Teradyne Reports Fourth Quarter and Fiscal Year 2023 Results
- Record Robotics revenue in Q4'23, up 50% from Q3'23 and 17% from Q4'22
- Strong demand for memory test systems offset weakening demand for SOC test systems
- Projected revenue for Q1'24 is $540-590 million
- Q4'23 revenue down 8% from Q4'22
- FY 2023 revenue down 15% from FY 2022
Insights
The reported revenue decline of 8% in Q4 and 15% for the full year indicates a contraction in Teradyne's business operations compared to the previous periods. This contraction could be indicative of market challenges or increased competition, potentially impacting investor sentiment and the company's stock valuation. However, the record growth in Robotics revenue suggests a strategic pivot or diversification in Teradyne's business model that could mitigate risks associated with the core semiconductor business. Analyzing the company's financial health and future revenue streams becomes critical in understanding the long-term investment potential.
Moreover, the GAAP EPS decline from $1.04 in Q4'22 to $0.72 in Q4'23, alongside a similar trend in non-GAAP EPS, reflects a decrease in profitability. Investors should assess the sustainability of the company's earnings, considering both the reported net income and adjustments made for non-GAAP calculations. The exclusion of certain expenses in non-GAAP figures warrants scrutiny to ensure these adjustments are not masking underlying issues in operational efficiency.
Teradyne's performance in the semiconductor and robotics sectors provides insight into broader market trends. The semiconductor industry has been experiencing volatility and Teradyne's report of weakening demand for System-on-a-Chip (SOC) test systems aligns with global semiconductor market fluctuations. The projection of low tester utilization impacting demand in the first half of the new year suggests caution for stakeholders anticipating short-term growth in this segment.
Conversely, the significant quarterly growth in Robotics revenue highlights a burgeoning market segment with potential for expansion, driven by new products and applications. Investors and stakeholders should monitor Teradyne's progress in robotics as an indicator of the company's adaptability and potential for diversification. Understanding the market dynamics of the robotics sector, including consumer demand and competitive landscape, will be essential in forecasting Teradyne's growth trajectory.
The guidance for Q1 of 2024, with projected revenue between $540 million to $590 million, suggests a cautious outlook for Teradyne's near-term performance. This projection, coupled with an expected seasonal weakness in Q1, indicates an understanding of economic cycles and their impact on business performance. The anticipated incremental improvement in Semiconductor test demand for the full year may signal a recovery phase in the semiconductor cycle or successful strategic adjustments by the company.
It's important to contextualize Teradyne's performance within the broader economic environment, including factors such as global supply chain issues, technological advancements and shifts in consumer behavior. These elements can significantly influence demand for Teradyne's products and services. Stakeholders should consider macroeconomic indicators and industry-specific trends when evaluating the company's forward-looking statements and potential for resilience against economic headwinds.
- Revenue of
$671 million in Q4'23, down8% from Q4'22 - Revenue of
$2,676 million in FY 2023, down15% from FY 2022 - Record Robotics revenue in Q4'23, up
50% from Q3'23 and17% from Q4'22
| Q4'23 | Q4'22 | Q3'23 | FY 2023 | FY 2022 | ||||||||||||||||
Revenue (mil) | $ | 671 | $ | 732 | $ | 704 | $ | 2,676 | $ | 3,155 | ||||||||||
GAAP EPS | $ | 0.72 | $ | 1.04 | $ | 0.78 | $ | 2.73 | $ | 4.22 | ||||||||||
Non-GAAP EPS | $ | 0.79 | $ | 0.92 | $ | 0.80 | $ | 2.93 | $ | 4.25 | ||||||||||
NORTH READING, MA / ACCESSWIRE / January 30, 2024 / Teradyne, Inc. (NASDAQ:TER) reported revenue of
"We closed out 2023 with Q4 revenue and profit in line with our guidance as strong demand for memory test systems and
Guidance for the first quarter of 2024 is revenue of
Webcast
A conference call to discuss the fourth quarter results, along with management's business outlook, will follow at 8:30 a.m. ET, Wednesday, January 31, 2024. 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.
