Teradyne Reports Record Fourth Quarter Orders, Fiscal Year 2016 Results, and Increase in Quarterly Dividend

• Q4’16 Orders up 66% from Q3’16, driven by strong mobility test demand
• Full year 2016 sales up 7%
• Universal Robots 2016 sales up 62% from calendar 2015 sales
• Quarterly dividend increased 17% to $0.07 beginning Q1’17

NORTH READING, Mass.--(BUSINESS WIRE)-- Teradyne, Inc. (NYSE: TER):

			Q4'16			Q4'15			Q3'16			FY 2016			FY 2015
Orders (mil)			$628			$522			$378			$1,867			$1,856
Revenue (mil)			$380			$318			$410			$1,753			$1,640
GAAP EPS			$0.33			$(0.00)			$0.31			$(0.21)			$0.97
Non-GAAP EPS			$0.32			$0.13			$0.33			$1.51			$1.27

Teradyne, Inc. (NYSE: TER) reported revenue of $380 million for the fourth quarter of 2016 of which $271 million was in Semiconductor Test, $50 million in System Test, $34 million in Industrial Automation, and $26 million in Wireless Test. GAAP net income for the fourth quarter was $66.3 million or $0.33 per share. On a non-GAAP basis, Teradyne’s net income in the fourth quarter was $64.6 million, or $0.32 per diluted share, which excluded acquired intangible asset amortization, pension actuarial gains, restructuring and other charges, non-cash convertible debt interest, discrete income tax adjustments, and included the related tax impact on non-GAAP adjustments.

Orders in the fourth quarter of 2016 were $628 million of which $524 million were in Semiconductor Test, $47 million in System Test, $34 million in Industrial Automation, and $23 million in Wireless Test.

“We closed 2016 with record fourth quarter orders as tester demand for 2017 mobile device production pulled bookings into Q4, automotive device test demand remained strong, and Universal Robots delivered another quarter of record orders,” said CEO and President Mark Jagiela. “For the full year, we grew company revenue 7%, non-GAAP earnings per share 19%, and returned $195 million to shareholders through share repurchases and dividends.

“As we look into 2017, we expect continued steady demand in our core test businesses and greater than 50% growth to continue at Universal Robots. On the capital return front, our proven operating model, strong balance sheet and positive long term outlook support our plan to repurchase a minimum of $200 million of Teradyne shares in 2017 and increase the dividend to $0.07 per quarter.”

Teradyne’s Board of Directors declared a quarterly cash dividend of $0.07 per share, payable on March 20, 2017 to shareholders of record as of the close of business on February 24, 2017.

Guidance for the first quarter of 2017 is revenue of $420 million to $450 million, with GAAP net income of $0.28 to $0.34 per diluted share and non-GAAP net income of $0.33 to $0.40 per diluted share. Non-GAAP guidance excludes acquired intangible asset amortization, non-cash convertible debt interest and includes the related tax impact on non-GAAP adjustments.

Webcast

A conference call to discuss the fourth quarter and full year results, along with management's business outlook, will follow at 10 a.m. ET, Thursday, January 26. Interested investors should access the webcast at www.teradyne.com and click on "Investors" at least five minutes before the call begins. Presentation materials will be available starting at 10 a.m. ET. A replay will be available on the Teradyne website at www.teradyne.com/investors.

