- Q2’19 GAAP earnings per share grew 6% and Non-GAAP earnings per share grew 12% from Q2’18
- Semiconductor Test revenue up 4% from Q2’18
- Industrial Automation revenue up 20% from Q2’18
Q2’19 | Q2’18 | Q1’19 | |||
Revenue (mil) | $564 | $527 | $494 | ||
GAAP EPS | $0.55 | $0.52 | $0.62 | ||
Non-GAAP EPS | $0.66 | $0.59 | $0.54 | ||
========================================== | |||||
“We exceeded our revenue and profit guidance for the second quarter on stronger than expected results in semiconductor test as continued growth in 5G infrastructure, networking and memory test spending more than offset lower demand from automotive and industrial device makers,” said
Guidance for the third quarter of 2019 is revenue of
Webcast
A conference call to discuss the second quarter results, along with management's business outlook, will follow at
Non-GAAP Results
In addition to disclosing results that are determined in accordance with GAAP,
About Teradyne
Safe Harbor Statement
This release contains forward-looking statements regarding Teradyne’s future business prospects, results of operations, market conditions, earnings per share, the payment of a quarterly dividend, the repurchase of
TERADYNE, INC. REPORT FOR SECOND FISCAL QUARTER OF 2019 | |||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||||
(In thousands, except per share amounts) | |||||||||||||||||||||
Quarter Ended | Six Months Ended | ||||||||||||||||||||
June 30, 2019 | March 31, 2019 | July 1, 2018 | June 30, 2019 | July 1, 2018 | |||||||||||||||||
Net revenues | $ | 564,178 | $ | 494,099 | $ | 526,929 | $ | 1,058,277 | $ | 1,014,396 | |||||||||||
Cost of revenues (exclusive of acquired intangible assets amortization shown separately below) (1) | 240,260 | 206,464 | 219,595 | 446,724 | 437,230 | ||||||||||||||||
Gross profit | 323,918 | 287,635 | 307,334 | 611,553 | 577,166 | ||||||||||||||||
Operating expenses: | |||||||||||||||||||||
Selling and administrative | 108,811 | 102,013 | 99,410 | 210,824 | 189,916 | ||||||||||||||||
Engineering and development | 81,434 | 76,791 | 75,342 | 158,225 | 149,750 | ||||||||||||||||
Acquired intangible assets amortization | 10,083 | 10,634 | 9,793 | 20,717 | 17,491 | ||||||||||||||||
Restructuring and other (2) | (10,404 | ) | 5,112 | 2,389 | (5,292 | ) | 2,076 | ||||||||||||||
Operating expenses | 189,924 | 194,550 | 186,934 | 384,474 | 359,233 | ||||||||||||||||
Income from operations | 133,994 | 93,085 | 120,400 | 227,079 | 217,933 | ||||||||||||||||
Interest and other (income) expense (3) | 2,817 | (894 | ) | 388 | 1,923 | 2,102 | |||||||||||||||
Income before income taxes | 131,177 | 93,979 | 120,012 | 225,156 | 215,831 | ||||||||||||||||
Income tax provision (benefit) (4) | 33,780 | (15,159 | ) | 18,975 | 18,621 | 27,821 | |||||||||||||||
Net income | $ | 97,397 | $ | 109,138 | $ | 101,037 | $ | 206,535 | $ | 188,010 | |||||||||||
Net income per common share: | |||||||||||||||||||||
Basic | $ | 0.57 | $ | 0.63 | $ | 0.53 | $ | 1.20 | $ | 0.97 | |||||||||||
Diluted | $ | 0.55 | $ | 0.62 | $ | 0.52 | $ | 1.16 | $ | 0.94 | |||||||||||
Weighted average common shares - basic | 171,241 | 173,532 | 190,730 | 172,387 | 192,992 | ||||||||||||||||
Weighted average common shares - diluted (5) | 178,590 | 176,972 | 194,909 | 177,781 | 199,197 | ||||||||||||||||
Cash dividend declared per common share | $ | 0.09 | $ | 0.09 | $ | 0.09 | $ | 0.18 | $ | 0.18 | |||||||||||
(1) | Cost of revenues includes: | Quarter Ended | Six Months Ended | ||||||||||||||||||
