[April 23, 2014] |
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Teradyne Reports 55% Sequential Growth in First Quarter 2014 Orders; Expects Revenue Growth in Second Quarter of 2014
NORTH READING, Mass. --(Business Wire)--
Teradyne,
Inc. (NYSE: TER) reported revenue of $321 million for the first
quarter of 2014 of which $262 million was in Semiconductor Test, $38
million in System Test and $21 million in Wireless Test. On a non-GAAP
basis, Teradyne's net income in the first quarter was $22.4 million, or
$0.11 per diluted share, which excluded acquired intangible asset
amortization, retired CEO equity charge, non-cash convertible debt
interest and excluded discrete income tax adjustments. GAAP net income
for the first quarter was $0.9 million or $0.00 per diluted share.
Bookings in the first quarter of 2014 were $450 million of which $366
million were in Semiconductor Test, $57 million in Wireless Test, and
$27 million in System Test.
"First quarter Semiconductor Test orders were the highest in nearly four
years driving a 55% increase in overall company orders," said CEO and
President Mark Jagiela. "UltraFLEX and J750 products recorded strong
demand for applications processor and microcontroller test driven
primarily by mobile end markets. Our flexible manufacturing capability
is designed to respond to this type of order surge and we are ramping
second quarter production to meet the increasing demand. Meanwhile,
although Wireless Test orders more than tripled from the Q4 trough, near
term visibility remains limited with a more cautious outlook from
customers."
Guidance for the second quarter of 2014 is revenue of $460 million to
$490 million, with diluted non-GAAP net income of $0.36 to $0.43 per
share and diluted GAAP net income of $0.29 to $0.36 per share. Non-GAAP
guidance excludes acquired intangible asset amortization and the related
tax impact.
As previously announced in our press release dated January 22, 2014, our
initial quarterly cash dividend is payable on June 2, 2014 to
shareholders of record as of the close of business on May 9, 2014.
Payment dates for future quarterly cash dividends, subject to Board of
Director approval, are expected to be in March, June, September and
December of each year.
Webcast
A conference call to discuss the first quarter 2014 results, along with
management's business outlook, will follow at 10 a.m. EDT, Thursday,
April 24. The call will be broadcast simultaneously over the Internet.
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 at www.teradyne.com
at 10 a.m. EDT.
A replay will be available approximately two hours after the completion
of the call. The replay number in the U.S. & Canada is 855-859-2056. The
replay number outside the U.S. & Canada is 404-537-3406. The pass code
for both numbers is 16506628. A replay will also be available on the
Teradyne website at www.teradyne.com.
Click on "Investors" for a link to the replay. The replay will be
available via phone and website through May 11, 2014.
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 asset amortization, retired CEO equity charge, non-cash
convertible debt interest, discrete income tax adjustments, pension and
post retirement actuarial gains and losses, restructuring and other, and
a gain from the sale of an equity investment, and, prior to January 1,
2014, included income taxes on a cash basis [cash taxes reflects the
usage of prior year favorable tax attributes (e.g. NOLs and credits)
against current year tax liability]. 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 and non-GAAP net income as a percentage of revenue, and
non-GAAP net income per share are non-GAAP 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 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 gross
margin excludes pension and post retirement actuarial gains and losses.
GAAP requires that this item be included in determining gross margin.
Non-GAAP gross margin dollar amount and percentage are non-GAAP measures
that management believes provide useful supplemental information for
management and the investor. Management uses non-GAAP gross margin as a
performance measure for Teradyne's current core business and future
outlook and for comparison with Teradyne's business plan, historical
gross margin results and the gross margin 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
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 "Investors" and then selecting the "GAAP to Non-GAAP
Reconciliation" link. The non-GAAP financial 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
(NYSE:TER) is a leading supplier of Automatic Test Equipment used to
test semiconductors, wireless products, data storage and complex
electronic systems which serve consumer, communications, industrial and
government customers. In 2013, Teradyne had sales of $1.43 billion and
currently employs approximately 3,800 people worldwide. For more
information, visit www.teradyne.com.Teradyne
(R) is a registered trademark of Teradyne, Inc. in the U.S. and other
countries.
