10-Q
falseP3YP3YP60YP5Y2M12DP0MP0MP0M20200000097210Q1--12-31P3YIncremental shares from assumed conversion of the convertible notes was calculated using the difference between the average Teradyne stock price for the period and the conversion price of $31.61, multiplied by 14.6 million shares. The result of this calculation, representing the total intrinsic value of the convertible debt, was divided by the average Teradyne stock price for the period. Convertible notes hedge warrant shares were calculated using the difference between the average Teradyne stock price for the period and the warrant price of $39.66, multiplied by 14.6 million shares. The result of this calculation, representing the total intrinsic value of the warrant, was divided by the average Teradyne stock price for the period. 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Table of Contents
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM
10-Q
 
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 29, 2020
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                      to                     
Commission File No.
 001-06462
 
TERADYNE, INC.
(Exact name of registrant as specified in its charter)
 
Massachusetts
 
04-2272148
(State or Other Jurisdiction of
Incorporation or Organization)
 
(I.R.S. Employer
Identification No.)
     
600 Riverpark DriveNorth Reading,
Massachusetts
 
01864
(Address of Principal Executive Offices)
 
(Zip Code)
978-370-2700
(Registrant’s Telephone Number, Including Area Code)
 
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
 
Trading
Symbol(s)
 
Name of each exchange
on which registered
Common Stock, par value $0.125 per share
 
TER
 
Nasdaq Stock Market LLC
Indicate by
 
check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to the filing requirements for the past 90 days.    
Yes
  
    No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation
S-T
(232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files)    Yes  
    No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a
non-accelerated
filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule
 12b-2
of the Exchange Act (check one):
Large accelerated filer
 
 
Accelerated filer
 
 
 
 
 
 
 
 
Non-accelerated
filer
 
 
Emerging growth company
 
 
 
 
 
 
 
 
Smaller reporting company
 
 
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  
Indicate by check mark whether the registrant is a shell company (as defined in Rule
12b-2
of the Exchange Act).    Yes  
    No  
The number of shares outstanding of the registrant’s only class of Common Stock as of April 2
7
, 2020 was 165,768,292 shares.
 
 

TERADYNE, INC.
INDEX
 
 
Page No.
 
 
 
 
 
 
 
 
 
 
 
 
Item 1.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1
 
 
 
 
 
 
 
 
 
 
 
2
 
 
 
 
 
 
 
 
 
 
 
3
 
 
 
 
 
 
 
 
 
 
 
4
 
 
 
 
 
 
 
 
 
 
 
5
 
 
 
 
 
 
 
 
 
 
 
6
 
 
 
 
 
 
 
 
Item 2.
 
 
 
27
 
 
 
 
 
 
 
 
Item 3.
 
 
 
36
 
 
 
 
 
 
 
 
Item 4.
 
 
 
37
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Item 1.
 
 
 
38
 
 
 
 
 
 
 
 
Item 1A.
 
 
 
38
 
 
 
 
 
 
 
 
Item 2.
 
 
 
39
 
 
 
 
 
 
 
 
Item 4.
 
 
 
40
 
 
 
 
 
 
 
 
Item 6.
 
 
 
41
 

PART I
Item 1:
Financial Statements
 
TERADYNE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
                 
 
March 29,
2020
 
 
December 31,
2019
 
 
(in thousands,
except per share information)
 
ASSETS
 
 
 
 
 
 
Current assets:
   
     
 
Cash and cash equivalents
  $
593,494
    $
773,924
 
Marketable securities
   
211,001
     
137,303
 
Accounts receivable, less allowance for doubtful accounts of $1,813 and $1,736 at March 29, 2020 and December 31, 2019, respectively
   
487,365
     
362,368
 
Inventories, net
   
182,978
     
196,691
 
Prepayments and other current assets
   
227,740
     
188,598
 
                 
Total current assets
   
1,702,578
     
1,658,884
 
Property, plant and equipment, net
   
332,241
     
320,216
 
Operating lease
right-of-use
assets, net
   
58,808
     
57,539
 
Marketable securities
   
100,513
     
104,490
 
Deferred tax assets
   
74,493
     
75,185
 
Retirement plans assets
   
18,229
     
18,457
 
Other assets
   
9,272
     
10,332
 
Acquired intangible assets, net
   
114,321
     
125,480
 
Goodwill
   
409,933
     
416,431
 
                 
Total assets
  $
2,820,388
    $
2,787,014
 
                 
LIABILITIES
 
 
 
