0000097210false00000972102023-10-252023-10-25

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of report (Date of earliest event reported): October 25, 2023

TERADYNE, INC.

(Exact Name of Registrant as Specified in Charter)

Massachusetts

001-06462

04-2272148

(State or Other Jurisdiction

of Incorporation)

(Commission

File Number)

(IRS Employer

Identification No.)

 

600 Riverpark Drive, North Reading, MA

01864

(Address of Principal Executive Offices)

(Zip Code)

Registrant’s telephone number, including area code: (978) 370-2700

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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 is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth 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.


Item 2.02 Results of Operations and Financial Condition.

On October 25, 2023, Teradyne, Inc. (“Teradyne”) issued a press release regarding its financial results for the third quarter ended October 1, 2023. Teradyne’s press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

 

Exhibit

Description

 

 

99.1

Press Release dated October 25, 2023.

 

 

104

Cover Page Interactive Data File (embedded within the Inline XBRL document)

 


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

 

 

TERADYNE, INC.

 

 

 

 

Dated: October 26, 2023

 

By:

/s/ SANJAY MEHTA

 

 

Name:

Sanjay Mehta

 

 

Title:

Vice President, Chief Financial Officer and Treasurer

 


 

Exhibit 99.1

Teradyne Reports Third Quarter 2023 Results

Revenue and earnings above the mid-point of Q3 guidance
Revenue of $704 million in Q3’23, down 15% from Q3’22
Robotics demand stabilized, Q3'23 revenue down 4% from Q3'22, up 20% from Q2'23
Returned $136 million to shareholders in share repurchases and dividends in Q3’23

 

 

 

Q3'23

 

 

Q3'22

 

 

Q2'23

 

Revenue (mil)

 

$

704

 

 

$

827

 

 

$

684

 

GAAP EPS

 

$

0.78

 

 

$

1.10

 

 

$

0.73

 

Non-GAAP EPS

 

$

0.80

 

 

$

1.15

 

 

$

0.79

 

 

NORTH READING, Mass. – October 25, 2023 – Teradyne, Inc. (NASDAQ: TER) reported revenue of $704 million for the third quarter of 2023 of which $498 million was in Semiconductor Test, $83 million in System Test, $37 million in Wireless Test and $86 million in Robotics. GAAP net income for the third quarter was $128 million or $0.78 per diluted share. On a non-GAAP basis, Teradyne’s net income in the third quarter was $132 million, or $0.80 per diluted share, which excluded restructuring and other charges, acquired intangible asset amortization, discrete income tax items and included the related tax impact on non-GAAP adjustments.

“Greater than planned Robotics shipments and sequential growth in Semiconductor Test combined to drive sales and profits to the high end of our Q3 guidance range,” said Teradyne CEO Greg Smith. “As we enter Q4, test demand is focused on technology investments with limited capacity expansion purchases expected in the quarter. In Robotics, demand has stabilized and we anticipate delivering second half results in-line with our July outlook, finishing the year achieving record quarterly shipments.”

Guidance for the fourth quarter of 2023 is revenue of $640 million to $700 million, with GAAP net income of $0.58 to $0.78 per diluted share and non-GAAP net income of $0.61 to $0.81 per diluted share. Non-GAAP guidance excludes acquired intangible asset amortization, restructuring and other charges and includes the related tax impact on non-GAAP adjustments.

Webcast

A conference call to discuss the third quarter results, along with management’s business outlook, will follow at 8:30 a.m. ET, Thursday, October 26, 2023. Interested investors should access the webcast at http://investors.teradyne.com/events-presentations. Presentation materials will be available starting at 8:30 a.m. ET. A replay will also be available at the website.

