- Full year orders up 10% from 2014
- Q4’15 orders up 66% from Q3’15, driven by strong mobility test demand
- Record quarterly and full year revenue at Universal Robots
NORTH READING, Mass. — (BUSINESS WIRE) — January 27, 2016 — Teradyne, Inc. (NYSE: TER):
| Q4'15 | Q4'14 | Q3'15 | FY 2015 | FY 2014 | |||||||||||||
| Orders (mil) | $ | 522 | $ | 332 | $ | 314 | $ | 1,856 | $ | 1,682 | |||||||
| Revenue (mil) | $ | 318 | $ | 323 | $ | 466 | $ | 1,640 | $ | 1,648 | |||||||
| Non-GAAP EPS | $ | 0.13 | $ | 0.14 | $ | 0.40 | $ | 1.27 | $ | 1.25 | |||||||
| GAAP EPS | ($0.00 | ) | ($0.48 | ) | $ | 0.34 | $ | 0.97 | $ | 0.37 | |||||||
Teradyne, Inc. (NYSE: TER) reported revenue of $318 million for the fourth quarter of 2015 of which $205 million was in Semiconductor Test, $59 million in System Test, $32 million in Wireless Test and $22 million in Industrial Automation. On a non-GAAP basis, Teradyne’s net income in the fourth quarter was $26.1 million, or $0.13 per diluted share, which excluded acquired intangible asset amortization, pension actuarial losses, restructuring and other charges, and discrete income tax adjustments. GAAP net loss for the fourth quarter was ($0.6) million or ($0.00) per diluted share.
Orders in the fourth quarter of 2015 were $522 million of which $408 million was in Semiconductor Test, $66 million in System Test, $30 million in Wireless Test and $18 million in Industrial Automation.
For the fiscal year, Teradyne reported revenue of $1,640 million of which $1,202 million was in Semiconductor Test, $211 million in System Test, $185 million in Wireless Test and $42 million in Industrial Automation. On a non-GAAP basis, Teradyne’s net income for 2015 was $271.2 million, or $1.27 per diluted share, which excluded acquired intangible asset amortization, pension actuarial losses, and discrete income tax adjustments. GAAP net income for the year was $206.5 million or $0.97 per diluted share. Cash provided by operating activities for 2015 was $413 million and purchases of property, plant and equipment were $90 million.
“We closed 2015 with exceptionally strong Semiconductor Test demand as orders for our flagship UltraFLEX product line were pulled into the fourth quarter to meet 2016 production ramps for new mobile products,” said CEO and President Mark Jagiela. “At Universal Robots, we set quarterly and annual revenue records as customers serving a broad swath of industrial markets continue to embrace collaborative robots.”
“For the year, revenues again topped $1.6 billion despite the cyclical softness of the Semiconductor Test market in 2015. In addition, we generated $323 million in free cash flow, returned $350 million to shareholders through share repurchases and dividends, and added a new growth dimension to Teradyne in the fast expanding collaborative robot (cobot) market with the acquisition of Universal Robots. We enter 2016 well positioned to grow share in our core test businesses, broaden the range of applications for cobots, and continue our balanced capital allocation strategy,” continued Mr. Jagiela.
Teradyne’s Board of Directors also declared a quarterly cash dividend of $0.06 per share, payable on March 21, 2016 to shareholders of record as of the close of business on February 26, 2016.
Guidance for the first quarter of 2016 is revenue of $410 million to $440 million, with non-GAAP net income of $0.23 to $0.29 per diluted share and GAAP net income of $0.15 to $0.21 per diluted share. Non-GAAP guidance excludes acquired intangible asset amortization.
Webcast
A conference call to discuss the fourth quarter and
2015 results, along with management's business outlook, will occur at 10
a.m. ET, Thursday, January 28, 2016. 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/investors
at 10 a.m. ET. A replay of the call will also be available on the
Teradyne website.
