® is a registered trademark of Teradyne, Inc. in the U.S. and other countries.

Safe Harbor Statement
This release contains forward-looking statements regarding Teradyne’s future business prospects, results of operations, market conditions, earnings per share, the payment of a quarterly dividend, the repurchase of Teradyne common stock pursuant to a share repurchase program, use of proceeds and potential dilution from the senior convertible notes offering, potential borrowings under a senior secured credit facility, and the impact of the U.S. tax reform, export and tariff laws. Such statements are based on the current assumptions and expectations of Teradyne’s management and are neither promises nor guarantees of future performance, events, earnings per share, use of cash, payment of dividends, repurchases of common stock, payment of the senior convertible notes, availability of, or borrowing under, the credit facility, or the impact of the U.S. tax reform, export and tariff laws. There can be no assurance that management’s estimates of Teradyne’s future results or other forward-looking statements will be achieved. Additionally, the current dividend and share repurchase programs may be modified, suspended or discontinued at any time. Important factors that could cause actual results, earnings per share, use of cash, dividend payments, repurchases of common stock, payment of the senior convertible notes or borrowings under the credit facility to differ materially from those presently expected include: conditions affecting the markets in which Teradyne operates; decreased or delayed product demand from one or more significant customers; development, delivery and acceptance of new products; the ability to grow the Industrial Automation business; increased research and development spending; deterioration of Teradyne’s financial condition; the consummation and success of any mergers or acquisitions; unexpected cash needs; insufficient cash flow to make required payments and pay the principal amount on the senior convertible notes; the business judgment of the board of directors that a declaration of a dividend, the repurchase of common stock or borrowing under the credit facility is not in the company’s best interests; additional U.S. tax regulations or IRS guidance; the impact of any tariffs or export controls imposed in the U.S. or China; and other events, factors and risks disclosed in filings with the SEC, including, but not limited to, the “Risk Factors” section of Teradyne’s Annual Report on Form 10-K for the fiscal year ended December 31, 2017 and the Quarterly Report on Form 10-Q for the period ended September 30, 2018. The forward-looking statements provided by Teradyne in this press release represent management’s views as of the date of this release. Teradyne anticipates that subsequent events and developments may cause management’s views to change. However, while Teradyne may elect to update these forward-looking statements at some point in the future, Teradyne specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Teradyne’s views as of any date subsequent to the date of this release.          

TERADYNE, INC. REPORT FOR FOURTH FISCAL QUARTER OF 2018
CONDENSED  CONSOLIDATED  STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
						Quarter Ended												Twelve Months Ended
						December 31, 2018				September 30, 2018				December 31, 2017 (1)				December 31, 2018				December 31, 2017 (1)
Net revenues						$	519,558			$	566,848			$	479,415			$	2,100,802			$	2,136,606
		Cost of revenues (exclusive of acquired intangible assets amortization shown separately below) (2)					210,022				233,155				208,485				880,408				915,153
Gross profit							309,536				333,693				270,930				1,220,394				1,221,453
Operating expenses:
		Selling and administrative					100,552				100,199				87,880				390,669				348,913
		Engineering and development					74,706				77,049				72,070				301,505				307,305
		Acquired intangible assets amortization					10,559				11,142				7,384				39,191				30,530
		Restructuring and other (3)					11,446				1,710				8,970				15,232				9,362
				Operating expenses			197,263				190,100				176,304				746,597				696,110
Income from operations							112,273				143,593				94,626				473,797				525,343