Safe Harbor Statement
This release contains forward-looking statements regarding future
business prospects, Teradyne's results of operations, market conditions
and the payment of a quarterly dividend. Such statements are based on
the current assumptions and expectations of Teradyne's management and
are neither promises nor guarantees of future performance or future
payment of dividends. You can identify these forward-looking statements
based on the context of the statements and by the fact that they use
words such as "will," "anticipate," "expect," "project," "intend,"
"plan," "believe," "target" and other words and terms of similar meaning
in connection with any discussion of future operating or financial
performance. There can be no assurance that management's estimates of
Teradyne's future results or other forward looking statements will be
achieved or that dividends will be declared in the future. Important
factors that could cause actual results or dividend payments to differ
materially from those presently expected include: conditions affecting
the markets in which Teradyne operates; decreased or delayed product
demand; increased research and development spending; deterioration of
Teradyne's financial condition, the business judgment of the board of
directors that a declaration of a dividend is not in the company's best
interests and other events, factors and risks disclosed in filings with
the SEC, including, but not limited to, the "Risk Factors" section of
Teradyne's Annual Report on Form 10-K for the fiscal year ended December
31, 2013. The forward-looking statements provided by Teradyne in this
press release represent management's views as of the date of this
release. Teradyne anticipates that subsequent events and developments
may cause management's views to change. However, while Teradyne may
elect to update these forward-looking statements at some point in the
future, Teradyne specifically disclaims any obligation to do so. These
forward-looking statements should not be relied upon as representing
Teradyne's views as of any date subsequent to the date of this release.
|
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TERADYNE, INC. REPORT FOR FIRST FISCAL QUARTER OF 2014
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CONDENSED CONSOLIDATED OPERATING STATEMENTS
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(In thousands, except per share amounts)
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Quarter Ended
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March 30, 2014
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December 31, 2013
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March 31, 2013
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Net revenues
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$
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321,010
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$
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285,301
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$
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280,367
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Cost of revenues (1) (2)
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153,963
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125,444
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126,950
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Gross profit
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167,047
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159,857
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153,417
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Operating expenses:
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Engineering and development (1)
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67,085
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64,613
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62,751
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Selling and administrative (1) (3)
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78,003
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69,523
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67,890
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Acquired intangible asset amortization
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18,271
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|
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18,284
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|
|
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18,036
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Restructuring and other (4)
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-
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600
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|
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|
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332
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|
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Operating expenses
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|
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163,359
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|
|
|
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153,020
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149,009
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Income from operations
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3,688
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6,837
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4,408
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Interest and other (5)
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(5,561
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)
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28,602
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(5,834
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)
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(Loss) income before income taxes
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(1,873
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)
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35,439
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(1,426
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)
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Income tax (benefit) provision
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|
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(2,802
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)
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13,096
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(8,015
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)
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Net income
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$
|
929
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$
|
22,343
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$
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6,589
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Net income per common share:
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Basic
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$
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0.00
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$
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0.12
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$
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0.03
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Diluted
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$
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0.00
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$
|
0.09
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$
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0.03
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Weighted average common shares - basic
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193,311
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|
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|
191,525
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|
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189,686
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Weighted average common shares - diluted (6)
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|
|
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236,484
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|
|
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236,903
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234,757
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Cash dividend declared per common share
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$
|
0.06
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$
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-
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$
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-
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Net orders
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$
|
449,826
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$
|
289,653
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$
|
400,082
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(1)
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In the first quarter of 2012, we changed our accounting method from
delayed recognition of actuarial gains and losses for our defined
benefit pension plans and other post retirement benefit plans to
immediate recognition. We elected to immediately recognize net
actuarial gains and losses and the change in the fair value of plan
assets in our operating results in the year in which they occur.
