Orders in the second quarter of 2017 were $462 million of which $369 million were in Semiconductor Test, $33 million in Industrial Automation (UR), $30 million in Wireless Test, and $29 million in System Test.
"Continued strong performance in our Semiconductor Test Business and Universal Robots drove our second quarter sales up 31% and EPS up 64% compared to last year's second quarter," said CEO and President Mark Jagiela. "Semiconductor Test shipments grew 36% year on year reflecting continued strength in mobile and microcontroller test and increasing demand in memory and analog test. Universal Robots shipments increased 57% from Q2’16 and sales continue to broaden with our expanding distribution reach and growing customer awareness of the powerful economic benefits of UR’s collaborative robots."
"Looking ahead to the 2nd half of 2017, we expect the normal seasonal pattern of slowing mobile device test shipments in Semiconductor Test and continued 50% plus growth at Universal Robots."
Guidance for the third quarter of 2017 is revenue of $455 million to $485 million, with GAAP net income of $0.35 to $0.42 per diluted share and non-GAAP net income of $0.39 to $0.46 per diluted share. Non-GAAP guidance excludes acquired intangible assets amortization, non-cash convertible debt interest, and includes the related tax impact on non-GAAP adjustments.
Webcast
A conference call to discuss the second quarter
results, along with management's business outlook, will follow at 10
a.m. ET, Thursday, July 27. 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 10 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, non-cash
convertible debt interest, pension actuarial gains and losses, discrete
income tax adjustments, goodwill impairment, acquired intangible assets
impairment, and restructuring and other. 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 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 gross margin excludes pension actuarial
gains and losses. GAAP requires that these items be included in
determining gross margin. Non-GAAP gross margin dollar amount and
percentage are non-GAAP performance 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. 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 “Investors” and then selecting 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
(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
2016, Teradyne had revenue of $1.75 billion and currently employs
approximately 4,400 people worldwide. For more information, visit
www.teradyne.com .
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