Teradyne Reports Revenue and Earnings Growth in First Quarter 2018

GAAP to Non-GAAP Earnings Reconciliation

(In millions, except per share amounts)
																Quarter Ended
			April 1, 2018			% of Net Revenues										December 31, 2017 (1)			% of Net Revenues								April 2, 2017 (1)			% of Net Revenues

Net revenues			$	487.5												$	479.4										$	456.9

Gross profit			$	269.8			55.3	%								$	270.9		56.5	%							$	265.0		58.0	%

Income from operations - GAAP			$	97.5			20.0	%								$	94.6		19.7	%							$	93.8		20.5	%
	Acquired intangible assets amortization			7.7			1.6	%									7.4		1.5	%								8.0		1.8	%
	Restructuring and other (2)			(0.3	)		-0.1	%									9.0		1.9	%								2.5		0.5	%
Income from operations - non-GAAP			$	104.9			21.5	%								$	111.0		23.2	%							$	104.3		22.8	%

										Net Income per Common Share											Net (Loss) Income per Common Share											Net Income per Common Share
			April 1, 2018			% of Net Revenues				Basic			Diluted			December 31, 2017			% of Net Revenues		Basic			Diluted			April 2, 2017			% of Net Revenues		Basic			Diluted
Net income (loss) - GAAP			$	87.0			17.8	%		$	0.45		$	0.43		$	(105.9	)	-22.1	%	$	(0.54	)	$	(0.54	)	$	85.2		18.6	%	$	0.43		$	0.42
	Acquired intangible assets amortization			7.7			1.6	%			0.04			0.04			7.4		1.5	%		0.04			0.04			8.0		1.8	%		0.04			0.04
	Interest and other (3)			3.2			0.7	%			0.02			0.02			(0.6	)	-0.1	%		(0.00	)		(0.00	)		3.1		0.7	%		0.02			0.02
	Restructuring and other (2)			(0.3	)		-0.1	%			-			-			9.0		1.9	%		0.05			0.05			2.5		0.5	%		0.01			0.01
	Exclude discrete tax adjustments (4)			(6.3	)		-1.3	%			(0.03	)		(0.03	)		184.4		38.5	%		0.94			0.93			(7.0	)	-1.5	%		(0.04	)		(0.03	)
	Non-GAAP tax adjustments			(1.9	)		-0.4	%			(0.01	)		(0.01	)		(2.9	)	-0.6	%		(0.01	)		(0.01	)		(3.1	)	-0.7	%		(0.02	)		(0.02	)
	Convertible share adjustment			-			-				-			0.01			-		-			-			-			-		-			-			-
Net income - non-GAAP			$	89.4			18.3	%		$	0.46		$	0.45		$	91.4		19.1	%	$	0.47		$	0.46		$	88.7		19.4	%	$	0.44		$	0.44

GAAP and non-GAAP weighted average common shares - basic				195.3													196.0											200.0
GAAP weighted average common shares - diluted				203.5													196.0											201.9
	Exclude dilutive shares related to convertible note transaction			(6.2	)												-											-
	Include dilutive shares			-													3.0											-
Non-GAAP weighted average common shares - diluted				197.3													199.0											201.9


(1)	Certain prior period amounts were reclassified to conform with the first quarter 2018 adoption of new accounting guidance for the presentation of pension and post retirement costs.

(2)	Restructuring and other consists of:
			Quarter Ended
			April 1, 2018													December 31, 2017											April 2, 2017
		Employee severance	$	3.9												$	1.8										$	0.6
		Acquisition costs		0.8													-											-
		Contingent consideration fair value adjustment		(5.0	)												6.0											0.6
		Impairment of fixed assets		-													1.1											-
		Facility related		-													0.1											1.3
			$	(0.3	)											$	9.0										$	2.5

(3)	For the quarters ended April 1, 2018, December 31, 2017 and April 2, 2017, adjustment to exclude non-cash convertible debt interest expense. For the quarter ended December 31, 2017, adjustment to exclude actuarial (gains) losses recognized under GAAP in accordance with Teradyne's mark-to-market pension accounting.

(4)	For the quarters ended April 1, 2018, December 31, 2017 and April 2, 2017, adjustment to exclude discrete income tax items. For the quarter ended December 31, 2017, adjustment to treat $186 million expense related to the estimated impact of U.S. tax law changes as a discrete item.


GAAP to Non-GAAP Reconciliation of Second Quarter 2018 guidance:

GAAP and non-GAAP second quarter revenue guidance:						$490 million			to	$520 million
GAAP net income per diluted share						$	0.39			$	0.46
	Exclude acquired intangible assets amortization						0.04				0.04
	Exclude non-cash convertible debt interest						0.02				0.02
	Exclude restructuring and other						0.01				0.01
	Tax effect of non-GAAP adjustments						(0.01	)			(0.01	)
	Convertible share adjustment						0.01				0.01
Non-GAAP net income per diluted share						$	0.45			$	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