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, 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) test technology helps bring high-quality innovations such as smart devices, life-saving medical equipment and data storage systems to market, faster. Its advanced test solutions for semiconductors, electronic systems, wireless devices and more ensure that products perform as they were designed. Its robotics offerings include collaborative and mobile robots that help manufacturers of all sizes increase productivity, improve safety, and lower costs. In 2023, Teradyne had revenue of
Safe Harbor Statement
This release contains forward-looking statements including statements regarding Teradyne's future business prospects, financial performance or position and results of operations. You can identify forward-looking statements by their use of forward-looking words such as "anticipate," "expect," "plan," "could," "may," "will," "believe," "estimate," "goal" or other comparable terms. Forward-looking statements in this press release address various matters, including statements regarding Teradyne's financial guidance. Investors are cautioned that such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements due to known and unknown risks, uncertainties, assumptions, and other factors. Such factors include, but are not limited to, macroeconomic factors and slowdowns or downturns in economic conditions generally and in the markets in which Teradyne operates; decreased or delayed product demand from one or more significant customers; a slowdown or inability in the development, delivery and acceptance of new products; the ability to grow the Robotics business; the impact of increased research and development spending; the impact of epidemics or pandemics such as COVID-19; the impact of a supply shortage on our supply chain and contract manufacturers; the consummation and success of any mergers or acquisitions; unexpected cash needs; the business judgment of the board of directors that a declaration of a dividend or the repurchase of common stock is not in Teradyne's best interests; changes to U.S. or global tax regulations or guidance; the impact of any tariffs or export controls imposed by the U.S. or China; the impact of U.S. Department of Commerce or other government agency regulations relating to Huawei, HiSilicon and other customers or potential customers; the impact of U.S. Department Commerce export control regulations for certain U.S. products and technology sold to military end users or for military end-use in China; the impact of the Israel-Hamas conflict; 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, 2022 and Quarterly Report on Form 10-Q for the fiscal quarter ended October 1, 2023. Many of these factors are macroeconomic in nature and are, therefore, beyond Teradyne's control. We caution readers not to place undue reliance on any forward-looking statements included in this press release which speak only as to the date of this press release. Teradyne specifically disclaims any obligation to update any forward-looking information contained in this press release or with respect to the announcements described herein.
TERADYNE, INC. REPORT FOR FOURTH FISCAL QUARTER OF 2023
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
| Quarter Ended | Twelve Months Ended | |||||||||||||||
| December 31, 2023 | October 1, 2023 | December 31, 2022 | December 31, 2023 | December 31, 2022 | ||||||||||||
Net revenues | $ | 670,600 | $ | 703,732 | $ | 731,836 | $ | 2,676,298 | $ | 3,155,045 | ||||||
Cost of revenues (exclusive of acquired intangible assets amortization shown separately below) (1) | 291,055 | 305,441 | 311,387 | 1,139,550 | 1,287,894 | |||||||||||
Gross profit | 379,545 | 398,291 | 420,449 | 1,536,748 | 1,867,151 | |||||||||||
Operating expenses: | ||||||||||||||||
