Teradyne Reports Fourth Quarter and Fiscal Year 2022 Results


                                                
GAAP to Non-GAAP Earnings Reconciliation
(In millions, except per share amounts)
            Quarter Ended            
    December 31, 2022  % of Net Revenues      October 2, 2022  % of Net Revenues      December 31, 2021  % of Net Revenues    
                                 
Net revenues $ 731.8                 $ 827.1                 $ 885.0              
                                                   
Gross profit GAAP and non-GAAP $ 420.4       57.4 %           $ 485.4     58.7 %           $ 527.0     59.5 %        
                                                   
Income from operations - GAAP $ 166.6       22.8 %           $ 231.5     28.0 %           $ 256.4     29.0 %        
  Restructuring and other (1)   (2.4 )     -0.3 %             1.8     0.2 %             12.7     1.4 %        
  Acquired intangible assets amortization   4.7       0.6 %             4.7     0.6 %             5.2     0.6 %        
Income from operations - non-GAAP $ 168.9       23.1 %           $ 238.0     28.8 %           $ 274.3     31.0 %        
                                                   
              Net Income per Common Share           Net Income per Common Share           Net Income per Common Share
      December 31, 2022   % of Net Revenues   Basic   Diluted   October 2, 2022   % of Net Revenues   Basic   Diluted   December 31, 2021   % of Net Revenues   Basic   Diluted
Net income - GAAP $ 172.3       23.5 %   $ 1.11     $ 1.04     $ 183.5     22.2 %   $ 1.17     $ 1.10     $ 224.0     25.3 %   $ 1.38     $ 1.26  
  Restructuring and other (1)   (2.4 )     -0.3 %     (0.02 )     (0.01 )     1.8     0.2 %     0.01       0.01       12.7     1.4 %     0.08       0.07  
  Acquired intangible assets amortization   4.7       0.6 %     0.03       0.03       4.7     0.6 %     0.03       0.03       5.2     0.6 %     0.03       0.03  
  Pension mark-to-market adjustment (2)   (25.6 )     -3.5 %     (0.16 )     (0.15 )     -     -       -       -       (1.6 )   -0.2 %     (0.01 )     (0.01 )
  Loss on convertible debt conversions (2)   -       -       -       -       -     -       -       -       3.4     0.4 %     0.02       0.02  
  Interest and other (2)   -       -       -       -       -     -       -       -       1.2     0.1 %     0.01       0.01  
  Exclude discrete tax adjustments   (2.8 )     -0.4 %     (0.02 )     (0.02 )     (0.5 )   -0.1 %     (0.00 )     (0.00 )     (6.5 )   -0.7 %     (0.04 )     (0.04 )
  Non-GAAP tax adjustments   4.5       0.6 %     0.03       0.03       (0.3 )   0.0 %     (0.00 )     (0.00 )     (0.3 )   0.0 %     (0.00 )     (0.00 )
  Convertible share adjustment (3)   -       -       -       0.01       -     -       -       0.01       -     -       -       0.03  
Net income - non-GAAP $ 150.8       20.6 %   $ 0.97     $ 0.92     $ 189.2     22.9 %   $ 1.21     $ 1.15     $ 238.1     26.9 %   $ 1.46     $ 1.37  
                                                   
GAAP and non-GAAP weighted average common shares - basic   155.8                   156.4                   162.8              
GAAP weighted average common shares - diluted   165.5                   166.7                   178.0              
  Exclude dilutive shares related to convertible note transaction   (1.2 )                 (1.5 )                 (3.4 )            
Non-GAAP weighted average common shares - diluted   164.3                   165.2                   174.6              
                                                   
                                                   
(1) Restructuring and other consists of:                                              
      Quarter Ended            
      December 31, 2022               October 2, 2022               December 31, 2021            
    Employee severance $ 0.8                 $ 1.2                 $ 0.3              
    Gain on sale of asset   (3.4 )                 -                   -              
    Litigation settlement   -                   -                   12.0              
    Other   0.3                   0.6                   0.5              
      $ (2.4 )               $ 1.8                 $ 12.7              
                                                   
                                                   
(2) For the quarter ended December 31, 2021, adjustment to exclude loss on convertible debt conversions. For the quarter ended December 31, 2021, Interest and other included non-cash convertible debt interest expense. For the quarters ended December 31, 2022 and December 31, 2021, 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, 2022, October 2, 2022, and December 31, 2021, the non-GAAP diluted EPS calculation adds back $0.2 million, $0.2 million, and $0.4 million, respectively, of convertible debt interest expense to non-GAAP net income. For the quarters ended December 31, 2022, October 2, 2022, and December 31, 2021, non-GAAP weighted average diluted common shares include 7.9 million, 8.3 million and 10.5 million shares, respectively, from the convertible note hedge transaction.
                                                   
      Twelve Months Ended                
      December 31, 2022   % of Net Revenues           December 31, 2021   % of Net Revenues                        
                                                   
