Teradyne Reports Second Quarter 2021 Results


TERADYNE, INC. REPORT FOR SECOND FISCAL QUARTER OF 2021

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS


				Quarter Ended									Six Months Ended
				July 4, 2021			April 4, 2021			June 28, 2020			July 4, 2021			June 28, 2020

Net revenues				$	1,085,728		$	781,606		$	838,661		$	1,867,334		$	1,543,016
		Cost of revenues (exclusive of acquired intangible assets amortization shown separately below) (1)			438,739			319,988			367,188			758,727			665,993

Gross profit					646,989			461,618			471,473			1,108,607			877,023

Operating expenses:
		Selling and administrative			140,187			129,797			113,259			269,984			224,647
		Engineering and development			110,021			100,402			94,102			210,423			179,261
		Acquired intangible assets amortization			5,402			5,536			8,941			10,938			18,832
		Restructuring and other (2)			2,507			(7,130	)		37,222			(4,623	)		29,616
			Operating expenses		258,117			228,605			253,524			486,722			452,356

Income from operations					388,872			233,013			217,949			621,885			424,667

		Interest and other expense (3)			4,846			9,020			658			13,866			10,308

Income before income taxes					384,026			223,993			217,291			608,019			414,359
		Income tax provision			55,707			18,481			28,383			74,188			49,261
Net income				$	328,319		$	205,512		$	188,908		$	533,831		$	365,098

Net income per common share:
Basic				$	1.98		$	1.23		$	1.14		$	3.21		$	2.20
Diluted				$	1.76		$	1.09		$	1.05		$	2.85		$	2.02

Weighted average common shares - basic					165,995			166,491			165,789			166,243			166,189

Weighted average common shares - diluted (4)					186,750			187,740			180,257			187,245			180,497


Cash dividend declared per common share				$	0.10		$	0.10		$	0.10		$	0.20		$	0.20



(1	)	Cost of revenues includes:		Quarter Ended									Six Months Ended
				July 4, 2021			April 4, 2021			June 28, 2020			July 4, 2021			June 28, 2020
			Provision for excess and obsolete inventory	$	798		$	2,827		$	5,580		$	3,625		$	9,637
			Sale of previously written down inventory		(428	)		(790	)		(337	)		(1,218	)		(1,414	)
			Inventory step-up		-			-			121			-			239
				$	370		$	2,037		$	5,364		$	2,407		$	8,462

(2	)	Restructuring and other consists of:		Quarter Ended									Six Months Ended
				July 4, 2021			April 4, 2021			June 28, 2020			July 4, 2021			June 28, 2020
			Employee severance	$	436		$	188		$	36		$	624		$	764
			Acquisition related expenses and compensation		275			(237	)		3,145			38			4,503
			Contingent consideration fair value adjustment		-			(7,227	)		29,259			(7,227	)		19,239
			Contract termination settlement fee		-			-			4,000			-			4,000
			Other		1,796			146			782			1,942			1,110
				$	2,507		$	(7,130	)	$	37,222		$	(4,623	)	$	29,616

(3	)	Interest and other includes:		Quarter Ended									Six Months Ended
				July 4, 2021			April 4, 2021			June 28, 2020			July 4, 2021			June 28, 2020
			Non-cash convertible debt interest	$	3,277		$	3,581		$	3,584		$	6,858		$	7,124
			Loss on convertible debt conversions		1,175			4,069			-			5,244			-
			Pension actuarial gains		(627	)		-			(99	)		(627	)		(99	)
				$	3,825		$	7,650		$	3,485		$	11,475		$	7,025

(4	)	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 July 4, 2021, April 4, 2021 and June 28, 2020, 9.6 million, 10.3 million and 7.6 million shares, respectively, have been included in diluted shares. For the six months ended July 4, 2021 and June 28, 2020, 9.9 million and 7.5 million shares, respectively have been included in diluted shares. For the quarters ended July 4, 2021, April 4, 2021, and June 28, 2020, diluted shares also included 10.1 million, 9.4 million and 5.8 million shares, respectively from the convertible note hedge transaction. For the six months ended July 4, 2021, and June 28, 2020, diluted shares included 9.8 million and 5.7 million shares, respectively from the convertible note hedge transaction.

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