Selling and administrative (2) | 142,336 | 138,330 | 142,752 | 577,315 | 558,103 | |||||||||||
Engineering and development | 102,207 | 104,413 | 108,810 | 418,089 | 440,591 | |||||||||||
Acquired intangible assets amortization | 4,651 | 4,720 | 4,670 | 18,999 | 19,333 | |||||||||||
Restructuring and other (3) | 6,027 | 6,856 | (2,369 | ) | 21,277 | 17,185 | ||||||||||
Operating expenses | 255,221 | 254,319 | 253,863 | 1,035,680 | 1,035,212 | |||||||||||
Income from operations | 124,324 | 143,972 | 166,586 | 501,068 | 831,939 | |||||||||||
Interest and other (income) expense (4) | (15,482 | ) | (308 | ) | (28,651 | ) | (24,504 | ) | (8,446 | ) | ||||||
Income before income taxes | 139,806 | 144,280 | 195,237 | 525,572 | 840,385 | |||||||||||
Income tax provision | 22,752 | 16,164 | 22,936 | 76,820 | 124,884 | |||||||||||
Net income | $ | 117,054 | $ | 128,116 | $ | 172,301 | $ | 448,752 | $ | 715,501 | ||||||
Net income per common share: | ||||||||||||||||
Basic | $ | 0.77 | $ | 0.83 | $ | 1.11 | $ | 2.91 | $ | 4.52 | ||||||
Diluted | $ | 0.72 | $ | 0.78 | $ | 1.04 | $ | 2.73 | $ | 4.22 | ||||||
Weighted average common shares - basic | 152,812 | 153,762 | 155,762 | 154,310 | 158,434 | |||||||||||
Weighted average common shares - diluted (5) | 162,106 | 164,050 | 165,468 | 164,304 | 169,734 | |||||||||||
Cash dividend declared per common share | $ | 0.11 | $ | 0.11 | $ | 0.11 | $ | 0.44 | $ | 0.44 | ||||||
(1) Cost of revenues includes:
| Quarter Ended | Twelve Months Ended | |||||||||||||||
| December 31, 2023 | October 1, 2023 | December 31, 2022 | December 31, 2023 | December 31, 2022 | ||||||||||||
Provision for excess and obsolete inventory | $ | 5,289 | $ | 11,728 | $ | 11,787 | $ | 28,358 | $ | 31,452 | ||||||
Sale of previously written down inventory | (1,115 | ) | (1,198 | ) | (828 | ) | (5,161 | ) | (1,808 | ) | ||||||
| $ | 4,174 | $ | 10,530 | $ | 10,959 | $ | 23,197 | $ | 29,644 | |||||||
(2) For the twelve months ended December 31, 2023, selling and administrative expenses included an equity charge of
(3) Restructuring and other consists of:
| Quarter Ended | Twelve Months Ended | |||||||||||||||
| December 31, 2023 | October 1, 2023 | December 31, 2022 | December 31, 2023 | December 31, 2022 | ||||||||||||
Acquisition and divestiture related expenses | $ | 3,132 | $ | - | $ | - | $ | 3,132 | $ | - | ||||||
Employee severance | 2,892 | 4,658 | 775 | 14,727 | 2,924 | |||||||||||
Contract termination | - | 1,511 | - | 1,511 | - | |||||||||||
Litigation settlement | - | - | - | - | 14,700 | |||||||||||
Gain on sale of asset | - | - | (3,410 | ) | - | (3,410 | ) | |||||||||
Other | 3 | 687 | 266 | 1,907 | 2,971 | |||||||||||
| $ | 6,027 | $ | 6,856 | $ | (2,369 | ) | $ | 21,277 | $ | 17,185 | ||||||
(4) Interest and other (income) expense includes:
| Quarter Ended | Twelve Months Ended | |||||||||||||||
| December 31, 2023 | October 1, 2023 | December 31, 2022 | December 31, 2023 | December 31, 2022 | ||||||||||||
Pension actuarial losses (gains) | $ | 2,575 | $ | 72 | $ | (25,592 | ) | $ | 2,703 | $ | (25,584 | ) | ||||
Gain on foreign exchange option | (7,464 | ) | - | - | (7,464 | ) | - | |||||||||
(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 December 31, 2023, October 1, 2023 and December 31, 2022, 0.2 million, 0.6 million and 1.2 million shares, respectively, have been included in diluted shares. For the twelve months ended December 31, 2023 and December 31, 2022, 0.6 million and 1.8 million shares, respectively, have been included in diluted shares. For the quarters ended December 31, 2023, October 1, 2023 and December 31, 2022, diluted shares also included 8.6 million, 9.2 million and 7.9 million shares, respectively, from the convertible note hedge transaction. For the twelve months ended December 31, 2023 and December 31, 2022, diluted shares included 8.9 million and 8.8 million shares, respectively, from the convertible note hedge transaction.
CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands)
| December 31, 2023 | December 31, 2022 | |||||||
Assets | ||||||||
Cash and cash equivalents | $ | 757,571 | $ | 854,773 | ||||
Marketable securities | 62,154 | 39,612 | ||||||
Accounts receivable, net | 422,124 | 491,145 | ||||||
Inventories, net | 309,974 | 325,019 | ||||||
Prepayments | 548,970 | 532,962 | ||||||
Other current assets | 37,992 | 14,404 | ||||||
Current assets held for sale | 23,250 | - | ||||||
Total current assets | 2,162,035 | 2,257,915 | ||||||
Property, plant and equipment, net | 445,492 | 418,683 | ||||||
Operating lease right-of-use assets, net | 73,417 | 73,734 | ||||||
Marketable securities | 117,434 | 110,777 | ||||||
Deferred tax assets | 175,775 | 142,784 | ||||||
Retirement plans assets | 11,504 | 11,761 | ||||||
Other assets | 38,580 | 28,925 | ||||||
Acquired intangible assets, net | 35,404 | 53,478 | ||||||
Goodwill | 415,652 | 403,195 | ||||||
Assets held for sale | 11,531 | - | ||||||
Total assets | $ | 3,486,824 | $ | 3,501,252 | ||||
Liabilities | ||||||||
Accounts payable | $ | 180,131 | $ | 139,722 | ||||
Accrued employees' compensation and withholdings | 191,750 | 212,266 | ||||||
Deferred revenue and customer advances | 99,804 | 148,285 | ||||||
Other accrued liabilities | 114,712 | 112,271 | ||||||
Operating lease liabilities | 17,522 | 18,594 | ||||||
Income taxes payable | 48,653 | 65,010 | ||||||
Current debt | - | 50,115 | ||||||
Current liabilities held for sale | 7,379 | - | ||||||
Total current liabilities | 659,951 | 746,263 | ||||||
Retirement plans liabilities | 132,090 | 116,005 | ||||||
Long-term deferred revenue and customer advances | 37,282 | 45,131 | ||||||
Long-term other accrued liabilities | 19,998 | 15,981 | ||||||
Deferred tax liabilities | 183 | 3,267 | ||||||
Long-term operating lease liabilities | 65,092 | 64,176 | ||||||
Long-term income taxes payable | 44,331 | 59,135 | ||||||
Liabilities held for sale | 2,000 | - | ||||||
Total liabilities | 960,927 | 1,049,958 | ||||||
Shareholders' equity | 2,525,897 | 2,451,294 | ||||||
Total liabilities and shareholders' equity | $ | 3,486,824 | $ | 3,501,252 | ||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)
| Quarter Ended | Twelve Months Ended | |||||||||||||||
| December 31, 2023 | December 31, 2022 | December 31, 2023 | December 31, 2022 | |||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net income | $ | 117,054 | $ | 172,301 | $ | 448,752 | $ | 715,501 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||
Depreciation | 23,260 | 22,861 | 92,118 | 90,763 | ||||||||||||
Stock-based compensation | 12,443 | 10,808 | 57,682 | 48,228 | ||||||||||||
Provision for excess and obsolete inventory | 5,289 | 11,787 | 28,358 | 31,452 | ||||||||||||
Amortization | 4,685 | 4,900 | 18,768 | 19,912 | ||||||||||||
Deferred taxes | (13,616 | ) | (10,320 | ) | (37,642 | ) | (38,693 | ) | ||||||||
(Gains) losses on investments | (11,756 | ) | (1,451 | ) | (14,915 | ) | 9,985 | |||||||||
Retirement plans actuarial losses (gains) | 2,575 | (25,592 | ) | 2,703 | (25,584 | ) | ||||||||||
Gains on sale of asset | - | (3,410 | ) | - | (3,410 | ) | ||||||||||
Other | (811 | ) | 1,621 | (955 | ) | 2,353 | ||||||||||