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, pension actuarial
losses, fair value inventory step-up related to Universal Robots,
goodwill impairment, retired CEO equity charge, non-cash convertible
debt interest, discrete income tax adjustments, restructuring and other,
and a gain from the sale of an equity investment. 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 fair value inventory step-up related to
Universal Robots and pension actuarial losses. GAAP requires that these
items 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. Prior to
September 29, 2014, non-GAAP diluted shares included the impact of
Teradyne’s call option and warrant 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 automation equipment for test and
industrial applications. Teradyne Automatic Test Equipment (ATE) is used
to test semiconductors, wireless products, data storage and complex
electronic systems, which serve consumer, communications, industrial and
government customers. Our Industrial Automation products include
Collaborative Robots used by global manufacturing and light industrial
customers to improve quality and increase manufacturing efficiency. In
2015, Teradyne had revenue of $1.64 billion and currently employs
approximately 4,100 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, the payment of a quarterly dividend, the
repurchase of Teradyne common stock pursuant to a share repurchase
program and a senior secured credit facility. Such statements are based
on the current assumptions and expectations of Teradyne’s management and
are neither promises nor guarantees of future performance, future
events, future payment of dividends, future repurchases of common stock
or future availability of, or borrowing under, a credit facility. There
can be no assurance that management’s estimates of Teradyne’s future
results or other forward-looking statements will be achieved.
Additionally, the current dividend and share repurchase programs may be
modified, suspended or discontinued at any time. Important factors that
could cause actual results, dividend payments, repurchases of common
stock or borrowings under the credit facility to differ materially from
those presently expected include: conditions affecting the markets in
which Teradyne operates; decreased or delayed product demand; market
acceptance of new products; the ability to grow Universal Robots’
business; 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, the repurchase of common
stock or debt under the credit facility 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, 2014 and the Quarterly Report on Form 10-Q for the period ended
October 4, 2015. 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.
| CONDENSED CONSOLIDATED OPERATING STATEMENTS | ||||||||||||||||||||
| (In thousands, except per share amounts) | ||||||||||||||||||||
| Quarter Ended | Twelve Months Ended | |||||||||||||||||||
|
December 31,
|
October 4,
|
December 31,
|
December 31,
|
December 31,
|
||||||||||||||||
| Net revenues | $ | 318,444 | $ | 465,994 | $ | 323,236 | $ | 1,639,578 | $ | 1,647,824 | ||||||||||
| Cost of revenues (exclusive of acquired intangible assets amortization shown separately below) (1) (2) | 152,418 | 207,368 | 163,010 | 723,935 | 769,016 | |||||||||||||||
| Gross profit | 166,026 | 258,626 | 160,226 | 915,643 | 878,808 | |||||||||||||||
| Operating expenses: | ||||||||||||||||||||
| Engineering and development (1) | 70,941 | 74,027 | 79,188 | 292,250 | 291,639 | |||||||||||||||
| Selling and administrative (1) (3) | 79,718 | 77,481 | 91,157 | 306,313 | 319,713 | |||||||||||||||
| Acquired intangible assets amortization | 19,911 | 20,053 | 15,957 | 69,031 | 70,771 | |||||||||||||||
|
Goodwill impairment |
- | - | 98,897 | - | 98,897 | |||||||||||||||
| Restructuring and other (4) | 5,204 | 261 | 1,198 | 5,080 | 1,365 | |||||||||||||||
