Teradyne Reports Fourth Quarter and Fiscal Year 2021 Results


GAAP to Non-GAAP Earnings Reconciliation
                           
(In millions, except per share amounts)
             Quarter Ended            
     December 31, 2021  % of Net Revenues      October 3, 2021  % of Net Revenues      December 31, 2020  % of Net Revenues    
                           
Net revenues $885.0        $950.5        $759.0       
                                 
Gross profit GAAP $ 527.0       59.5 %           $ 571.0     60.1 %           $ 449.8     59.3 %        
Gross profit non-GAAP $ 527.0       59.5 %           $ 571.0     60.1 %           $ 449.8     59.3 %        
                                                     
Income from operations - GAAP $ 264.4       29.9 %           $ 322.4     33.9 %           $ 234.1     30.8 %        
  Restructuring and other (1)   4.7       0.5 %             1.2     0.1 %             (15.1 )   -2.0 %        
  Acquired intangible assets amortization   5.2       0.6 %             5.4     0.6 %             5.8     0.8 %        
  Equity modification charge   -       -               -     -               0.8     0.1 %        
Income from operations - non-GAAP $ 274.3       31.0 %           $ 329.0     34.6 %           $ 225.6     29.7 %        
                                                     
                Net Income per Common Share           Net Income per Common Share           Net Income per Common Share
        December 31, 2021   % of Net Revenues   Basic   Diluted   October 3, 2021   % of Net Revenues   Basic   Diluted   December 31, 2020   % of Net Revenues   Basic   Diluted
Net income - GAAP $ 230.3       26.0 %   $ 1.41     $ 1.29     $ 256.7     27.0 %   $ 1.56     $ 1.41     $ 196.3     25.9 %   $ 1.18     $ 1.05  
  Restructuring and other (1)   4.7       0.5 %     0.03       0.03       1.2     0.1 %     0.01       0.01       (15.1 )   -2.0 %     (0.09 )     (0.08 )
  Acquired intangible assets amortization   5.2       0.6 %     0.03       0.03       5.4     0.6 %     0.03       0.03       5.8     0.8 %     0.03       0.03  
  Loss on convertible debt conversions (2)   3.4       0.4 %     0.02       0.02       20.2     2.1 %     0.12       0.11       -     -       -       -  
  Interest and other (2)   1.2       0.1 %     0.01       0.01       2.3     0.2 %     0.01       0.01       3.7     0.5 %     0.02       0.02  
  Pension mark-to-market adjustment (2)   (1.6 )     -0.2 %     (0.01 )     (0.01 )     -     -       -       -       7.7     1.0 %     0.05       0.04  
  Equity modification charge   -       -       -       -       -     -       -       -       0.8     0.1 %     0.00       0.00  
  Exclude discrete tax adjustments   (6.5 )     -0.7 %     (0.04 )     (0.04 )     (5.9 )   -0.6 %     (0.04 )     (0.03 )     (2.1 )   -0.3 %     (0.01 )     (0.01 )
  Non-GAAP tax adjustments   1.7       0.2 %     0.01       0.01       (1.3 )   -0.1 %     (0.01 )     (0.01 )     (3.9 )   -0.5 %     (0.02 )     (0.02 )
  Convertible share adjustment (3)   -       -       -       0.03       -     -       -       0.06       -     -       -       0.06  
Net income - non-GAAP $ 238.4       26.9 %   $ 1.46     $ 1.37     $ 278.6     29.3 %   $ 1.69     $ 1.59     $ 193.2     25.5 %   $ 1.16     $ 1.10  
                                                     
GAAP and non-GAAP weighted average common shares - basic   162.8                   164.6                   166.1              
GAAP weighted average common shares - diluted   178.0                   182.0                   186.8              
  Exclude dilutive shares related to convertible note transaction     (3.4 )                 (6.5 )                 (10.0 )            
Non-GAAP weighted average common shares - diluted   174.6                   175.5                   176.8              
                                                     
(1 ) Restructuring and other consists of:
        Quarter Ended            
        December 31, 2021               October 3, 2021               December 31, 2020            
    Employee severance $ 0.3                 $ 0.6                 $ 1.1              
    Acquisition related expenses and compensation   0.2                   0.3                   (0.9 )            
    Contingent consideration fair value adjustment   -                   -                   (15.3 )            
    Other     4.3                   0.3                   -              
        $ 4.7                 $ 1.2                 $ (15.1 )            
                                                     