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 goodwill and intangible asset impairment charges, acquired intangible asset amortization, non-cash convertible debt interest, pension actuarial gains and losses, fair value inventory step-up related to Universal Robots, discrete income tax adjustments, restructuring and other, and a gain from the sale of an equity investment. GAAP requires that these items be included in determining income from operations and net income. Non-GAAP income from operations, non-GAAP net income, non-GAAP income from operations and non-GAAP net income as a percentage of revenue, and non-GAAP net income per share are non-GAAP 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 gross margin excludes inventory step-up and pension actuarial gains and losses. GAAP requires that these items be included in determining gross margin. Non-GAAP gross margin dollar amount and percentage are non-GAAP performance measures that management believes provide useful supplemental information for management and the investor. Management uses non-GAAP gross margin as a performance measure for Teradyne’s current core business and future outlook and for comparison with Teradyne’s business plan, historical gross margin results and the gross margin results of Teradyne’s competitors. 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 "Investors" and then selecting 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 (NYSE:TER) is a leading supplier of automation equipment for test and industrial applications. Teradyne Automatic Test Equipment (ATE) is used to test semiconductors, wireless products, data storage and complex electronic systems, which serve consumer, communications, industrial and government customers. Our Industrial Automation products include Collaborative Robots used by global manufacturing and light industrial customers to improve quality and increase manufacturing efficiency. In 2016, Teradyne had revenue of $1.75 billion and currently employs approximately 4,300 people worldwide. For more information, visit www.teradyne.com. Teradyne^(R) 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 payment of a quarterly dividend, the repurchase of Teradyne common stock pursuant to a share repurchase program, use of proceeds and potential dilution from the senior convertible notes offering and potential borrowings under a senior secured credit facility. Such statements are based on the current assumptions and expectations of Teradyne’s management and are neither promises nor guarantees of future performance, events, earnings per share, use of cash, payment of dividends, repurchases of common stock, payment of the senior convertible notes or availability of, or borrowing under, the credit facility. There can be no assurance that management’s estimates of Teradyne’s future results or other forward-looking statements will be achieved. Additionally, the current dividend and share repurchase programs may be modified, suspended or discontinued at any time. Important factors that could cause actual results, earnings per share, use of cash, dividend payments, repurchases of common stock, payment of the senior convertible notes or borrowings under the credit facility to differ materially from those presently expected include: conditions affecting the markets in which Teradyne operates; decreased or delayed product demand; development, delivery and acceptance of new products; the ability to grow Universal Robots’ business; increased research and development spending; deterioration of Teradyne’s financial condition; 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, the repurchase of common stock or borrowing under the credit facility is not in the company’s best interests; and other events, factors and risks disclosed in filings with the SEC, including, but not limited to, the “Risk Factors” section of Teradyne’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015 and the Quarterly Report on Form 10-Q for the period ended October 2, 2016. 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.

TERADYNE, INC. REPORT FOR FOURTH FISCAL QUARTER OF 2016
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
						Quarter Ended												Twelve Months Ended
						December 31, 2016				October 2, 2016				December 31, 2015				December 31, 2016				December 31, 2015
Net revenues						$	379,989			$	410,475			$	318,444			$	1,753,250			$	1,639,578
		Cost of revenues (exclusive of acquired intangible assets amortization shown separately below) (1) (2)					160,983				183,116				152,418				793,683				723,935
Gross profit							219,006				227,359				166,026				959,567				915,643
Operating expenses:
		Engineering and development (1)					70,052				71,400				70,941				291,025				292,250
		Selling and administrative (1)					76,289				78,794				79,718				315,682				306,313
		Acquired intangible assets amortization					7,923				8,487				19,911				52,648				69,031
		Acquired intangible assets impairment (3)					-				-				-				83,339				-
		Goodwill impairment (3)					-				-				-				254,946				-
		Restructuring and other (4)					5,570				12,177				5,204				21,942				5,080
				Operating expenses			159,834				170,858				175,774				1,019,582				672,674
Income (loss) from operations							59,172				56,501				(9,748	)			(60,015	)			242,969
		Interest and other (5)					(288	)			3,180				891				4,955				10,155
Income (loss) before income taxes							58,884				59,681				(8,857	)			(55,060	)			253,124
		Income tax (benefit) provision					(7,461	)			(4,113	)			(8,216	)			(11,639	)			46,647
Net income (loss)						$	66,345			$	63,794			$	(641	)		$	(43,421	)		$	206,477
Net income (loss) per common share:
Basic						$	0.33			$	0.32			$	(0.00	)		$	(0.21	)		$	0.98
Diluted						$	0.33			$	0.31			$	(0.00	)		$	(0.21	)		$	0.97
Weighted average common shares - basic							200,810				202,211				205,113				202,578				211,544
Weighted average common shares - diluted							202,947				203,929				205,113				202,578				213,321
Cash dividend declared per common share						$	0.06			$	0.06			$	0.06			$	0.24			$	0.24
Net orders						$	628,284			$	378,461			$	522,240			$	1,867,247			$	1,855,515
(1)		Pension actuarial (gains) losses included in our operating results were as follows:
						Quarter Ended												Twelve Months Ended
						December 31, 2016				October 2, 2016				December 31, 2015				December 31, 2016				December 31, 2015
				Cost of revenues		$	(774	)		$	364			$	8,271			$	(1,025	)		$	8,236
				Engineering and development			(725	)			106				4,658				(1,234	)			4,627
				Selling and administrative			(502	)			192				4,826				(944	)			4,869
						$	(2,001	)		$	662			$	17,755			$	(3,203	)		$	17,732
(2)		Cost of revenues includes:				Quarter Ended												Twelve Months Ended
						December 31, 2016				October 2, 2016				December 31, 2015				December 31, 2016				December 31, 2015
				Provision for excess and obsolete inventory		$	2,345			$	3,033			$	2,393			$	17,493			$	21,332
				Sale of previously written down inventory			(1,924	)			(1,794	)			(1,196	)			(10,037	)			(7,855	)
				Inventory step-up			-				-				-				-				1,567
						$	421			$	1,239			$	1,197			$	7,456			$	15,044
(3)		Goodwill and acquired intangible assets impairment related to Teradyne's Wireless Test business segment.
(4)		Restructuring and other consists of:				Quarter Ended												Twelve Months Ended
						December 31, 2016				October 2, 2016				December 31, 2015				December 31, 2016				December 31, 2015
				Contingent consideration fair value adjustment		$	5,445			$	7,974			$	5,089			$	15,896			$	2,489
				Employee severance			125				4,203				115				6,046				1,487
				Impairment of fixed assets and expenses related to Japan earthquake			-				312				-				5,363				-
				Property insurance recovery			-				(312	)			-				(5,363	)			-
				Acquisition costs			-				-				-				-				1,104
						$	5,570			$	12,177			$	5,204			$	21,942			$	5,080
(5)		Interest and other includes:				Quarter Ended												Twelve Months Ended
						December 31, 2016				October 2, 2016				December 31, 2015				December 31, 2016				December 31, 2015
				Non-cash convertible debt interest expense		$	642			$	-			$	-			$	642			$	-
				Gain from the sale of an equity investment			-				-				-				-				(5,406	)
						$	642			$	-			$	-			$	642			$	(5,406	)

CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands)
					December 31, 2016			December 31, 2015
Assets
	Cash and cash equivalents				$	307,884		$	264,705
	Marketable securities					871,024			477,696
	Accounts receivable					192,444			211,293
	Inventories, net					135,958			153,588
	Deferred tax assets					-			54,973
	Prepayments					108,454			91,519
	Other current assets					8,039			6,194
			Total current assets			1,623,803			1,259,968
	Property, plant and equipment, net					253,821			273,414
	Marketable securities					433,843			265,928
	Deferred tax assets					107,405			7,404
	Other assets					12,165			13,080
	Retirement plans assets					7,712			636
	Intangible assets, net					100,401			239,831
	Goodwill					223,343			488,413
			Total assets		$	2,762,493		$	2,548,674
Liabilities
	Accounts payable				$	95,362		$	92,358
	Accrued employees' compensation and withholdings					109,944			113,994
	Deferred revenue and customer advances					88,809			85,527
	Other accrued liabilities					47,051			43,727
	Contingent consideration					1,050			15,500
	Accrued income taxes					30,480			21,751
			Total current liabilities			372,696			372,857
	Retirement plans liabilities					106,938			103,531
	Long-term deferred revenue and customer advances					23,463			25,745
	Deferred tax liabilities					12,144			26,663
	Long-term other accrued liabilities					28,642			32,156
	Long-term contingent consideration					37,282			21,936
	Long-term debt					352,669			-
			Total liabilities			933,834			582,888
Shareholders' equity						1,828,659			1,965,786
			Total liabilities and shareholders' equity		$	2,762,493		$	2,548,674