 


Page 2

 

Non-GAAP Results

In addition to disclosing results that are determined in accordance with GAAP, Teradyne also discloses non-GAAP results of operations that exclude certain income items and charges. These results are provided as a complement to results provided in accordance with GAAP. Non-GAAP income from operations and non-GAAP net income exclude acquired intangible assets amortization, restructuring and other, pension actuarial gains and losses, stock compensation modification expense, discrete income tax adjustments, and includes the related tax impact on non-GAAP adjustments. GAAP requires that these items be included in determining income from operations and net income. Non-GAAP income from operations, non-GAAP net income, non-GAAP income from operations as a percentage of revenue, non-GAAP net income as a percentage of revenue, and non-GAAP net income per share are non-GAAP performance measures presented to provide meaningful supplemental information regarding Teradyne’s baseline performance before gains, losses or other charges that may not be indicative of Teradyne’s current core business or future outlook. These non-GAAP performance measures are used to make operational decisions, to determine employee compensation, to forecast future operational results, and for comparison with Teradyne’s business plan, historical operating results and the operating results of Teradyne’s competitors. Non-GAAP diluted shares include the impact of Teradyne’s call option on its shares. Management believes each of these non-GAAP performance measures provides useful supplemental information for investors, allowing greater transparency to the information used by management in its operational decision making and in the review of Teradyne’s financial and operational performance, as well as facilitating meaningful comparisons of Teradyne’s results in the current period compared with those in prior and future periods. A reconciliation of each available GAAP to non-GAAP financial measure discussed in this press release is contained in the attached exhibits and on the Teradyne website at www.teradyne.com by clicking on “Investor Relations” and then selecting “Financials” and the “GAAP to Non-GAAP Reconciliation” link. The non-GAAP performance measures discussed in this press release may not be comparable to similarly titled measures used by other companies. The presentation of non-GAAP measures is not meant to be considered in isolation, as a substitute for, or superior to, financial measures or information provided in accordance with GAAP.

About Teradyne

Teradyne (NASDAQ:TER) test technology helps bring high-quality innovations such as smart devices, life-saving medical equipment and data storage systems to market, faster. Its advanced test solutions for semiconductors, electronic systems, wireless devices and more ensure that products perform as they were designed. Its robotics offerings include collaborative and mobile robots that help manufacturers of all sizes increase productivity, improve safety, and lower costs. In 2022, Teradyne had revenue of $3.2 billion and today employs over 6,600 people worldwide. For more information, visit teradyne.com. Teradyne® is a registered trademark of Teradyne, Inc., in the U.S. and other countries.

Safe Harbor Statement

This release contains forward-looking statements regarding Teradyne’s future business prospects, results of operations, market conditions, earnings per share, the impact of supply chain conditions on the business, customer sales expectations, the payment of a quarterly dividend, the repurchase of Teradyne common stock pursuant to a share repurchase program, the impact of the Israel-Hamas conflict, the continued impact of the global COVID-19 pandemic, and the impact of U.S. and Chinese export and tariff laws, including regulations published by the U.S. Department of Commerce. Such statements are based on the current assumptions and expectations of Teradyne’s management and are neither promises nor guarantees of future performance, events, customer sales, supply chain conditions or improvements, earnings per share, use of cash, payment of dividends, repurchases of common stock, payment of the senior convertible notes, the impact of the COVID-19 pandemic, the impact of the Israel-Hamas conflict, the impact of any tariffs or export controls imposed by the U.S. or China, compliance with trade protection measures or export restrictions, the impact of U.S. Department of Commerce or other government agency regulations relating to Huawei, HiSilicon and other customers or potential customers, the impact of U.S. Department of Commerce export control regulations for certain U.S. products and technology sold to military end users or for military end-use in China, or the impact of regulations published by the U.S. Department of Commerce relating to the export of semiconductors and semiconductor manufacturing equipment destined to certain end users and for certain end uses in China. There can be no assurance that management’s estimates of Teradyne’s future results or other forward-looking statements will be achieved. Specifically, Teradyne’s 2026 earnings model is aspirational


Page 3

 

and includes many assumptions. There can be no assurance that these assumptions will be accurate or that model results will be achieved. As set forth below, there are many factors that could cause our 2026 earnings model and actual results to differ materially from those presently expected. Additionally, the current dividend and share repurchase programs may be modified, suspended or discontinued at any time.