Net Revenues $ 3,155.0                 $ 3,702.9                              
                                                   
Gross profit GAAP and non-GAAP $ 1,867.2       59.2 %           $ 2,206.7     59.6 %                        
                                                   
Income from operations - GAAP $ 831.9       26.4 %           $ 1,200.7     32.4 %                        
  Restructuring and other (1)   17.2       0.5 %             9.3     0.3 %                        
  Acquired intangible assets amortization   19.3       0.6 %             21.5     0.6 %                        
Income from operations - non-GAAP $ 868.4       27.5 %           $ 1,231.5     33.3 %                        
                                                   
              Net Income per Common Share           Net Income per Common Share                
      December 31, 2022   % of Net Revenues   Basic   Diluted   December 31, 2021   % of Net Revenues   Basic   Diluted                
Net income - GAAP $ 715.5       22.7 %   $ 4.52     $ 4.22     $ 1,014.6     27.4 %   $ 6.15     $ 5.53                  
  Restructuring and other (1)   17.2       0.5 %     0.11       0.10       9.3     0.3 %     0.06       0.05                  
  Acquired intangible assets amortization   19.3       0.6 %     0.12       0.11       21.5     0.6 %     0.13       0.12                  
  Loss on convertible debt conversions (2)   -       -       -       -       28.8     0.8 %     0.17       0.16                  
  Interest and other (2)   -       -       -       -       10.3     0.3 %     0.06       0.06                  
  Pension mark-to-market adjustment (2)   (25.6 )     -0.8 %     (0.16 )     (0.15 )     (2.2 )   -0.1 %     (0.01 )     (0.01 )                
  Exclude discrete tax adjustments   (12.1 )     -0.4 %     (0.08 )     (0.07 )     (28.6 )   -0.8 %     (0.17 )     (0.16 )                
  Non-GAAP tax adjustments   (1.4 )     -0.0 %     (0.01 )     (0.01 )     (3.4 )   -0.1 %     (0.02 )     (0.02 )                
  Convertible share adjustment (3)   -       -       -       0.05       -     -       -       0.24                  
Net income - non-GAAP $ 712.9       22.6 %   $ 4.50     $ 4.25     $ 1,050.3     28.4 %   $ 6.37     $ 5.98                  
                                                   
GAAP and non-GAAP weighted average common shares - basic   158.4                   165.0                              
GAAP weighted average common shares - diluted   169.7                   183.6                              
  Exclude dilutive shares from convertible note   (1.8 )                 (7.4 )                            
Non-GAAP weighted average common shares - diluted   167.9                   176.2                              
                                                   
      Twelve Months Ended                            
      December 31, 2022               December 31, 2021                            
Industrial Automation revenues                                              
As reported $ 403.1                 $ 375.9                              
Currency exchange rate fluctuations   18.5                   (8.4 )                            
Constant currency total revenues (4) $ 421.6                 $ 367.5                              
                                                   
                                                   
(1) Restructuring and other consists of:                                              
      Twelve Months Ended                            
      December 31, 2022               December 31, 2021                            
    Litigation settlement $ 14.7                 $ 12.0                              
    Employee severance   2.9                   1.5                              
    Gain on sale of asset   (3.4 )                 -                              
    Contingent consideration fair value adjustment   -                   (7.2 )                            
    Other   3.0                   3.0                                  
      $ 17.2                 $ 9.3                              
                                                   
(2) For the twelve months ended December 31, 2021, adjustment to exclude loss on convertible debt conversions. For the twelve months ended December 31, 2021, Interest and other included non-cash convertible debt interest expense. For the twelve months ended December 31, 2022 and December 31, 2021, adjustment to exclude actuarial gain recognized under GAAP in accordance with Teradyne's mark-to-market pension accounting.
                                                   
(3) For the twelve months ended December 31, 2022 and December 31, 2021, the non-GAAP diluted EPS calculation adds back $1.0 million and $3.7 million, respectively, of convertible debt interest expense to non-GAAP net income. For the twelve months ended December 31, 2022 and December 31, 2022, non-GAAP weighted average diluted common shares include 8.8 million and 10.0 million shares, respectively, related to the convertible debt hedge transaction.
                                                   
(4) Currency exchange rates are used to convert the operating results for countries where the functional currency is not the U.S. dollar into U.S. dollars. We calculate the effect of changes in currency exchange rates as the difference between period activity translated using the period's currency exchange rates and the rates as of December 31, 2021.
                                                   
GAAP to Non-GAAP Reconciliation of First Quarter 2023 guidance:
                                                   
GAAP and non-GAAP first quarter revenue guidance:     $550 million   to $630 million                                      
GAAP net income per diluted share     $ 0.26     $ 0.49                                      
  Exclude acquired intangible assets amortization       0.03       0.03                                      
Non-GAAP net income per diluted share     $ 0.28     $ 0.52                                      
                                                   
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
                                                   

« Previous Page 1 | 2 | 3 | 4 | 5  Next Page »



© 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