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)
					Quarter Ended								Twelve Months Ended
					December 31, 2016				December 31, 2015				December 31, 2016				December 31, 2015
Cash flows from operating activities:
	Net income (loss)				$	66,345			$	(641	)		$	(43,421	)		$	206,477
	Adjustments to reconcile net income (loss) to net cash provided by operating activities:
		Depreciation				16,345				15,650				64,782				68,181
		Amortization				8,952				20,433				55,227				72,592
		Stock-based compensation				7,738				7,371				30,750				30,451
		Contingent consideration adjustment				5,445				5,089				15,896				2,489
		Provision for excess and obsolete inventory				2,345				2,393				17,493				21,332
		Retirement plans actuarial (gains) losses				(2,001	)			17,755				(3,203	)			17,732
		Deferred taxes				(20,368	)			6,849				(62,936	)			(7,124	)
		Tax benefit related to employee stock compensation awards				(2,799	)			(1,502	)			(6,198	)			(4,715	)
		Goodwill impairment				-				-				254,946				-
		Acquired intangible assets impairment				-				-				83,339				-
		Impairment of fixed assets				-				-				4,179				-
		Property insurance recovery				-				-				(5,363	)			-
		Non-cash charge for the sale of inventories revalued at the date of acquisition				-				-				-				1,567
		Gain from the sale of an equity investment				-				-				-				(5,406	)
		Other				(597	)			(2,580	)			(448	)			(34	)
		Changes in operating assets and liabilities, net of business acquired:
			Accounts receivable			(27,955	)			33,850				17,705				(57,267	)
			Inventories			(14,338	)			(17,817	)			34,263				15,559
			Prepayments and other assets			(5,924	)			(12,495	)			(18,882	)			3,034
			Accounts payable and accrued expenses			42,550				(4,450	)			(5,391	)			48,213
			Deferred revenue and customer advances			(52,683	)			10,260				697				17,011
			Retirement plans contributions			(819	)			(9,097	)			(6,690	)			(12,095	)
			Accrued income taxes			14,207				(30,833	)			18,434				(5,156	)
Net cash provided by operating activities						36,443				40,235				445,179				412,841
Cash flows from investing activities:
	Purchases of property, plant and equipment					(19,020	)			(23,151	)			(85,272	)			(89,878	)
	Purchases of available-for-sale marketable securities					(780,430	)			(466,396	)			(1,656,267	)			(1,424,002	)
	Proceeds from sales of available-for-sale marketable securities					386,050				472,397				852,794				1,316,131
	Proceeds from maturities of available-for-sale marketable securities					41,070				29,901				243,232				360,264
	Proceeds from property insurance					-				-				5,051				-
	Acquisition of business, net of cash acquired					-				-				-				(282,741	)
	Proceeds from the sale of an equity investment					-				-				-				5,406
	Proceeds from life insurance					-				-				-				1,098
Net cash (used for) provided by investing activities						(372,330	)			12,751				(640,462	)			(113,722	)
Cash flows from financing activities:
	Proceeds from long-term debt, net					417,818				-				417,818				-
	Issuance of common stock under stock purchase and stock option plans					388				1,385				20,473				19,530
	Repurchase of common stock					(61,239	)			(73,106	)			(146,331	)			(299,949	)
	Dividend payments					(12,071	)			(12,279	)			(48,619	)			(50,713	)
	Tax benefit related to employee stock compensation awards					2,799				1,502				6,198				4,715
	Payment of revolving credit facility costs					-				-				-				(2,253	)
	Payment of contingent consideration					-				-				(11,697	)			-
Net cash provided by (used for) financing activities						347,695				(82,498	)			237,842				(328,670	)
Effects of exchange rate changes on cash and cash equivalents						(1,861	)			-				620				-
Increase (decrease) in cash and cash equivalents						9,947				(29,512	)			43,179				(29,551	)
Cash and cash equivalents at beginning of period						297,937				294,217				264,705				294,256
Cash and cash equivalents at end of period					$	307,884			$	264,705			$	307,884			$	264,705

