☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Massachusetts |
04-2272148 | |
(State or Other Jurisdiction of Incorporation or Organization) |
(I.R.S. Employer Identification No.) | |
600 Riverpark Drive, North Reading, Massachusetts |
01864 | |
(Address of Principal Executive Offices) |
(Zip Code) |
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 |
Large accelerated filer | ☒ | Accelerated filer | ☐ | |||
Non-accelerated filer |
☐ | Emerging growth company | ☐ | |||
Smaller reporting company | ☐ |
Item 1: |
Financial Statements |
July 2, 2023 |
December 31, 2022 |
|||||||
(in thousands, except per share amount) |
||||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 613,208 | $ | 854,773 | ||||
Marketable securities |
95,199 | 39,612 | ||||||
Accounts receivable, less allowance for credit losses of $2,232 and $1,955 at July 2, 2023 and December 31, 2022, respectively |
493,234 | 491,145 | ||||||
Inventories, net |
347,295 | 325,019 | ||||||
Prepayments |
560,682 | 532,962 | ||||||
Other current assets |
14,222 | 14,404 | ||||||
Total current assets |
2,123,840 | 2,257,915 | ||||||
Property, plant and equipment, net |
437,077 | 418,683 | ||||||
Operating lease right-of-use |
75,889 | 73,734 | ||||||
Marketable securities |
104,685 | 110,777 | ||||||
Deferred tax assets |
152,471 | 142,784 | ||||||
Retirement plans assets |
11,514 | 11,761 | ||||||
Other assets |
32,699 | 28,925 | ||||||
Acquired intangible assets, net |
44,611 | 53,478 | ||||||
Goodwill |
412,110 | 403,195 | ||||||
Total assets |
$ | 3,394,896 | $ | 3,501,252 | ||||
LIABILITIES |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | 153,157 | $ | 139,722 | ||||
Accrued employees’ compensation and withholdings |
163,653 | 212,266 | ||||||
Deferred revenue and customer advances |
120,085 | 148,285 | ||||||
Other accrued liabilities |
114,435 | 112,271 | ||||||
Operating lease liabilities |
20,212 | 18,594 | ||||||
Income taxes payable |
65,437 | 65,010 | ||||||
Current debt |
32,806 | 50,115 | ||||||
Total current liabilities |
669,785 | 746,263 | ||||||
Retirement plans liabilities |
124,040 | 116,005 | ||||||
Long-term deferred revenue and customer advances |
38,999 | 45,131 | ||||||
Long-term other accrued liabilities |
16,475 | 15,981 | ||||||
Deferred tax liabilities |
1,304 | 3,267 | ||||||
Long-term operating lease liabilities |
65,079 | 64,176 | ||||||
Long-term incomes taxes payable |
44,331 | 59,135 | ||||||
Total liabilities |
960,013 | 1,049,958 | ||||||
Commitments and contingencies (Note P) |
||||||||
SHAREHOLDERS’ EQUITY |
||||||||
Common stock, $0.125 par value, 1,000,000 shares authorized; 154,148 and 155,759 shares issued and outstanding at July 2, 2023 and December 31, 2022, respectively |
19,269 | 19,470 | ||||||
Additional paid-in capital |
1,784,590 | 1,755,963 | ||||||
Accumulated other comprehensive loss |
(30,472 | ) | (49,868 | ) | ||||
Retained earnings |
661,496 | 725,729 | ||||||
Total shareholders’ equity |
2,434,883 | 2,451,294 | ||||||
Total liabilities and shareholders’ equity |
$ |
3,394,896 |
$ |
3,501,252 |
||||
For the Three Months Ended |
For the Six Months Ended |
|||||||||||||||
July 2, 2023 |
July 3, 2022 |
July 2, 2023 |
July 3, 2022 |
|||||||||||||
(in thousands, except per share amount) |
||||||||||||||||
Revenues: |
||||||||||||||||
Products |
$ | 540,375 | $ | 697,954 | $ | 1,013,793 | $ | 1,323,829 | ||||||||
Services |
144,062 | 142,812 | 288,173 | 272,307 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total revenues |
684,437 | 840,766 | 1,301,966 | 1,596,136 | ||||||||||||
Cost of revenues: |
||||||||||||||||
Cost of products |
217,011 | 274,674 | 415,675 | 517,690 | ||||||||||||
Cost of services |
64,934 | 59,703 | 127,379 | 117,124 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) |
281,945 | 334,377 | 543,054 | 634,814 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Gross profit |
402,492 | 506,389 | 758,912 | 961,322 | ||||||||||||
Operating expenses: |
||||||||||||||||
Selling and administrative |
145,695 | 139,533 | 296,650 | 279,718 | ||||||||||||
Engineering and development |
105,706 | 111,951 | 211,468 | 220,067 | ||||||||||||
Acquired intangible assets amortization |
4,825 | 4,871 | 9,627 | 9,934 | ||||||||||||
Restructuring and other |
6,358 | 2,044 | 8,395 | 17,758 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total operating expenses |
262,584 | 258,399 | 526,140 | 527,477 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Income from operations |
139,908 | 247,990 | 232,772 | 433,845 | ||||||||||||
Non-operating (income) expense: |
||||||||||||||||
Interest income |
(6,354 | ) | (951 | ) | (11,613 | ) | (1,653 | ) | ||||||||
Interest expense |
1,045 | 913 | 2,031 | 1,925 | ||||||||||||
Other (income) expense, net |
815 | 9,436 | 868 | 14,622 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Income before income taxes |
144,402 | 238,592 | 241,486 | 418,951 | ||||||||||||
Income tax provision |
24,352 | 40,805 | 37,905 | 59,236 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income |
$ | 120,050 | $ | 197,787 | $ | 203,581 | $ | 359,715 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income per common share: |
||||||||||||||||
Basic |
$ | 0.78 | $ | 1.24 | $ | 1.31 | $ | 2.24 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Diluted |
$ | 0.73 | $ | 1.16 | $ | 1.23 | $ | 2.07 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Weighted average common shares—basic |
154,760 | 159,563 | 155,332 | 160,805 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Weighted average common shares—diluted |
164,751 | 171,159 | 165,530 | 173,367 | ||||||||||||
|
|
|
|
|
|
|
|
For the Three Months Ended |
For the Six Months Ended |
|||||||||||||||
July 2, 2023 |
July 3, 2022 |
July 2, 2023 |
July 3, 2022 |
|||||||||||||
(in thousands) |
||||||||||||||||
Net income |
$ | 120,050 | $ | 197,787 | $ | 203,581 | $ | 359,715 | ||||||||
Other comprehensive income, net of tax: |
||||||||||||||||
Foreign currency translation adjustment, net of tax of $0, $0, $0, $0, respectively |
2,943 | (29,230 | ) | 12,250 | (37,307 | ) | ||||||||||
Available-for-sale |
||||||||||||||||
Unrealized (losses) gains on marketable securities arising during period, net of tax of $(180), $(1,240), $323, and $(2,573), respectively |
(568 | ) | (4,522 | ) | 1,726 | (9,910 | ) | |||||||||
Less: Reclassification adjustment for losses included in net income, net of tax of $8, $77, $10, $59, respectively |
28 | 274 | 33 | 209 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
(540 | ) | (4,248 | ) | 1,759 | (9,701 | ) | ||||||||||
Cash flow hedges: |
||||||||||||||||
Unrealized gains arising during period, net of tax of $920, $0, $1,088, $0 respectively |
3,270 | — | 3,866 | — | ||||||||||||
Less: Reclassification adjustment for losses included in net income, net of tax of $91, $0, $428, $0 respectively |
323 | — | 1,524 | — | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
3,593 | — | 5,390 | — | |||||||||||||
Defined benefit post-retirement plan: |
||||||||||||||||
Amortization of prior service credit, net of tax of $0, $0, $(1), $(1), respectively |
(2 | ) | (2 | ) | (3 | ) | (3 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Other comprehensive income (loss) |
5,994 | (33,480 | ) | 19,396 | (47,011 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Comprehensive income |
$ | 126,044 | $ | 164,307 | $ | 222,977 | $ | 312,704 | ||||||||