June 30, 2019 | March 31, 2019 | July 1, 2018 | June 30, 2019 | July 1, 2018 | |||||||||||||||||
Provision for excess and obsolete inventory | $ | 3,402 | $ | 2,397 | $ | 2,653 | $ | 5,799 | $ | 6,175 | |||||||||||
Sale of previously written down inventory | (363 | ) | (778 | ) | (1,922 | ) | (1,141 | ) | (4,165 | ) | |||||||||||
Inventory step-up | 383 | - | 372 | 383 | 372 | ||||||||||||||||
$ | 3,422 | $ | 1,619 | $ | 1,103 | $ | 5,041 | $ | 2,382 | ||||||||||||
(2) | Restructuring and other consists of: | Quarter Ended | Six Months Ended | ||||||||||||||||||
June 30, 2019 | March 31, 2019 | July 1, 2018 | June 30, 2019 | July 1, 2018 | |||||||||||||||||
Contingent consideration fair value adjustment | $ | (11,671 | ) | $ | 2,970 | $ | (3,500 | ) | $ | (8,701 | ) | $ | (8,468 | ) | |||||||
Employee severance | 803 | 799 | 2,398 | 1,602 | 6,279 | ||||||||||||||||
Acquisition related expenses and compensation | 464 | 1,343 | 2,544 | 1,807 | 3,318 | ||||||||||||||||
Other | - | - | 947 | - | 947 | ||||||||||||||||
$ | (10,404 | ) | $ | 5,112 | $ | 2,389 | $ | (5,292 | ) | $ | 2,076 | ||||||||||
(3) | Interest and other includes: | Quarter Ended | Six Months Ended | ||||||||||||||||||
June 30, 2019 | March 31, 2019 | July 1, 2018 | June 30, 2019 | July 1, 2018 | |||||||||||||||||
Non-cash convertible debt interest | $ | 3,410 | $ | 3,368 | $ | 3,245 | $ | 6,778 | $ | 6,451 | |||||||||||
Pension actuarial loss (gain) | 448 | - | (71 | ) | 448 | (71 | ) | ||||||||||||||
$ | 3,858 | $ | 3,368 | $ | 3,174 | $ | 7,226 | $ | 6,380 | ||||||||||||
(4) | For the quarter ended June 30, 2019, income tax provision (benefit) includes a $15 million tax provision related to the finalization of our toll tax charge. For the quarter ended March 31, 2019, income tax provision (benefit) includes a $26 million tax benefit from the release of uncertain tax position reserves due to the IRS completion of its audit of Teradyne's 2015 Federal tax return. | ||||||||||||||||||||
(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 June 30, 2019, March 31, 2019 and July 1, 2018, 4.4 million, 2.2 million and 2.6 million shares, respectively, have been included in diluted shares. For the six months ended June 30, 2019 and July 1, 2018, 3.3 million and 3.5 million shares, respectively, have been included in diluted shares. For the three months ended June 30, 2019, diluted shares also included 1.8 million shares from the convertible note hedge transaction. For the six months ended June 30, 2019 and July 1, 2018, diluted shares included 0.9 million shares from the convertible note hedge transaction. | ||||||||||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) | |||||||||||||||||||||
June 30, 2019 | December 31, 2018 | ||||||||||||||||||||
Assets | |||||||||||||||||||||
Cash and cash equivalents | $ | 495,107 | $ | 926,752 | |||||||||||||||||
Marketable securities | 400,227 | 190,096 | |||||||||||||||||||
Accounts receivable, net | 372,199 | 291,267 | |||||||||||||||||||
Inventories, net | 164,461 | 153,541 | |||||||||||||||||||
Prepayments and other current assets | 184,832 | 170,826 | |||||||||||||||||||
Total current assets | 1,616,826 | 1,732,482 | |||||||||||||||||||
Property, plant and equipment, net | 295,895 | 279,821 | |||||||||||||||||||
Operating lease right-of-use assets, net | 56,315 | - | |||||||||||||||||||
Marketable securities | 99,001 | 87,731 | |||||||||||||||||||