GAAP to Non-GAAP Earnings Reconciliation
(In millions, except per share amounts)
							Quarter Ended
							December 31, 2016				% of Net Revenues														October 2, 2016				% of Net Revenues											December 31, 2015				% of Net Revenues
Net revenues							$	380.0																	$	410.5														$	318.4
Gross profit - GAAP							$	219.0				57.6	%												$	227.4			55.4	%										$	166.0			52.1	%
			Pension mark-to-market adjustments (1)					(0.8	)			-0.2	%													0.4			0.1	%											8.3			2.6	%
Gross profit - non-GAAP							$	218.2				57.4	%												$	227.8			55.5	%										$	174.3			54.7	%
Income (loss) from operations - GAAP							$	59.2				15.6	%												$	56.5			13.8	%										$	(9.7	)		-3.0	%
			Restructuring and other (2)					5.6				1.5	%													12.2			3.0	%											5.2			1.6	%
			Acquired intangible assets amortization					7.9				2.1	%													8.5			2.1	%											19.9			6.3	%
			Pension mark-to-market adjustments (1)					(2.0	)			-0.5	%													0.7			0.2	%											17.8			5.6	%
Income from operations - non-GAAP							$	70.7				18.6	%												$	77.9			19.0	%										$	33.2			10.4	%
																	Net Income per Common Share															Net Income per Common Share															Net (Loss) Income per Common Share
							December 31, 2016				% of Net Revenues						Basic				Diluted				October 2, 2016				% of Net Revenues			Basic				Diluted				December 31, 2015				% of Net Revenues			Basic				Diluted
Net income (loss) - GAAP							$	66.3				17.4	%				$	0.33			$	0.33			$	63.8			15.5	%		$	0.32			$	0.31			$	(0.6	)		-0.2	%		$	(0.00	)		$	(0.00	)
			Restructuring and other (2)					5.6				1.5	%					0.03				0.03				12.2			3.0	%			0.06				0.06				5.2			1.6	%			0.03				0.03
			Acquired intangible assets amortization					7.9				2.1	%					0.04				0.04				8.5			2.1	%			0.04				0.04				19.9			6.3	%			0.10				0.10
			Pension mark-to-market adjustments (1)					(2.0	)			-0.5	%					(0.01	)			(0.01	)			0.7			0.2	%			0.00				0.00				17.8			5.6	%			0.09				0.09
			Interest and other (4)					0.6				0.2	%					0.00				0.00				-			-				-				-				-			-				-				-
			Exclude discrete tax adjustments (3)					(16.2	)			-4.3	%					(0.08	)			(0.08	)			(10.7	)		-2.6	%			(0.05	)			(0.05	)			(6.3	)		-2.0	%			(0.03	)			(0.03	)
			Tax effect of non-GAAP adjustments					2.4				0.6	%					0.01				0.01				(6.8	)		-1.7	%			(0.03	)			(0.03	)			(9.9	)		-3.1	%			(0.05	)			(0.05	)
Net income - non-GAAP							$	64.6				17.0	%				$	0.32			$	0.32			$	67.7			16.5	%		$	0.33			$	0.33			$	26.1			8.2	%		$	0.13			$	0.13
GAAP and non-GAAP weighted average common shares - basic								200.8																		202.2															205.1
GAAP weighted average common shares - diluted								202.9																		203.9															205.1
			Include dilutive shares					-																		-															2.1
Non-GAAP weighted average common shares - diluted								202.9																		203.9															207.2
(1	)		Actuarial (gains) losses recognized under GAAP in accordance with Teradyne's mark-to-market pension accounting.
(2	)		Restructuring and other consists of:
							Quarter Ended
							December 31, 2016																		October 2, 2016															December 31, 2015
				Contingent consideration fair value adjustment			$	5.4																	$	8.0														$	5.1
				Employee severance				0.1																		4.2															0.1
				Impairment of fixed assets and expenses related to Japan earthquake				-																		0.3															-
				Property insurance recovery				-																		(0.3	)														-
							$	5.6																	$	12.2														$	5.2
(3	)		For the quarters ended December 31, 2016, October 2, 2016 and December 31, 2015, adjustment to exclude discrete income tax items. For the quarters ended December 31, 2016 and October 2, 2016, adjustment to treat Wireless Test business segment goodwill and intangible assets impairments as discrete tax items.
(4	)		For the quarter ended December 31, 2016, interest and other included non-cash convertible debt interest expense.
							Year Ended
							December 31, 2016				% of Net Revenues														December 31, 2015				% of Net Revenues
Net Revenues							$	1,753.3																	$	1,639.6
Gross profit - GAAP							$	959.6				54.7	%												$	915.6			55.8	%
			Inventory step-up					-				-														1.6			0.1	%
			Pension mark-to-market adjustments (1)					(1.0	)			-0.1	%													8.3			0.5	%