 
 
 
Current liabilities:
   
     
 
Accounts payable
  $
129,633
    $
126,617
 
Accrued employees’ compensation and withholdings
   
119,226
     
163,883
 
Deferred revenue and customer advances
   
98,815
     
104,876
 
Other accrued liabilities
   
87,274
     
70,871
 
Operating lease liabilities
   
19,591
     
19,476
 
Contingent consideration
   
662
     
9,106
 
Income taxes payable
   
58,760
     
44,200
 
                 
Total current liabilities
   
513,961
     
539,029
 
Retirement plans liabilities
   
125,970
     
134,471
 
Long-term deferred revenue and customer advances
   
50,791
     
45,974
 
Long-term other accrued liabilities
   
19,941
     
19,535
 
Long-term contingent consideration
   
19,810
     
30,599
 
Deferred tax liabilities
   
11,628
     
14,070
 
Long-term operating lease liabilities
   
46,328
     
45,849
 
Long-term incomes taxes payable
   
82,820
     
82,642
 
Debt
   
398,466
     
394,687
 
                 
Total liabilities
   
1,269,715
     
1,306,856
 
                 
Commitments and contingencies (See Note
Q
)
   
     
 
SHAREHOLDERS’ EQUITY
 
 
 
 
 
 
Common stock, $0.125 par value, 1,000,000 shares authorized
,
165,938 and 166,410 shares issued and outstanding at March 29, 2020 and December 31, 2019, respectively
   
20,742
     
20,801
 
Additional
paid-in
capital
   
1,721,367
     
1,720,129
 
Accumulated other comprehensive loss
   
(27,113
)    
(18,854
)
Accumulated deficit
   
(164,323
)    
(241,918
)
                 
Total shareholders’ equity
   
1,550,673
     
1,480,158
 
                 
Total liabilities and shareholders’ equity
  $
2,820,388
    $
2,787,014
 
                 
 
 
 
 
 
 
The accompanying notes, together with the Notes to Consolidated Financial Statements included in Teradyne’s
Annual Report on Form
10-K
for the year ended December 31, 2019, are an integral part of the condensed
consolidated financial statements.
1

Table of Contents
TERADYNE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
                 
 
For the Three Months
Ended
 
 
March 29,
2020
 
 
March 31,
2019
 
 
(in thousands, except
per share amounts)
 
Revenues:
   
     
 
Products
  $
610,906
    $
393,442
 
Services
   
93,449
     
100,657
 
                 
Total revenues
   
704,355
     
494,099
 
Cost of revenues:
   
     
 
Cost of products
   
259,996
     
165,368
 
Cost of services
   
38,809
     
41,096
 
                 
Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below)
   
298,805
     
206,464
 
                 
Gross profit
   
405,550
     
287,635
 
Operating expenses:
   
     
 
Selling and administrative
   
111,388
     
102,013
 
Engineering and development
   
85,159
     
76,791
 
Acquired intangible assets amortization
   
9,891
     
10,634
 
Restructuring and other
   
(7,606
)    
5,112
 
                 
Total operating expenses
   
198,832
     
194,550
 
                 
Income from operations
   
206,718
     
93,085
 
Non-operating
(income) expense:
   
     
 
Interest income
   
(2,751
)    
(4,989
)
Interest expense
   
5,551
     
5,520
 
Other (income) expense, net
   
6,849
     
(1,425
)
                 
Income before income taxes
   
197,069
     
93,979
 
Income tax provision (benefit)
   
20,878
     
(15,159
)
                 
Net income
  $
176,191
    $
109,138
 
                 
Net income per common share:
   
     
 
Basic
  $
1.06
    $
0.63
 
                 
Diluted
  $
0.97
    $
0.62
 
                 
Weighted average common shares—basic
   
166,589
     
173,532
 
                 
Weighted average common shares—diluted
   
180,736
     
176,972
 
                 
Cash dividend declared per common share
  $
0.10
    $
0.09
 
                 
 
 
 
 
 