On October 7, 2022, the U.S. Department of Commerce published regulations restricting the export to China of advanced semiconductors, supercomputer technology, equipment for the manufacturing of advanced semiconductors and components and technology for the manufacturing in China of certain semiconductor manufacturing equipment. As previously disclosed, the restrictions impacted Teradyne’s sales to certain companies in China and Teradyne’s manufacturing and development operations in China. Teradyne mitigated the impact of these restrictions on its business by obtaining licenses from the Department of Commerce. On October 17, 2023, the Department of Commerce released new rules updating the exporting controls issued on October 7, 2022. The new rules which take effect on November 17, 2023 significantly limit the impact of the October 7, 2022 restrictions on Teradyne’s business. However, the regulations may continue to have an adverse impact on certain actual or potential customers of Teradyne and on the global semiconductor industry. To the extent the regulations impact actual and potential customers or disrupt the global semiconductor industry, Teradyne’s business and revenues will be adversely impacted.

Important factors that could cause actual results, the 2026 earnings model, earnings per share, use of cash, dividend payments, repurchases of common stock, or payment of the senior convertible notes to differ materially from those presently expected include: conditions affecting the markets in which Teradyne operates; decreased or delayed product demand from one or more significant customers; development, delivery and acceptance of new products; the ability to grow the Robotics business; increased research and development spending; deterioration of Teradyne’s financial condition; the continued impact of the COVID-19 pandemic and related government responses on the market and demand for Teradyne’s products, on its contract manufacturers and supply chain, and on its workforce; the impact of a supply shortage on our supply chain and contract manufacturers; the consummation and success of any mergers or acquisitions; unexpected cash needs; insufficient cash flow to make required payments and pay the principal amount on the senior convertible notes; the business judgment of the board of directors that a declaration of a dividend or the repurchase of common stock is not in the Company’s best interests; additional U.S. or global tax regulations or guidance; the impact of any tariffs or export controls imposed by the U.S. or China; compliance with trade protection measures or export restrictions; the impact of U.S. Department of Commerce or other government agency regulations relating to Huawei, HiSilicon and other customers or potential customers; the impact of U.S. Department Commerce export control regulations for certain U.S. products and technology sold to military end users or for military end-use in China; the impact of the Israel-Hamas conflict; the impact of regulations published by the U.S. Department of Commerce relating to semiconductors and semiconductor manufacturing equipment destined for certain end uses in China; and other events, factors and risks disclosed in filings with the SEC, including, but not limited to, the “Risk Factors” section of Teradyne’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022 and Quarterly Report on Form 10-Q for the fiscal quarter ended July 2, 2023. The forward-looking statements provided by Teradyne in this press release represent management’s views as of the date of this release. Teradyne anticipates that subsequent events and developments may cause management’s views to change. However, while Teradyne may elect to update these forward-looking statements at some point in the future, Teradyne specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Teradyne’s views as of any date subsequent to the date of this release.


Page 4

 

TERADYNE, INC. REPORT FOR THIRD FISCAL QUARTER OF 2023

 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 

 

 

Quarter Ended

 

 

Nine Months Ended

 

 

 

October 1,
2023

 

 

July 2,
2023

 

 

October 2,
2022

 

 

October 1,
2023

 

 

October 2,
2022

 

Net revenues

 

$

703,732

 

 

$

684,437

 

 

$

827,073

 

 

$

2,005,699

 

 

$

2,423,209

 

Cost of revenues (exclusive of acquired intangible assets amortization shown separately below) (1)

 

 

305,441

 

 

 

281,945

 

 

 

341,694

 

 

 

848,495

 

 

 

976,508

 

Gross profit

 

 

398,291

 

 

 

402,492

 

 

 

485,379

 

 

 

1,157,204

 

 

 

1,446,701

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling and administrative (2)

 

 

138,330

 

 

 

145,695

 

 

 

135,632

 

 

 

434,979

 

 

 

415,351

 

Engineering and development

 

 

104,413

 

 

 

105,706

 

 

 

111,715

 

 

 

315,881

 

 

 

331,781

 

Acquired intangible assets amortization

 

 

4,720

 

 

 

4,825

 

 

 

4,729

 

 

 

14,348

 

 

 

14,663

 

Restructuring and other (3)

 

 

6,856

 

 

 

6,358

 

 

 

1,796

 

 