Changes in operating assets and liabilities | ||||||||||||||||
Accounts receivable | 40,786 | 46,380 | 70,977 | 50,628 | ||||||||||||
Inventories | (1,068 | ) | (11,992 | ) | 5,327 | (80,809 | ) | |||||||||
Prepayments and other assets | 20,881 | (46,382 | ) | (43,101 | ) | (140,713 | ) | |||||||||
Accounts payable and other liabilities | 42,783 | 11,911 | 46,782 | (60,507 | ) | |||||||||||
Deferred revenue and customer advances | (7,693 | ) | (337 | ) | (57,210 | ) | (6,233 | ) | ||||||||
Retirement plans contributions | (1,794 | ) | (1,219 | ) | (5,492 | ) | (5,116 | ) | ||||||||
Income taxes | 15,762 | 1,536 | (26,921 | ) | (29,834 | ) | ||||||||||
Net cash provided by operating activities | 248,780 | 183,402 | 585,231 | 577,923 | ||||||||||||
Cash flows from investing activities: | ||||||||||||||||
Purchases of property, plant and equipment | (44,336 | ) | (34,577 | ) | (159,642 | ) | (163,249 | ) | ||||||||
Purchases of marketable securities | (24,120 | ) | (20,234 | ) | (161,906 | ) | (287,409 | ) | ||||||||
Proceeds from sales of marketable securities | 24,438 | 8,858 | 61,401 | 268,058 | ||||||||||||
Proceeds from maturities of marketable securities | 13,595 | 40,849 | 85,042 | 222,941 | ||||||||||||
Issuance of convertible loan | - | - | (5,000 | ) | - | |||||||||||
Proceeds from life insurance | - | - | 460 | - | ||||||||||||
Proceeds from sale of asset | - | 3,410 | - | 3,410 | ||||||||||||
Net cash (used for) provided by investing activities | (30,423 | ) | (1,694 | ) | (179,645 | ) | 43,751 | |||||||||
Cash flows from financing activities: | ||||||||||||||||
Repurchase of common stock | (50,749 | ) | (2,082 | ) | (397,241 | ) | (752,082 | ) | ||||||||
Payments of convertible debt principal | (23,529 | ) | (14,754 | ) | (50,264 | ) | (66,759 | ) | ||||||||
Dividend payments | (16,797 | ) | (17,133 | ) | (67,878 | ) | (69,711 | ) | ||||||||
Payments related to net settlement of employee stock compensation awards | (202 | ) | (183 | ) | (20,788 | ) | (33,170 | ) | ||||||||
Issuance of common stock under stock purchase and stock option plans | 175 | - | 34,259 | 28,733 | ||||||||||||
Net cash used for financing activities | (91,102 | ) | (34,152 | ) | (501,912 | ) | (892,989 | ) | ||||||||
Effects of exchange rate changes on cash and cash equivalents | (6,645 | ) | (3,529 | ) | (876 | ) | 3,889 | |||||||||
Increase (decrease) in cash and cash equivalents | 120,610 | 144,027 | (97,202 | ) | (267,426 | ) | ||||||||||
Cash and cash equivalents at beginning of period | 636,961 | 710,746 | 854,773 | 1,122,199 | ||||||||||||
Cash and cash equivalents at end of period | $ | 757,571 | $ | 854,773 | $ | 757,571 | $ | 854,773 | ||||||||
GAAP to Non-GAAP Earnings Reconciliation
(In millions, except per share amounts)
Quarter Ended | |||||||||||||||||||||||
December 31, | % of Net Revenues | October 1, | % of Net Revenues | December 31, | % of Net Revenues | ||||||||||||||||||
| Net revenues | $ | 670.6 | $ | 703.7 | $ | 731.8 | |||||||||||||||||
| Gross profit GAAP and non-GAAP | 379.5 | 56.6 | % | 398.3 | 56.6 | % | 420.4 | 57.4 | % | ||||||||||||||
| Income from operations - GAAP | 124.3 | 18.5 | % | 144.0 | 20.5 | % | 166.6 | 22.8 | % | ||||||||||||||