| Operating expenses | 175,774 | 171,822 | 286,397 | 672,674 | 782,385 | |||||||||||||||
| (Loss) income from operations | (9,748 | ) | 86,804 | (126,171 | ) | 242,969 | 96,423 | |||||||||||||
| Interest and other (5) | 891 | 604 | 1,358 | 10,155 | (1,047 | ) | ||||||||||||||
| (Loss) income before income taxes | (8,857 | ) | 87,408 | (124,813 | ) | 253,124 | 95,376 | |||||||||||||
| Income tax (benefit) provision | (8,216 | ) | 15,955 | (21,002 | ) | 46,647 | 14,104 | |||||||||||||
| Net (loss) income | $ | (641 | ) | $ | 71,453 | $ | (103,811 | ) | $ | 206,477 | $ | 81,272 | ||||||||
| Net (loss) income per common share: | ||||||||||||||||||||
| Basic | $ | (0.00 | ) | $ | 0.34 | $ | (0.48 | ) | $ | 0.98 | $ | 0.40 | ||||||||
| Diluted | $ | (0.00 | ) | $ | 0.34 | $ | (0.48 | ) | $ | 0.97 | $ | 0.37 | ||||||||
| Weighted average common shares - basic | 205,113 | 210,032 | 216,532 | 211,544 | 202,908 | |||||||||||||||
| Weighted average common shares - diluted (6) | 205,113 | 211,736 | 216,532 | 213,321 | 222,550 | |||||||||||||||
| Cash dividend declared per common share | $ | 0.06 | $ | 0.06 | $ | 0.06 | $ | 0.24 | $ | 0.18 | ||||||||||
| Net orders | $ | 522,240 | $ | 314,222 | $ | 331,993 | $ | 1,855,515 | $ | 1,681,950 | ||||||||||
| (1)Pension actuarial losses included in our operating results were as follows: | Quarter Ended | Twelve Months Ended | ||||||||||||||||||
|
December 31,
|
October 4,
|
December 31,
|
December 31,
|
December 31,
|
||||||||||||||||
| Cost of revenues | $ | 8,271 | $ | - | $ | 12,713 | $ | 8,271 | $ | 12,713 | ||||||||||
| Engineering and development | 4,658 | - | 12,223 | $ | 4,658 | 12,223 | ||||||||||||||
| Selling and administrative | 4,826 | - | 21,628 | $ | 4,826 | 21,628 | ||||||||||||||
| $ | 17,755 | $ | - | $ | 46,564 | $ | 17,755 | $ | 46,564 | |||||||||||
| (2)Cost of revenues includes: | Quarter Ended | Twelve Months Ended | ||||||||||||||||||
|
December 31,
|
October 4,
|
December 31,
|
December 31,
|
December 31,
|
||||||||||||||||
| Provision for excess and obsolete inventory | $ | 2,393 | $ | 3,058 | $ | 688 | $ | 21,332 | $ | 22,193 | ||||||||||
| Sale of previously written down inventory | (1,196 | ) | (1,983 | ) | (3,332 | ) | (7,855 | ) | (13,058 | ) | ||||||||||
| Inventory step-up | - | 972 | - | 1,567 | - | |||||||||||||||
| $ | 1,197 | $ | 2,047 | $ | (2,644 | ) | $ | 15,044 | $ | 9,135 | ||||||||||
| (3)For the twelve months ended December 31, 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. | ||||||||||||||||||||
| (4)Restructuring and other consists of: | Quarter Ended | Twelve Months Ended | ||||||||||||||||||
|
December 31,
|
October 4,
|
December 31,
|
December 31,
|
December 31,
|
||||||||||||||||
| Employee severance | $ | 115 | $ | 1,117 | $ | 826 | $ | 1,487 | $ | 1,623 | ||||||||||
| Acquisition costs (a) | - | 144 | 372 | 1,104 | 372 | |||||||||||||||
| Contingent consideration fair value adjustment | 5,089 | (1,000 | ) | - | 2,489 | (630 | ) | |||||||||||||
| $ | 5,204 | $ | 261 | $ | 1,198 | 5,080 | $ | 1,365 | ||||||||||||
| (a)Costs related to Universal Robots acquisition. The results of Universal Robots are included in Teradyne’s results starting June 12, 2015. | ||||||||||||||||||||
| (5)Interest and other includes: | Quarter Ended | Twelve Months Ended | ||||||||||||||||||
|
December 31,
|
October 4,
|
December 31,
|
December 31,
|
December 31,
|
||||||||||||||||
| Gain from the sale of an equity investment | $ | - | $ | - | $ | - | $ | (5,406 | ) | $ | - | |||||||||
| Non-cash convertible debt interest expense | - | - | - | - | 4,290 | |||||||||||||||
| $ | - | $ | - | $ | - | $ | (5,406 | ) | $ | 4,290 | ||||||||||
(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 twelve months ended December 31, 2014, 5.0 million shares have been included in diluted shares.
| CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) | ||||||
|
December 31,
|
December 31,
|
|||||
| Assets | ||||||
| Cash and cash equivalents | $ | 264,705 | $ | 294,256 | ||
| Marketable securities | 477,696 | 533,787 | ||||
| Accounts receivable | 211,293 | 151,034 | ||||
| Inventories, net | 153,588 | 105,129 | ||||
| Deferred tax assets | 54,973 | 57,239 | ||||
| Prepayments | 91,519 | 95,819 | ||||
| Other current assets | 6,194 | 6,582 | ||||
|
Total current assets |
1,259,968 | 1,243,846 | ||||
| Net property, plant and equipment | 273,414 | 329,038 | ||||
| Marketable securities | 265,928 | 470,789 | ||||
| Deferred tax assets | 7,404 | 7,494 | ||||
| Other assets | 13,080 | 10,419 | ||||
| Retirement plans assets | 636 | 12,896 | ||||
| Intangible assets, net | 239,831 | 190,600 | ||||
| Goodwill | 488,413 | 273,438 | ||||
| Total assets | $ | 2,548,674 | $ | 2,538,520 | ||
| Liabilities | ||||||
| Accounts payable | $ | 92,358 | $ | 47,763 | ||
| Accrued employees' compensation and withholdings | 113,994 | 100,994 | ||||
| Deferred revenue and customer advances | 85,527 | 71,603 | ||||
| Other accrued liabilities | 43,727 | 50,247 | ||||
| Contingent consideration | 15,500 | 895 | ||||
| Accrued income taxes | 21,751 | 20,049 | ||||
| Total current liabilities | 372,857 | 291,551 | ||||
| Long-term deferred revenue and customer advances | 25,745 | 19,929 | ||||
| Retirement plans liabilities | 103,531 | 108,460 | ||||
| Deferred tax liabilities | 26,663 | 23,315 | ||||
| Long-term other accrued liabilities | 32,156 | 13,830 | ||||
| Long-term contingent consideration | 21,936 | 2,455 | ||||
| Total liabilities | 582,888 | 459,540 | ||||
| Shareholders' equity | 1,965,786 | 2,078,980 | ||||
| Total liabilities and shareholders' equity | $ | 2,548,674 | $ | 2,538,520 | ||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) | ||||||||||||||||
| Quarter Ended | Twelve Months Ended | |||||||||||||||
|
December 31,
|
December 31,
|
December 31,
|
December 31,
|
|||||||||||||
| Cash flows from operating activities: | ||||||||||||||||
| Net (loss) income | $ | (641 | ) | $ | (103,811 | ) | $ | 206,477 | $ | 81,272 | ||||||
| Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||||||||||||||||
| Depreciation | 15,649 | 20,558 | 68,180 | 73,390 | ||||||||||||
| Amortization | 20,433 | 17,032 | 72,592 | 79,154 | ||||||||||||
| Stock-based compensation | 7,372 | 8,434 | 30,452 | 40,307 | ||||||||||||
| Provision for excess and obsolete inventory | 2,393 | 688 | 21,332 | 22,193 | ||||||||||||
| Retirement plans actuarial losses | 17,755 | 46,564 | 17,755 | 46,564 | ||||||||||||
| Deferred taxes | (6,736 | ) | 4,336 | (20,709 | ) | (4,411 | ) | |||||||||
| Contingent consideration adjustment | 5,089 | - | 2,489 | (630 | ) | |||||||||||
| Tax benefit related to employee stock compensation awards | (1,107 | ) | 1,191 | (4,320 | ) | (535 | ) | |||||||||
| Non-cash charge for the sale of inventories revalued at the date of acquisition | - | - | 1,567 | - | ||||||||||||
| Gain from the sale of an equity investment | - | - | (5,406 | ) | - | |||||||||||
| Goodwill impairment | - | 98,897 | - | 98,897 | ||||||||||||
| Other | (1,194 | ) | 1,395 | 1,329 | 3,505 | |||||||||||