 

15,251

 

 

 

19,554

 

Operating expenses

 

 

254,319

 

 

 

262,584

 

 

 

253,872

 

 

 

780,459

 

 

 

781,349

 

Income from operations

 

 

143,972

 

 

 

139,908

 

 

 

231,507

 

 

 

376,745

 

 

 

665,352

 

Interest and other (income) expense (4)

 

 

(308

)

 

 

(4,494

)

 

 

5,310

 

 

 

(9,022

)

 

 

20,204

 

Income before income taxes

 

 

144,280

 

 

 

144,402

 

 

 

226,197

 

 

 

385,767

 

 

 

645,148

 

Income tax provision

 

 

16,164

 

 

 

24,352

 

 

 

42,712

 

 

 

54,069

 

 

 

101,948

 

Net income

 

$

128,116

 

 

$

120,050

 

 

$

183,485

 

 

$

331,698

 

 

$

543,200

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.83

 

 

$

0.78

 

 

$

1.17

 

 

$

2.14

 

 

$

3.41

 

Diluted

 

$

0.78

 

 

$

0.73

 

 

$

1.10

 

 

$

2.01

 

 

$

3.17

 

Weighted average common shares - basic

 

 

153,762

 

 

 

154,760

 

 

 

156,364

 

 

 

154,809

 

 

 

159,325

 

Weighted average common shares - diluted (5)

 

 

164,050

 

 

 

164,751

 

 

 

166,733

 

 

 

165,037

 

 

 

171,156

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash dividend declared per common share

 

$

0.11

 

 

$

0.11

 

 

$

0.11

 

 

$

0.33

 

 

$

0.33

 

 

(1)
Cost of revenues includes:

 

 

 

Quarter Ended

 

 

Nine Months Ended

 

 

 

October 1,
2023

 

 

July 2,
2023

 

 

October 2,
2022

 

 

October 1,
2023

 

 

October 2,
2022

 

Provision for excess and obsolete inventory

 

$

11,728

 

 

$

5,731

 

 

$

12,234

 

 

$

23,069

 

 

$

18,929

 

Sale of previously written down inventory

 

 

(1,198

)

 

 

(2,463

)

 

 

(269

)

 

 

(4,046

)

 

 

(980

)

 

$

10,530

 

 

$

3,268

 

 

$

11,965

 

 

$

19,023

 

 

$

17,949

 

 

(2)
For the nine months ended October 1, 2023, selling and administrative expenses included an equity charge of $5.9 million for the modification of Teradyne’s retired CEO’s outstanding equity awards in connection with his February 1, 2023 retirement.
(3)
Restructuring and other consists of:

 

 

 

Quarter Ended

 

 

Nine Months Ended

 

 

 

October 1,
2023

 

 

July 2,
2023

 

 

October 2,
2022

 

 

October 1,
2023

 

 

October 2,
2022

 

Employee severance

 

$

4,658

 

 

$

5,140

 

 

$

1,215

 

 

$

11,835

 

 

$

2,148

 

Contract termination

 

 

1,511

 

 

 

 

 

 

 

 

 

1,511

 

 

$

-

 

Litigation settlement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14,700

 

Acquisition related expenses and compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(201

)

Other

 

 

687

 

 

 

1,218

 

 

 

581

 

 

 

1,905

 

 

 

2,907

 

 

$

6,856

 

 

$

6,358

 

 

$

1,796

 

 

$

15,251

 

 

$

19,554

 

 


Page 5

 

(4)
Interest and other includes:

 

 

 

Quarter Ended

 

 

Nine Months Ended

 

 

 

October 1,
2023

 

 

July 2,
2023

 

 

October 2,
2022

 

 

October 1,
2023

 

 

October 2,
2022

 

Pension actuarial losses

 

$

72

 

 

$

53

 

 

$

 

 

$

125

 

 

$

 

 