|
|
|
|
|
|
|
|
Shareholders’ Equity |
||||||||||||||||||||||||||||
Convertible Common Shares Value |
Common Stock Shares |
Common Stock Par Value |
Additional Paid-in Capital |
Accumulated Other Comprehensive (Loss) Income |
Retained Earnings |
Total Shareholders’ Equity |
||||||||||||||||||||||
(in thousands) |
||||||||||||||||||||||||||||
For the Three Months Ended July 2, 2023 |
||||||||||||||||||||||||||||
Balance, April 2, 2023 |
$ |
— |
155,445 |
$ |
19,431 |
$ |
1,772,352 |
$ |
(36,466 |
) |
$ |
694,145 |
$ |
2,449,462 |
||||||||||||||
Net issuance of common stock under stock-based plans |
52 |
7 |
161 |
168 |
||||||||||||||||||||||||
Stock-based compensation expense |
12,077 |
12,077 |
||||||||||||||||||||||||||
Repurchase of common stock |
(1,349 |
) |
(169 |
) |
(135,668 |
) |
(135,837 |
) | ||||||||||||||||||||
Cash dividends ($0.11 per share) |
(17,031 |
) |
(17,031 |
) | ||||||||||||||||||||||||
Settlements of convertible notes |
50 |
6 |
(6 |
) |
— |
|||||||||||||||||||||||
Exercise of convertible notes hedge call options |
(50 |
) |
(6 |
) |
6 |
— |
||||||||||||||||||||||
Net income |
120,050 |
120,050 |
||||||||||||||||||||||||||
Other comprehensive income |
5,994 |
5,994 |
||||||||||||||||||||||||||
Balance, July 2, 2023 |
$ |
— |
154,148 |
$ |
19,269 |
$ |
1,784,590 |
$ |
(30,472 |
) |
$ |
661,496 |
$ |
2,434,883 |
||||||||||||||
For the Three Months Ended July 3, 2022 |
||||||||||||||||||||||||||||
Balance, April 3, 2022 |
$ |
— |
161,053 |
$ |
20,132 |
$ |
1,711,690 |
$ |
(19,479 |
) |
$ |
762,189 |
$ |
2,474,532 |
||||||||||||||
Net issuance of common stock under stock-based plans |
33 |
4 |
(1,675 |
) |
(1,671 |
) | ||||||||||||||||||||||
Stock-based compensation expense |
11,658 |
11,658 |
||||||||||||||||||||||||||
Repurchase of common stock |
(3,206 |
) |
(401 |
) |
(333,933 |
) |
(334,334 |
) | ||||||||||||||||||||
Cash dividends ($0.11 per share) |
(17,561 |
) |
(17,561 |
) | ||||||||||||||||||||||||
Settlements of convertible notes |
495 |
62 |
(149 |
) |
(87 |
) | ||||||||||||||||||||||
Exercise of convertible notes hedge call options |
(495 |
) |
(62 |
) |
62 |
— |
||||||||||||||||||||||
Cumulative-effect of change in accounting principle related to convertible debt |
1,752 |
1,752 |
||||||||||||||||||||||||||
Net income |
197,787 |
197,787 |
||||||||||||||||||||||||||
Other comprehensive loss |
(33,480 |
) |
(33,480 |
) | ||||||||||||||||||||||||
Balance, July 3, 2022 |
$ |
— |
157,880 |
$ |
19,735 |
$ |
1,721,586 |
$ |
(52,959 |
) |
$ |
610,234 |
$ |
2,298,596 |
||||||||||||||
For the Six Months Ended July 2, 2023 |
||||||||||||||||||||||||||||
Balance, December 31, 2022 |
$ |
— |
155,759 |
$ |
19,470 |
$ |
1,755,963 |
$ |
(49,868 |
) |
$ |
725,729 |
$ |
2,451,294 |
||||||||||||||
Net issuance of common stock under stock-based plans |
631 |
79 |
(3,782 |
) |
(3,703 |
) | ||||||||||||||||||||||
Stock-based compensation expense |
32,409 |
32,409 |
||||||||||||||||||||||||||
Repurchase of common stock |
(2,242 |
) |
(280 |
) |
(233,604 |
) |
(233,884 |
) | ||||||||||||||||||||
Cash dividends ($0.22 per share) |
(34,210 |
) |
(34,210 |
) | ||||||||||||||||||||||||
Settlements of convertible notes |
375 |
47 |
(47 |
) |
— |
|||||||||||||||||||||||
Exercise of convertible notes hedge call options |
(375 |
) |
(47 |
) |
47 |
— |
||||||||||||||||||||||
Net income |
203,581 |
203,581 |
||||||||||||||||||||||||||
Other comprehensive income |
19,396 |
19,396 |
||||||||||||||||||||||||||
Balance, July 2, 2023 |
$ |
— |
154,148 |
$ |
19,269 |
$ |
1,784,590 |
$ |
(30,472 |
) |
$ |
661,496 |
$ |
2,434,883 |
||||||||||||||
For the Six Months Ended July 3, 2022 |
||||||||||||||||||||||||||||
Balance, December 31, 2021 |
$ |
1,512 |
162,251 |
$ |
20,281 |
$ |
1,811,545 |
$ |
(5,948 |
) |
$ |
736,566 |
$ |
2,562,444 |
||||||||||||||
Net issuance of common stock under stock-based plans |
585 |
73 |
(16,318 |
) |
(16,245 |
) | ||||||||||||||||||||||
Stock-based compensation expense |
25,862 |
25,862 |
||||||||||||||||||||||||||
Repurchase of common stock |
(4,956 |
) |
(619 |
) |
(545,179 |
) |
(545,798 |
) | ||||||||||||||||||||
Cash dividends ($0.22 per share) |
(35,470 |
) |
(35,470 |
) | ||||||||||||||||||||||||
Settlements of convertible notes |
1,004 |
125 |
(306 |
) |
(181 |
) | ||||||||||||||||||||||
Exercise of convertible notes hedge call options |
(1,004 |
) |
(125 |
) |
125 |
— |
||||||||||||||||||||||
Cumulative-effect of change in accounting principle related to convertible debt |
(1,512 |
) |
(99,322 |
) |
94,602 |
(4,720 |
) | |||||||||||||||||||||
Net income |
359,715 |
359,715 |
||||||||||||||||||||||||||
Other comprehensive loss |
(47,011 |
) |
(47,011 |
) | ||||||||||||||||||||||||
Balance, July 3, 2022 |
$ |
— |
157,880 |
$ |
19,735 |
$ |
1,721,586 |
$ |
(52,959 |
) |
$ |
610,234 |
$ |
2,298,596 |
||||||||||||||
For the Six Months Ended |
||||||||
July 2, 2023 |
July 3, 2022 |
|||||||
(in thousands) |
||||||||
Cash flows from operating activities: |
||||||||
Net income |
$ | 203,581 | $ | 359,715 | ||||
Adjustments to reconcile net income from operations to net cash provided by operating activities: |
||||||||
Depreciation |
45,231 | 44,460 | ||||||
Stock-based compensation |
32,449 | 25,122 | ||||||
Provision for excess and obsolete inventory |
11,341 | 6,695 | ||||||
Amortization |
9,580 | 10,095 | ||||||
Deferred taxes |
(13,571 | ) | (23,597 | ) | ||||
(Gains) losses on investments |
(4,745 | ) | 8,973 | |||||
Other |
(92 | ) | 522 | |||||
Changes in operating assets and liabilities |
||||||||
Accounts receivable |
(2,693 | ) | (146,384 | ) | ||||
Inventories |
(13,845 | ) | (46,682 | ) | ||||
Prepayments and other assets |
(29,584 | ) | (94,751 | ) | ||||
Accounts payable and other liabilities |
(24,514 | ) | (43,611 | ) | ||||
Deferred revenue and customer advances |
(34,938 | ) | 14,163 | |||||
Retirement plans contributions |
(2,482 | ) | (2,618 | ) | ||||
Income taxes |
(13,614 | ) | 10,815 | |||||
|
|
|
|
|||||
Net cash provided by operating activities |
162,104 | 122,917 | ||||||
|
|
|
|
|||||
Cash flows from investing activities: |
||||||||
Purchases of property, plant and equipment |
(80,702 | ) | (89,743 | ) | ||||
Purchases of marketable securities |
(99,018 | ) | (247,881 | ) | ||||
Proceeds from sales of marketable securities |
35,577 | 143,642 | ||||||
Proceeds from maturities of marketable securities |
21,997 | 139,652 | ||||||
Proceeds from life insurance |
460 | — | ||||||
|
|
|
|
|||||
Net cash used for investing activities |
(121,686 | ) | (54,330 | ) | ||||
|
|
|
|
|||||
Cash flows from financing activities: |
||||||||
Repurchase of common stock |
(227,845 | ) | (532,799 | ) | ||||
Dividend payments |
(34,184 | ) | (35,442 | ) | ||||
Payments related to net settlement of employee stock compensation awards |
(20,308 | ) | (32,780 | ) | ||||
Payments of convertible debt principal |
(17,458 | ) | (42,292 | ) | ||||
Issuance of common stock under stock purchase and stock option plans |
16,599 | 16,536 | ||||||
|
|
|
|
|||||
Net cash used for financing activities |
(283,196 | ) | (626,777 | ) | ||||
|
|
|
|
|||||
Effects of exchange rate changes on cash and cash equivalents |
1,213 | 8,014 | ||||||
|
|
|
|
|||||
Decrease in cash and cash equivalents |
(241,565 | ) | (550,176 | ) | ||||
Cash and cash equivalents at beginning of period |
854,773 | 1,122,199 | ||||||
|
|
|
|
|||||
Cash and cash equivalents at end of period |