| Changes in operating assets and liabilities, net of business acquired: | ||||||||||||||||
| Accounts receivable | 33,940 | 171,730 | (57,177 | ) | 8,060 | |||||||||||
| Inventories | (22,517 | ) | 12,905 | 10,859 | 51,172 | |||||||||||
| Prepayments and other assets | (6,257 | ) | (6,247 | ) | 9,272 | 41,537 | ||||||||||
| Accounts payable and other accrued expenses | (4,502 | ) | (74,539 | ) | 48,161 | (45,430 | ) | |||||||||
| Deferred revenue and customer advances | 10,225 | 7,767 | 16,976 | 22,033 | ||||||||||||
| Retirement plans contributions | (9,097 | ) | (30,635 | ) | (12,095 | ) | (33,916 | ) | ||||||||
| Accrued income taxes | (20,077 | ) | (1,308 | ) | 5,600 | 8,900 | ||||||||||
| Net cash provided by operating activities | 40,728 | 174,957 | 413,334 | 492,062 | ||||||||||||
| Cash flows from investing activities: | ||||||||||||||||
| Purchases of property, plant and equipment | (23,151 | ) | (22,630 | ) | (89,878 | ) | (168,982 | ) | ||||||||
| Purchases of available-for-sale marketable securities | (466,396 | ) | (734,687 | ) | (1,424,002 | ) | (1,578,743 | ) | ||||||||
| Proceeds from maturities of available-for-sale marketable securities | 29,901 | 74,793 | 360,264 | 570,358 | ||||||||||||
| Proceeds from sales of available-for-sale marketable securities | 472,397 | 623,669 | 1,316,131 | 859,729 | ||||||||||||
| Acquisition of business, net of cash acquired | - | (19,419 | ) | (282,741 | ) | (19,419 | ) | |||||||||
| Proceeds from the sale of an equity investment | - | - | 5,406 | - | ||||||||||||
| (Purchase of) proceeds from life insurance | - | (207 | ) | 1,098 | 4,184 | |||||||||||
| Net cash provided by (used for) investing activities | 12,751 | (78,481 | ) | (113,722 | ) | (332,873 | ) | |||||||||
| Cash flows from financing activities: | ||||||||||||||||
| Issuance of common stock under employee stock purchase and stock option plans | 1,287 | 261 | 19,432 | 21,291 | ||||||||||||
| Repurchase of common stock | (73,106 | ) | - | (299,949 | ) | - | ||||||||||
| Tax benefit related to employee stock compensation awards | 1,107 | (1,191 | ) | 4,320 | 535 | |||||||||||
| Dividend payments | (12,279 | ) | (12,994 | ) | (50,713 | ) | (37,425 | ) | ||||||||
| Payment of revolving credit facility costs | - | - | (2,253 | ) | - | |||||||||||
| Payments of long-term debt | - | - | - | (190,972 | ) | |||||||||||
| Net cash used for financing activities | (82,991 | ) | (13,924 | ) | (329,163 | ) | (206,571 | ) | ||||||||
| (Decrease) increase in cash and cash equivalents | (29,512 | ) | 82,552 | (29,551 | ) | (47,382 | ) | |||||||||
| Cash and cash equivalents at beginning of period | 294,217 | 211,704 | 294,256 | 341,638 | ||||||||||||
| Cash and cash equivalents at end of period | $ | 264,705 | $ | 294,256 | $ | 264,705 | $ | 294,256 | ||||||||
| GAAP to Non-GAAP Earnings Reconciliation | |||||||||||||||||||||||||||||||||||||||||||||
| (In millions, except per share amounts) | |||||||||||||||||||||||||||||||||||||||||||||
| Quarter Ended | |||||||||||||||||||||||||||||||||||||||||||||
|
December 31,
|
% of Net
|
October 4,
|
% of Net
|
December 31,
|
% of Net
|
||||||||||||||||||||||||||||||||||||||||
| Net revenues | $ | 318.4 | $ | 466.0 | $ | 323.2 | |||||||||||||||||||||||||||||||||||||||