                                                     
(2 ) For the quarters ended December 31, 2021, October 3, 2021, and December 31, 2020, Interest and other includes non-cash convertible debt interest expense. For the quarters ended December 31, 2021 and October 3, 2021, adjustment to exclude loss on convertible debt conversions. For the quarters ended December 31, 2021 and December 31, 2020, adjustments to exclude actuarial (gain) loss recognized under GAAP in accordance with Teradyne's mark-to-market pension accounting.
                                                     
(3 ) For the quarters ended December 31, 2021, October 3, 2021, and December 31, 2020, the non-GAAP diluted EPS calculation adds back $0.4 million, $0.5 million, and $1.7 million, respectively, of convertible debt interest expense to non-GAAP net income, and non-GAAP weighted average diluted common shares include 10.5 million, 9.8 million and 8.9 million shares, respectively, from the convertible note hedge transaction.
                                                     
        Twelve Months Ended                
        December 31, 2021   % of Net Revenues           December 31, 2020   % of Net Revenues                        
                                                     
Net Revenues   $ 3,702.9                 $ 3,121.5                              
                                                     
Gross profit GAAP $ 2,206.7       59.6 %           $ 1,785.7     57.2 %                        
  Inventory step-up   -       -               0.4     0.0 %                        
Gross profit non-GAAP $ 2,206.7       59.6 %           $ 1,786.1     57.2 %                        
                                                     
Income from operations - GAAP $ 1,208.7       32.6 %           $ 928.4     29.7 %                        
  Acquired intangible assets amortization   21.5       0.6 %             30.8     1.0 %                        
  Restructuring and other (1)   1.3       0.0 %             (13.2 )   -0.4 %                        
  Inventory step-up   -       -               0.4     0.0 %                        
  Equity modification charge   -       -               0.8     0.0 %                        
Income from operations - non-GAAP $ 1,231.5       33.3 %           $ 947.2     30.3 %                        
                                                     
                Net Income per Common Share           Net Income per Common Share                
        December 31, 2021   % of Net Revenues   Basic   Diluted   December 31, 2020   % of Net Revenues   Basic   Diluted                
Net income - GAAP $ 1,020.8       27.6 %   $ 6.19     $ 5.56     $ 784.1     25.1 %   $ 4.72     $ 4.28                  
  Acquired intangible assets amortization   21.5       0.6 %     0.13       0.12       30.8     1.0 %     0.19       0.17                  
  Restructuring and other (1)   1.3       0.0 %     0.01       0.01       (13.2 )   -0.4 %     (0.08 )     (0.07 )                
  Interest and other (2)   10.3       0.3 %     0.06       0.06       14.4     0.5 %     0.09       0.08                  
  Loss on convertible debt conversions (2)   28.8       0.8 %     0.17       0.16       -     -       -       -                  
  Pension mark-to-market adjustment (2)   (2.2 )     -0.1 %     (0.01 )     (0.01 )     10.3     0.3 %     0.06       0.06                  
  Inventory step-up   -       -       -       -       0.4     0.0 %     0.00       0.00                  
  Equity modification charge   -       -       -       -       0.8     0.0 %     0.00       0.00                  
  Exclude discrete tax adjustments   (28.6 )     -0.8 %     (0.17 )     (0.16 )     (15.2 )   -0.5 %     (0.09 )     (0.08 )                
  Non-GAAP tax adjustments   (1.5 )     -0.0 %     (0.01 )     (0.01 )     (11.9 )   -0.4 %     (0.07 )     (0.07 )                
  Convertible share adjustment (3)   -       -       -       0.24       -     -       -       0.25                  
Net income - non-GAAP $ 1,050.4       28.4 %   $ 6.37     $ 5.98     $ 800.5     25.6 %   $ 4.82     $ 4.62                  
                                                     
GAAP and non-GAAP weighted average common shares - basic   165.0                   166.1                              
GAAP weighted average common shares - diluted   183.6                   183.0                              
  Exclude dilutive shares from convertible note   (7.4 )                 (8.5 )                            
Non-GAAP weighted average common shares - diluted   176.2                   174.5                              
                                                     
(1 ) Restructuring and other consists of:
        Twelve Months Ended                            
        December 31, 2021               December 31, 2020                            
    Employee severance $ 1.5                 $ 2.3                              
    Acquisition related expenses and compensation   0.5                   2.5                              
    Contingent consideration fair value adjustment   (7.2 )                 (23.3 )                            
    Other     6.5                   5.2                   -              
        $ 1.3                 $ (13.2 )                            
                                                     
