Inc. (NYSE: TER) reported revenue of $285 million for the fourth
quarter of 2013 of which $215 million was in Semiconductor Test, $44
million in System Test and $26 million in Wireless Test. On a non-GAAP
basis, Teradyne's net income in the fourth quarter was $13.2 million, or
$0.07 per diluted share, which excluded acquired intangible asset
amortization, pension actuarial gains, non-cash convertible debt
interest and a gain from the sale of an equity investment and included
income taxes on a cash basis. GAAP net income for the fourth quarter was
$22.3 million or $0.09 per diluted share.
Bookings in the fourth quarter of 2013 were $290 million of which $225
million were in Semiconductor Test, $47 million in System Test and $18
million in Wireless Test.
For fiscal year 2013, revenue was $1.43 billion. Net income for the year
was $215 million or $1.06 per diluted share on a non-GAAP basis. GAAP
net income for the year was $165 million or $0.70 per diluted share.
Bookings for the year were $1.43 billion.
"The fourth quarter capped a strong year of market share gains in both
semiconductor and wireless test," said CEO Mike Bradley. "While overall
industry capital spending was at trough levels in the fourth quarter and
was down for the full year, we delivered our 18th consecutive
quarter of operating profits and exceeded our model profit rate for 2013
"In line with seasonal trends, orders improved in the fourth quarter and
we expect that order trend to accelerate in the first quarter as
customers build capacity for new consumer devices in 2014," said
President Mark Jagiela. "Our 2013 market share gains have positioned us
well for growth in 2014 and we've increased our first quarter production
plans to reflect the improving demand environment."
Guidance for the first quarter of 2014 is revenue of $300 million to
$330 million, with diluted non-GAAP net income of $0.02 to $0.09 per
share and diluted GAAP net loss of $(0.09) to $(0.03) per share.
Non-GAAP guidance excludes acquired intangible asset amortization,
non-cash convertible debt interest and CEO equity charge, and includes
income taxes on a cash basis.
The Company additionally announced that its Board of Directors has
approved the initiation of a quarterly cash dividend of $0.06 per share,
with the initial quarterly dividend payable on June 2, 2014, to
shareholders of record as of the close of business on May 9, 2014.
"Teradyne's operating model provides the financial foundation to support
both a dividend and our growth plans," said Mr. Jagiela.
Future dividend declarations, as well as record and payment dates, are
subject to board approval.
As announced on November 13, 2013, Mark E. Jagiela will succeed Michael
A. Bradley, who will retire as CEO, effective January 31, 2014. Mr.
Jagiela will join the Board of Directors on the same date. Mr. Bradley
will continue as a Director of the Company.
A conference call to discuss the fourth quarter and fiscal year 2013
results, along with management's business outlook, will follow at 10
a.m. ET, Thursday, January 23, 2014. The call will be broadcast
simultaneously over the internet. 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 at www.teradyne.com
at 10 a.m. ET.
A replay will be available approximately two hours after the completion
of the call. The replay number in the U.S. & Canada is 855-859-2056. The
replay number outside the U.S. & Canada is 404-537-3406. The pass code
for both numbers is 27201432. A replay will also be available on the
Teradyne website at www.teradyne.com.
Click on "Investors" for a link to the replay. The replay will be
available via phone and website through February 9, 2014.
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 acquired
intangible asset amortization, non-cash convertible debt interest, fair
value inventory step-up related to LitePoint, pension and post
retirement actuarial gains and losses, restructuring and other, and a
gain from the sale of an equity investment, and include income taxes on
a cash basis. 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 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 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 charges related
to the fair value inventory step-up recorded as part of acquisition
purchase accounting and pension and post retirement 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
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. Non-GAAP diluted shares include the impact of
Teradyne's call option on its shares. Management believes each of these
non-GAAP 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 financial 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.
(NYSE:TER) is a leading supplier of Automatic Test Equipment used to
test semiconductors, wireless products, data storage and complex
electronic systems which serve consumer, communications, industrial and
government customers. In 2013, Teradyne had sales of $1.4 billion and
currently employs approximately 3,800 people worldwide. For more
information, visit www.teradyne.com.
Teradyne(R) is a registered trademark of Teradyne, Inc. in the U.S. and
Safe Harbor Statement
This release contains forward-looking statements regarding future
business prospects, Teradyne's results of operations, market conditions
and the payment of a quarterly dividend. Such statements are based on
the current assumptions and expectations of Teradyne's management and
are neither promises nor guarantees of future performance or future
payment of dividends. You can identify these forward-looking statements
based on the context of the statements and by the fact that they use
words such as "will," "anticipate," "expect," "project," "intend,"
"plan," "believe," "target" and other words and terms of similar meaning
in connection with any discussion of future operating or financial
performance. There can be no assurance that management's estimates of
Teradyne's future results or other forward looking statements will be
achieved or that dividends will be declared in the future. Important
factors that could cause actual results or dividend payments to differ
materially from those presently expected include: conditions affecting
the markets in which Teradyne operates; decreased or delayed product
demand; increased research and development spending; deterioration of
Teradyne's financial condition, the business judgment of the board of
directors that a declaration of a dividend is not in the company's best
interests 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, 2012 and Quarterly Report on Form 10-Q for the period ended
September 29, 2013. 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
Net income (loss) per common share:
Retirement plans assets
Retirement plans liabilities
Retirement plans actuarial (gains) losses
Retirement plans contributions
% of NetRevenues
Net Incomeper Common Share
For the quarters ended December 31, 2013, September 29, 2013 and
December 31, 2012, Interest and other included non-cash
convertible debt interest expense. For the quarter ended December
31, 2013, Interest and other included a gain from the sale of an
For the years ended December 31, 2013 and 2012, Interest and Other
included non-cash convertible debt interest expense. For the year
ended December 31, 2013, Interest and Other included a gain from
the sale of an equity investment.
For the years ended December 31, 2013 and 2012, the calculation of
non-GAAP diluted earnings per share gives benefit to the Company's
call option on its stock for 34.7 million shares at $5.48. As a
result, 18.8 million and 17.4 million shares have been included in
non-GAAP diluted shares and net interest expense of approximately
$9.4 million and $9.3 million, respectively, has been added back
to non-GAAP net income for the non-GAAP diluted earnings per share
Exclude CEO equity charge (6)
CEO equity charge reflects the modification of Mr. Bradley's
outstanding equity awards to allow continued vesting and the
original term in connection with his retirement.
For press releases and other information of interest to investors,
please visit Teradyne's homepage at http://www.teradyne.com.
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