Restructuring and other (1) | 6.0 | 0.9 | % | 6.9 | 1.0 | % | (2.4 | ) | -0.3 | % | |||||||||||||
Acquired intangible assets amortization | 4.7 | 0.7 | % | 4.7 | 0.7 | % | 4.7 | 0.6 | % | ||||||||||||||
| Income from operations - non-GAAP | $ | 135.0 | 20.1 | % | $ | 155.6 | 22.1 | % | $ | 168.9 | 23.1 | % | |||||||||||
Net Income | Net Income | Net Income | |||||||||||||||||||||||||||||||||||||||||||||
December 31, | % of Net Revenues | Basic | Diluted | October 1, | % of Net Revenues | Basic | Diluted | December 31, | % of Net Revenues | Basic | Diluted | ||||||||||||||||||||||||||||||||||||
| Net income - GAAP | $ | 117.1 | 17.5 | % | $ | 0.77 | $ | 0.72 | $ | 128.1 | 18.2 | % | $ | 0.83 | $ | 0.78 | $ | 172.3 | 23.5 | % | $ | 1.11 | $ | 1.04 | |||||||||||||||||||||||
Restructuring and other (1) | 6.0 | 0.9 | % | 0.04 | 0.04 | 6.9 | 1.0 | % | 0.04 | 0.04 | (2.4 | ) | -0.3 | % | (0.02 | ) | (0.01 | ) | |||||||||||||||||||||||||||||
Acquired intangible assets amortization | 4.7 | 0.7 | % | 0.03 | 0.03 | 4.7 | 0.7 | % | 0.03 | 0.03 | 4.7 | 0.6 | % | 0.03 | 0.03 | ||||||||||||||||||||||||||||||||
Pension mark-to-market adjustment (2) | 2.6 | 0.4 | % | 0.02 | 0.02 | 0.1 | 0.0 | % | 0.00 | 0.00 | (25.6 | ) | -3.5 | % | (0.16 | ) | (0.15 | ) | |||||||||||||||||||||||||||||
Gain on foreign exchange option | (7.5 | ) | -1.1 | % | (0.05 | ) | (0.05 | ) | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Exclude discrete tax adjustments | 3.3 | 0.5 | % | 0.02 | 0.02 | (4.8 | ) | -0.7 | % | (0.03 | ) | (0.03 | ) | (2.8 | ) | -0.4 | % | (0.02 | ) | (0.02 | ) | ||||||||||||||||||||||||||
Non-GAAP tax adjustments | 1.0 | 0.1 | % | 0.01 | 0.01 | (3.5 | ) | -0.5 | % | (0.02 | ) | (0.02 | ) | 4.5 | 0.6 | % | 0.03 | 0.03 | |||||||||||||||||||||||||||||
Convertible share adjustment (3) | - | - | - | - | - | - | - | - | - | - | - | 0.01 | |||||||||||||||||||||||||||||||||||
| Net income - non-GAAP | $ | 127.2 | 19.0 | % | $ | 0.83 | $ | 0.79 | $ | 131.5 | 18.7 | % | $ | 0.86 | $ | 0.80 | $ | 150.8 | 20.6 | % | $ | 0.97 | $ | 0.92 | |||||||||||||||||||||||
| GAAP and non-GAAP weighted average common shares - basic | 152.8 | 153.8 | 155.8 | ||||||||||||||||||||||||||||||||||||||||||||
| GAAP weighted average common shares - diluted | 162.1 | 164.1 | 165.5 | ||||||||||||||||||||||||||||||||||||||||||||
Exclude dilutive shares related to convertible note transaction | (0.2 | ) | (0.6 | ) | (1.2 | ) | |||||||||||||||||||||||||||||||||||||||||
| Non-GAAP weighted average common shares - diluted | 161.9 | 163.4 | 164.3 | ||||||||||||||||||||||||||||||||||||||||||||
(1) Restructuring and other consists of:
| Quarter Ended | ||||||||||||
| December 31, 2023 | October 1, 2023 | December 31, 2022 | ||||||||||
Acquisition and divestiture related expenses | $ | 3.1 | $ | - | $ | - | ||||||
Employee severance | 2.9 | 4.7 | 0.8 | |||||||||
Contract termination | - | 1.5 | - | |||||||||
Gain on sale of asset | - | - | (3.4 | ) | ||||||||
Other | - | 0.6 | 0.3 | |||||||||
| $ | 6.0 | $ | 6.9 | $ | (2.4 | ) | ||||||
(2) For the quarters ended December 31, 2023, October 1, 2023 and December 31, 2022 adjustment to exclude actuarial (gain) loss recognized under GAAP in accordance with Teradyne's mark-to-market pension accounting.