| Gross profit - GAAP | $ | 166.0 | 52.1 | % | $ | 258.6 | 55.5 | % | $ | 160.2 | 49.6 | % | |||||||||||||||||||||||||||||||||
| Pension mark-to-market adjustments (1) | 8.3 | 2.6 | % | - | - | 12.7 | 3.9 | % | |||||||||||||||||||||||||||||||||||||
| Inventory step-up | - | - | 1.0 | 0.2 | % | - | - | ||||||||||||||||||||||||||||||||||||||
| Gross profit - non-GAAP | $ | 174.3 | 54.7 | % | $ | 259.6 | 55.7 | % | $ | 172.9 | 53.5 | % | |||||||||||||||||||||||||||||||||
| (Loss) income from operations - GAAP | $ | (9.7 | ) | -3.0 | % | $ | 86.8 | 18.6 | % | $ | (126.2 | ) | -39.0 | % | |||||||||||||||||||||||||||||||
| Acquired intangible assets amortization | 19.9 | 6.3 | % | 20.1 | 4.3 | % | 16.0 | 5.0 | % | ||||||||||||||||||||||||||||||||||||
| Goodwill impairment (2) | - | - | - | - | 98.9 | 30.6 | % | ||||||||||||||||||||||||||||||||||||||
| Restructuring and other (3) | 5.2 | 1.6 | % | 0.3 | 0.1 | % | 1.2 | 0.4 | % | ||||||||||||||||||||||||||||||||||||
| Pension mark-to-market adjustments (1) | 17.8 | 5.6 | % | - | - | 46.6 | 14.4 | % | |||||||||||||||||||||||||||||||||||||
| Inventory step-up | - | - | 1.0 | 0.2 | % | - | - | ||||||||||||||||||||||||||||||||||||||
| Income from operations - non-GAAP | $ | 33.2 | 10.4 | % | $ | 108.2 | 23.2 | % | $ | 36.5 | 11.3 | % | |||||||||||||||||||||||||||||||||
|
Net Income
|
Net Income
|
Net Income
|
|||||||||||||||||||||||||||||||||||||||||||
|
December 31,
|
% of Net
|
Basic | Diluted |
October 4,
|
% of Net
|
Basic | Diluted |
December 31,
|
% of Net
|
Basic | Diluted | ||||||||||||||||||||||||||||||||||
| Net (loss) income- GAAP | $ | (0.6 | ) | -0.2 | % | $ | (0.00 | ) | $ | (0.00 | ) | $ | 71.5 | 15.3 | % | $ | 0.34 | $ | 0.34 | $ | (103.8 | ) | -32.1 | % | $ | (0.48 | ) | $ | (0.48 | ) | |||||||||||||||
| Acquired intangible assets amortization | 19.9 | 6.3 | % | 0.10 | 0.10 | 20.1 | 4.3 | % | 0.10 | 0.09 | 16.0 | 5.0 | % | 0.07 | 0.07 | ||||||||||||||||||||||||||||||
| Goodwill impairment (2) | - | - | - | - | - | - | - | - | 98.9 | 30.6 | % | 0.46 | 0.45 | ||||||||||||||||||||||||||||||||
| Inventory step-up | - | - | - | - | 1.0 | 0.2 | % | 0.00 | 0.00 | - | - | - | - | ||||||||||||||||||||||||||||||||
| Pension mark-to-market adjustments (1) | 17.8 | 5.6 | % | 0.09 | 0.09 | - | - | - | - | 46.6 | 14.4 | % | 0.22 | 0.21 | |||||||||||||||||||||||||||||||
| Restructuring and other (3) | 5.2 | 1.6 | % | 0.03 | 0.03 | 0.3 | 0.1 | % | 0.00 | 0.00 | 1.2 | 0.4 | % | 0.01 | 0.01 | ||||||||||||||||||||||||||||||
| Exclude discrete tax items (4) | (6.3 | ) | -2.0 | % | (0.03 | ) | (0.03 | ) | (3.3 | ) | -0.7 | % | (0.02 | ) | (0.02 | ) | 1.5 | 0.5 | % | 0.01 | 0.01 | ||||||||||||||||||||||||
| Tax effect of non-GAAP adjustments | (9.9 | ) | -3.1 | % | (0.05 | ) | (0.05 | ) | (4.7 | ) | -1.0 | % | (0.02 | ) | (0.02 | ) | (29.3 | ) | -9.1 | % | (0.14 | ) | (0.13 | ) | |||||||||||||||||||||
| Net income - non-GAAP | $ | 26.1 | 8.2 | % | $ | 0.13 | $ | 0.13 | $ | 84.9 | 18.2 | % | $ | 0.40 | $ | 0.40 | $ | 31.1 | 9.6 | % | $ | 0.14 | $ | 0.14 | |||||||||||||||||||||
| GAAP and non-GAAP weighted average common shares - basic | 205.1 | 210.0 | 216.5 | ||||||||||||||||||||||||||||||||||||||||||