Deferred tax assets | 67,886 | 70,848 | |||||||||||||||||||
Other assets | 25,712 | 11,509 | |||||||||||||||||||
Retirement plans assets | 16,449 | 16,883 | |||||||||||||||||||
Acquired intangible assets, net | 109,494 | 125,482 | |||||||||||||||||||
Goodwill | 383,936 | 381,850 | |||||||||||||||||||
Total assets | $ | 2,671,514 | $ | 2,706,606 | |||||||||||||||||
Liabilities | |||||||||||||||||||||
Accounts payable | $ | 103,449 | $ | 100,688 | |||||||||||||||||
Accrued employees' compensation and withholdings | 121,940 | 148,566 | |||||||||||||||||||
Deferred revenue and customer advances | 89,837 | 77,711 | |||||||||||||||||||
Other accrued liabilities | 77,053 | 78,272 | |||||||||||||||||||
Operating lease liabilities | 18,041 | - | |||||||||||||||||||
Contingent consideration | 11,753 | 34,865 | |||||||||||||||||||
Income taxes payable | 44,927 | 36,185 | |||||||||||||||||||
Total current liabilities | 467,000 | 476,287 | |||||||||||||||||||
Retirement plans liabilities | 122,596 | 117,456 | |||||||||||||||||||
Long-term deferred revenue and customer advances | 37,365 | 32,750 | |||||||||||||||||||
Deferred tax liabilities | 17,800 | 20,662 | |||||||||||||||||||
Long-term other accrued liabilities | 9,660 | 37,547 | |||||||||||||||||||
Long-term contingent consideration | 15,094 | 35,678 | |||||||||||||||||||
Long-term operating lease liabilities | 46,460 | - | |||||||||||||||||||
Long-term income taxes payable | 88,884 | 83,891 | |||||||||||||||||||
Long-term debt | 387,243 | 379,981 | |||||||||||||||||||
Total liabilities | 1,192,102 | 1,184,252 | |||||||||||||||||||
Shareholders' equity | 1,479,412 | 1,522,354 | |||||||||||||||||||
Total liabilities and shareholders' equity | $ | 2,671,514 | $ | 2,706,606 | |||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) | |||||||||||||||||||||
Quarter Ended | Six Months Ended | ||||||||||||||||||||
June 30, 2019 | July 1, 2018 | June 30, 2019 | July 1, 2018 | ||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||
Net income | $ | 97,397 | $ | 101,037 | $ | 206,535 | $ | 188,010 | |||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||||||
Depreciation | 17,231 | 16,820 | 33,882 | 33,156 | |||||||||||||||||
Amortization | 12,034 | 10,973 | 24,976 | 20,177 | |||||||||||||||||
Deferred taxes | (691 | ) | 8,616 | 515 | 17,312 | ||||||||||||||||
Stock-based compensation | 8,635 | 8,081 | 18,109 | 17,625 | |||||||||||||||||
Provision for excess and obsolete inventory | 3,402 | 2,653 | 5,799 | 6,175 | |||||||||||||||||
Contingent consideration fair value adjustment | (11,671 | ) | (3,500 | ) | (8,701 | ) | (8,468 | ) | |||||||||||||
Retirement plan actuarial loss (gain) | 448 | (71 | ) | 448 | (71 | ) | |||||||||||||||
(Gains) losses on marketable securities | (913 | ) | (479 | ) | (3,741 | ) | 762 | ||||||||||||||
Other | 210 | 254 | 429 | 406 | |||||||||||||||||
Changes in operating assets and liabilities, net of businesses acquired: | |||||||||||||||||||||
Accounts receivable | (37,772 | ) | (40,332 | ) | (79,478 | ) | (179,403 | ) | |||||||||||||
Inventories | 470 | (266 | ) | (2,447 | ) | (21,283 | ) | ||||||||||||||
Prepayments and other assets | 1,581 | 2,320 | (17,067 | ) | 1,641 | ||||||||||||||||
Accounts payable and accrued expenses | 38,887 | 38,551 | (14,436 | ) | (8,155 | ) | |||||||||||||||
Deferred revenue and customer advances | 9,371 | 874 | 15,826 | 10,518 | |||||||||||||||||
Retirement plans contributions | (1,204 | ) | (1,153 | ) | (2,414 | ) | (2,173 | ) | |||||||||||||