Below are the pension (gains) and losses included in our operating
results:
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Quarter Ended
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March 30, 2014
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December 31, 2013
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March 31, 2013
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Cost of revenues
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$
|
-
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$
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(2,742
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)
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$
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-
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Engineering and development
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|
-
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(3,782
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)
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-
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Selling and administrative
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|
|
-
|
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(2,540
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)
|
|
|
|
|
-
|
|
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|
|
|
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$
|
-
|
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|
|
$
|
(9,064
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)
|
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|
|
$
|
-
|
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|
|
|
|
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|
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|
|
|
|
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(2
|
)
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Cost of revenues includes:
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Quarter Ended
|
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|
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March 30, 2014
|
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|
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December 31, 2013
|
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March 31, 2013
|
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|
|
|
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Provision for excess and obsolete inventory
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|
$
|
10,039
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$
|
6,976
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|
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$
|
3,800
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Sale of previously written down inventory
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(1,380
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)
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(861
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)
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|
|
(1,783
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)
|
|
|
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|
|
|
|
$
|
8,659
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|
|
|
|
$
|
6,115
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|
|
|
$
|
2,017
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|
|
|
|
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|
|
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(3)
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For the quarter ended March 30, 2014, selling and administrative
expenses include an equity charge of $6,598 for the modification of
Teradyne's retired CEO's outstanding equity awards to allow
continued vesting and maintain the original term in connection with
his January 31, 2014 retirement.
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(4
|
)
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Restructuring and other consists of:
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Quarter Ended
|
|
|
|
|
|
|
|
March 30, 2014
|
|
|
|
December 31, 2013
|
|
|
|
March 31, 2013
|
|
|
|
|
|
Employee severance
|
|
$
|
-
|
|
|
|
$
|
600
|
|
|
|
|
$
|
332
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5
|
)
|
|
|
Interest and other includes:
|
|
Quarter Ended
|
|
|
|
|
|
|
|
March 30, 2014
|
|
|
|
December 31, 2013
|
|
|
|
March 31, 2013
|
|
|
|
|
|
Gain from the sale of an equity investment
|
|
$
|
-
|
|
|
|
$
|
(34,212
|
)
|
|
|
|
$
|
-
|
|
|
|
|
|
Non-cash convertible debt interest expense
|
|
|
4,290
|
|
|
|
|
4,158
|
|
|
|
|
|
3,754
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(6)
|
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|
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 March 30, 2014, December 31, 2013 and March 31, 2013, 20.1
million, 23.5 million and 23.4 million shares, respectively, have
been included in diluted shares.
|
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|
|
|
|
|
|
|
|
|
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CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 30, 2014
|
|
|
|
|
December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
|
|
$
|
232,626
|
|
|
|
|
$
|
341,638
|
|
Marketable securities
|
|
|
|
|
|
|
462,150
|
|
|
|
|
|
586,882
|
|
Accounts receivable
|
|
|
|
|
|
|
216,524
|
|
|
|
|
|
157,642
|
|
Inventories
|
|
|
|
|
|
|
137,434
|
|
|
|
|
|
137,939
|
|
Deferred tax assets
|
|
|
|
|
|
|
68,780
|
|
|
|
|
|
72,478
|
|
Prepayments
|
|
|
|
|
|
|
131,484
|
|
|
|
|
|
136,374
|
|
Other current assets
|
|
|
|
|
|
|
12,249
|
|
|
|
|
|
7,324
|
|
|
|
Total current assets
|
|
|
|
|
|
|
1,261,247
|
|
|
|
|
|
1,440,277
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net property, plant and equipment
|
|
|
|
|
|
|
278,727
|
|
|
|
|
|
275,236
|
|
Marketable securities
|
|
|
|
|
|
|
272,068
|
|
|
|
|
|
271,078
|
|
Deferred tax assets
|
|
|
|
|
|
|
5,551
|
|
|
|
|
|
5,217
|
|
Other assets
|
|
|
|
|
|
|
10,574
|
|
|
|
|
|
14,591
|
|
Retirement plans assets
|
|
|
|
|
|
|
9,443
|
|
|
|
|
|
9,342
|
|
Intangible assets
|
|
|
|
|
|
|
234,020
|
|
|
|
|
|
252,291
|
|
Goodwill
|
|
|
|
|
|
|
361,819
|
|
|
|
|
|
361,792
|
|
|
|
Total assets
|
|
|
|
|
|
$
|
2,433,449
|
|
|
|
|
$
|
2,629,824
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
|
|
|
$
|
70,597
|
|
|
|
|
$
|
62,874
|
|
Accrued employees' compensation and withholdings
|
|
|
|
|
|
|
58,687
|
|
|
|
|
|
95,619
|
|
Deferred revenue and customer advances
|
|
|
|
|
|
|
64,811
|
|
|
|
|
|
55,404
|
|
Dividend payable (1)
|
|
|
|
|
|
|
11,648
|
|
|
|
|
|
-
|
|
Other accrued liabilities
|
|
|
|
|
|
|
65,561
|
|
|
|
|
|
63,712
|
|
Accrued income taxes
|
|
|
|
|
|
|
1,749
|
|
|
|
|
|
11,360
|
|
Current debt
|
|
|
|
|
|
|
-
|
|
|
|
|
|
186,663
|
|
|
|
Total current liabilities
|
|
|
|
|
|
|
273,053
|
|
|
|
|
|
475,632
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term deferred revenue and customer advances
|
|
|
|
|
|
|
13,526
|
|
|
|
|
|
13,306
|
|
Retirement plans liabilities
|
|
|
|
|
|
|
92,530
|
|
|
|
|
|
91,517
|
|
Deferred tax liabilities
|
|
|
|
|
|
|
50,532
|
|
|
|
|
|
40,686
|
|
Long-term other accrued liabilities
|
|
|
|
|
|
|
13,978
|
|
|
|