The accompanying notes, together with the Notes to Consolidated Financial Statements included in Teradyne’s
Annual Report on Form
10-K
for the year ended December 31, 2019, are an integral part of the condensed
consolidated financial statements.
2

Table of Contents
TERADYNE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
                 
 
For the Three Months
Ended
 
 
March 29,
2020
 
 
March 31,
2019
 
 
(in thousands)
 
Net income
  $
176,191
    $
109,138
 
Other comprehensive income, net of tax:
   
     
 
Foreign currency translation adjustment, net of tax of $0, $0, respectively
   
(8,779
)    
(4,659
)
Available-for-sale
marketable securities:
   
     
 
Unrealized gains on debt securities arising during period, net of tax of $187, $577, respectively
   
1,037
     
2,100
 
Less: Reclassification adjustment for gains included in net income, net of tax of $(145), $(20), respectively
   
(515
)    
(70
)
                 
   
522
     
2,030
 
Defined benefit pension and post-retirement plans:
   
     
 
Amortization of prior service benefit included in net periodic pension and post-retirement benefit, net of tax of $0, $(11), respectively
   
(2
)    
(37
)
                 
Other comprehensive loss
   
(8,259
)    
(2,666
)
                 
Comprehensive income
  $
167,932
    $
106,472
 
                 
 
 
The accompanying notes, together with the Notes to Consolidated Financial Statements included in Teradyne’s
Annual Report on Form
10-K
for the year ended December 31, 2019, are an integral part of the condensed
consolidated financial statements.
3

Table of Contents
TERADYNE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
(Unaudited)
                                                 
 
Common
Stock
Shares
 
 
Common
Stock
Par
Value
 
 
Additional
Paid-in

Capital
 
 
Accumulated
Other
Comprehensive
Loss
 
 
Accumulated
Deficit
 
 
Total
Shareholders’
Equity
 
 
(in thousands)
 
For the Three Months Ended March 29, 2020
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance, December 31, 2019
   
166,410
    $
20,801
    $
1,720,129
    $
(18,854
)   $
(241,918
)   $
1,480,158
 
Net issuance of common stock under stock-based plans
   
872
     
109
     
(10,045
)    
     
     
(9,936
)
Stock-based compensation expense
   
     
     
11,283
     
     
     
11,283
 
Repurchase of common stock
   
(1,344
)    
(168
)    
     
     
(81,897
)    
(82,065
)
Cash dividends ($0.10 per share)
   
     
     
     
     
(16,699
)    
(16,699
)
Net income
   
     
     
     
     
176,191
     
176,191
 
Other comprehensive loss
   
     
     
     
(8,259
)    
     
(8,259
)
                                                 
Balance, March 29, 2020
   
165,938
     
20,742
     
1,721,367
     
(27,113
)    
(164,323
)    
1,550,673
 
                                                 
For the Three Months Ended March 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance, December 31, 2018
   
175,522
    $
21,940
    $
1,671,645
    $
(13,040
)   $
(158,191
)   $
1,522,354
 
Net issuance of common stock under stock-based plans
   
1,287
     
161
     
(210
)    
     
     
(49
)
Stock-based compensation expense
   
     
     
8,562
     
     
     
8,562
 
Repurchase of common stock
   
(4,456
)    
(557
)    
     
     
(150,913
)    
(151,470
)
Cash dividends ($0.09 per share)
   
     
     
     
     
(15,641
)    
(15,641
)
Net income
   
     
     
     
     
109,138
     
109,138
 
Other comprehensive loss
   
     
     
     
(2,666
)    
     
(2,666
)
                                                 
Balance, March 31, 2019
   
172,353
    $
21,544
    $
1,679,997
    $
(15,706
)   $
(215,607
)   $
1,470,228
 
                                                 
 
 
 
 
The accompanying notes, together with the Notes to Consolidated Financial Statements included in Teradyne’s
Annual Report on Form
10-K
for the year ended December 31, 2019, are an integral part of the condensed
consolidated financial statements.
4

Table of Contents
TERADYNE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
                 
 
For the Three Months Ended
 
 
March 29,
2020
 
 
March 31,
2019
 
 
(in thousands)
 
Cash flows from operating activities:
   
     
 
Net income
  $
176,191
    $
109,138
 
Adjustments to reconcile net income from operations to net cash provided by operating activities:
   