		Interest and other expense (income) (4)					1,144				2,749				(3,458	)			5,996				931
Income before income taxes							111,129				140,844				98,084				467,801				524,412
		Income tax (benefit) provision (5)					(32,662	)			20,863				204,007				16,022				266,720
Net income (loss)						$	143,791			$	119,981			$	(105,923	)		$	451,779			$	257,692
Net income (loss) per common share:
Basic						$	0.80			$	0.65			$	(0.54	)		$	2.41			$	1.30
Diluted						$	0.79			$	0.63			$	(0.54	)		$	2.35			$	1.28
Weighted average common shares - basic							178,958				185,744				196,010				187,672				198,069
Weighted average common shares - diluted (6)							181,520				190,505				196,010				192,605				201,641
Cash dividend declared per common share						$	0.09			$	0.09			$	0.07			$	0.36			$	0.28
(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	)	Cost of revenues includes:				Quarter Ended												Twelve Months Ended
						December 31, 2018				September 30, 2018				December 31, 2017				December 31, 2018				December 31, 2017
				Provision for excess and obsolete inventory		$	1,720			$	3,347			$	1,690			$	11,242			$	8,844
				Sale of previously written down inventory			(1,501	)			(1,013	)			(1,048	)			(6,679	)			(7,451	)
						$	219			$	2,334			$	642			$	4,563			$	1,393
(3	)	Restructuring and other consists of:				Quarter Ended												Twelve Months Ended
						December 31, 2018				September 30, 2018				December 31, 2017				December 31, 2018				December 31, 2017
				Contingent consideration fair value adjustment		$	10,223			$	(768	)		$	5,973			$	987			$	7,820
				Employee severance			768				1,667				1,801				8,714				3,754
				Acquisition related expenses and compensation			455				811				-				4,584				-
				Impairment of fixed assets			-				-				1,124				-				1,124
				Other			-				-				72				947				973
				Property insurance recovery, net			-				-				-				-				(4,309	)
						$	11,446			$	1,710			$	8,970			$	15,232			$	9,362
(4	)	Interest and other (income) expense, includes:				Quarter Ended												Twelve Months Ended
						December 31, 2018				September 30, 2018				December 31, 2017				December 31, 2018				December 31, 2017
				Non-cash convertible debt interest		$	3,327			$	3,286			$	3,166			$	13,064			$	12,431
				Pension actuarial (gain) loss			(3,512	)			267				(3,786	)			(3,316	)			(6,624	)
						$	(185	)		$	3,553			$	(620	)		$	9,748			$	5,807
(5	)	For the quarter and twelve months ended December 31, 2018 income tax (benefit) provision includes a $52 million tax benefit related to the finalization of our U.S. toll tax liability. For the quarter and twelve months ended December 31, 2017, income tax provision included an expense of $186 million related to the estimated impact of the U.S. Tax Reform Act.
(6	)	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 December 31, 2018, September 30, 2018 and December 31, 2017, 0.9 million, 3.0 million and 3.3 million shares, respectively, have been included in diluted shares. For the twelve months ended December 31, 2018 and December 31, 2017, 2.7 million and 1.3 million shares, respectively, have been included in diluted shares.  For the twelve months ended December 31, 2018 and December 31, 2017, diluted shares also included 0.5 million shares and 0.1 million shares, respectively,  from the convertible note hedge transaction.
CONDENSED  CONSOLIDATED  BALANCE  SHEETS  (In thousands)
						December 31, 2018				December 31, 2017
Assets
		Cash and cash equivalents				$	926,752			$	429,843
		Marketable securities					190,096				1,347,979
		Accounts receivable, net					291,267				272,783
		Inventories, net					153,541				107,525
		Prepayments and other current assets					170,817				112,151
				Total current assets			1,732,473				2,270,281
		Property, plant and equipment, net					279,821				268,447
		Marketable securities					87,731				125,926
		Deferred tax assets					70,858				84,026
		Other assets					11,508				12,275
		Retirement plans assets					16,883				17,491
		Acquired intangible assets, net					125,482				79,088
		Goodwill					381,850				252,011
				Total assets		$	2,706,606			$	3,109,545
Liabilities
		Accounts payable				$	100,688			$	86,393
		Accrued employees' compensation and withholdings					148,566				141,694
		Deferred revenue and customer advances					78,427				83,614