Gross profit - non-GAAP							$	958.6				54.7	%												$	925.5			56.4	%
(Loss) income from operations - GAAP							$	(60.0	)			-3.4	%												$	243.0			14.8	%
			Goodwill impairment (2)					254.9				14.5	%													-			-
			Acquired intangible assets impairment (2)					83.3				4.8	%													-			-
			Acquired intangible assets amortization					52.6				3.0	%													69.0			4.2	%
			Restructuring and other (3)					21.9				1.2	%													5.1			0.3	%
			Pension mark-to-market adjustments (1)					(3.2	)			-0.2	%													17.7			1.1	%
			Inventory step-up					-				-														1.6			0.1	%
Income from operations - non-GAAP							$	349.5				19.9	%												$	336.4			20.5	%
																	Net (Loss) Income per Common Share															Net Income per Common Share
							December 31, 2016				% of Net Revenues						Basic				Diluted				December 31, 2015				% of Net Revenues			Basic				Diluted
Net (loss) income - GAAP							$	(43.4	)			-2.5	%				$	(0.21	)		$	(0.21	)		$	206.5			12.6	%		$	0.98			$	0.97
			Goodwill impairment (2)					254.9				14.5	%					1.26				1.25				-			-				-				-
			Acquired intangible assets impairment (2)					83.3				4.8	%					0.41				0.41				-			-				-				-
			Acquired intangible assets amortization					52.6				3.0	%					0.26				0.26				69.0			4.2	%			0.33				0.32
			Restructuring and other (3)					21.9				1.2	%					0.11				0.11				5.1			0.3	%			0.02				0.02
			Pension mark-to-market adjustments (1)					(3.2	)			-0.2	%					(0.02	)			(0.02	)			17.7			1.1	%			0.08				0.08
			Interest and other (4)					0.6				0.0	%					0.00				0.00				(5.4	)		-0.3	%			(0.03	)			(0.03	)
			Inventory step-up					-				-						-				-				1.6			0.1	%			0.01				0.01
			Exclude discrete tax adjustments (5)					(4.5	)			-0.3	%					(0.02	)			(0.02	)			(4.9	)		-0.3	%			(0.02	)			(0.02	)
			Tax effect of non-GAAP adjustments					(53.3	)			-3.0	%					(0.26	)			(0.26	)			(18.5	)		-1.1	%			(0.09	)			(0.09	)
Net income - non-GAAP							$	308.9				17.6	%				$	1.52			$	1.51			$	271.1			16.5	%		$	1.28			$	1.27
GAAP and non-GAAP weighted average common shares - basic								202.6																		211.5
GAAP weighted average common shares - diluted								202.6																		213.3
			Include dilutive shares					1.8																		-
Non-GAAP weighted average common shares - diluted								204.4																		213.3
(1	)		Actuarial (gains) losses recognized under GAAP in accordance with Teradyne's mark-to-market pension accounting.
(2	)		Goodwill and acquired intangible assets impairment related to Teradyne's Wireless Test business segment.
(3	)		Restructuring and other consists of:
							Year Ended
							December 31, 2016																		December 31, 2015
				Contingent consideration fair value adjustment			$	15.9																	$	2.5
				Employee severance				6.0																		1.5
				Impairment of fixed assets and expenses related to Japan earthquake				5.4																		-
				Property insurance recovery				(5.4	)																	-
				Acquisition costs				-																		1.1
							$	21.9																	$	5.1
(4	)		For the year ended December 31, 2016, interest and other included non-cash convertible debt interest expense. For the year ended December 31, 2015, Interest and other included a gain from the sale of an equity investment.
(5	)		For the year ended December 31, 2016 and December 31, 2015, adjustment to exclude discrete income tax items. For the year ended December 31, 2016, adjustment to treat Wireless Test business segment goodwill and intangible assets impairments as discrete tax items.
GAAP to Non-GAAP Reconciliation of First Quarter 2017 guidance:
GAAP and non-GAAP first quarter revenue guidance:											$420 million				to		$450 million
GAAP net income per diluted share											$	0.28					$	0.34
			Exclude acquired intangible assets amortization									0.04						0.04
			Exclude non-cash convertible debt interest									0.02						0.02
			Tax effect of non-GAAP adjustments									(0.01	)					(0.01	)
Non-GAAP net income per diluted share											$	0.33					$	0.40

For press releases and other information of interest to investors, please visit Teradyne's homepage at http://www.teradyne.com.

View source version on businesswire.com: http://www.businesswire.com/news/home/20170125006210/en/

Teradyne, Inc.
Andy Blanchard, 978-370-2425
Vice President of Corporate Relations

Source: Teradyne, Inc.