|
|
23,589
|
|
|
|
Total liabilities
|
|
|
|
|
|
|
443,619
|
|
|
|
|
|
644,730
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity
|
|
|
|
|
|
|
1,989,830
|
|
|
|
|
|
1,985,094
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity
|
|
|
|
|
|
$
|
2,433,449
|
|
|
|
|
$
|
2,629,824
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
In January 2014, the Board declared an initial quarterly cash
dividend of $0.06 per share to be paid on June 2, 2014 to
shareholders of record as of May 9, 2014.
|
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
|
|
|
|
March 30, 2014
|
|
|
|
|
|
March 31, 2013
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$ 929
|
|
|
|
|
|
$ 6,589
|
|
Adjustments to reconcile net income to net cash used for operating
activities:
|
|
|
|
|
Depreciation
|
|
15,259
|
|
|
|
|
|
14,115
|
|
|
Amortization
|
|
23,925
|
|
|
|
|
|
23,002
|
|
|
Stock-based compensation
|
|
15,233
|
|
|
|
|
|
9,023
|
|
|
Provision for excess and obsolete inventory
|
|
10,039
|
|
|
|
|
|
3,800
|
|
|
Deferred taxes
|
|
12,699
|
|
|
|
|
|
(6,183)
|
|
|
Other
|
|
(141)
|
|
|
|
|
|
(987)
|
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
(58,882)
|
|
|
|
|
|
(13,191)
|
|
|
|
Inventories
|
|
2,635
|
|
|
|
|
|
(4,040)
|
|
|
|
Prepayments and other assets
|
|
(628)
|
|
|
|
|
|
(1,070)
|
|
|
|
Accounts payable and accrued expenses
|
|
(45,482)
|
|
|
|
|
|
(47,258)
|
|
|
|
Deferred revenue and customer advances
|
|
9,627
|
|
|
|
|
|
(10,146)
|
|
|
|
Retirement plans contributions
|
|
(1,425)
|
|
|
|
|
|
(1,063)
|
|
|
|
Accrued income taxes
|
|
(9,609)
|
|
|
|
|
|
(9,085)
|
Net cash used for operating activities
|
|
(25,821)
|
|
|
|
|
|
(36,494)
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of property, plant and equipment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(31,197
|
)
|
|
|
|
|
|
|
|
|
|
|
|
(22,547
|
)
|
|
Purchases of marketable securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(257,260
|
)
|
|
|
|
|
|
|
|
|
|
|
|
(124,514
|
)
|
|
Proceeds from maturities of marketable securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
280,322
|
|
|
|
|
|
|
|
|
|
|
|
|
119,552
|
|
|
Proceeds from sales of marketable securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
101,363
|
|
|
|
|
|
|
|
|
|
|
|
|
21,694
|
|
|
Proceeds from life insurance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,391
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
Net cash provided by (used for) investing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
97,619
|
|
|
|
|
|
|
|
|
|
|
|
|
(5,815
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issuance of common stock under stock option and stock purchase plans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10,165
|
|
|
|
|
|
|
|
|
|
|
|
|
8,921
|
|
|
Payments of long-term debt
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(190,975
|
)
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
Payments of contingent consideration
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
(313
|
)
|
Net cash (used for) provided by financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(180,810
|
)
|
|
|
|
|
|
|
|
|
|
|
|
8,608
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Decrease in cash and cash equivalents
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(109,012
|
)
|
|
|
|
|
|
|
|
|
|
|
|
(33,701
|
)
|
Cash and cash equivalents at beginning of period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
341,638
|
|
|
|
|
|
|
|
|
|
|
|
|
338,920
|
|
Cash and cash equivalents at end of period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
232,626
|
|
|
|
|
|
|
|
|
|
|
|
$
|
305,219
|
|