| GAAP weighted average common shares - diluted | 205.1 | 211.7 | 216.5 | ||||||||||||||||||||||||||||||||||||||||||
| Include dilutive shares | 2.1 | - | 2.3 | ||||||||||||||||||||||||||||||||||||||||||
| Non-GAAP weighted average common shares - diluted | 207.2 | 211.7 | 218.8 | ||||||||||||||||||||||||||||||||||||||||||
| (1)Actuarial losses recognized under GAAP in accordance with Teradyne's mark-to-market pension accounting. | |||||||||||||||||||||||||||||||||||||||||||||
| (2)Goodwill impairment related to Teradyne's Wireless Test business segment. | |||||||||||||||||||||||||||||||||||||||||||||
| (3)Restructuring and other consists of: | |||||||||||||||||||||||||||||||||||||||||||||
| Quarter Ended | |||||||||||||||||||||||||||||||||||||||||||||
|
December 31,
|
October 4,
|
December 31,
|
|||||||||||||||||||||||||||||||||||||||||||
| Employee severance | $ | 0.1 | $ | 1.2 | $ | 0.8 | |||||||||||||||||||||||||||||||||||||||
| Acquisition costs | - | 0.1 | 0.4 | ||||||||||||||||||||||||||||||||||||||||||
| Contingent consideration fair value adjustment | 5.1 | (1.0 | ) | - | |||||||||||||||||||||||||||||||||||||||||
| $ | 5.2 | $ | 0.3 | $ | 1.2 | ||||||||||||||||||||||||||||||||||||||||
(4)For the quarters ended December 31, 2015, October 4, 2015, and December 31, 2014, adjustment to exclude discrete income tax items.
| Year Ended | ||||||||||||||||||||||||||||||
|
December 31,
|
% of Net
|
December 31,
|
% of Net
|
|||||||||||||||||||||||||||
| Net Revenues | $ | 1,639.6 | $ | 1,647.8 | ||||||||||||||||||||||||||
| Gross profit - GAAP | $ | 915.6 | 55.8 | % | $ | 878.8 | 53.3 | % | ||||||||||||||||||||||
| Pension mark-to-market adjustments (1) | 8.3 | 0.5 | % | 12.7 | 0.8 | % | ||||||||||||||||||||||||
| Inventory step-up | 1.6 | 0.1 | % | - | - | |||||||||||||||||||||||||
| Gross profit - non-GAAP | $ | 925.5 | 56.4 | % | $ | 891.5 | 54.1 | % | ||||||||||||||||||||||
| Income from operations - GAAP | $ | 243.0 | 14.8 | % | $ | 96.4 | 5.9 | % | ||||||||||||||||||||||
| Acquired intangible assets amortization | 69.0 | 4.2 | % | 70.8 | 4.3 | % | ||||||||||||||||||||||||
| Goodwill impairment (2) | - | - | 98.9 | 6.0 | % | |||||||||||||||||||||||||
| Pension mark-to-market adjustments (1) | 17.8 | 1.1 | % | 46.6 | 2.8 | % | ||||||||||||||||||||||||
| Restructuring and other (3) | 5.1 | 0.3 | % | 1.4 | 0.1 | % | ||||||||||||||||||||||||
| Inventory step-up | 1.6 | 0.1 | % | - | - | |||||||||||||||||||||||||
| Equity modification charge (4) | - | - | 6.6 | 0.4 | % | |||||||||||||||||||||||||
| Income from operations - non-GAAP | $ | 336.5 | 20.5 | % | $ | 320.7 | 19.5 | % | ||||||||||||||||||||||
|
Net Income
|
Net Income
|
|||||||||||||||||||||||||||||
|
December 31,
|
% of Net
|
Basic | Diluted |
December 31,
|
% of Net
|
Basic | Diluted | |||||||||||||||||||||||
| Net income - GAAP | $ | 206.5 | 12.6 | % | $ | 0.98 | $ | 0.97 | $ | 81.3 | 4.9 | % | $ | 0.40 | $ | 0.37 | ||||||||||||||
| Acquired intangible assets amortization | 69.0 | 4.2 | % | 0.33 | 0.32 | 70.8 | 4.3 | % | 0.35 | 0.32 | ||||||||||||||||||||
| Goodwill impairment (2) | - | - | - | - | 98.9 | 6.0 | % | 0.49 | 0.44 | |||||||||||||||||||||
| Pension mark-to-market adjustments (1) | 17.8 | 1.1 | % | 0.08 | 0.08 | 46.6 | 2.8 | % | 0.23 | 0.21 | ||||||||||||||||||||