$ | 613,208 | $ | 572,023 | ||||
|
|
|
|
|||||
Non-cash investing activities: |
||||||||
Capital expenditures incurred but not yet paid: |
$ | 1,741 | $ | 1,855 |
• | semiconductor test (“Semiconductor Test”) systems; |
• | storage and system level test (“Storage Test”) systems, defense/aerospace (“Defense/Aerospace”) test instrumentation and systems, and circuit-board test and inspection (“Production Board Test”) systems (collectively these products represent “System Test”); |
• | wireless test (“Wireless Test”) systems; and |
• | robotics (“Robotics”) products. |
Semiconductor Test |
Robotics |
|||||||||||||||||||||||||||||||
System on-a-Chip |
Memory |
System Test |
Universal Robots |
Mobile Industrial Robots |
Wireless Test |
Corporate and Eliminations |
Total |
|||||||||||||||||||||||||
(in thousands) |
||||||||||||||||||||||||||||||||
For the Three Months Ended July 2, 2023 (1) |
||||||||||||||||||||||||||||||||
Timing of Revenue Recognition |
||||||||||||||||||||||||||||||||
Point in Time |
$ | 282,080 | $ | 112,547 | $ | 76,801 | $ | 55,737 | $ | 12,770 | $ | 40,261 | $ | — | $ | 580,196 | ||||||||||||||||
Over Time |
72,614 | 7,467 | 17,471 | 2,116 | 1,011 | 3,562 | — | 104,241 | ||||||||||||||||||||||||
Total |
$ | 354,694 | $ | 120,014 | $ | 94,272 | $ | 57,853 | $ | 13,781 | $ | 43,823 | $ | — | $ | 684,437 | ||||||||||||||||
Geographical Market |
||||||||||||||||||||||||||||||||
Asia Pacific |
$ | 303,062 | $ | 115,250 | $ | 41,644 | $ | 14,883 | $ | 2,291 | $ | 22,362 | $ | — | $ | 499,492 | ||||||||||||||||
Americas |
32,191 | 4,286 | 40,163 | 22,832 | 6,086 | 19,491 | — | 125,049 | ||||||||||||||||||||||||
Europe, Middle East and Africa |
19,441 | 478 | 12,465 | 20,138 | 5,404 | 1,970 | — | 59,896 | ||||||||||||||||||||||||
Total |
$ | 354,694 | $ | 120,014 | $ | 94,272 | $ | 57,853 | $ | 13,781 | $ | 43,823 | $ | — | $ | 684,437 | ||||||||||||||||
For the Three Months Ended July 3, 2022 (1) |
||||||||||||||||||||||||||||||||
Timing of Revenue Recognition |
||||||||||||||||||||||||||||||||
Point in Time |
$ | 395,211 | $ | 74,790 | $ | 118,692 | $ | 80,409 | $ | 17,801 | $ | 60,765 | $ | (193 | ) | $ | 747,475 | |||||||||||||||
Over Time |
64,253 | 7,094 | 16,010 | 2,104 | 741 | 3,089 | — | 93,291 | ||||||||||||||||||||||||
Total |
$ | 459,464 | $ | 81,884 | $ | 134,702 | $ | 82,513 | $ | 18,542 | $ | 63,854 | $ | (193 | ) | $ | 840,766 | |||||||||||||||
Geographical Market |
||||||||||||||||||||||||||||||||
Asia Pacific |
$ | 413,537 | $ | 78,996 | $ | 95,584 | $ | 17,357 | $ | 5,317 | $ | 44,106 | $ | — | $ | 654,897 | ||||||||||||||||
Americas |
28,714 | 2,552 | 33,409 | 27,732 | 7,229 | 17,460 | (193 | ) | 116,903 | |||||||||||||||||||||||
Europe, Middle East and Africa |
17,213 | 336 | 5,709 | 37,424 | 5,996 | 2,288 | — | 68,966 | ||||||||||||||||||||||||
Total |
$ | 459,464 | $ | 81,884 | $ | 134,702 | $ | 82,513 | $ | 18,542 | $ | 63,854 | $ | (193 | ) | $ | 840,766 | |||||||||||||||
For the Six Months Ended July 2, 2023 (2) |
||||||||||||||||||||||||||||||||
Timing of Revenue Recognition |
||||||||||||||||||||||||||||||||
Point in Time |
$ | 555,354 | $ | 173,805 | $ | 133,658 | $ | 125,760 | $ | 28,735 | $ | 75,624 | $ | — | $ | 1,092,937 | ||||||||||||||||
Over Time |
146,173 | 14,384 | 35,245 | 4,124 | 2,229 | 6,874 | — | 209,029 | ||||||||||||||||||||||||
Total |
$ | 701,528 | $ | 188,189 | $ | 168,903 | $ | 129,884 | $ | 30,964 | $ | 82,498 | $ | — | $ | 1,301,966 | ||||||||||||||||
Geographical Market |
||||||||||||||||||||||||||||||||
Asia Pacific |
$ | 586,321 | $ | 178,945 | $ | 81,234 | $ | 28,100 | $ | 3,793 | $ | 45,593 | $ | — | $ | 923,986 | ||||||||||||||||
Americas |
73,759 | 7,230 | 69,143 | 43,273 | 17,898 | 32,337 | — | 243,640 | ||||||||||||||||||||||||
Europe, Middle East and Africa |
41,448 | 2,014 | 18,526 | 58,511 | 9,273 | 4,568 | — | 134,340 | ||||||||||||||||||||||||
Total |
$ | 701,528 | $ | 188,189 | $ | 168,903 | $ | 129,884 | $ | 30,964 | $ | 82,498 | $ | — | $ | 1,301,966 | ||||||||||||||||
For the Six Months Ended July 3, 2022 (2) |
||||||||||||||||||||||||||||||||
Timing of Revenue Recognition |
||||||||||||||||||||||||||||||||
Point in Time |
$ | 718,666 | $ | 163,513 | $ | 223,981 | $ | 163,591 | $ | 34,545 | $ | 109,194 | $ | (539 | ) | $ | 1,412,951 | |||||||||||||||
Over Time |
127,382 | 14,127 | 29,390 | 4,206 | 1,902 | 6,178 | — | 183,185 | ||||||||||||||||||||||||
Total |
$ | 846,048 | $ | 177,640 | $ | 253,371 | $ | 167,797 | $ | 36,447 | $ | 115,372 | $ | (539 | ) | $ | 1,596,136 | |||||||||||||||
Geographical Market |
||||||||||||||||||||||||||||||||
Asia Pacific |
$ | 754,277 | $ | 172,147 | $ | 169,369 | $ | 35,978 | $ | 7,909 | $ | 79,052 | $ | — | $ | 1,218,732 | ||||||||||||||||
Americas |
58,428 | 4,598 | 70,017 | 55,880 | 15,793 | 27,147 | (539 | ) | 231,324 | |||||||||||||||||||||||
Europe, Middle East and Africa |
33,343 | 895 | 13,985 | 75,939 | 12,745 | 9,173 | — | 146,080 | ||||||||||||||||||||||||
Total |
$ | 846,048 | $ | 177,640 | $ | 253,371 | $ | 167,797 | $ | 36,447 | $ | 115,372 | $ | (539 | ) | $ | 1,596,136 | |||||||||||||||
(1) | Includes $1.3 million and $1.9 million in 2023 and 2022, respectively, for leases of Teradyne’s systems recognized outside Accounting Standards Codification (“ASC”) 606 “Revenue from Contracts with Customers.” |
(2) |
Includes $2.5 million and $4.2 million in 2023 and 2022, respectively, for leases of Teradyne’s systems recognized outside ASC 606 “Revenue from Contracts with Customers.” |
July 2, |
December 31, |
|||||||
2023 |
2022 |
|||||||
(in thousands) |
||||||||
Maintenance, service and training |
$ | 68,282 | $ | 78,089 | ||||
Customer advances, undelivered elements and other |
46,380 | 59,147 | ||||||
Extended warranty |
44,422 | 56,180 | ||||||
Total deferred revenue and customer advances |
$ | 159,084 | $ | 193,416 | ||||
July 2, 2023 |
December 31, 2022 |
|||||||
(in thousands) |
||||||||
Raw material |
$ | 250,422 | $ | 256,065 | ||||
Work-in-process |
43,685 | 37,982 | ||||||
Finished goods |
53,188 | 30,972 | ||||||
$ | 347,295 | $ | 325,019 | |||||
July 2, 2023 |
||||||||||||||||
Quoted Prices in Active Markets for Identical Instruments (Level 1) |
Significant Other Observable Inputs (Level 2) |
Significant Unobservable Inputs (Level 3) |
Total |
|||||||||||||
(in thousands) |
||||||||||||||||
Assets |
||||||||||||||||
Cash |
$ | 311,803 | $ | — | $ | — | $ | 311,803 | ||||||||
Cash equivalents |
290,548 | 10,857 | — | 301,405 | ||||||||||||
Available-for-sale |
||||||||||||||||
U.S. Treasury securities |
— | 52,238 | — | 52,238 | ||||||||||||
Corporate debt securities |
— | 51,608 | — | 51,608 | ||||||||||||
Commercial paper |
— | 30,882 | — | 30,882 | ||||||||||||
Debt mutual funds |
7,739 | — | — | 7,739 | ||||||||||||
Certificates of deposit and time deposits |
— | 6,699 | — | 6,699 | ||||||||||||
U.S. government agency securities |
— | 6,475 | — | 6,475 | ||||||||||||
Non-U.S. government securities |
— | 544 | — | 544 | ||||||||||||
Equity securities: |
||||||||||||||||
Mutual funds |
43,699 | — | — | 43,699 | ||||||||||||
$ | 653,789 | $ | 159,303 | $ | — | $ | 813,092 | |||||||||
Derivative assets |
— | 5,819 | — | 5,819 | ||||||||||||
Total |
$ | 653,789 | $ | 165,122 | $ | — | $ | 818,911 | ||||||||
Liabilities |
||||||||||||||||
Derivative liabilities |
$ | — | $ | 994 | $ | — | $ | 994 | ||||||||
Total |
$ | — | $ | 994 | $ | — | $ | 994 | ||||||||