(5)
Under GAAP, when calculating diluted earnings per share, convertible debt must be assumed to have converted if the effect on EPS would be dilutive. Diluted shares assume the conversion of the convertible debt as the effect would be dilutive. Accordingly, for the quarters ended October 1, 2023, July 2, 2023 and October 2, 2022, 0.6 million, 0.7 million and 1.5 million shares, respectively, have been included in diluted shares. For the nine months ended October 1, 2023 and October 2, 2022, 0.8 million and 2.0 million shares, respectively, have been included in diluted shares. For the quarters ended October 1, 2023, July 2, 2023 and October 2, 2022, diluted shares also included 9.2 million, 8.9 million and 8.3 million shares, respectively, from the convertible note hedge transaction. For the nine months ended October 1, 2023 and October 2, 2022, diluted shares included 9.0 million and 9.1 million shares, respectively, from the convertible note hedge transaction.

Page 6

 

CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands)

 

 

 

October 1,
2023

 

 

December 31,
2022

 

Assets

 

 

 

 

 

 

Cash and cash equivalents

 

$

636,961

 

 

$

854,773

 

Marketable securities

 

 

79,570

 

 

 

39,612

 

Accounts receivable, net

 

 

455,878

 

 

 

491,145

 

Inventories, net

 

 

322,632

 

 

 

325,019

 

Prepayments

 

 

593,366

 

 

 

532,962

 

Other current assets

 

 

10,952

 

 

 

14,404

 

Total current assets

 

 

2,099,359

 

 

 

2,257,915

 

Property, plant and equipment, net

 

 

436,449

 

 

 

418,683

 

Operating lease right-of-use assets, net

 

 

78,978

 

 

 

73,734

 

Marketable securities

 

 

103,911

 

 

 

110,777

 

Deferred tax assets

 

 

162,669

 

 

 

142,784

 

Retirement plans assets

 

 

11,403

 

 

 

11,761

 

Other assets

 

 

37,581

 

 

 

28,925

 

Acquired intangible assets, net

 

 

39,165

 

 

 

53,478

 

Goodwill

 

 

401,140

 

 

 

403,195

 

Total assets

 

$

3,370,655

 

 

$

3,501,252

 

Liabilities

 

 

 

 

 

 

Accounts payable

 

$

176,117

 

 

$

139,722

 

Accrued employees’ compensation and withholdings

 

 

155,246

 

 

 

212,266

 

Deferred revenue and customer advances

 

 

109,445

 

 

 

148,285

 

Other accrued liabilities

 

 

122,609

 

 

 

112,271

 

Operating lease liabilities

 

 

18,026

 

 

 

18,594

 

Income taxes payable

 

 

35,687

 

 

 

65,010

 

Current debt

 

 

23,529

 

 

 

50,115

 

Total current liabilities

 

 

640,659

 

 

 

746,263

 

Retirement plans liabilities

 

 

123,244

 

 

 

116,005

 

Long-term deferred revenue and customer advances

 

 

34,405

 

 

 

45,131

 

Long-term other accrued liabilities

 

 

17,114

 

 

 

15,981

 

Deferred tax liabilities

 

 

238

 

 

 

3,267

 

Long-term operating lease liabilities

 

 

69,364

 

 

 

64,176

 

Long-term income taxes payable

 

 

44,331

 

 

 

59,135

 

Total liabilities

 

 

929,355

 

 

 

1,049,958

 

Shareholders’ equity

 

 

2,441,300

 

 

 

2,451,294

 

Total liabilities and shareholders’ equity

 

$

3,370,655

 

 

$

3,501,252

 

 


Page 7

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)

 

 

 

Quarter Ended

 

 

Nine Months Ended

 

 

 

October 1,
2023

 

 

October 2,
2022

 

 

October 1,
2023

 

 

October 2,
2022

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

128,116

 

 

$

183,485

 

 

$

331,698

 

 

$

543,200

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation

 

 

23,627

 

 

 

23,442

 

 

 

68,858

 

 

 

67,902

 

Stock-based compensation

 

 

12,787

 

 

 

12,298

 

 

 

45,236

 

 

 

37,420

 

Provision for excess and obsolete inventory

 

 

11,728

 

 

 

12,234

 

 

 

23,069

 

 

 

18,929

 

Amortization

 

 

4,503

 

 

 

4,917

 

 

 

14,083

 

 

 

15,012

 