                                                     
(2 ) For the twelve months ended December 31, 2021 and December 31, 2020, Interest and other included non-cash convertible debt interest expense. For the twelve months ended December 31, 2021, adjustment to exclude loss on convertible debt conversions. For the twelve months ended December 31, 2021 and December 31, 2020, adjustments to exclude actuarial (gain) loss recognized under GAAP in accordance with Teradyne's mark-to-market pension accounting.
(3 ) For the twelve months ended December 31, 2021 and December 31, 2020, the non-GAAP diluted EPS calculation adds back $3.7 million and $6.8 million, respectively, of convertible debt interest expense to non-GAAP net income and non-GAAP weighted average diluted common shares include 10.0 million and 7.0 million shares, respectively, related to the convertible debt hedge transaction.
                                                     
GAAP to Non-GAAP Reconciliation of First Quarter 2022 guidance:
                                                     
GAAP and non-GAAP first quarter revenue guidance:     $700 million   to $770 million                                      
GAAP net income per diluted share     $ 0.71     $ 0.93                                      
  Exclude acquired intangible assets amortization       0.03       0.03                                      
  Exclude non-cash convertible debt interest       0.01       0.01                                      
  Tax effect of non-GAAP adjustments       (0.01 )     (0.01 )                                    
  Convertible share adjustment       0.01       0.02                                      
Non-GAAP net income per diluted share     $ 0.76     $ 0.98                                      
                                                     
GAAP to Non-GAAP Reconciliation of Twelve Months 2016:
                                                     
        Twelve Months Ended                                        
            Net (Loss) Income per Common Share                                    
        December 31, 2016   Diluted                                        
Net loss - GAAP   $ (43.4 )   $ (0.21 )                                        
  Goodwill impairment (1)   254.9       1.25                                          
  Acquired intangible assets impairment (1)   83.3       0.41                                          
  Acquired intangible assets amortization   52.6       0.26                                          
  Restructuring and other (2)   21.9       0.11                                          
  Pension mark-to-market adjustments (3)   (3.2 )     (0.02 )                                        
  Interest and other (4)   0.6       0.00                                          
  Exclude discrete tax adjustments (5)   (4.5 )     (0.02 )                                        
  Tax effect of non-GAAP adjustments   (53.3 )     (0.26 )                                        
Net income - non-GAAP $ 308.9     $ 1.51                                          
                                                     
GAAP and non-GAAP weighted average common shares - basic   202.6                                              
GAAP weighted average common shares - diluted   202.6                                              
  Include dilutive shares   1.8                                              
Non-GAAP weighted average common shares - diluted   204.4                                              
                                                     
                                                     
(1 ) Goodwill and acquired intangible assets impairment related to Teradyne's Wireless Test business segment.
                                                     
(2 ) Restructuring and other consists of:
        Twelve Months Ended                                            
        December 31, 2016                                            
    Contingent consideration fair value adjustment $ 15.9                                              
    Employee severance   6.0                                              
    Impairment of fixed assets and expenses related to Japan earthquake   5.4                                              
    Property insurance recovery   (5.4 )                                            
        $ 21.9                                              
                                                     
(3 ) Actuarial (gains) losses recognized under GAAP in accordance with Teradyne's mark-to-market pension accounting.
                                                     
(4 ) For the year ended December 31, 2016, Interest and other included non-cash convertible debt interest expense.
                                                     
(5 ) For the year ended December 31, 2016, adjustment to exclude discrete income tax items and an adjustment to treat Wireless Test business segment goodwill and intangible assets impairments as discrete tax items.
                                                     
GAAP to Non-GAAP Reconciliation of 2024 Earnings Model:
                                                     
        Mid Point of 2024 Earnings Model                                        
            Net Income per Common Share                                        
        December 31, 2024   Diluted                                        
Net Income - GAAP $ 1,321.3     $ 7.90                                          
  Acquired intangible assets amortization   19.5       0.12                                          
  Tax effect of non-GAAP adjustment   (3.3 )     (0.02 )                                        
Net income - non-GAAP $ 1,337.5     $ 8.00                                          
                                                     
                                                     
For press releases and other information of interest to investors, please visit Teradyne's homepage at http://www.teradyne.com.
  Contact: Teradyne, Inc.                                              
    Andy Blanchard 978-370-2425
    Vice President of Corporate Relations

Primary Logo



« Previous Page 1 | 2 | 3 | 4             



© 2024 Internet Business Systems, Inc.
670 Aberdeen Way, Milpitas, CA 95035
+1 (408) 882-6554 — Contact Us
ShareCG™ is a trademark of Internet Business Systems, Inc.

Report a Bug Report Abuse Make a Suggestion About Privacy Policy Contact Us User Agreement Advertise