Reported as follows: | ||||||||||||||||
(Level 1) |
(Level 2) |
(Level 3) |
Total |
|||||||||||||
(in thousands) |
||||||||||||||||
Assets |
||||||||||||||||
Cash and cash equivalents |
$ | 602,351 | $ | 10,857 | $ | — | $ | 613,208 | ||||||||
Marketable securities |
— | 95,199 | — | 95,199 | ||||||||||||
Long-term marketable securities |
51,438 | 53,247 | — | 104,685 | ||||||||||||
Prepayments |
— | 5,819 | — | 5,819 | ||||||||||||
Total |
$ | 653,789 | $ | 165,122 | $ | — | $ | 818,911 | ||||||||
Liabilities |
. | |||||||||||||||
Other current liabilities |
$ | — | $ | 994 | $ | — | $ | 994 | ||||||||
Total |
$ | — | $ | 994 | $ | — | $ | 994 | ||||||||
December 31, 2022 |
||||||||||||||||
Quoted Prices in Active Markets for Identical Instruments (Level 1) |
Significant Other Observable Inputs (Level 2) |
Significant Unobservable Inputs (Level 3) |
Total |
|||||||||||||
(in thousands) |
||||||||||||||||
Assets |
||||||||||||||||
Cash |
$ | 632,417 | $ | — | $ | — | $ | 632,417 | ||||||||
Cash equivalents |
161,767 | 60,589 | — | 222,356 | ||||||||||||
Available-for-sale |
— | |||||||||||||||
Corporate debt securities |
— | 50,856 | — | 50,856 | ||||||||||||
U.S. Treasury securities |
— | 39,649 | — | 39,649 | ||||||||||||
Commercial paper |
— | 7,159 | — | 7,159 | ||||||||||||
Debt mutual funds |
6,580 | — | — | 6,580 | ||||||||||||
U.S. government agency securities |
— | 6,352 | — | 6,352 | ||||||||||||
Certificates of deposit and time deposits |
— | 1,740 | — | 1,740 | ||||||||||||
Non-U.S. government securities |
— | 535 | — | 535 | ||||||||||||
Equity securities: |
||||||||||||||||
Mutual Funds |
37,518 | — | — | 37,518 | ||||||||||||
$ | 838,282 | $ | 166,880 | $ | — | $ | 1,005,162 | |||||||||
Derivative assets |
— | 86 | — | 86 | ||||||||||||
Total |
$ | 838,282 | $ | 166,966 | $ | — | $ | 1,005,248 | ||||||||
Liabilities |
||||||||||||||||
Derivative liabilities |
— | 4,215 | — | 4,215 | ||||||||||||
Total |
$ | — | $ | 4,215 | $ | — | $ | 4,215 | ||||||||
Reported as follows: |
(Level 1) |
(Level 2) |
(Level 3) |
Total |
|||||||||||||
(in thousands) |
||||||||||||||||
Assets |
||||||||||||||||
Cash and cash equivalents |
$ |
794,184 | $ | 60,589 | $ | — | $ | 854,773 | ||||||||
Marketable securities |
— | 39,612 | — | 39,612 | ||||||||||||
Long-term marketable securities |
44,098 | 66,679 | — | 110,777 | ||||||||||||
Prepayments |
— | 86 | — | 86 | ||||||||||||
Total |
$ | 838,282 | $ |
166,966 | $ | — | $ | 1,005,248 | ||||||||
Liabilities |
||||||||||||||||
Other current liabilities |
$ | — | $ | 4,215 | $ | — | $ | 4,215 | ||||||||
Total |
$ | — | $ | 4,215 | $ | — | $ | 4,215 | ||||||||
July 2, 2023 |
December 31, 2022 |
|||||||||||||||
Carrying Value |
Fair Value |
Carrying Value |
Fair Value |
|||||||||||||
(in thousands) |
||||||||||||||||
Assets |
||||||||||||||||
Cash and cash equivalents |
$ | 613,208 | $ | 613,208 | $ | 854,773 | $ | 854,773 | ||||||||
Marketable securities |
199,884 | 199,884 | 150,389 | 150,389 | ||||||||||||
a |
5,819 | 5,819 | 86 | 86 | ||||||||||||
Liabilities |
||||||||||||||||
v il |
994 | 994 | 4,215 | 4,215 | ||||||||||||
Convertible debt |
32,806 | 115,778 | 50,115 | 139,007 |
July 2, 2023 |
||||||||||||||||||||
Available-for-Sale |
||||||||||||||||||||
Cost |
Unrealized Gain |
Unrealized (Loss) |
Fair Market Value |
Fair Market Value of Investments with Unrealized Losses |
||||||||||||||||
(in thousands) |
||||||||||||||||||||
U.S. Treasury securities |
$ | 56,107 | $ | 2 | $ | (3,871 | ) | $ | 52,238 | $ | 42,716 | |||||||||
Corporate debt securities |
56,680 | 12 | (5,084 | ) | 51,608 | 50,455 | ||||||||||||||
Commercial paper |
30,311 | 581 | (10 | ) | 30,882 | 19,840 | ||||||||||||||
Debt mutual funds |
8,104 | — | (365 | ) | 7,739 | 3,161 | ||||||||||||||
Certificates of deposit and time deposits |
6,699 | — | — | 6,699 | — | |||||||||||||||
U.S. government agency securities |
6,520 | — | (45 | ) | 6,475 | 6,475 | ||||||||||||||
Non-U.S. government securities |
544 | — | — | 544 | — | |||||||||||||||
$ | 164,965 | $ | 595 | $ | (9,375 | ) | $ | 156,185 | $ | 122,647 | ||||||||||
Cost |
Unrealized Gain |
Unrealized (Loss) |
Fair Market Value |
Fair Market Value of Investments with Unrealized Losses |
||||||||||||||||
(in thousands) |
||||||||||||||||||||
Marketable securities |
$ | 95,482 | $ | 581 | $ | (864 | ) | $ | 95,199 | $ | 68,121 | |||||||||
Long-term marketable securities |
69,483 | 14 | (8,511 | ) | 60,986 | 54,526 | ||||||||||||||
$ | 164,965 | $ | 595 | $ | (9,375 | ) | $ | 156,185 | $ | 122,647 | ||||||||||
December 31, 2022 |
||||||||||||||||||||
Available-for-Sale |
||||||||||||||||||||
Cost |
Unrealized Gain |
Unrealized (Loss) |
Fair Market Value |
Fair Market Value of Investments with Unrealized Losses |
||||||||||||||||
(in thousands) |
||||||||||||||||||||
Corporate debt securities |
$ | 57,006 | $ | 3 | $ | (6,153 | ) | $ | 50,856 | $ | 50,667 | |||||||||
U.S. Treasury securities |
44,030 | — | (4,381 | ) | 39,649 | 39,649 | ||||||||||||||
Commercial paper |
7,089 | 70 | — | 7,159 | — | |||||||||||||||
Debt mutual funds |
6,997 | — | (417 | ) | 6,580 | 3,095 | ||||||||||||||
U.S. government agency securities |
6,442 | — | (90 | ) | 6,352 | 6,352 | ||||||||||||||
Certificates of deposit and time deposits |
1,740 | — | — | 1,740 | — | |||||||||||||||
Non-U.S. government securities |
535 | — | — | 535 | — | |||||||||||||||
$ | 123,839 | $ | 73 | $ | (11,041 | ) | $ | 112,871 | $ | 99,763 | ||||||||||
Cost |
Unrealized Gain |
Unrealized (Loss) |
Fair Market Value |
Fair Market Value of Investments with Unrealized Losses |
||||||||||||||||
(in thousands) |
||||||||||||||||||||
Marketable securities |
$ | 39,950 | $ | 70 | $ | (408 | ) | $ | 39,612 | $ | 30,713 | |||||||||
Long-term marketable securities |
83,889 | 3 | (10,633 | ) | 73,259 | 69,050 | ||||||||||||||
$ | 123,839 | $ | 73 | $ | (11,041 | ) | $ | 112,871 | $ | 99,763 | ||||||||||
July 2, 2023 |
||||||||
Cost |
Fair Market Value |
|||||||
(in thousands) |
||||||||
Due within one year |
$ | 95,482 | $ | 95,199 | ||||
Due after 1 year through 5 years |
17,131 | 16,467 | ||||||
Due after 5 years through 10 years |
6,012 | 5,559 | ||||||
Due after 10 years |
38,236 | 31,221 | ||||||
Total |
$ | 156,861 | $ | 148,446 | ||||
Net Notional Value |
||||||||
July 2, 2023 |
December 31, 2022 |
|||||||
(in millions) |
||||||||
Currency Hedged (Buy/Sell) |
||||||||
U.S. dollar/Japanese yen |
|
$ | 66.3 | $ | 37.1 | |||
U.S. dollar/Taiwan dollar |
|
22.3 | 29.2 | |||||
U.S. dollar/Korean won |
|
8.1 | 6.4 | |||||
U.S. dollar/British pound sterling |
|
0.9 | 1.2 | |||||
Euro/U.S. dollar |
|
24.5 | 38.4 | |||||
Singapore dollar/U.S. dollar |
|
22.0 | 34 | |||||
Philippine peso/U.S. dollar |
|
2.5 | 2.7 | |||||
Chinese yuan/U.S. dollar |
|
1.8 | 2.2 | |||||
Danish krone/U.S. dollar |
|
0.6 | — | |||||
|
|
|
|
|
||||
Total |
|
$ | 149.0 | $ | 150.7 | |||
|
|
|
|
|
Net Notional Value |
||||||||
July 2, 2023 |
December 31, 2022 |
|||||||
(in millions) |
||||||||
Currency Hedged (Buy/Sell) |
||||||||
Japanese yen/U.S. dollar |
$ | 52.8 | $ | 23.4 | ||||
Taiwan dollar/U.S. dollar |
— | 5.5 | ||||||
U.S. dollar/Japanese yen |
— | 61.2 | ||||||
U.S. dollar/Taiwan dollar |
— | 10.9 | ||||||
|
|
|
|
|||||
Total |
$ | 52.8 | $ | 101.0 | ||||
|
|
|
|
Balance Sheet Location |
July 2, 2023 |
December 31, 2022 |
||||||||
(in thousands) |
||||||||||
Derivatives not designated as hedging instruments: |
