- Revenue and earnings at the high-end of Q4 guidance
- Revenue of $753 million in Q4’24, up 12% from Q4’23
- Q4 growth driven by strong AI-related demand and improved
broader market dynamics
Teradyne, Inc. (NASDAQ:TER):
Q4'24
Q4'23
Q3'24
FY 2024
FY 2023
Revenue (mil)
$
753
$
671
$
737
$
2,820
$
2,676
GAAP EPS
$
0.90
$
0.72
$
0.89
$
3.32
$
2.73
Non-GAAP EPS
$
0.95
$
0.79
$
0.90
$
3.22
$
2.93
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.
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. Department Commerce export control
regulations for certain U.S. products and technology sold to
military end users or for military end-use in China; the impact of
the current conflicts in Israel; the impact of regulations
published by the U.S. Department of Commerce relating to
semiconductors and semiconductor manufacturing equipment destined
for certain end uses in China.
The risks included above are not exhaustive. For a more detailed
description of the risk factors associated with Teradyne, please
refer to Teradyne’s Annual Report on Form 10-K for the fiscal year
ended December 31, 2023. Many of these factors are macroeconomic in
nature and are, therefore, beyond Teradyne’s control. We caution
readers not to place undue reliance on any forward-looking
statements included in this press release which speak only as to
the date of this press release. Teradyne specifically disclaims any
obligation to update any forward-looking information contained in
this press release or with respect to the announcements described
herein.
TERADYNE, INC. REPORT FOR FOURTH FISCAL
QUARTER OF 2024
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
Quarter Ended
Year Ended
December 31, 2024
September 29, 2024
December 31, 2023
December 31, 2024
December 31, 2023
Net revenues
$
752,884
$
737,298
$
670,600
$
2,819,880
$
2,676,298
Cost of revenues (exclusive of acquired
intangible assets amortization shown separately below) (1)
305,597
300,784
291,055
1,170,953
1,139,550
Gross profit
447,287
436,514
379,545
1,648,927
1,536,748
Operating expenses:
Selling and administrative (2)
155,739
157,649
142,336
617,047
577,315
Engineering and development
128,387
117,474
102,207
460,876
418,089
Acquired intangible assets
amortization
4,656
4,748
4,651
18,764
18,999
Restructuring and other (3)
4,554
4,578
6,027
15,571
21,277
Loss (gain) on sale of business (4)
367
—
—
(57,119
)
—
Operating expenses
293,703
284,449
255,221
1,055,139
1,035,680
Income from operations
153,584
152,065
124,324
593,788
501,068
Interest and other (income) expense
(5)
(4,213
)
(6,919
)
(15,482
)
(15,298
)
(24,504
)
Income before income taxes and equity in
net earnings of affiliate
157,797
158,984
139,806
609,086
525,572
Income tax provision
5,408
12,260
22,752
59,503
76,820
Income before equity in net earnings of
affiliate
152,389
146,724
117,054
549,583
448,752
Equity in net earnings of affiliate
(6,136
)
(1,075
)
—
(7,211
)
—
Net income
$
146,253
$
145,649
$
117,054
$
542,372
$
448,752
Net income per
common share:
Basic
$
0.90
$
0.89
$
0.77
$
3.41
$
2.91
Diluted
$
0.90
$
0.89
$
0.72
$
3.32
$
2.73
Weighted average common shares - basic
162,478
163,002
152,812
159,083
154,310
Weighted average common shares - diluted
(6)
163,184
164,253
162,106
163,314
164,304
Cash dividend declared per common
share
$
0.12
$
0.12
$
0.11
$
0.48
$
0.44
(1)
Cost of revenues includes:
Quarter Ended
Year Ended
December 31, 2024
September 29, 2024
December 31, 2023
December 31, 2024
December 31, 2023
Provision for excess and obsolete
inventory
$
3,406
$
6,078
$
5,289
$
18,921
$
28,358
Legal settlement
—
3,600
—
3,600
—
Sale of previously written down
inventory
(441
)
(472
)
(1,115
)
(2,227
)
(5,161
)
$
2,965
$
9,206
$
4,174
$
20,294
$
23,197
(2)
For the twelve months ended December 31,
2024, selling and administrative expenses included an equity charge
of $1.7 million for the modification of Teradyne executives'
retirement agreements. For the twelve months ended December 31,
2023, selling and administrative expenses included an equity charge
of $5.9 million for the modification of Teradyne’s retired CEO’s
outstanding equity awards in connection with his February 1, 2023,
retirement.
(3)
Restructuring and other consists of:
Quarter Ended
Year Ended
December 31, 2024
September 29, 2024
December 31, 2023
December 31, 2024
December 31, 2023
Lease terminations
$
1,284
$
—
$
—
$
1,284
$
—
Employee severance
378
1,280
2,892
5,234
14,727
Acquisition and divestiture related
expenses
—
—
3,132
2,214
3,132
Contract termination
—
—
—
—
1,511
Other
2,892
3,298
3
6,840
1,907
$
4,554
$
4,578
$
6,027
$
15,572
$
21,277
(4)
On May 27, 2024, Teradyne sold Teradyne's
Device Interface Solution ("DIS") business, a component of the
Semiconductor Test segment, to Technoprobe S.p.A. ("Technoprobe"),
for $85.0 million, net of cash and cash equivalents sold and a
working capital adjustment.
