Orders in the third quarter of 2016 were $378 million of which $250 million were in Semiconductor Test, $76 million in System Test, $29 million in Wireless Test, and $24 million in Industrial Automation.
“Third quarter revenue came in above our guidance based on strong demand for our UltraFLEX System-on-a-Chip system,” said CEO and President Mark Jagiela. “While tester demand remained strong for mobile devices, we also saw a pick-up in orders for automotive analog and microcontroller testers. This, combined with across the board strength in System Test and Universal Robots, leads us to increase our fourth quarter production plan and puts us on track to deliver annual sales over $1.7B and above model operating profits.”
Guidance for the fourth quarter of 2016 is revenue of $330 million to $360 million, with GAAP net income of $0.17 to $0.26 per diluted share and non-GAAP net income of $0.18 to $0.25 per diluted share. Non-GAAP guidance excludes acquired intangible asset amortization and includes the related tax impact on non-GAAP adjustments.
Webcast
A conference call to discuss the third quarter
results, along with management's business outlook, will follow at 10
a.m. ET, Thursday, October 27. Interested investors should access the
webcast at
www.teradyne.com
and click on "Investors" at least five minutes before the call begins.
Presentation materials will be available starting at 10 a.m. ET. A
replay will be available on the Teradyne website at
www.teradyne.com/investors.
Non-GAAP Results
In addition to disclosing results that are
determined in accordance with GAAP, Teradyne also discloses non-GAAP
results of operations that exclude certain income items and charges.
These results are provided as a complement to results provided in
accordance with GAAP. Non-GAAP income from operations and non-GAAP net
income exclude goodwill and intangible asset impairment charges,
acquired intangible asset amortization, pension actuarial gains and
losses, fair value inventory step-up related to Universal Robots,
discrete income tax adjustments, restructuring and other, and a gain
from the sale of an equity investment. GAAP requires that these items be
included in determining income from operations and net income. Non-GAAP
income from operations, non-GAAP net income, non-GAAP income from
operations and non-GAAP net income as a percentage of revenue, and
non-GAAP net income per share are non-GAAP performance measures
presented to provide meaningful supplemental information regarding
Teradyne's baseline performance before gains, losses or other charges
that may not be indicative of Teradyne’s current core business or future
outlook. These non-GAAP performance measures are used to make
operational decisions, to determine employee compensation, to forecast
future operational results, and for comparison with Teradyne’s business
plan, historical operating results and the operating results of
Teradyne’s competitors. Non-GAAP gross margin excludes inventory step-up
and pension actuarial gains and losses. GAAP requires that these items
be included in determining gross margin. Non-GAAP gross margin dollar
amount and percentage are non-GAAP performance measures that management
believes provide useful supplemental information for management and the
investor. Management uses non-GAAP gross margin as a performance measure
for Teradyne’s current core business and future outlook and for
comparison with Teradyne’s business plan, historical gross margin
results and the gross margin results of Teradyne’s competitors.
Management believes each of these non-GAAP performance measures provides
useful supplemental information for investors, allowing greater
transparency to the information used by management in its operational
decision making and in the review of Teradyne’s financial and
operational performance, as well as facilitating meaningful comparisons
of Teradyne’s results in the current period compared with those in prior
and future periods. A reconciliation of each available GAAP to non-GAAP
financial measure discussed in this press release is contained in the
attached exhibits and on the Teradyne website at
www.teradyne.com
by clicking on "Investors" and then selecting the "GAAP to Non-GAAP
Reconciliation" link. The non-GAAP performance measures discussed in
this press release may not be comparable to similarly titled measures
used by other companies. The presentation of non-GAAP measures is not
meant to be considered in isolation, as a substitute for, or superior
to, financial measures or information provided in accordance with GAAP.
About Teradyne
Teradyne
(NYSE:
TER) is a leading supplier of automation equipment for test and
industrial applications. Teradyne Automatic Test Equipment (ATE) is used
to test semiconductors, wireless products, data storage and complex
electronic systems, which serve consumer, communications, industrial and
government customers. Our Industrial Automation products include
Collaborative Robots used by global manufacturing and light industrial
customers to improve quality and increase manufacturing efficiency. In
2015, Teradyne had revenue of $1.64 billion and currently employs
approximately 4,200 people worldwide. For more information, visit
www.teradyne.com.
Teradyne(R) is a registered trademark of Teradyne, Inc. in
the U.S. and other countries.