     
 
Depreciation
   
18,489
     
16,651
 
Amortization
   
13,391
     
12,942
 
Stock-based compensation
   
10,460
     
9,474
 
Provision for excess and obsolete inventory
   
4,057
     
2,397
 
Deferred taxes
   
(1,825
)    
1,206
 
Contingent consideration adjustment
   
(10,020
)    
2,970
 
Losses (gains) on investments
   
4,657
     
(2,828
)
Other
   
503
     
219
 
Changes in operating assets and liabilities, net of businesses acquired:
   
     
 
Accounts receivable
   
(126,779
)    
(41,706
)
Inventories
   
15,818
     
(2,917
)
Prepayments and other assets
   
(39,620
)    
(18,648
)
Accounts payable and other liabilities
   
(35,323
)    
(53,323
)
Deferred revenue and customer advances
   
(913
)    
6,455
 
Retirement plans contributions
   
(1,262
)    
(1,210
)
Income taxes
   
15,278
     
(22,804
)
                 
Net cash provided by operating activities
   
43,102
     
18,016
 
                 
Cash flows from investing activities:
   
     
 
Purchases of property, plant and equipment
   
(36,700
)    
(25,711
)
Purchases of marketable securities
   
(187,119
)    
(375,184
)
Proceeds from maturities of marketable securities
   
98,457
     
141,201
 
Proceeds from sales of marketable securities
   
15,005
     
5,440
 
Acquisition of businesses, net of cash acquired
   
149
     
(6,970
)
Proceeds from life insurance
   
—  
     
273
 
                 
Net cash used for investing activities
   
(110,208
)    
(260,951
)
                 
Cash flows from financing activities:
   
     
 
Issuance of common stock under stock purchase and stock option plans
   
12,752
     
14,268
 
Repurchase of common stock
   
(79,039
)    
(156,468
)
Dividend payments
   
(16,686
)    
(15,627
)
Payments related to net settlement of employee stock compensation awards
   
(22,070
)    
(14,318
)
Payments of contingent consideration
   
(8,852
)    
(27,615
)
                 
Net cash used for financing activities
   
(113,895
)    
(199,760
)
                 
Effects of exchange rate changes on cash and cash equivalents
   
571
     
(329
)
                 
Decrease in cash and cash equivalents
   
(180,430
)    
(443,024
)
Cash and cash equivalents at beginning of period
   
773,924
     
926,752
 
                 
Cash and cash equivalents at end of period
  $
593,494
    $
483,728
 
                 
 
 
 
 
 
The accompanying notes, together with the Notes to Consolidated Financial Statements included in Teradyne’s
Annual Report on Form
10-K
for the year ended December 31, 2019, are an integral part of the condensed
consolidated financial statements.
5

Table of Contents
TERADYNE, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
A. THE COMPANY
Teradyne, Inc. (“Teradyne”) is a leading global supplier of automation equipment for test and industrial applications. Teradyne designs, develops, manufactures and sells automatic test systems used to test semiconductors, wireless products, data storage and complex electronics systems in the consumer electronics, wireless, automotive, industrial, computing, communications, and aerospace and defense industries. Teradyne’s industrial automation products include collaborative robotic arms, autonomous mobile robots, and advanced robotic control software used by global manufacturing and light industrial customers to improve quality, increase manufacturing and material handling efficiency and decrease manufacturing costs. Teradyne’s automatic test equipment and industrial automation products and services include:
 
semiconductor test (“Semiconductor Test”) systems;
 
defense/aerospace (“Defense/Aerospace”) test instrumentation and systems, storage test (“Storage Test”) systems, and circuit-board test and inspection (“Production Board Test”) systems (collectively these products represent “System Test”);
 