| Interest and other (5) | (5.4 | ) | -0.3 | % | (0.03 | ) | (0.03 | ) | 4.3 | 0.3 | % | 0.02 | 0.02 | |||||||||||||||||
| Restructuring and other (3) | 5.1 | 0.3 | % | 0.02 | 0.02 | 1.4 | 0.1 | % | 0.01 | 0.01 | ||||||||||||||||||||
| Inventory step-up | 1.6 | 0.1 | % | 0.01 | 0.01 | - | - | - | - | |||||||||||||||||||||
| Equity modification charge (4) | - | - | - | - | 6.6 | 0.4 | % | 0.03 | 0.03 | |||||||||||||||||||||
| Exclude discrete tax items (6) | (4.9 | ) | -0.3 | % | (0.02 | ) | (0.02 | ) | 1.7 | 0.1 | % | 0.01 | 0.01 | |||||||||||||||||
| Tax effect of non-GAAP adjustments | (18.5 | ) | -1.1 | % | (0.09 | ) | (0.09 | ) | (41.3 | ) | -2.5 | % | (0.20 | ) | (0.19 | ) | ||||||||||||||
| Convertible share adjustment (7) | - | - | - | - | - | - | - | 0.02 | ||||||||||||||||||||||
| Net income - non-GAAP | $ | 271.2 | 16.5 | % | $ | 1.28 | $ | 1.27 | $ | 270.3 | 16.4 | % | $ | 1.33 | $ | 1.25 | ||||||||||||||
| GAAP and non-GAAP weighted average common shares - basic | 211.5 | 202.9 | ||||||||||||||||||||||||||||
| GAAP weighted average common shares - diluted | 213.3 | 222.6 | ||||||||||||||||||||||||||||
| Exclude dilutive shares from convertible note | - | (5.0 | ) | |||||||||||||||||||||||||||
| Non-GAAP weighted average common shares - diluted | 213.3 | 217.6 | ||||||||||||||||||||||||||||
| (1)Actuarial losses recognized under GAAP in accordance with Teradyne's mark-to-market pension accounting. | ||||||||||||||||||||||||||||||
| (2)Goodwill impairment related to Teradyne's Wireless Test business segment. | ||||||||||||||||||||||||||||||
| (3)Restructuring and other consists of: | ||||||||||||||||||||||||||||||
| Year Ended | ||||||||||||||||||||||||||||||
|
December 31,
|
December 31,
|
|||||||||||||||||||||||||||||
| Employee severance | $ | 1.5 | $ | 1.6 | ||||||||||||||||||||||||||
| Acquisition costs | 1.1 | 0.4 | ||||||||||||||||||||||||||||
| Contingent consideration fair value adjustment | 2.5 | (0.6 | ) | |||||||||||||||||||||||||||
| $ | 5.1 | $ | 1.4 | |||||||||||||||||||||||||||
(4)For the year ended December 31, 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.
(5)For the year ended December 31, 2015, interest and other included a gain from the sale of an equity investment. For the year ended December 31, 2014, interest and other included non-cash convertible debt interest expense.
(6)For the years ended December 31, 2015 and December 31, 2014, adjustment to exclude discrete income tax items. Non-GAAP net income and earnings per share include R&D tax credit.
(7)For the year ended December 31, 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, 5 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 First Quarter 2016 guidance: | |||||||||
| GAAP and non-GAAP first quarter revenue guidance: | $410 million to $440 million | ||||||||
| GAAP net income per diluted share | $ | 0.15 | $ | 0.21 | |||||
| Exclude acquired intangible assets amortization | 0.10 | 0.10 | |||||||
| Tax effect of non-GAAP adjustment | (0.02 | ) | (0.02 | ) | |||||
| Non-GAAP net income per diluted share | $ | 0.23 | $ | 0.29 | |||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20160127006376/en/
Contact:
Teradyne, Inc.
Andy Blanchard, 978-370-2425
Vice President of
Corporate Relations