||||||||||
Foreign exchange forward contracts |
Prepayments |
$ |
2,138 |
$ |
86 |
|||||
Foreign exchange forward contracts |
Other current liabilities |
(994 |
) |
(990 |
) | |||||
Derivatives designated as hedging instruments: |
||||||||||
Foreign exchange forward contracts |
Prepayments |
3,681 |
— |
|||||||
Foreign exchange option contracts |
Other current liabilities |
— |
(3,225 |
) | ||||||
|
|
|
|
|||||||
Total derivatives |
$ |
4,825 |
$ |
(4,129 |
) | |||||
|
|
|
|
For the Three Months Ended |
For the Six Months Ended |
|||||||||||||||||
Location of (Gains) Losses Recognized in Statement of Operations |
July 2, 2023 |
July 3, 2022 |
July 2, 2023 |
July 3, 2022 |
||||||||||||||
(in thousands) |
||||||||||||||||||
Derivatives not designated as hedging instruments: |
||||||||||||||||||
Foreign exchange forward contracts |
Other (income) expense, net |
$ | (4,040 | ) | $ | (1,703 | ) | $ | (2,781 | ) | $ | (3,455 | ) | |||||
Derivatives designated as hedging instruments: |
||||||||||||||||||
Foreign exchange option contracts |
Revenue |
414 | — | 1,952 | — | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Total Derivatives |
$ | (3,626 | ) | $ | (1,703 | ) | $ | (829 | ) | $ | (3,455 | ) | ||||||
|
|
|
|
|
|
|
|
July 2, 2023 |
December 31, 2022 |
|||||||
(in thousands) |
||||||||
Debt principal |
$ | 32,806 | $ | 50,228 | ||||
Unamortized debt issuance fees |
— | 113 | ||||||
|
|
|
|
|||||
Net c arrying amount of convertible debt |
$ | 32,806 | $ | 50,115 | ||||
|
|
|
|
For the Three Months Ended |
For the Six Months Ended |
|||||||||||||||
July 2, 2023 |
July 3, 2022 |
July 2, 2023 |
July 3, 2022 |
|||||||||||||
(in thousands) |
(in thousands) |
|||||||||||||||
Contractual interest expense on the coupon |
$ | 100 | $ | 121 | $ | 238 | $ | 432 | ||||||||
Amortization of debt issuance fees recognized as interest expense |
— | 64 | 113 | 130 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total interest expense on the convertible debt |
$ | 100 | $ | 185 | $ | 351 | $ | 562 | ||||||||
|
|
|
|
|
|
|
|
July 2, 2023 |
December 31, 2022 |
|||||||
(in thousands) |
||||||||
Contract manufacturer and supplier prepayments |
$ | 515,350 | $ | 491,105 | ||||
Prepaid maintenance and other services |
15,557 | 14,545 | ||||||
Prepaid taxes |
15,437 | 18,625 | ||||||
Other prepayments |
14,338 | 8,687 | ||||||
|
|
|
|
|||||
Total prepayments |
$ | 560,682 | $ | 532,962 | ||||
|
|
|
|
For the Three Months Ended |
For the Six Months Ended |
|||||||||||||||
July 2, |
July 3, |
July 2, |
July 3, |
|||||||||||||
2023 |
2022 |
2023 |
2022 |
|||||||||||||
(in thousands) |
||||||||||||||||
Balance at beginning of period |
$ | 12,901 | $ | 20,105 | $ | 14,181 | $ | 24,577 | ||||||||
Accruals for warranties issued during the period |
3,261 | 6,429 | 7,378 | 10,530 | ||||||||||||
Accruals related to pre-existing warranties |
(352 | ) | (1,611 | ) | (757 | ) | (4,370 | ) | ||||||||
Settlements made during the period |
(3,267 | ) | (8,887 | ) | (8,259 | ) | (14,701 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Balance at end of period |
$ | 12,543 | $ | 16,036 | $ | 12,543 | $ | 16,036 | ||||||||
|
|
|
|
|
|
|
|
For the Three Months Ended |
For the Six Months Ended |
|||||||||||||||
July 2, |
July 3, |
July 2, |
July 3, |
|||||||||||||
2023 |
2022 |
2023 |
2022 |
|||||||||||||
(in thousands) |
||||||||||||||||
Balance at beginning of period |
$ | 49,343 | $ | 65,726 | $ | 56,180 | $ | 64,168 | ||||||||
Deferral of new extended warranty revenue |
4,467 | 9,788 | 8,881 | 21,563 | ||||||||||||
Recognition of extended warranty deferred revenue |
(9,388 | ) | (9,723 | ) | (20,639 | ) | (19,940 | ) | ||||||||
Balance at end of period |
$ | 44,422 | $ | 65,791 | $ | 44,422 | $ | 65,791 | ||||||||
For the Six Months Ended |
||||||||
July 2, |
July 3, |
|||||||
2023 |
2022 |
|||||||
Risk-free interest rate |
3.9 | % | 1.4 | % | ||||
Teradyne volatility-historical |
50.2 | % | 47.1 | % | ||||
NYSE Composite Index volatility-historical |
24.8 | % | 22.7 | % | ||||
Dividend yield |
0.4 | % | 0.4 | % |
For the Six Months Ended |
||||||||
July 2, |
July 3, |
|||||||
2023 |
2022 |
|||||||
Expected life (years) |
4.0 | 4.0 | ||||||
Risk-free interest rate |
3.7 | % | 1.6 | % | ||||
Volatility-historical |
46.7 | % | 43.7 | % | ||||
Dividend yield |
0.4 | % | 0.4 | % |
Foreign Currency Translation Adjustment |
Unrealized (Losses) Gains on Marketable Securities |
Unrealized (Losses) Gains on Cash Flow Hedges |
Retirement Plans Prior Service Credit |
Total |
||||||||||||||||
(in thousands) |
||||||||||||||||||||
Six Months Ended July 2, 2023 |
||||||||||||||||||||
Balance at December 31, 2022, net of tax of $0, $(2,308), $(708), $(1,130), respectively |
$ | (39,849 | ) | $ | (8,661 | ) | $ | (2,517 | ) | $ | 1,159 | $ | (49,868 | ) | ||||||
Other comprehensive gain before reclassifications, net of tax of $0, $323, $1,088, $0, respectively |
12,250 | 1,726 | 3,866 | — | 17,842 | |||||||||||||||
Amounts reclassified from accumulated other comprehensive income, net of tax of $0, $10, $428, $(1), respectively |
— | 33 | 1,524 | (3 | ) | 1,554 | ||||||||||||||
Net current period other comprehensive gain (loss), net of tax of $0, $333, $1,516, $(1), respectively |
12,250 | 1,759 | 5,390 | (3 | ) | 19,396 | ||||||||||||||
Balance at July 2, 2023, net of tax of $0, $(1,975), $808, $(1,131), respectively |
$ | (27,599 | ) | $ | (6,902 | ) | $ | 2,873 | $ | 1,156 | $ | (30,472 | ) | |||||||
Six Months Ended July 3, 2022 |
||||||||||||||||||||
Balance at December 31, 2021, net of tax of $0, $1,055, $0, $(1,128), respectively |
$ | (10,818 | ) | $ | 3,704 | $ | — | $ | 1,166 | $ | (5,948 | ) | ||||||||
Other comprehensive loss before reclassifications, net of tax of $0, $(2,573), $0, $0, respectively |
(37,307 | ) | (9,910 | ) | — | — | (47,217 | ) | ||||||||||||
Amounts reclassified from accumulated other comprehensive income, net of tax of $0, $59, $0, $(1), respectively |
— | 209 | — | (3 | ) | 206 | ||||||||||||||
Net current period other comprehensive loss, net of tax of $0, $(2,514), $0, $(1), respectively |
(37,307 | ) | (9,701 | ) | — | (3 | ) | (47,011 | ) | |||||||||||
Balance at July 3, 2022, net of tax of $0, $(1,459), $0, $(1,129), respectively |
$ | (48,125 | ) | $ | (5,997 | ) | $ | — | $ | 1,163 | $ | (52,959 | ) | |||||||
Details about Accumulated Other Comprehensive Income (Loss) Components |
For the Three Months Ended |
For the Six Months Ended |
Affected Line Item in the Statements of Operations | |||||||||||||||
July 2, |
July 3, |
July 2, |
July 3, |
|||||||||||||||
2023 |
2022 |
2023 |
2022 |
|||||||||||||||
(in thousands) |
||||||||||||||||||
Available-for-sale |
||||||||||||||||||
Unrealized losses, net of tax of $(8), $(77), $(10), $(59), respectively |
$ | (28 | ) | $ | (274 | ) | $ | (33 | ) | $ | (209 | ) | Other (income) expense, net | |||||
Cash flow hedges: |
||||||||||||||||||
Unrealized losses, net of tax of $(91), $0, $(428), $0, respectively |
(323 | ) | — | (1,524 | ) | — | Revenue | |||||||||||
Defined benefit pension and postretirement plans: |
||||||||||||||||||
Amortization of prior service credit, net of tax of $0, $0, $1, $1, respectively |
2 | 2 | 3 | 3 | (a) | |||||||||||||
Total reclassifications, net of tax of $(99), $(77), $(437), $(58), respectively |
$ | (349 | ) | $ | (272 | ) | $ | (1,554 | ) | $ | (206 | ) | Net income | |||||