Income taxes | 7,831 | (14,203 | ) | (14,973 | ) | (26,308 | ) | ||||||||||||||
Net cash provided by operating activities | 145,246 | 130,175 | 163,262 | 49,921 | |||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||
Purchases of property, plant and equipment | (33,245 | ) | (27,866 | ) | (58,956 | ) | (62,663 | ) | |||||||||||||
Purchases of marketable securities | (108,997 | ) | (156,747 | ) | (484,181 | ) | (647,071 | ) | |||||||||||||
Proceeds from sales of marketable securities | 37,014 | 28,382 | 42,454 | 829,053 | |||||||||||||||||
Proceeds from maturities of marketable securities | 91,992 | 257,164 | 233,193 | 469,862 | |||||||||||||||||
Proceeds from life insurance | - | - | 273 | - | |||||||||||||||||
Purchase of investments and acquisition of businesses, net of cash acquired | (15,000 | ) | (145,276 | ) | (21,970 | ) | (170,632 | ) | |||||||||||||
Net cash (used for) provided by investing activities | (28,236 | ) | (44,343 | ) | (289,187 | ) | 418,549 | ||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||
Issuance of common stock under stock purchase and stock option plans | 833 | 27 | 15,101 | 10,681 | |||||||||||||||||
Repurchase of common stock | (90,754 | ) | (226,519 | ) | (247,222 | ) | (360,795 | ) | |||||||||||||
Dividend payments | (15,392 | ) | (17,094 | ) | (31,019 | ) | (34,682 | ) | |||||||||||||
Payment related to net settlement of employee stock compensation awards | (128 | ) | (122 | ) | (14,446 | ) | (19,751 | ) | |||||||||||||
Payment of contingent consideration | - | - | (27,615 | ) | (13,571 | ) | |||||||||||||||
Net cash used for financing activities | (105,441 | ) | (243,708 | ) | (305,201 | ) | (418,118 | ) | |||||||||||||
Effects of exchange rate changes on cash and cash equivalents | (190 | ) | 387 | (519 | ) | 189 | |||||||||||||||
Increase (decrease) in cash and cash equivalents | 11,379 | (157,489 | ) | (431,645 | ) | 50,541 | |||||||||||||||
Cash and cash equivalents at beginning of period | 483,728 | 637,873 | 926,752 | 429,843 | |||||||||||||||||
Cash and cash equivalents at end of period | $ | 495,107 | $ | 480,384 | $ | 495,107 | $ | 480,384 | |||||||||||||
GAAP to Non-GAAP Earnings Reconciliation | |||||||||||||||||||||||||||||||||||||||||||||||
(In millions, except per share amounts) | |||||||||||||||||||||||||||||||||||||||||||||||
Quarter Ended | |||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2019 |
% of Net Revenues |
March 31, 2019 |
% of Net Revenues |
July 1, 2018 |
% of Net Revenues |
||||||||||||||||||||||||||||||||||||||||||
Net revenues | $ | 564.2 | $ | 494.1 | $ | 526.9 | |||||||||||||||||||||||||||||||||||||||||
Gross profit GAAP | $ | 323.9 | 57.4 | % | $ | 287.6 | 58.2 | % | $ | 307.3 | 58.3 | % | |||||||||||||||||||||||||||||||||||
Inventory step-up | 0.4 | 0.1 | % | - | - | 0.4 | 0.1 | % | |||||||||||||||||||||||||||||||||||||||
Gross profit non-GAAP | $ | 324.3 | 57.5 | % | $ | 287.6 | 58.2 | % | $ | 307.7 | 58.4 | % | |||||||||||||||||||||||||||||||||||
Income from operations - GAAP | $ | 134.0 | 23.8 | % | $ | 93.1 | 18.8 | % | $ | 120.4 | 22.9 | % | |||||||||||||||||||||||||||||||||||
Acquired intangible assets amortization | 10.1 | 1.8 | % | 10.6 | 2.1 | % | 9.8 | 1.9 | % | ||||||||||||||||||||||||||||||||||||||
Restructuring and other (1) | (10.4 | ) | -1.8 | % | 5.1 | 1.0 | % | 2.4 | 0.5 | % | |||||||||||||||||||||||||||||||||||||
Inventory step-up | 0.4 | 0.1 | % | - | - | 0.4 | 0.1 | % | |||||||||||||||||||||||||||||||||||||||