		Other accrued liabilities					78,272				59,083
		Contingent consideration					34,865				24,497
		Income taxes payable					36,185				59,055
				Total current liabilities			477,003				454,336
		Retirement plans liabilities					117,456				119,776
		Long-term deferred revenue and customer advances					32,033				30,127
		Deferred tax liabilities					20,662				6,720
		Long-term other accrued liabilities					37,548				10,273
		Long-term contingent consideration					35,678				20,605
		Long-term income taxes payable					83,891				148,075
		Long-term debt					379,981				365,987
				Total liabilities			1,184,252				1,155,899
Shareholders' equity							1,522,354				1,953,646
				Total liabilities and shareholders' equity		$	2,706,606			$	3,109,545
CONDENSED  CONSOLIDATED  STATEMENTS OF CASH FLOWS (In thousands)
						Quarter Ended								Twelve Months Ended
						December 31, 2018				December 31, 2017				December 31, 2018				December 31, 2017
Cash flows from operating activities:
		Net income (loss)				$	143,791			$	(105,923	)		$	451,779			$	257,692
		Adjustments to reconcile net income to net cash provided by operating activities:
			Depreciation				17,485				16,879				67,415				66,122
			Amortization				12,900				9,640				45,809				41,953
			Stock-based compensation				8,250				8,477				33,577				34,097
			Deferred taxes				3,898				37,784				28,340				37,105
			Provision for excess and obsolete inventory				1,720				1,690				11,242				8,844
			Contingent consideration fair value adjustment				10,223				5,973				987				7,820
			Losses (gains) on investments				3,914				(953	)			3,494				(878	)
			Retirement plan actuarial gains				(3,512	)			(3,786	)			(3,316	)			(6,624	)
			Property insurance recovery, net				-				-				-				(4,309	)
			Other				144				891				1,083				1,585
			Changes in operating assets and liabilities, net of businesses acquired:
				Accounts receivable			59,869				(4,961	)			(17,938	)			(80,584	)
				Inventories			4,619				21,190				(29,498	)			44,960
				Prepayments and other assets			(29,683	)			(5,108	)			(58,402	)			2,254
				Accounts payable and accrued expenses			(2,431	)			38,276				13,693				43,574
				Deferred revenue and customer advances			3,556				(29,551	)			13,379				4,984
				Retirement plans contributions			(1,090	)			(1,040	)			(4,334	)			(5,902	)
				Income taxes			(47,277	)			157,994				(80,429	)			173,802
Net cash provided by operating activities							186,376				147,472				476,881				626,495
Cash flows from investing activities:
		Purchases of property, plant and equipment					(26,110	)			(32,128	)			(114,379	)			(105,375	)
		Proceeds from government subsidy for property, plant and equipment					-				-				7,920				-
		Purchases of marketable securities					(109,223	)			(355,394	)			(918,744	)			(1,391,917	)
		Proceeds from sales of marketable securities					2,958				84,577				846,122				527,746
		Proceeds from maturities of marketable securities					336,339				228,426				1,270,439				701,681
		Proceeds from property insurance					-				-				-				5,064
		Proceeds from life insurance					-				-				1,126				-
		Acquisition of businesses, net of cash acquired					-				-				(169,474	)			-
Net cash provided by (used for) investing activities							203,964				(74,519	)			923,010				(262,801	)
Cash flows from financing activities:
		Issuance of common stock under stock purchase and stock option plans					14				31				20,973				24,493
		Repurchase of common stock					(261,215	)			(48,482	)			(823,478	)			(200,304	)
		Dividend payments					(16,002	)			(13,717	)			(67,322	)			(55,447	)
		Payment related to net settlement of employee stock compensation awards					(182	)			(297	)			(20,023	)			(12,881	)
		Payment of contingent consideration					-				-				(13,571	)			(1,050	)
Net cash used for financing activities							(277,385	)			(62,465	)			(903,421	)			(245,189	)
Effects of exchange rate changes on cash and cash equivalents							(222	)			678				439				3,454
Increase in cash and cash equivalents							112,733				11,166				496,909				121,959
Cash and cash equivalents at beginning of period							814,019				418,677				429,843				307,884
Cash and cash equivalents at end of period						$	926,752			$	429,843			$	926,752			$	429,843

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