(a) | The amortization of prior service credit is included in the computation of net periodic postretirement benefit cost. See Note O: “Retirement Plans.” |
Robotics |
Wireless Test |
Semiconductor Test |
System Test |
Total |
||||||||||||||||
(in thousands) |
||||||||||||||||||||
Balance at December 31, 2022 |
||||||||||||||||||||
Goodwill |
$ | 383,166 | $ | 361,819 | $ | 262,077 | $ | 158,699 | $ | 1,165,761 | ||||||||||
Accumulated impairment losses |
— | (353,843 | ) | (260,540 | ) | (148,183 | ) | (762,566 | ) | |||||||||||
Total Goodwill |
383,166 | 7,976 | 1,537 | 10,516 | 403,195 | |||||||||||||||
Foreign currency translation adjustment |
8,857 | — | 58 | — | 8,915 | |||||||||||||||
Balance at July 2, 2023 |
||||||||||||||||||||
Goodwill |
392,023 | 361,819 | 262,135 | 158,699 | 1,174,676 | |||||||||||||||
Accumulated impairment losses |
— | (353,843 | ) | (260,540 | ) | (148,183 | ) | (762,566 | ) | |||||||||||
Total Goodwill |
$ | 392,023 | $ | 7,976 | $ | 1,595 | $ | 10,516 | $ | 412,110 | ||||||||||
Gross Carrying Amount (1) |
Accumulated Amortization (1) |
Foreign Currency Translation Adjustment |
Net Carrying Amount |
|||||||||||||
(in thousands) |
||||||||||||||||
Balance at July 2, 2023 |
||||||||||||||||
Developed technology |
$ | 267,708 | $ | (237,078 | ) | $ | (5,444 | ) | $ | 25,186 | ||||||
Customer relationships |
52,109 | (46,699 | ) | 200 | 5,610 | |||||||||||
Tradenames and trademarks |
59,007 | (43,904 | ) | (1,288 | ) | 13,815 | ||||||||||
Total intangible assets |
$ | 378,824 | $ | (327,681 | ) | $ | (6,532 | ) | $ | 44,611 | ||||||
Balance, December 31, 2022 |
||||||||||||||||
Developed technology |
$ | 270,967 | $ | (234,208 | ) | $ | (5,935 | ) | $ | 30,824 | ||||||
Customer relationships |
57,739 | (51,186 | ) | 172 | 6,725 | |||||||||||
Tradenames and trademarks |
59,387 | (41,930 | ) | (1,528 | ) | 15,929 | ||||||||||
Total intangible assets |
$ | 388,093 | $ | (327,324 | ) | $ | (7,291 | ) | $ | 53,478 | ||||||
(1) | In 2023, $9.3 million of amortizable intangible assets became fully amortized and have been eliminated from the gross carrying amount and accumulated amortization. |
Year |
Amortization Expense |
|||
(in thousands) |
||||
2023 |
$ | 9,443 | ||
2024 |
18,834 | |||
2025 |
11,352 | |||
2026 |
2,379 | |||
2027 |
1,162 | |||
Thereafter |
1,441 |
For the Three Months Ended |
For the Six Months Ended |
|||||||||||||||
July 2, |
July 3, |
July 2, |
July 3, |
|||||||||||||
2023 |
2022 |
2023 |
2022 |
|||||||||||||
(in thousands, except per share amounts) |
||||||||||||||||
Net income for basic and diluted net income per share |
$ | 120,050 | $ | 197,787 | $ | 203,581 | $ | 359,715 | ||||||||
Weighted average common shares-basic |
154,760 | 159,563 | 155,332 | 160,805 | ||||||||||||
Effect of dilutive potential common shares: |
||||||||||||||||
Convertible note hedge warrant shares (1) |
8,876 | 9,029 | 8,929 | 9,528 | ||||||||||||
Incremental shares from assumed conversion of convertible notes (2) |
742 | 1,900 | 828 | 2,220 | ||||||||||||
Restricted stock units |
323 | 581 | 389 | 730 | ||||||||||||
Stock options |
43 | 54 | 45 | 61 | ||||||||||||
Employee stock purchase plan |
7 | 32 | 7 | 23 | ||||||||||||
Dilutive potential common shares |
9,991 | 11,596 | 10,198 | 12,562 | ||||||||||||
Weighted average common shares-diluted |
164,751 | 171,159 | 165,530 | 173,367 | ||||||||||||
Net income per common share-basic |
$ | 0.78 | $ | 1.24 | $ | 1.31 | $ | 2.24 | ||||||||
Net income per common share-diluted |
$ | 0.73 | $ | 1.16 | $ | 1.23 | $ | 2.07 | ||||||||
(1) | Convertible notes hedge warrant shares were calculated using the difference between the average Teradyne stock price for the period and the warrant price, multiplied by the number of warrant 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. |
(2) | Incremental shares from assumed conversion of the convertible notes were calculated using the difference between the average Teradyne stock price for the period and the conversion price, multiplied by the number of convertible notes 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. |
For the Three Months Ended |
||||||||||||||||
July 2, 2023 |
July 3, 2022 |
|||||||||||||||
United States |
Foreign |
United States |
Foreign |
|||||||||||||
(in thousands) |
||||||||||||||||
Service cost |
$ | 272 | $ | 110 | $ | 397 | $ | 180 | ||||||||
Interest cost |
1,714 | 263 | 1,221 | 120 | ||||||||||||
Expected return on plan assets |
(1,286 | ) | (9 | ) | (732 | ) | (18 | ) | ||||||||
Net actuarial loss (gain) |
24 | — | (45 | ) | — | |||||||||||
Total net periodic pension cost |
$ | 724 | $ | 364 | $ | 841 | $ | 282 | ||||||||
For the Six Months Ended |
||||||||||||||||
July 2, 2023 |
July 3, 2022 |
|||||||||||||||
United States |
Foreign |
United States |
Foreign |
|||||||||||||
(in thousands) |
||||||||||||||||
Service cost |
$ | 543 | $ | 220 | $ | 794 | $ | 386 | ||||||||
Interest cost |
3,425 | 526 | 2,443 | 238 | ||||||||||||
Expected return on plan assets |
(2,571 | ) | (18 | ) | (1,463 | ) | (38 | ) | ||||||||
Net actuarial loss (gain) |
24 | — | (45 | ) | — | |||||||||||
Total net periodic pension cost |
$ | 1,421 | $ | 728 | $ | 1,729 | $ | 586 | ||||||||
For the Three Months Ended |
For the Six Months Ended |
|||||||||||||||
July 2, 2023 |
July 3, 2022 |
July 2, 2023 |
July 3, 2022 |
|||||||||||||
(in thousands) |
||||||||||||||||
Service cost |
$ | 8 | $ | 15 | $ | 17 | $ | 32 | ||||||||
Interest cost |
60 | 45 | 121 | 88 | ||||||||||||
Amortization of prior service credit |
(2 | ) | (2 | ) | (4 | ) | (4 | ) | ||||||||
Special termination benefits |
369 | — | 369 | — | ||||||||||||
Net actuarial loss |
30 | 54 | 30 | 54 | ||||||||||||
Total net periodic postretirement benefit cost |
$ | 465 | $ | 112 | $ | 533 | $ | 170 | ||||||||
For the Three Months Ended |
For the Six Months Ended |
|||||||||||||||
July 2, 2023 |
July 3, 2022 |
July 2, 2023 |
July 3, 2022 |
|||||||||||||
U.S. statutory federal tax rate |
21.0 | % | 21.0 | % | 21.0 | % | 21.0 | % | ||||||||
Discrete expense related to foreign currency gain/loss |
1.2 | 0.6 | 0.7 | 0.6 | ||||||||||||
Non-deductible officers’ compensation |
1.0 | 1.4 | 1.0 | 1.3 | ||||||||||||
International provisions of the U.S. Tax Cuts and Jobs Act of 2017 |
(2.5 | ) | (1.0 | ) | (2.8 | ) | (1.2 | ) | ||||||||
Tax credits |
(2.4 | ) | (2.0 | ) | (2.4 | ) | (1.8 | ) | ||||||||
Discrete benefit related to equity compensation |
(0.1 | ) | (0.2 | ) | (1.4 | ) | (2.9 | ) | ||||||||
Foreign taxes |
(1.0 | ) | (3.2 | ) | (0.8 | ) | (3.3 | ) | ||||||||
Other, net |
(0.3 | ) | 0.5 | 0.4 | 0.4 | |||||||||||
Effective tax rate |
16.9 | % | 17.1 | % | 15.7 | % | 14.1 | % | ||||||||
Semiconductor Test |
System Test |
Robotics |
Wireless Test |
Corporate and Eliminations |
Consolidated |
|||||||||||||||||||
(in thousands) |
||||||||||||||||||||||||
Three Months Ended July 2, 2023 |
||||||||||||||||||||||||
Revenues |
$ | 474,708 | $ | 94,272 | $ | 71,634 | $ | 43,823 | $ | — | $ | 684,437 | ||||||||||||
Income (loss) before income taxes (1)(2) |
129,040 | 28,599 | (26,401 | ) | 12,020 | 1,144 | 144,402 | |||||||||||||||||
Total assets (3) |
1,416,109 | 191,002 | 685,132 | 88,869 | 1,013,784 | 3,394,896 | ||||||||||||||||||
Three Months Ended July 3, 2022 |
||||||||||||||||||||||||
Revenues |
$ | 541,348 | $ | 134,702 | $ | 101,055 | $ | 63,854 | $ | (193 | ) | $ | 840,766 | |||||||||||
Income (loss) before income taxes (1)(2) |