(3) For the quarter ended December 31, 2022, the non-GAAP diluted EPS calculation adds back
Twelve Months Ended | ||||||||||||||||
December 31, | % of Net Revenues | December 31, | % of Net Revenues | |||||||||||||
| Net Revenues | $ | 2,676.3 | $ | 3,155.0 | ||||||||||||
| Gross profit GAAP and non-GAAP | 1,536.7 | 57.4 | % | 1,867.2 | 59.2 | % | ||||||||||
| Income from operations - GAAP | 501.1 | 18.7 | % | 831.9 | 26.4 | % | ||||||||||
Restructuring and other (1) | 21.3 | 0.8 | % | 17.2 | 0.5 | % | ||||||||||
Acquired intangible assets amortization | 19.0 | 0.7 | % | 19.3 | 0.6 | % | ||||||||||
Equity modification charge (2) | 5.9 | 0.2 | % | - | - | |||||||||||
| Income from operations - non-GAAP | $ | 547.3 | 20.4 | % | $ | 868.4 | 27.5 | % | ||||||||
Net Income | Net Income | ||||||||||||||||||||||||||||||
December 31, | % of Net Revenues | Basic | Diluted | December 31, | % of Net Revenues | Basic | Diluted | ||||||||||||||||||||||||
| Net income - GAAP | $ | 448.8 | 16.8 | % | $ | 2.91 | $ | 2.73 | $ | 715.5 | 22.7 | % | $ | 4.52 | $ | 4.22 | |||||||||||||||
Restructuring and other (1) | 21.3 | 0.8 | % | 0.14 | 0.13 | 17.2 | 0.5 | % | 0.11 | 0.10 | |||||||||||||||||||||
Acquired intangible assets amortization | 19.0 | 0.7 | % | 0.12 | 0.12 | 19.3 | 0.6 | % | 0.12 | 0.11 | |||||||||||||||||||||
Equity modification charge (2) | 5.9 | 0.2 | % | 0.04 | 0.04 | - | - | - | - | ||||||||||||||||||||||
Pension mark-to-market adjustment (3) | 2.7 | 0.1 | % | 0.02 | 0.02 | (25.6 | ) | -0.8 | % | (0.16 | ) | (0.15 | ) | ||||||||||||||||||
Gain on foreign exchange option | (7.5 | ) | -0.3 | % | (0.05 | ) | (0.05 | ) | - | - | - | - | |||||||||||||||||||
Exclude discrete tax adjustments | (3.4 | ) | -0.1 | % | (0.02 | ) | (0.02 | ) | (12.1 | ) | -0.4 | % | (0.08 | ) | (0.07 | ) | |||||||||||||||
Non-GAAP tax adjustments | (7.7 | ) | -0.3 | % | (0.05 | ) | (0.05 | ) | (1.4 | ) | 0.0 | % | (0.01 | ) | (0.01 | ) | |||||||||||||||
Convertible share adjustment (4) | - | - | - | 0.01 | - | - | - | 0.05 | |||||||||||||||||||||||
| Net income - non-GAAP | $ | 479.1 | 17.9 | % | $ | 3.10 | $ | 2.93 | $ | 712.9 | 22.6 | % | $ | 4.50 | $ | 4.25 | |||||||||||||||
| GAAP and non-GAAP weighted average common shares - basic | 154.3 | 158.4 | |||||||||||||||||||||||||||||
| GAAP weighted average common shares - diluted | 164.3 | 169.7 | |||||||||||||||||||||||||||||
| Exclude dilutive shares from convertible note | (0.6 | ) | (1.8 | ) | |||||||||||||||||||||||||||
| Non-GAAP weighted average common shares - diluted | 163.7 | 167.9 | |||||||||||||||||||||||||||||
(1) Restructuring and other consists of:
| Twelve Months Ended | ||||||||
| December 31, 2023 | December 31, 2022 | |||||||
Employee severance | $ | 14.8 | $ | 2.9 | ||||
Acquisition and divestiture related expenses | 3.1 | - | ||||||
Contract termination | 1.5 | - | ||||||
Litigation settlement | - | 14.7 | ||||||
Gain on sale of asset | - | (3.4 | ) | |||||
Other | 1.9 | 3.0 | ||||||
| $ | 21.3 | $ | 17.2 | |||||
(2) For the twelve months ended December 31, 2023, selling and administrative expenses include an equity charge of
(3) For the twelve months ended December 31, 2023 and December 31, 2022, adjustment to exclude actuarial (gain) loss recognized under GAAP in accordance with Teradyne's mark-to-market pension accounting.
(4) For the twelve months ended December 31, 2023 and December 31, 2022, the non-GAAP diluted EPS calculation adds back
GAAP to Non-GAAP Reconciliation of First Quarter 2024 guidance:
GAAP and non-GAAP first quarter revenue guidance: | to | ||||||||
GAAP net income per diluted share | $ | 0.19 | $ | 0.35 | |||||
Exclude acquired intangible assets amortization | 0.03 | 0.03 | |||||||
Exclude restructuring and other charges | 0.01 | 0.01 | |||||||
Non-GAAP tax adjustments | (0.01 | ) | (0.01 | ) | |||||
Non-GAAP net income per diluted share | $ | 0.22 | $ | 0.38 | |||||
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 978-370-2425 Vice President of Corporate Relations |
SOURCE: Teradyne, Inc.
View the original press release on accesswire.com
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