Income from operations - non-GAAP | $ | 134.1 | 23.8 | % | $ | 108.8 | 22.0 | % | $ | 133.0 | 25.2 | % | |||||||||||||||||||||||||||||||||||
Net Income per Common Share |
Net Income per Common Share |
Net Income per Common Share |
|||||||||||||||||||||||||||||||||||||||||||||
June 30, 2019 |
% of Net Revenues |
Basic | Diluted | March 31, 2019 |
% of Net Revenues |
Basic | Diluted | July 1, 2018 |
% of Net Revenues |
Basic | Diluted | ||||||||||||||||||||||||||||||||||||
Net income - GAAP | $ | 97.4 | 17.3 | % | $ | 0.57 | $ | 0.55 | $ | 109.1 | 22.1 | % | $ | 0.63 | $ | 0.62 | $ | 101.0 | 19.2 | % | $ | 0.53 | $ | 0.52 | |||||||||||||||||||||||
Acquired intangible assets amortization | 10.1 | 1.8 | % | 0.06 | 0.06 | 10.6 | 2.1 | % | 0.06 | 0.06 | 9.8 | 1.9 | % | 0.05 | 0.05 | ||||||||||||||||||||||||||||||||
Interest and other (2) | 3.4 | 0.6 | % | 0.02 | 0.02 | 3.4 | 0.7 | % | 0.02 | 0.02 | 3.2 | 0.6 | % | 0.02 | 0.02 | ||||||||||||||||||||||||||||||||
Restructuring and other (1) | (10.4 | ) | -1.8 | % | (0.06 | ) | (0.06 | ) | 5.1 | 1.0 | % | 0.03 | 0.03 | 2.4 | 0.5 | % | 0.01 | 0.01 | |||||||||||||||||||||||||||||
Pension mark-to-market adjustment (2) | 0.4 | 0.1 | % | 0.00 | 0.00 | - | - | - | - | (0.1 | ) | 0.0 | % | (0.00 | ) | (0.00 | ) | ||||||||||||||||||||||||||||||
Inventory step-up | 0.4 | 0.1 | % | 0.00 | 0.00 | - | - | - | - | 0.4 | 0.1 | % | 0.00 | 0.00 | |||||||||||||||||||||||||||||||||
Exclude discrete tax adjustments (3) | 13.9 | 2.5 | % | 0.08 | 0.08 | (30.1 | ) | -6.1 | % | (0.17 | ) | (0.17 | ) | (0.5 | ) | -0.1 | % | (0.00 | ) | (0.00 | ) | ||||||||||||||||||||||||||
Non-GAAP tax adjustments | (2.0 | ) | -0.4 | % | (0.01 | ) | (0.01 | ) | (3.5 | ) | -0.7 | % | (0.02 | ) | (0.02 | ) | (3.4 | ) | -0.6 | % | (0.02 | ) | (0.02 | ) | |||||||||||||||||||||||
Convertible share adjustment | - | - | - | 0.02 | - | - | - | - | - | - | - | 0.01 | |||||||||||||||||||||||||||||||||||
Net income - non-GAAP | $ | 113.2 | 20.1 | % | $ | 0.66 | $ | 0.66 | $ | 94.6 | 19.1 | % | $ | 0.55 | $ | 0.54 | $ | 112.8 | 21.4 | % | $ | 0.59 | $ | 0.59 | |||||||||||||||||||||||
GAAP and non-GAAP weighted average common shares - basic | 171.2 | 173.5 | 190.7 | ||||||||||||||||||||||||||||||||||||||||||||
GAAP weighted average common shares - diluted | 178.6 | 177.0 | 194.9 | ||||||||||||||||||||||||||||||||||||||||||||
Exclude dilutive shares related to convertible note transaction | (6.2 | ) | (2.2 | ) | (2.6 | ) | |||||||||||||||||||||||||||||||||||||||||
Non-GAAP weighted average common shares - diluted | 172.4 | 174.8 | 192.3 | ||||||||||||||||||||||||||||||||||||||||||||
(1) | Restructuring and other consists of: | ||||||||||||||||||||||||||||||||||||||||||||||
Quarter Ended | |||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2019 |
March 31, 2019 |
July 1, 2018 |
|||||||||||||||||||||||||||||||||||||||||||||
Contingent consideration fair value adjustment | $ | (11.7 | ) | $ | 3.0 | $ | (3.5 | ) | |||||||||||||||||||||||||||||||||||||||
Acquisition related expenses and compensation | 0.5 | 1.3 | 2.5 | ||||||||||||||||||||||||||||||||||||||||||||
Employee severance | 0.8 | 0.8 | 2.4 | ||||||||||||||||||||||||||||||||||||||||||||
Other | - | - | 0.9 | ||||||||||||||||||||||||||||||||||||||||||||
$ | (10.4 | ) | $ | 5.1 | $ | 2.4 | |||||||||||||||||||||||||||||||||||||||||