177,782 | 54,042 | (6,406 | ) | 25,393 | (12,219 | ) | 238,592 | ||||||||||||||||
Total assets (3) |
1,449,878 | 229,359 | 644,099 | 118,445 | 1,046,645 | 3,488,426 | ||||||||||||||||||
Six Months Ended July 2, 2023 |
||||||||||||||||||||||||
Revenues |
$ | 889,717 | $ | 168,903 | $ | 160,848 | $ | 82,498 | $ | — | $ | 1,301,966 | ||||||||||||
Income (loss) before income taxes (1)(2) |
225,225 | 43,874 | (44,891 | ) | 21,372 | (4,094 | ) | 241,486 | ||||||||||||||||
Total assets (3) |
1,416,109 | 191,002 | 685,132 | 88,869 | 1,013,784 | 3,394,896 | ||||||||||||||||||
Six Months Ended July 3, 2022 |
||||||||||||||||||||||||
Revenues |
$ | 1,023,688 | $ | 253,371 | $ | 204,244 | $ | 115,372 | $ | (539 | ) | $ | 1,596,136 | |||||||||||
Income (loss) before income taxes (1)(2) |
327,487 | 95,365 | (11,504 | ) | 44,012 | (36,409 | ) | 418,951 | ||||||||||||||||
Total assets (3) |
1,449,878 | 229,359 | 644,099 | 118,445 | 1,046,645 | 3,488,426 |
(1) | Included in Corporate and Eliminations are: interest income, interest expense, net foreign exchange gains (losses), intercompany eliminations, legal and environmental fees, severance charges, pension, and an expense for the modification of Teradyne’s former chief executive officer’s outstanding equity awards. |
(2) | Included in income (loss) before taxes are charges related to restructuring and other, and inventory charges. |
(3) | Total assets are attributable to each segment. Corporate assets consist of cash and cash equivalents, marketable securities, and certain other assets. |
For the Three Months Ended |
For the Six Months Ended |
|||||||||||||||
July 2, 2023 |
July 3, 2022 |
July 2, 2023 |
July 3, 2022 |
|||||||||||||
(in thousands) |
||||||||||||||||
Semiconductor Test: |
||||||||||||||||
Cost of revenues—inventory charge |
$ | 4,184 | $ | 2,071 | $ | 7,952 | $ | 2,315 | ||||||||
Restructuring and other—employee severance |
2,485 | — | 3,279 | |||||||||||||
System Test: |
||||||||||||||||
Cost of revenues—inventory charge |
$ | — | $ | — | $ | 1,113 | $ | — | ||||||||
Restructuring and other—employee severance |
— | — | 642 | — | ||||||||||||
Robotics: |
||||||||||||||||
Restructuring and other—employee severance |
$ | 1,638 | $ | — | $ | 2,071 | $ | — | ||||||||
Cost of revenues—inventory charge |
769 | 831 | 1,551 | 1,197 | ||||||||||||
Wireless: |
||||||||||||||||
Cost of revenues—inventory charge |
$ | — | $ | 2,099 | $ | 725 | $ | 2,976 | ||||||||
Corporate and Eliminations: |
||||||||||||||||
Restructuring and other—other |
$ | 1,100 | 1,500 | 1,100 | 2,000 | |||||||||||
Restructuring and other—employee severance |
— | — | 1,124 | — | ||||||||||||
Selling and administrative—equity modification charge |
— | — | 5,889 | — | ||||||||||||
Restructuring and other—legal settlement charge |
— | — | — | 14,700 |
Item 2: |
Management’s Discussion and Analysis of Financial Condition and Results of Operations |
• | semiconductor test (“Semiconductor Test”) systems; |
• | storage and system level test (“Storage Test”) systems, defense/aerospace (“Defense/Aerospace”) test instrumentation and systems, and circuit-board test and inspection (“Production Board Test”) systems (collectively these products represent “System Test”); |
• | wireless test (“Wireless Test”) systems; and |
• | robotics (“Robotics”) products. |
For the Three Months Ended |
For the Six Months Ended |
|||||||||||||||
July 2, |
July 3, |
July 2, |
July 3, |
|||||||||||||
2023 |
2022 |
2023 |
2022 |
|||||||||||||
Percentage of revenues: |
||||||||||||||||
Revenues: |
||||||||||||||||
Products |
79 | % | 83 | % | 78 | % | 83 | % | ||||||||
Services |
21 | 17 | 22 | 17 | ||||||||||||
Total revenues |
100 | 100 | 100 | 100 | ||||||||||||
Cost of revenues: |
||||||||||||||||
Cost of products |
32 | 33 | 32 | 32 | ||||||||||||
Cost of services |
9 | 7 | 10 | 7 | ||||||||||||
Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) |
41 | 40 | 42 | 40 | ||||||||||||
Gross profit |
59 | 60 | 58 | 60 | ||||||||||||
Operating expenses: |
||||||||||||||||
Selling and administrative |
21 | 17 | 23 | 18 | ||||||||||||
Engineering and development |
15 | 13 | 16 | 14 | ||||||||||||
Acquired intangible assets amortization |
1 | — | 1 | 1 | ||||||||||||
Restructuring and other |
1 | — | 1 | 1 | ||||||||||||
Total operating expenses |
38 | 31 | 40 | 33 | ||||||||||||
Income from operations |
20 | 29 | 18 | 27 | ||||||||||||
Non-operating (income) expense: |
||||||||||||||||
Interest income |
(1 | ) | — | (1 | ) | — | ||||||||||
Interest expense |
— | — | — | — | ||||||||||||
Other (income) expense, net |
— | 1 | — | 1 | ||||||||||||
Income before income taxes |
21 | 28 | 19 | 26 | ||||||||||||
Income tax provision |
4 | 5 | 3 | 4 | ||||||||||||
Net income |
18 | % | 24 | % | 16 | % | 23 | % | ||||||||
For the Three Months Ended |
||||||||||||
July 2, |
July 3, |
Dollar |
||||||||||
2023 |
2022 |
Change |
||||||||||
(in millions) |
||||||||||||
Semiconductor Test |
$ | 474.7 | $ | 541.3 | $ | (66.6 | ) | |||||
System Test |
94.3 | 134.7 | (40.4 | ) | ||||||||
Robotics |
71.6 | 101.1 | (29.5 | ) | ||||||||
Wireless Test |
43.8 | 63.9 | (20.1 | ) | ||||||||
Corporate and Eliminations |
— | (0.2 | ) | 0.2 | ||||||||
$ | 684.4 | $ | 840.8 | $ | (156.4 | ) | ||||||
For the Three Months Ended |
||||||||
July 2, |
July 3, |
|||||||
2023 |
2022 |
|||||||
United States |
17 | % | 14 | % | ||||
Korea |
15 | 17 | ||||||
Taiwan |
15 | 25 | ||||||
China |
13 | 13 | ||||||
Japan |
13 | 5 | ||||||
Europe |
9 | 8 | ||||||
Malaysia |
5 | 5 | ||||||
Thailand |
4 | 6 | ||||||
Philippines |
4 | 3 | ||||||
Singapore |
3 | 2 | ||||||
Rest of World |
2 | 2 | ||||||
100 | % | 100 | % | |||||
(1) | Revenues attributable to a country are based on location of customer site. |
For the Three Months Ended |
||||||||||||
July 2, |
July 3, |
Dollar/Point |
||||||||||
2023 |
2022 |
Change |
||||||||||
(in millions) |
||||||||||||
Gross profit |
$ |
402.5 |
$ |
506.4 |
$ |
(103.9 |
) | |||||
Percent of total revenues |
58.8 |
% |
60.2 |
% |
(1.4 |
) |
For the Three Months Ended |
||||||||||||
July 2, |
July 3, |
Dollar |
||||||||||
2023 |
2022 |
Change |
||||||||||
(in millions) |
||||||||||||
Selling and administrative |
$ |
145.7 |
$ |
139.5 |
$ |
6.2 |
||||||
Percent of total revenues |
21.3 |
% |
16.6 |
% |
For the Three Months Ended |
||||||||||||
July 2, |
July 3, |
Dollar |
||||||||||
2023 |
2022 |
Change |
||||||||||
(in millions) |
||||||||||||
Engineering and development |
$ |
105.7 |
$ |
112.0 |
$ |
(6.3 |
) | |||||
Percent of total revenues |
15.4 |
% |
13.3 |
% |
For the Three Months Ended |
||||||||||||
July 2, |
July 3, |
Dollar |
||||||||||
2023 |
2022 |
Change |
||||||||||
(in millions) |
||||||||||||
Interest income |
$ |
(6.4 |
) |
$ |
(1.0 |
) |
$ |
(5.4 |
) | |||
Interest expense |
1.0 |
0.9 |
$ |
0.1 |
||||||||
Other (income) expense, net |
0.8 |
9.4 |
$ |
(8.6 |
) |
For the Three Months Ended |
||||||||||||
July 2, |
July 3, |
Dollar |
||||||||||
2023 |
2022 |
Change |
||||||||||
(in millions) |
||||||||||||
Semiconductor Test |
$ |
129.0 |
$ |
177.8 |
$ |
(48.8 |
) | |||||
System Test |
28.6 |
54.0 |
(25.4 |
) | ||||||||
Wireless Test |
12.0 |
25.4 |
(13.4 |
) | ||||||||
Robotics |
(26.4 |
) |
(6.4 |
) |
(20.0 |
) | ||||||
Corporate and Eliminations (1) |
1.1 |
(12.2 |
) |
13.3 |
||||||||
$ |
144.4 |
$ |
238.6 |
$ |
(94.2 |
) | ||||||