industrial automation (“Industrial Automation”) products; and
 
wireless test (“Wireless Test”) systems.
B. ACCOUNTING POLICIES
Basis of Presentation
The consolidated interim financial statements include the accounts of Teradyne and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated. These interim financial statements are unaudited and reflect all normal recurring adjustments that are, in the opinion of management, necessary for the fair statement of such interim financial statements. Certain prior year amounts were reclassified to conform to the current year presentation. The December 31, 2019 condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America.
The accompanying financial information should be read in conjunction with the consolidated financial statements and notes thereto contained in Teradyne’s Annual Report on Form
10-K,
filed with the U.S. Securities and Exchange Commission (“SEC”) on March 2, 2020, for the year ended December 31, 2019.
Preparation of Financial Statements and Use of Estimates
The preparation of consolidated financial statements requires management to make estimates and judgments that affect the amounts reported in the financial statements. Due to the COVID-19 pandemic, there has been uncertainty and disruption in the global economy and our markets. Teradyne is not aware of any specific event or circumstance that would require an update to its estimates or judgments or a revision of the carrying value of its assets or liabilities as of May
4
, 2020, the date of issuance of this Quarterly Report on Form 10-Q. These estimates may change, as new events occur and additional information is obtained. Actual results could differ significantly from these estimates under different assumptions or conditions. 
Goodwill
On January 26, 2017, the Financial Accounting Standards Board (“FASB”) issued ASU
2017-04,
“Intangibles—Goodwill and Other (Topic 350): Simplifying the Accounting for Goodwill Impairment.”
The new guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. Teradyne adopted this standard on January 1, 2020, on a prospective basis. The adoption of ASU
2017-04
did not have a material impact on the consolidated statement of operations, cash flows, or earnings per share. Teradyne assesses goodwill for impairment at least annually in the fourth quarter, as of December 31, on a reporting unit basis, or more frequently, when events and circumstances occur indicating that the recorded goodwill may be impaired. Under ASU
2017-04,
goodwill impairment will be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. All other goodwill impairment guidance will remain largely unchanged. Entities will continue to have the option to perform a qualitative assessment to determine if a quantitative impairment test is necessary. The same
one-step
impairment test will be applied to goodwill at all reporting units, even those with zero or negative carrying amounts. Entities will be required to disclose the amount of goodwill at reporting units with zero or negative carrying amounts.
Credit Losses
In June 2016, the FASB issued ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” This standard introduced the expected credit losses methodology for the measurement of credit losses on financial assets that are not measured at fair value through net income and replaces the “incurred loss” model with an “expected credit loss” model that requires consideration of a broader range of information to estimate expected credit losses over the lifetime of the asset. Teradyne adopted this standard on January 1, 2020 on a modified retrospective basis. The adoption of ASU 2016-13 did not have a material impact on the consolidated statement of operations, balance sheets, cash flows, or earnings per share.
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Table of Contents
C. ACQUISITIONS
AutoGuide LLC
On November 13, 2019, Teradyne acquired 100% of the membership interests of AutoGuide, LLC (“AutoGuide”), a maker of high-payload autonomous mobile robots (“AMRs”), based in Chelmsford, MA, an emerging and fast growing segment of the global forklift market. The total purchase price was approximately $81.6 million, which included cash paid of approximately $57.6 million and $24.0 million in fair value of contingent consideration payable upon achievement of certain performance targets, extending potentially through 2022. At March 29, 2020, the maximum contingent consideration that could be paid is $106.9 million.
The contingent consideration is payable upon achievement of certain thresholds and targets for revenue and earnings before interest and taxes for periods from January 1, 2019 to December 31, 2020, January 1, 2019 to December 31, 2021, and January 1, 2019 to December 31, 2022.
The valuation of the contingent consideration is dependent on the following assumptions: forecasted revenues, revenue volatility, earnings before interest and taxes, and discount rate. These assumptions were estimated based on a review of the historical and projected results.
The AutoGuide acquisition was accounted for as a business combination and, accordingly, the results have been included in Teradyne’s consolidated results of operations from the date of acquisition. AutoGuide’s AMRs are used for material transport of payloads up to 4,500 kg in manufacturing, warehouse and logistics applications. These products complement MiR’s lower payload products and expand the Industrial Automation segment, which is a key component of Teradyne’s growth strategy.
The allocation of the total purchase price to AutoGuide’s net tangible assets and identifiable intangible assets was based on their estimated fair values as of the acquisition date. The excess of the purchase price over the identifiable intangible assets and net tangible assets in the amount of 
 $41.2 
million was allocated to goodwill, which is deductible for tax purposes. AutoGuide’s results have been included in Teradyne’s Industrial Automation segment from the date of acquisition.
The following table represents the final allocation of the purchase price:
 