(2) | For the quarters ended June 30, 2019, March 31, 2019, and July 1, 2018, adjustment to exclude non-cash convertible debt interest expense. For the quarters ended June 30, 2019 and July 1, 2018, adjustment to exclude actuarial loss (gain) recognized under GAAP in accordance with Teradyne's mark-to-market pension accounting. | ||||||||||||||||||||||||||||||||||||||||||||||
(3) | For the quarters ended June 30, 2019, March 31, 2019, and July 1, 2018, adjustment to exclude discrete income tax items. For the quarter ended June 30, 2019, income tax (benefit) provision includes a $15 million tax provision related to the finalization of our toll tax charge. For the quarter ended March 31, 2019, income tax (benefit) provision includes a $26 million tax benefit from the release of uncertain tax position reserves due to the IRS completion of its audit of Teradyne's 2015 Federal tax return. | ||||||||||||||||||||||||||||||||||||||||||||||
Six Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2019 |
% of Net Revenues |
July 1, 2018 |
% of Net Revenues |
||||||||||||||||||||||||||||||||||||||||||||
Net Revenues | $ | 1,058.3 | $ | 1,014.4 | |||||||||||||||||||||||||||||||||||||||||||
Gross profit GAAP | $ | 611.6 | 57.8 | % | $ | 577.2 | 56.9 | % | |||||||||||||||||||||||||||||||||||||||
Inventory step-up | 0.4 | 0.0 | % | 0.4 | 0.0 | % | |||||||||||||||||||||||||||||||||||||||||
Gross profit non-GAAP | $ | 612.0 | 57.8 | % | $ | 577.6 | 56.9 | % | |||||||||||||||||||||||||||||||||||||||
Income from operations - GAAP | $ | 227.1 | 21.5 | % | $ | 217.9 | 21.5 | % | |||||||||||||||||||||||||||||||||||||||
Acquired intangible assets amortization | 20.7 | 2.0 | % | 17.5 | 1.7 | % | |||||||||||||||||||||||||||||||||||||||||
Restructuring and other (1) | (5.3 | ) | -0.5 | % | 2.1 | 0.2 | % | ||||||||||||||||||||||||||||||||||||||||
Inventory step-up | 0.4 | 0.0 | % | 0.4 | 0.0 | % | |||||||||||||||||||||||||||||||||||||||||
Income from operations - non-GAAP | $ | 242.9 | 23.0 | % | $ | 237.9 | 23.5 | % | |||||||||||||||||||||||||||||||||||||||
Net Income per Common Share |
Net Income per Common Share |
||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2019 |
% of Net Revenues |
Basic | Diluted | July 1, 2018 |
% of Net Revenues |
Basic | Diluted | ||||||||||||||||||||||||||||||||||||||||
Net income - GAAP | $ | 206.5 | 19.5 | % | $ | 1.20 | $ | 1.16 | $ | 188.0 | 18.5 | % | $ | 0.97 | $ | 0.94 | |||||||||||||||||||||||||||||||
Acquired intangible assets amortization | 20.7 | 2.0 | % | 0.12 | 0.12 | 17.5 | 1.7 | % | 0.09 | 0.09 | |||||||||||||||||||||||||||||||||||||
Interest and other (2) | 6.8 | 0.6 | % | 0.04 | 0.04 | 6.5 | 0.6 | % | 0.03 | 0.03 | |||||||||||||||||||||||||||||||||||||
Restructuring and other (1) | (5.3 | ) | -0.5 | % | (0.03 | ) | (0.03 | ) | 2.1 | 0.2 | % | 0.01 | 0.01 | ||||||||||||||||||||||||||||||||||
Inventory step-up | 0.4 | 0.0 | % | 0.00 | 0.00 | 0.4 | 0.0 | % | 0.00 | 0.00 | |||||||||||||||||||||||||||||||||||||
Pension mark-to-market adjustment (2) | 0.4 | 0.0 | % | 0.00 | 0.00 | (0.1 | ) | 0.0 | % | (0.00 | ) | (0.00 | ) | ||||||||||||||||||||||||||||||||||
Exclude discrete tax adjustments (3) | (16.2 | ) | -1.5 | % | (0.09 | ) | (0.09 | ) | (6.8 | ) | -0.7 | % | (0.04 | ) | (0.03 | ) | |||||||||||||||||||||||||||||||
Non-GAAP tax adjustments | (5.5 | ) | -0.5 | % | (0.03 | ) | (0.03 | ) | (5.3 | ) | -0.5 | % | (0.03 | ) | (0.03 | ) | |||||||||||||||||||||||||||||||
Convertible share adjustment | - | - | - | 0.03 | - | - | - | 0.02 | |||||||||||||||||||||||||||||||||||||||