(5)
Interest and other includes:
Quarter Ended
Year Ended
December 31, 2024
September 29, 2024
December 31, 2023
December 31, 2024
December 31, 2023
Pension actuarial losses (gains)
$
(1,842
)
$
(2,262
)
$
2,575
$
(4,355
)
$
2,703
Loss (gain) on foreign exchange option
—
—
(7,464
)
9,765
(7,464
)
(6)
Under GAAP, when calculating diluted
earnings per share, convertible debt must be assumed to have
converted if the effect on EPS would be dilutive. Diluted shares
assume the conversion of the convertible debt as the effect would
be dilutive. Accordingly, for the quarter ended December 31, 2023,
0.2 million shares have been included in diluted shares. For the
twelve months ended December 31, 2023, 0.6 million shares have been
included in diluted shares. For the quarters ended September 29,
2024, and December 31, 2023, diluted shares included 0.5 million,
and 8.6 million shares, respectively, from the convertible note
hedge transaction. For the twelve months ended December 31, 2024,
and December 31, 2023, diluted shares included 3.6 million and 8.9
million shares, respectively, from the convertible note hedge
transaction.
CONDENSED CONSOLIDATED BALANCE SHEETS (In
thousands)
December 31, 2024
December 31, 2023
Assets
Cash and cash equivalents
$
553,354
$
757,571
Marketable securities
46,312
62,154
Accounts receivable, net
471,426
422,124
Inventories, net
298,492
309,974
Prepayments
429,086
548,970
Other current assets
17,727
37,992
Current assets held for sale
—
23,250
Total current assets
1,816,397
2,162,035
Property, plant and equipment, net
508,171
445,492
Operating lease right-of-use assets,
net
70,185
73,417
Marketable securities
124,121
117,434
Deferred tax assets
222,438
175,775
Retirement plans assets
11,994
11,504
Equity method investment
494,494
—
Other assets
49,620
38,580
Acquired intangible assets, net
15,927
35,404
Goodwill
395,367
415,652
Assets held for sale
—
11,531
Total assets
$
3,708,714
$
3,486,824
Liabilities
Accounts payable
$
134,792
$
180,131
Accrued employees’ compensation and
withholdings
204,991
191,750
Deferred revenue and customer advances
107,710
99,804
Other accrued liabilities
90,777
114,712
Operating lease liabilities
18,699
17,522
Income taxes payable
67,610
48,653
Current liabilities held for sale
—
7,379
Total current liabilities
624,579
659,951
Retirement plans liabilities
133,338
132,090
Long-term deferred revenue and customer
advances
40,505
37,282
Long-term other accrued liabilities
7,442
19,998
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
—
2,000
Total liabilities
889,420
960,927
Shareholders’ equity
2,819,294
2,525,897
Total liabilities and shareholders’
equity
$
3,708,714
$
3,486,824
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS (In thousands)
Quarter Ended
Twelve Months Ended
December 31, 2024
December 31, 2023
December 31, 2024
December 31, 2023
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
GAAP to Non-GAAP Earnings
Reconciliation
(In millions, except per share
amounts)
Quarter Ended
December 31, 2024
% of Net Revenues
September 29, 2024
% of Net Revenues
December 31, 2023
% 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 per Common
Share
Net Income per Common
Share
Net Income per Common
Share
December 31, 2024
% of Net Revenues
Basic
Diluted
September 29, 2024
% of Net Revenues
Basic
Diluted
December 31, 2023
% 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
(1)
For the quarter ended September 29, 2024,
legal settlement includes charges for a settlement following a
judgment against the Company for infringement of expired
patents.
(2)
Restructuring and other consists of:
Quarter Ended
December 31, 2024
September 29, 2024
December 31, 2023
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
(3)
On May 27, 2024, Teradyne sold DIS, a
component of the Semiconductor Test segment, to Technoprobe, for
$85.0 million, net of cash and cash equivalents sold and a working
capital adjustment.
(4)
For the quarters ended December 31, 2024,
September 29, 2024, and December 31, 2023, adjustments to exclude
actuarial gains and losses, respectively, recognized under GAAP in
accordance with Teradyne’s mark-to-market pension accounting.
(5)
For the quarters ended September 29, 2024,
and December 31, 2023, non-GAAP weighted average diluted common
shares included 0.5 million and 8.6 million shares, respectively,
from the convertible note hedge transaction.
Twelve Months Ended
December 31, 2024
% of Net Revenues
December 31, 2023
% 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 per Common
Share
Net Income per Common
Share
December 31, 2024
% of Net Revenues
Basic
Diluted
December 31, 2023
% 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
(1)
For the twelve months ended December 31,
2024, a legal settlement includes charges for a settlement
following a judgment against the Company for infringement of
expired patents.
(2)
Restructuring and other consists of:
Twelve Months Ended
December 31, 2024
December 31, 2023
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
(3)
For the twelve months ended December 31,
2024, selling and administrative expenses included an equity charge
of $1.7 million for the modification of Teradyne’s executives'
retirement agreements. For the twelve months ended December 31,
2023, selling and administrative expenses included an equity charge
of $5.9 million for the modification of Teradyne’s retired CEO’s
outstanding equity awards in connection with his February 1, 2023,
retirement.
(4)
On May 27, 2024, Teradyne sold DIS, a
component of the Semiconductor Test segment, to Technoprobe, for
$85.0 million, net of cash and cash equivalents sold and a working
capital adjustment.
(5)
For twelve months ended December 31, 2024,
and December 31, 2023, adjustments to exclude actuarial gains and
losses, respectively, recognized under GAAP in accordance with
Teradyne’s mark-to-market pension accounting.
(6)
For the twelve months ended December 31,
2024 and December 31, 2023, non-GAAP weighted average diluted
common shares included 3.6 million and 8.9 million shares,
respectively, from the convertible note hedge transaction.
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250128031178/en/
Teradyne, Inc. Traci Tsuchiguchi 978-370-2444 Vice President of
Corporate Relations
Teradyne (NASDAQ:TER)
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