GAAP to Non-GAAP Earnings Reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 30, 2014
|
% of Net Revenues
|
|
|
|
|
|
|
|
December 31, 2013
|
% of Net Revenues
|
|
|
|
|
|
|
|
March 31, 2013
|
% of Net Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues
|
$
|
321.0
|
|
|
|
|
|
|
|
|
|
|
|
$
|
285.3
|
|
|
|
|
|
|
|
|
|
|
|
$
|
280.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit - GAAP
|
$
|
167.0
|
|
|
52.0
|
%
|
|
|
|
|
|
|
|
|
$
|
159.9
|
|
|
56.0
|
%
|
|
|
|
|
|
|
|
|
$
|
153.4
|
|
|
54.7
|
%
|
|
|
|
|
|
Pension mark-to-market adjustments (1)
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
(2.7
|
)
|
|
-0.9
|
%
|
|
|
|
|
|
|
|
|
|
-
|
|
|
-
|
|
|
|
|
|
Gross profit - non-GAAP
|
$
|
167.0
|
|
|
52.0
|
%
|
|
|
|
|
|
|
|
|
$
|
157.2
|
|
|
55.1
|
%
|
|
|
|
|
|
|
|
|
$
|
153.4
|
|
|
54.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations - GAAP
|
$
|
3.7
|
|
|
1.2
|
%
|
|
|
|
|
|
|
|
|
$
|
6.8
|
|
|
2.4
|
%
|
|
|
|
|
|
|
|
|
$
|
4.4
|
|
|
1.6
|
%
|
|
|
|
|
|
Acquired intangible asset amortization
|
|
18.3
|
|
|
5.7
|
%
|
|
|
|
|
|
|
|
|
|
18.3
|
|
|
6.4
|
%
|
|
|
|
|
|
|
|
|
|
18.0
|
|
|
6.4
|
%
|
|
|
|
|
|
Equity modification charge (2)
|
|
6.6
|
|
|
2.1
|
%
|
|
|
|
|
|
|
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
Restructuring and other (3)
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
0.6
|
|
|
0.2
|
%
|
|
|
|
|
|
|
|
|
|
0.3
|
|
|
0.1
|
%
|
|
|
|
|
|
Pension mark-to-market adjustments (1)
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
(9.1
|
)
|
|
-3.2
|
%
|
|
|
|
|
|
|
|
|
|
-
|
|
|
-
|
|
|
|
|
|
Income from operations - non-GAAP
|
$
|
28.6
|
|
|
8.9
|
%
|
|
|
|
|
|
|
|
|
$
|
16.6
|
|
|
5.8
|
%
|
|
|
|
|
|
|
|
|
$
|
22.7
|
|
|
8.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
per Common Share
|
|
|
|
|
|
|
|
Net Income
per Common Share
|
|
|
|
|
|
|
|
Net Income
per Common Share
|
|
|
|
|
March 30, 2014
|
% of Net Revenues
|
Basic
|
|
Diluted
|
|
|
|
|
December 31, 2013
|
% of Net Revenues
|
Basic
|
|
Diluted
|
|
|
|
|
March 31, 2013
|
% of Net Revenues
|
Basic
|
|
Diluted
|
Net income - GAAP
|
$
|
0.9
|
|
|
0.3
|
%
|
|
$
|
0.00
|
|
|
$
|
0.00
|
|
|
|
|
|
$
|
22.3
|
|
|
7.8
|
%
|
|
$
|
0.12
|
|
|
$
|
0.09
|
|
|
|
|
|
$
|
6.6
|
|
|
2.4
|
%
|
|
$
|
0.03
|
|
|
$
|
0.03
|
|
|
Acquired intangible asset amortization
|
|
18.3
|
|
|
5.7
|
%
|
|
|
0.09
|
|
|
|
0.08
|
|
|
|
|
|
|
18.3
|
|
|
6.4
|
%
|
|
|
0.10
|
|
|
|
0.08
|
|
|
|
|
|
|
18.0
|
|
|
6.4
|
%
|
|
|
0.09
|
|
|
|
0.08
|
|
|
Income tax adjustment (4)
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
11.1
|
|
|
3.9
|
%
|
|
|
0.06
|
|
|
|
0.05
|
|
|
|
|
|
|
(10.5
|
)
|
|
-3.7
|
%
|
|
|
(0.06
|
)
|
|
|
(0.04
|
)
|
|
Interest and other (5)
|
|
4.3
|
|
|
1.3
|
%
|
|
|
0.02
|
|
|
|
0.02
|
|
|
|
|
|
|
(30.0
|
)
|
|
-10.5
|
%
|
|
|
(0.16
|
)
|
|
|
(0.13
|
)
|
|
|
|
|
|
3.8
|
|
|
1.4
|
%
|
|
|
0.02
|
|
|
|
0.02
|
|
|
Equity modification charge (2)
|
|
6.6
|
|
|
2.1
|
%
|
|
|
0.03
|
|
|
|
0.03
|
|
|
|
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Exclude discrete tax adjustments (6)
|
|
(2.4
|
)
|
|
-0.7
|
%
|
|
|
(0.01
|
)
|
|
|
(0.01
|
)
|
|
|
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Tax effect of non-GAAP adjustments
|
|
(5.3
|
)
|
|
-1.6
|
%
|
|
|
(0.03
|
)
|
|
|
(0.02
|
)
|
|
|
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Restructuring and other (3)
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
0.6
|
|
|
0.2
|
%
|
|
|
0.00
|
|
|
|
0.00
|
|
|
|
|
|
|
0.3
|
|
|
0.1
|
%
|
|
|
0.00
|
|
|
|
0.00
|
|
|
Pension mark-to-market adjustments (1)
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
(9.1
|
)
|
|
-3.2
|
%
|
|
|
(0.05
|
)
|
|
|
(0.04
|