(1) | Included in Corporate and Eliminations are interest income, interest expense, net foreign exchange gains (losses), intercompany eliminations, legal and environmental fees, and severance charges. |
For the Six Months Ended |
||||||||||||
July 2, |
July 3, |
Dollar |
||||||||||
2023 |
2022 |
Change |
||||||||||
(in millions) |
||||||||||||
Semiconductor Test |
$ |
889.7 |
$ |
1,023.7 |
$ |
(134.0 |
) | |||||
System Test |
168.9 |
253.4 |
(84.5 |
) | ||||||||
Robotics |
160.8 |
204.2 |
(43.4 |
) | ||||||||
Wireless Test |
82.5 |
115.4 |
(32.9 |
) | ||||||||
Corporate and Eliminations |
— |
(0.5 |
) |
0.5 |
||||||||
$ |
1,302.0 |
$ |
1,596.1 |
$ |
(294.1 |
) | ||||||
For the Six Months Ended |
||||||||
July 2, |
July 3, |
|||||||
2023 |
2022 |
|||||||
United States |
17 | % | 15 | % | ||||
Taiwan |
16 | 22 | ||||||
Korea |
14 | 15 | ||||||
China |
12 | 16 | ||||||
Japan |
11 | 5 | ||||||
Europe |
10 | 9 | ||||||
Singapore |
5 | 3 | ||||||
Philippines |
5 | 3 | ||||||
Malaysia |
4 | 5 | ||||||
Thailand |
3 | 5 | ||||||
Rest of World |
3 | 2 | ||||||
100 | % | 100 | % | |||||
(1) | Revenues attributable to a country are based on location of customer site. |
For the Six Months Ended |
||||||||||||
July 2, |
July 3, |
Dollar/Point |
||||||||||
2023 |
2022 |
Change |
||||||||||
(in millions) |
||||||||||||
Gross profit |
$ |
758.9 |
$ |
961.3 |
$ |
(202.4 |
) | |||||
Percent of total revenues |
58.3 |
% |
60.2 |
% |
(1.9 |
) |
For the Six Months Ended |
||||||||||||
July 2, |
July 3, |
Dollar |
||||||||||
2023 |
2022 |
Change |
||||||||||
(in millions) |
||||||||||||
Selling and administrative |
$ |
296.7 |
$ |
279.7 |
$ |
17.0 |
||||||
Percent of total revenues |
22.8 |
% |
17.5 |
% |
For the Six Months Ended |
||||||||||||
July 2, |
July 3, |
Dollar |
||||||||||
2023 |
2022 |
Change |
||||||||||
(in millions) |
||||||||||||
Engineering and development |
$ |
211.5 |
$ |
220.1 |
$ |
(8.6 |
) | |||||
Percent of total revenues |
16.2 |
% |
13.8 |
% |
For the Six Months Ended |
||||||||||||
July 2, |
July 3, |
Dollar |
||||||||||
2023 |
2022 |
Change |
||||||||||
(in millions) |
||||||||||||
Interest income |
$ |
(11.6 |
) |
$ |
(1.7 |
) |
$ |
(9.9 |
) | |||
Interest expense |
2.0 |
1.9 |
0.1 |
|||||||||
Other (income) expense, net |
0.9 |
14.6 |
(13.7 |
) |
For the Six Months Ended |
||||||||||||
July 2, |
July 3, |
Dollar |
||||||||||
2023 |
2022 |
Change |
||||||||||
(in millions) |
||||||||||||
Semiconductor Test |
$ |
225.2 |
$ |
327.5 |
$ |
(102.3 |
) | |||||
System Test |
43.9 |
95.4 |
(51.5 |
) | ||||||||
Wireless Test |
21.4 |
44.0 |
(22.6 |
) | ||||||||
Robotics |
(44.9 |
) |
(11.5 |
) |
(33.4 |
) | ||||||
Corporate and Eliminations (1) |
(4.1 |
) |
(36.4 |
) |
32.3 |
|||||||
$ |
241.5 |
$ |
419.0 |
$ |
(177.5 |
) | ||||||
(1) | Included in Corporate and Eliminations are interest income, interest expense, net foreign exchange gains (losses), intercompany eliminations, legal and environmental fees, severance charges, pension, and an expense for the modification of Teradyne’s former chief executive officer’s outstanding equity awards. |
Item 3: |
Quantitative and Qualitative Disclosures about Market Risks |
Hypothetical Change in Teradyne Stock Price |
Fair Value |
Estimated change in fair value |
Hypothetical percentage increase (decrease) in fair value |
|||||||||
10% Increase |
$ | 127,385 | $ | 11,607 | 10.0 | % | ||||||
No Change |
115,778 | — | — | |||||||||
10% Decrease |
104,171 | (11,607 | ) | (10.0 | ) |
Item 4: |
Controls and Procedures |
Item 1: |
Legal Proceedings |
Item 1A: |
Risk Factors |
Item 2: |
Unregistered Sales of Equity Securities and Use of Proceeds |
Period |
Total Number of Shares (or Units) Purchased |
Average Price Paid per Share (or Unit) |
Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs |
Maximum Number (or Approximate Dollar Value) of Shares (or Units) that may Yet Be Purchased Under the Plans or Programs (2) |
||||||||||||||||
April 3, 2023 – April 30, 2023 |
410 | $ | 100.73 | 409 | $ | 1,865,063 | ||||||||||||||
May 1, 2023 – May 28, 2023 |
469 | $ | 92.88 | 467 | $ | 1,821,664 | ||||||||||||||
May 29, 2023 – July 2, 2023 |
474 | $ | 108.31 | 473 | $ | 1,770,455 | ||||||||||||||
|
|
|
|
|
|
|||||||||||||||
1,354 | (1) | $ | 100.66 | (1) | 1,349 | |||||||||||||||
|
|
|
|
|
|
(1) | Includes approximately four thousand shares at an average price of $97.95 withheld from employees for the payment of taxes. |
(2) | As of January 1, 2023, share repurchases net of share issuances are subject to a 1% excise tax under the Inflation Reduction Act. Excise tax incurred is included as part of the cost basis of shares repurchased in the Condensed Consolidated Statements of Convertible Common Shares and Stockholders’ Equity. |
Item 4: |
Mine Safety Disclosures |
Item 5: |
Other Information |
Item 6: |
Exhibits |
TERADYNE, INC. |
Registrant |
/s/ S ANJAY MEHTA |
Sanjay Mehta Vice President, Chief Financial Officer and Treasurer (Duly Authorized Officer and Principal Financial Officer) August 4, 2023 |
Exhibit 31.1
CERTIFICATIONS
I, Gregory S. Smith, certify that:
1. I have reviewed this quarterly report on Form 10-Q of Teradyne, Inc.;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4. The registrants other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c) Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d) Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and
5. The registrants other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions):
a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and
b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting.
Date: August 4, 2023
By: | /s/ GREGORY S. SMITH | |
Gregory S. Smith | ||
Chief Executive Officer |
Exhibit 31.2
CERTIFICATIONS
I, Sanjay Mehta, certify that:
1. I have reviewed this quarterly report on Form 10-Q of Teradyne, Inc.;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4. The registrants other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c) Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d) Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and
5. The registrants other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions):
a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and
b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting.
Date: August 4, 2023
By: | /s/ SANJAY MEHTA | |
Sanjay Mehta | ||
Chief Financial Officer |
Exhibit 32.1
CERTIFICATION PURSUANT TO
18 U.S.C SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of Teradyne, Inc. (the Company) on Form 10-Q for the period ended July 2, 2023, as filed with the Securities and Exchange Commission on the date hereof (the Report), I, Gregory S. Smith, Chief Executive Officer of the Company, certify pursuant to 18 U.S.C Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:
(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods expressed in the Report.
/s/ GREGORY S. SMITH |
Gregory S. Smith |
Chief Executive Officer |
August 4, 2023 |
Exhibit 32.2
CERTIFICATION PURSUANT TO
18 U.S.C SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of Teradyne, Inc. (the Company) on Form 10-Q for the period ended July 2, 2023, as filed with the Securities and Exchange Commission on the date hereof (the Report), I, Sanjay Mehta, Chief Financial Officer of the Company, certify pursuant to 18 U.S.C Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:
(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods expressed in the Report.
/s/ SANJAY MEHTA |
Sanjay Mehta |
Chief Financial Officer |
August 4, 2023 |