Teradyne Reports First Quarter 2022 Results

GAAP to Non-GAAP Earnings Reconciliation

(In millions, except per share amounts)
																	Quarter Ended
				April 3, 2022			% of Net Revenues										December 31, 2021			% of Net Revenues								April 4, 2021			% of Net Revenues

Net revenues				$	755.4												$	885.0										$	781.6

Gross profit GAAP and non-GAAP				$	454.9			60.2	%								$	527.0		59.5	%							$	461.6		59.1	%

Income from operations - GAAP				$	185.9			24.6	%								$	256.4		29.0	%							$	233.0		29.8	%
		Restructuring and other (1)			15.7			2.1	%									12.7		1.4	%								(7.1	)	-0.9	%
		Acquired intangible assets amortization			5.1			0.7	%									5.2		0.6	%								5.5		0.7	%
Income from operations - non-GAAP				$	206.7			27.4	%								$	274.3		31.0	%							$	231.4		29.6	%

											Net Income per Common Share											Net Income per Common Share											Net Income per Common Share
				April 3, 2022			% of Net Revenues				Basic			Diluted			December 31, 2021			% of Net Revenues		Basic			Diluted			April 4, 2021			% of Net Revenues		Basic			Diluted
Net income - GAAP				$	161.9			21.4	%		$	1.00		$	0.92		$	224.0		25.3	%	$	1.38		$	1.26		$	205.5		26.3	%	$	1.23		$	1.09
		Restructuring and other (1)			15.7			2.1	%			0.10			0.09			12.7		1.4	%		0.08			0.07			(7.1	)	-0.9	%		(0.04	)		(0.04	)
		Acquired intangible assets amortization			5.1			0.7	%			0.03			0.03			5.2		0.6	%		0.03			0.03			5.5		0.7	%		0.03			0.03
		Loss on convertible debt conversions (2)			-			-				-			-			3.4		0.4	%		0.02			0.02			4.1		0.5	%		0.02			0.02
		Interest and other (2)			-			-				-			-			1.2		0.1	%		0.01			0.01			3.6		0.5	%		0.02			0.02
		Pension mark-to-market adjustment (2)			-			-				-			-			(1.6	)	-0.2	%		(0.01	)		(0.01	)		-		-			-			-
		Exclude discrete tax adjustments			(10.4	)		-1.4	%			(0.06	)		(0.06	)		(6.5	)	-0.7	%		(0.04	)		(0.04	)		(15.1	)	-1.9	%		(0.09	)		(0.08	)
		Non-GAAP tax adjustments			(3.3	)		-0.4	%			(0.02	)		(0.02	)		(0.2	)	-0.0	%		(0.00	)		(0.00	)		(0.3	)	-0.0	%		(0.00	)		(0.00	)
		Convertible share adjustment (3)			-			-				-			0.01			-		-			-			0.03			-		-			-			0.06
Net income - non-GAAP				$	169.0			22.4	%		$	1.04		$	0.98		$	238.2		26.9	%	$	1.46		$	1.37		$	196.2		25.1	%	$	1.18		$	1.11

GAAP and non-GAAP weighted average common shares - basic					162.0													162.8											166.5
GAAP weighted average common shares - diluted					175.6													178.0											187.7
		Exclude dilutive shares related to convertible note transaction			(2.5	)												(3.4	)										(10.3	)
Non-GAAP weighted average common shares - diluted					173.1													174.6											177.4

(1	)	Restructuring and other consists of:
				Quarter Ended
				April 3, 2022													December 31, 2021											April 4, 2021
		Litigation Settlement		$	14.7												$	12.0										$	-
		Employee severance			0.6													0.3											0.2
		Acquisition related expenses and compensation			(0.2	)												0.2											(0.2	)
		Contingent consideration fair value adjustment			-													-											(7.2	)
		Other			0.7													0.3											0.1
				$	15.7												$	12.7										$	(7.1	)


(2	)	For the quarters ended December 31, 2021 and April 4, 2021, adjustment to exclude loss on convertible debt conversions. For the quarters ended December 31, 2021 and April 4, 2021, Interest and other included non-cash convertible debt interest expense. For the quarter ended 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 April 3, 2022, December 31 2021 and April 4, 2021, the non-GAAP diluted EPS calculation adds back $0.3 million, $0.3 million and $1.2 million, respectively, of convertible debt interest expense to non-GAAP net income. For the quarters ended April 3, 2022, December 31 2021, and April 4, 2021, non-GAAP weighted average diluted common shares include 10.0 million, 10.5 million and 9.4 million shares, respectively, from the convertible note hedge transaction.

GAAP to Non-GAAP Reconciliation of Second Quarter 2022 guidance:

GAAP and non-GAAP second quarter revenue guidance:							$780 million			to		$870 million
GAAP net income per diluted share							$	0.96			$	1.25
		Exclude acquired intangible assets amortization						0.03				0.03
		Convertible share adjustment						0.01				0.01
Non-GAAP net income per diluted share							$	1.00			$	1.29

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

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