)
|
|
|
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Convertible share adjustment (7)
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
0.01
|
|
|
|
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
0.02
|
|
|
|
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
0.01
|
|
Net income - non-GAAP
|
$
|
22.4
|
|
|
7.0
|
%
|
|
$
|
0.12
|
|
|
$
|
0.11
|
|
|
|
|
|
$
|
13.2
|
|
|
4.6
|
%
|
|
$
|
0.07
|
|
|
$
|
0.07
|
|
|
|
|
|
$
|
18.2
|
|
|
6.5
|
%
|
|
$
|
0.10
|
|
|
$
|
0.09
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP and non-GAAP weighted average common shares - basic
|
|
193.3
|
|
|
|
|
|
|
|
|
|
|
|
|
191.5
|
|
|
|
|
|
|
|
|
|
|
|
|
189.7
|
|
|
|
|
|
|
|
GAAP weighted average common shares - diluted
|
|
236.5
|
|
|
|
|
|
|
|
|
|
|
|
|
236.9
|
|
|
|
|
|
|
|
|
|
|
|
|
234.8
|
|
|
|
|
|
|
|
|
Exclude dilutive shares from convertible note
|
|
(20.1
|
)
|
|
|
|
|
|
|
|
|
|
|
|
(42.4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
(42.3
|
)
|
|
|
|
|
|
|
Non-GAAP weighted average common shares - diluted (7)
|
|
216.4
|
|
|
|
|
|
|
|
|
|
|
|
|
194.5
|
|
|
|
|
|
|
|
|
|
|
|
|
192.5
|
|
|
|
|
|
|
|
(1)
|
|
|
Actuarial (gains) losses recognized under GAAP in accordance with
the Company's mark-to-market pension accounting.
|
|
|
|
|
(2)
|
|
|
For the quarter ended March 30, 2014, selling and administrative
expenses include an equity charge for the modification of Teradyne's
retired CEO's outstanding equity awards to allow continued vesting
and maintain the original term in connection with his January 31,
2014 retirement.
|
(3)
|
Restructuring and other consists of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
|
|
|
|
|
March 30, 2014
|
|
|
|
|
|
December 31, 2013
|
|
|
|
|
|
March 31, 2013
|
|
|
Employee severance
|
|
|
$ -
|
|
|
|
|
|
$ 0.6
|
|
|
|
|
|
$ 0.3
|
|
|
|
|
(4)
|
|
|
For the quarters December 31, 2013 and March 31, 2013, adjustment to
record income taxes on a cash basis. Cash taxes reflects the usage
of prior year favorable tax attributes (e.g. NOLs and credits)
against current year tax liability.
|
|
|
|
|
(5)
|
|
|
For the quarters ended March 30, 2014, December 31, 2013 and March
31, 2013, Interest and other included non-cash convertible debt
interest expense. For the quarter ended December 31, 2013, Interest
and other included a gain from the sale of an equity investment.
|
|
|
|
|
(6)
|
|
|
For the quarter ended March 30, 2014, adjustment to exclude discrete
income tax items.
|
|
|
|
|
(7)
|
|
|
For the quarter ended March 30, 2014, the calculation of non-GAAP
diluted earnings per share gives benefit to the Company's call
option on its stock for 34.7 million shares at $5.48. As a result
20.9 million shares have been included in non-GAAP diluted shares
and net interest expense of $2.0 million has been added back to
non-GAAP net income for the non-GAAP diluted earnings per share
calculation.
|
GAAP to Non-GAAP Reconciliation of Second Quarter 2014 guidance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP and non-GAAP second quarter revenue guidance:
|
|
|
|
$460 million
|
|
to
|
|
$490 million
|
GAAP net income per diluted share
|
|
|
|
|
$
|
0.29
|
|
|
|
|
$
|
0.36
|
|
|
Exclude acquired intangible asset amortization
|
|
|
|
|
0.08
|
|
|
|
|
|
0.08
|
|
|
Tax effect of non-GAAP adjustment
|
|
|
|
|
|
(0.02
|
)
|
|
|
|
|
(0.02
|
)
|
Non-GAAP net income per diluted share
|
|
|
|
|
$
|
0.36
|
|
|
|
|
$
|
0.43
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For press releases and other information of interest to investors,
please visit Teradyne's homepage at http://www.teradyne.com.
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|