Rule 13a-14(a) of Securities and Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)

31.2		Certification of Principal Financial Officer, pursuant to Rule 13a-14(a) of Securities and Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)

32.1		Certification of Principal Executive Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith)

32.2		Certification of Principal Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith)

101.INS		Inline XBRL Instance Document

101.SCH		Inline XBRL Taxonomy Extension Schema Document

101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document

104		Cover Page Interactive Data File (formatted as Inline XBRL, and contained in Exhibit 101)


By:		/s/ GREGORY S. SMITH
		Gregory S. Smith
		Chief Executive Officer


By:		/s/ SANJAY MEHTA
		Sanjay Mehta
		Chief Financial Officer