Deferred taxes

 

 

(10,455

)

 

 

(4,776

)

 

 

(24,026

)

 

 

(28,373

)

Losses (gains) on investments

 

 

1,586

 

 

 

2,463

 

 

 

(3,159

)

 

 

11,436

 

Other

 

 

80

 

 

 

218

 

 

 

(13

)

 

 

740

 

Changes in operating assets and liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

 

32,884

 

 

 

150,632

 

 

 

30,191

 

 

 

4,248

 

Inventories

 

 

20,240

 

 

 

(22,135

)

 

 

6,395

 

 

 

(68,817

)

Prepayments and other assets

 

 

(34,398

)

 

 

420

 

 

 

(63,982

)

 

 

(94,331

)

Accounts payable and other liabilities

 

 

28,513

 

 

 

(28,071

)

 

 

3,999

 

 

 

(71,682

)

Deferred revenue and customer advances

 

 

(14,579

)

 

 

(20,059

)

 

 

(49,517

)

 

 

(5,896

)

Retirement plans contributions

 

 

(1,216

)

 

 

(1,279

)

 

 

(3,698

)

 

 

(3,897

)

Income taxes

 

 

(29,069

)

 

 

(42,185

)

 

 

(42,683

)

 

 

(31,370

)

Net cash provided by operating activities

 

 

174,347

 

 

 

271,604

 

 

 

336,451

 

 

 

394,521

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

Purchases of property, plant and equipment

 

 

(34,604

)

 

 

(38,929

)

 

 

(115,306

)

 

 

(128,672

)

Purchases of marketable securities

 

 

(38,768

)

 

 

(19,294

)

 

 

(137,786

)

 

 

(267,175

)

Issuance of convertible loan

 

 

(5,000

)

 

 

 

 

 

(5,000

)

 

 

 

Proceeds from maturities of marketable securities

 

 

49,450

 

 

 

42,440

 

 

 

71,447

 

 

 

182,092

 

Proceeds from sales of marketable securities

 

 

1,386

 

 

 

115,558

 

 

 

36,963

 

 

 

259,200

 

Proceeds from life insurance

 

 

 

 

 

 

 

 

460

 

 

 

 

Net cash (used for) provided by investing activities

 

 

(27,536

)

 

 

99,775

 

 

 

(149,222

)

 

 

45,445

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

Repurchase of common stock

 

 

(118,647

)

 

 

(217,201

)

 

 

(346,492

)

 

 

(750,000

)

Dividend payments

 

 

(16,897

)

 

 

(17,136

)

 

 

(51,081

)

 

 

(52,578

)

Payments of convertible debt principal

 

 

(9,277

)

 

 

(9,713

)

 

 

(26,735

)

 

 

(52,005

)

Payments related to net settlement of employee stock compensation awards

 

 

(278

)

 

 

(207

)

 

 

(20,586

)

 

 

(32,987

)

Issuance of common stock under stock purchase and stock option plans

 

 

17,485

 

 

 

12,197

 

 

 

34,084

 

 

 

28,733

 

Net cash used for financing activities

 

 

(127,614

)

 

 

(232,060

)

 

 

(410,810

)

 

 

(858,837

)

Effects of exchange rate changes on cash and cash equivalents

 

 

4,556

 

 

 

(596

)

 

 

5,769

 

 

 

7,418

 

Increase (decrease) in cash and cash equivalents

 

 

23,753

 

 

 

138,723

 

 

 

(217,812

)

 

 

(411,453

)

Cash and cash equivalents at beginning of period

 

 

613,208

 

 

 

572,023

 

 

 

854,773

 

 

 

1,122,199

 

Cash and cash equivalents at end of period

 

$

636,961

 

 

$

710,746

 

 

$

636,961

 

 

$

710,746

 

 


Page 8

 

GAAP to Non-GAAP Earnings Reconciliation

(In millions, except per share amounts)

 

 

Quarter Ended

 

 

 

 

 

 

October 1,
2023

 

 

% of Net Revenues

 

 

 

 

 

 

July 2,
2023

 

 

% of Net Revenues

 

 

 

 

 

 

October 2,
2022

 

