| TERADYNE, INC. REPORT FOR THIRD FISCAL QUARTER OF 2018 | |||||||||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||||||||
| (In thousands, except per share amounts) | |||||||||||||||||||||||||
| Quarter Ended | Nine Months Ended | ||||||||||||||||||||||||
|
September 30,
2018 |
July 1,
2018 |
October 1,
2017 (1) |
September 30,
2018 |
October 1,
2017 (1) | |||||||||||||||||||||
| Net revenues | $ | 566,848 | $ | 526,929 | $ | 503,378 | $ | 1,581,244 | $ | 1,657,191 | |||||||||||||||
| Cost of revenues (exclusive of acquired intangible assets amortization shown separately below) (2) | 233,155 | 219,595 | 208,509 | 670,385 | 706,667 | ||||||||||||||||||||
| Gross profit | 333,693 | 307,334 | 294,869 | 910,859 | 950,524 | ||||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||||
| Selling and administrative | 100,199 | 99,410 | 86,130 | 290,115 | 261,034 | ||||||||||||||||||||
| Engineering and development | 77,049 | 75,342 | 76,986 | 226,799 | 235,235 | ||||||||||||||||||||
| Acquired intangible assets amortization | 11,142 | 9,793 | 7,028 | 28,633 | 23,145 | ||||||||||||||||||||
| Restructuring and other (3) | 1,710 | 2,389 | (4,407 | ) | 3,785 | 392 | |||||||||||||||||||
| Operating expenses | 190,100 | 186,934 | 165,737 | 549,332 | 519,806 | ||||||||||||||||||||
| Income from operations | 143,593 | 120,400 | 129,132 | 361,527 | 430,718 | ||||||||||||||||||||
| Interest and other (4) | (2,749 | ) | (388 | ) | (1,695 | ) | (4,852 | ) | (4,389 | ) | |||||||||||||||
| Income before income taxes | 140,844 | 120,012 | 127,437 | 356,675 | 426,329 | ||||||||||||||||||||
| Income tax provision | 20,863 | 18,975 | 24,017 | 48,684 | 62,713 | ||||||||||||||||||||
| Net income | $ | 119,981 | $ | 101,037 | $ | 103,420 | $ | 307,991 | $ | 363,616 | |||||||||||||||
| Net income per common share: | |||||||||||||||||||||||||
| Basic | $ | 0.65 | $ | 0.53 | $ | 0.52 | $ | 1.62 | $ | 1.83 | |||||||||||||||
| Diluted | $ | 0.63 | $ | 0.52 | $ | 0.52 | $ | 1.57 | $ | 1.81 | |||||||||||||||
| Weighted average common shares - basic | 185,744 | 190,730 | 197,485 | 190,576 | 198,755 | ||||||||||||||||||||
| Weighted average common shares - diluted (5) | 190,505 | 194,909 | 200,775 | 196,300 | 201,413 | ||||||||||||||||||||
| Cash dividend declared per common share | $ | 0.09 | $ | 0.09 | $ | 0.07 | $ | 0.27 | $ | 0.21 | |||||||||||||||
| (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 | Nine Months Ended | ||||||||||||||||||||||
|
September 30,
2018 |
July 1,
2018 |
October 1,
2017 |
September 30,
2018 |
October 1,
2017 | |||||||||||||||||||||
| Provision for excess and obsolete inventory | $ | 3,347 | $ | 2,653 | $ | 1,859 | $ | 9,522 | $ | 7,154 | |||||||||||||||
| Sale of previously written down inventory | (1,013 | ) | (1,922 | ) | (3,121 | ) | (5,178 | ) | (6,404 | ) | |||||||||||||||
| $ | 2,334 | $ | 731 | $ | (1,262 | ) | $ | 4,344 | $ | 750 | |||||||||||||||
| (3) | Restructuring and other consists of: | Quarter Ended | Nine Months Ended | ||||||||||||||||||||||
|
September 30,
2018 |
July 1,
2018 |
October 1,
2017 |
September 30,
2018 |
October 1,
2017 | |||||||||||||||||||||
| Employee severance | $ | 1,667 | $ | 2,398 | $ | 581 | $ | 7,945 | $ | 1,953 | |||||||||||||||
| Acquisition related expenses and compensation | 811 | 2,544 | - | 4,129 | - | ||||||||||||||||||||
| Contingent consideration fair value adjustment | (768 | ) | (3,500 | ) | (286 | ) | (9,236 | ) | 1,847 | ||||||||||||||||
| Other | - | 947 | 362 | 947 | 1,656 | ||||||||||||||||||||
| Property insurance recovery | - | - | (5,064 | ) | - | (5,064 | ) | ||||||||||||||||||
| $ | 1,710 | $ | 2,389 | $ | (4,407 | ) | $ | 3,785 | $ | 392 | |||||||||||||||
| (4) | Interest and other includes: | Quarter Ended | Nine Months Ended | ||||||||||||||||||||||
|
September 30,
2018 |
July 1,
2018 |
October 1,
2017 |
September 30,
2018 |
October 1,
2017 | |||||||||||||||||||||
| Non-cash convertible debt interest | $ | 3,286 | $ | 3,245 | $ | 3,127 | $ | 9,737 | $ | 9,265 | |||||||||||||||
| Pension actuarial loss (gain) | 267 | (71 | ) | - | 196 | (2,504 | ) | ||||||||||||||||||
| $ | 3,553 | $ | 3,174 | $ | 3,127 | $ | 9,933 | $ | 6,761 | ||||||||||||||||
| (5)
| 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 September 30, 2018, July 1, 2018 and October 1, 2017, 3.0 million, 2.6 million and 1.1 million shares, respectively, have been included in diluted shares. For the nine months ended September 30, 2018 and October 1, 2017, 3.4 million and 0.6 million shares, respectively, have been included in diluted shares. For the quarter ended September 30, 2018 and the nine months ended September 30, 2018, diluted shares also included 0.1 million and 0.6 million shares, respectively, from the convertible note hedge transaction. | ||||||||||||||||||||||||
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Teradyne Reports Third Quarter 2018 Results
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