Purchase Price 
Allocation
 
 
(in thousands)
 
Goodwill
  $
41,223
 
Intangible assets
   
37,660
 
Tangible assets acquired and liabilities assumed:
   
 
Other current assets
   
3,661
 
Non-current assets
   
1,227
 
Accounts payable and current liabilities
   
(1,223
)
Long-term other liabilities
   
(949
)
         
Total purchase price
  $
81,599
 
         
Teradyne estimated the fair value of intangible assets using the income approach. Forecasted revenues is the key assumption for estimating the fair value.
Acquired intangible assets are amortized on a straight-line basis over their estimated useful lives
. Components of these intangible assets and their estimated useful lives at the acquisition date are as follows:
                 
 
Fair Value
 
 
Estimated Useful
Life
 
 
(in thousands)
 
 
(in years)
 
Developed technology
  $
24,590
     
6.0
 
Customer relationships
   
7,360
     
6.0
 
Trademarks and tradenames
   
5,450
     
7.0
 
Backlog
   
260
     
0.3
 
                 
Total intangible assets
  $
37,660
     
6.1
 
                 
 
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Table of Contents
The following unaudited pro forma information gives effect to the acquisition of AutoGuide as if the acquisition occurred on January 1, 2018. The unaudited pro forma results are not necessarily indicative of what actually would have occurred had the acquisition been in effect for the periods presented:
         
 
For the Three Months
Ended
 
 
March 31, 2019
 
 
(in thousands, except
per share amounts)
 
Revenue
s
  $
495,599
 
Net income
 
$
107,289
 
Net income per common share:
   
 
Basic
  $
0.62
 
         
Diluted
  $
0.61
 
         
 
Lemsys SA
On January 30, 2019, Teradyne acquired all of the issued and outstanding shares of Lemsys SA (“Lemsys”) for a total purchase price of approximately $9.1 million. Lemsys strengthens Teradyne’s position in the electrification trends of vehicles, solar and wind power, and industrial applications. The Lemsys acquisition was accounted for as a business combination and, accordingly, the results have been included in Teradyne’s Semiconductor Test segment from the date of acquisition. Teradyne’s final allocation of the purchase price was goodwill of $1.4 million, which is not deductible for tax purposes, acquired intangible assets of $4.6 million with an average estimated useful life of 5.2 years, and $3.1 million of net tangible assets. The acquisition was not material to Teradyne’s consolidated financial statements.
8

Table of Contents
D. REVENUE
Disaggregation of Revenue
The following table provides information about disaggregated revenue by timing of revenue recognition, primary geographical market, and major product lines.
                                                                         
 
Semiconductor Test
   
 
 
Industrial Automation
 
Wireless
Test
 
 
Corporate
and Other
 
 
Total
 
 
System on
a Chip
 
 
Memory
 
 
System
Test
 
 
Universal
Robots
 
 
Mobile
Industrial
Robots
 
 
AutoGuide
 
 
 
 
 
 
 
 
(in thousands)
 
For the Three Months Ended March 29, 2020 (1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Timing of Revenue Recognition
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Point in Time
  $
348,044
    $
79,398
    $
100,712
    $
47,502
    $
9,097
    $
1,124
    $
41,056
    $
    $
626,933
 
Over Time
   
52,095
     
4,952
     
15,364
     
2,195
     
41
     
346
     
2,429
     
     
77,422
 
                                                                         
Total
  $
400,139
    $
84,350
    $
116,076
    $
49,697
    $
9,138
    $
1,470
    $
43,485
    $
    $
704,355
 
                                                                         
Geographical Market
   
     
     
     
     
     
     
     
     
 
Asia Pacific
  $
362,732
    $
76,110
    $
80,017
    $
10,917
    $
1,593
    $
    $
37,805
    $
    $
569,174
 
Americas
   
17,386
     
6,896
     
28,291
     
14,743
     
3,465
     
1,470
     
4,688
     
     
76,939
 
Europe, Middle East and Africa
   
20,021
     
1,344
     
7,768
     
24,037
     
4,080
     
     
992
     
     
58,242
 
                                                                         
Total
  $
400,139
    $
84,350
    $
116,076
    $
49,697
    $
9,138
    $
1,470
    $
43,485
    $
    $
704,355
 
                                                                         
For the Three