Net income - non-GAAP | $ | 207.8 | 19.6 | % | $ | 1.21 | $ | 1.20 | $ | 202.3 | 19.9 | % | $ | 1.05 | $ | 1.04 | |||||||||||||||||||||||||||||||
GAAP and non-GAAP weighted average common shares - basic | 172.4 | 193.0 | |||||||||||||||||||||||||||||||||||||||||||||
GAAP weighted average common shares - diluted | 177.8 | 199.2 | |||||||||||||||||||||||||||||||||||||||||||||
Exclude dilutive shares from convertible note | (4.2 | ) | (4.4 | ) | |||||||||||||||||||||||||||||||||||||||||||
Non-GAAP weighted average common shares - diluted | 173.6 | 194.8 | |||||||||||||||||||||||||||||||||||||||||||||
(1) | Restructuring and other consists of: | ||||||||||||||||||||||||||||||||||||||||||||||
Six Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2019 |
July 1, 2018 |
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Contingent consideration fair value adjustment | $ | (8.7 | ) | $ | (8.5 | ) | |||||||||||||||||||||||||||||||||||||||||
Acquisition related expenses and compensation | 1.8 | 3.3 | |||||||||||||||||||||||||||||||||||||||||||||
Employee severance | 1.6 | 6.3 | |||||||||||||||||||||||||||||||||||||||||||||
Other | - | 0.9 | |||||||||||||||||||||||||||||||||||||||||||||
$ | (5.3 | ) | $ | 2.1 | |||||||||||||||||||||||||||||||||||||||||||
(2) | For the six months ended June 30, 2019 and July 1, 2018, interest and other included non-cash convertible debt interest expense. For the six months ended June 30, 2019 and July 1, 2018, adjustments to exclude actuarial loss (gain) recognized under GAAP in accordance with Teradyne's mark-to-market pension accounting. | ||||||||||||||||||||||||||||||||||||||||||||||
(3) | For the six months ended June 30, 2019 and July 1, 2018, adjustment to exclude discrete income tax items. For the six months ended June 30, 2019, income tax (benefit) provision includes a $26 million tax benefit from the release of uncertain tax position reserves due to the IRS completion of its audit of Teradyne's 2015 Federal tax return and includes a $15 million tax provision related to the finalization of our toll tax charge. | ||||||||||||||||||||||||||||||||||||||||||||||
GAAP to Non-GAAP Reconciliation of Third Quarter 2019 guidance: | |||||||||||||||||||||||||||||||||||||||||||||||
GAAP and non-GAAP third quarter revenue guidance: |
$540 million |
to | $580 million |
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GAAP net income per diluted share | $ | 0.53 | $ | 0.63 | |||||||||||||||||||||||||||||||||||||||||||
Exclude acquired intangible assets amortization | 0.06 | 0.06 | |||||||||||||||||||||||||||||||||||||||||||||
Exclude non-cash convertible debt interest | 0.02 | 0.02 | |||||||||||||||||||||||||||||||||||||||||||||
Exclude restructuring and other | 0.01 | 0.01 | |||||||||||||||||||||||||||||||||||||||||||||
Tax effect of non-GAAP adjustments | (0.01 | ) | (0.01 | ) | |||||||||||||||||||||||||||||||||||||||||||
Convertible share adjustment | 0.02 | 0.02 | |||||||||||||||||||||||||||||||||||||||||||||
Non-GAAP net income per diluted share | $ | 0.64 | $ | 0.74 | |||||||||||||||||||||||||||||||||||||||||||
For press releases and other information of interest to investors, please visit teradyne.com. | |||||||||||||||||||||||||||||||||||||||||||||||
Contact: Teradyne, Inc. | |||||||||||||||||||||||||||||||||||||||||||||||
Andy Blanchard, 978-370-2425 | |||||||||||||||||||||||||||||||||||||||||||||||
Vice President of Corporate Relations | |||||||||||||||||||||||||||||||||||||||||||||||
Source: Teradyne, Inc.