 

% of Net Revenues

 

 

 

 

 

Net revenues

$

703.7

 

 

 

 

 

 

 

 

 

$

684.4

 

 

 

 

 

 

 

 

 

$

827.1

 

 

 

 

 

 

 

 

Gross profit GAAP and non-GAAP

 

398.3

 

 

 

56.6

%

 

 

 

 

 

 

402.5

 

 

 

58.8

%

 

 

 

 

 

 

485.4

 

 

 

58.7

%

 

 

 

 

Income from operations - GAAP

 

144.0

 

 

 

20.5

%

 

 

 

 

 

 

139.9

 

 

 

20.4

%

 

 

 

 

 

 

231.5

 

 

 

28.0

%

 

 

 

 

Restructuring and other (1)

 

6.9

 

 

 

1.0

%

 

 

 

 

 

 

6.4

 

 

 

0.9

%

 

 

 

 

 

 

1.8

 

 

 

0.2

%

 

 

 

 

Acquired intangible assets amortization

 

4.7

 

 

 

0.7

%

 

 

 

 

 

 

4.8

 

 

 

0.7

%

 

 

 

 

 

 

4.7

 

 

 

0.6

%

 

 

 

 

Income from operations - non-GAAP

$

155.6

 

 

 

22.1

%

 

 

 

 

 

$

151.1

 

 

 

22.1

%

 

 

 

 

 

$

238.0

 

 

 

28.8

%

 

 

 

 

 

 

 

 

 

 

 

 

Net Income
per Common Share

 

 

 

 

 

 

 

 

Net Income
per Common Share

 

 

 

 

 

 

 

 

Net Income
per Common Share

 

 

October 1,
2023

 

 

% of Net Revenues

 

 

Basic

 

 

Diluted

 

 

July 2,
2023

 

 

% of Net Revenues

 

 

Basic

 

 

Diluted

 

 

October 2,
2022

 

 

% of Net Revenues

 

 

Basic

 

 

Diluted

 

Net income - GAAP

$

128.1

 

 

 

18.2

%

 

$

0.83

 

 

$

0.78

 

 

$

120.1

 

 

 

17.5

%

 

$

0.78

 

 

$

0.73

 

 

$

183.5

 

 

 

22.2

%

 

$

1.17

 

 

$

1.10

 

Restructuring and other (1)

 

6.9

 

 

 

1.0

%

 

 

0.04

 

 

 

0.04

 

 

 

6.4

 

 

 

0.9

%

 

 

0.04

 

 

 

0.04

 

 

 

1.8

 

 

 

0.2

%

 

 

0.01

 

 

 

0.01

 

Acquired intangible assets amortization

 

4.7

 

 

 

0.7

%

 

 

0.03

 

 

 

0.03

 

 

 

4.8

 

 

 

0.7

%

 

 

0.03

 

 

 

0.03

 

 

 

4.7

 

 

 

0.6

%

 

 

0.03

 

 

 

0.03

 

Pension mark-to-market adjustment (2)

 

0.1

 

 

 

0.0

%

 

 

0.00

 

 

 

0.00

 

 

 

0.1

 

 

 

0

 

 

 

0

 

 

 

0

 

 

 

 

 

 

 

 

 

 

 

 

 

Exclude discrete tax adjustments

 

(4.8

)

 

 

-0.7

%

 

 

(0.03

)

 

 

(0.03

)

 

 

0.5

 

 

 

0.1

%

 

 

0.00

 

 

 

0.00

 

 

 

(0.5

)

 

 

-0.1

%

 

 

(0.00

)

 

 

(0.00

)

Non-GAAP tax adjustments

 

(3.5

)

 

 

-0.5

%

 

 

(0.02

)

 

 

(0.02

)

 

 

(2.9

)

 

 

-0.4

%

 

 

(0.02

)

 

 

(0.02

)

 

 

(0.3

)

 

 

0.0

%

 

 

(0.00

)

 

 

(0.00

)

Convertible share adjustment (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.01

 

Net income - non-GAAP

$

131.5

 

 

 

18.7

%

 

$

0.86

 

 

$

0.80

 

 

$