Teradyne Reports Strong Revenue and Earnings Growth in Second Quarter and First Half 2017

• Q2’17 revenue of $697 million, up 31% from Q2’16 and 53% from Q1’17
• First half 2017 revenue up 20% from first half 2016
• Semiconductor Test revenue increased 36% from Q2’16; 1H’17 up 22% from 1H’16
• Universal Robots (UR) revenue increased 57% from Q2’16; 1H’17 up 81% from 1H’16

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

				Q2’17				Q2’16				Q1’17				1H’17				1H‘16
Orders (mil)				$462				$471				$595				$1,056				$860
Revenue (mil)				$697				$532				$457				$1,154				$963
GAAP EPS				$0.87				$(1.10)				$0.42				$1.29				$(0.85)
Non-GAAP EPS				$0.90				$0.55				$0.44				$1.34				$0.86

Teradyne, Inc. (NYSE: TER) reported revenue of $697 million for the second quarter of 2017 of which $593 million was in Semiconductor Test, $39 million in Industrial Automation (UR), $37 million in System Test, and $28 million in Wireless Test. GAAP net income for the second quarter was $175.0 million or $0.87 per share. On a non-GAAP basis, Teradyne’s net income in the second quarter was $181.5 million, or $0.90 per diluted share, which excluded acquired intangible assets amortization, non-cash convertible debt interest, pension actuarial gains, restructuring and other charges, and included the related tax impact on non-GAAP adjustments.

Orders in the second quarter of 2017 were $462 million of which $369 million were in Semiconductor Test, $33 million in Industrial Automation (UR), $30 million in Wireless Test, and $29 million in System Test.

"Continued strong performance in our Semiconductor Test Business and Universal Robots drove our second quarter sales up 31% and EPS up 64% compared to last year's second quarter," said CEO and President Mark Jagiela. "Semiconductor Test shipments grew 36% year on year reflecting continued strength in mobile and microcontroller test and increasing demand in memory and analog test. Universal Robots shipments increased 57% from Q2’16 and sales continue to broaden with our expanding distribution reach and growing customer awareness of the powerful economic benefits of UR’s collaborative robots."

"Looking ahead to the 2nd half of 2017, we expect the normal seasonal pattern of slowing mobile device test shipments in Semiconductor Test and continued 50% plus growth at Universal Robots."

Guidance for the third quarter of 2017 is revenue of $455 million to $485 million, with GAAP net income of $0.35 to $0.42 per diluted share and non-GAAP net income of $0.39 to $0.46 per diluted share. Non-GAAP guidance excludes acquired intangible assets amortization, non-cash convertible debt interest, and includes the related tax impact on non-GAAP adjustments.

Webcast
A conference call to discuss the second quarter results, along with management's business outlook, will follow at 10 a.m. ET, Thursday, July 27. 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 acquired intangible assets amortization, non-cash convertible debt interest, pension actuarial gains and losses, discrete income tax adjustments, goodwill impairment, acquired intangible assets impairment, and restructuring and other. 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 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 4,400 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 from one or more significant customers; 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, 2016 and the Quarterly Report on Form 10-Q for the period ended April 2, 2017. 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 SECOND FISCAL QUARTER OF 2017
CONDENSED CONSOLIDATED OPERATING STATEMENTS
(In thousands, except per share amounts)
										Quarter Ended																			Six Months Ended
										July 2, 2017						April 2, 2017						July 3, 2016							July 2, 2017						July 3, 2016
Net revenues										$	696,901					$	456,913					$	531,792						$	1,153,814					$	962,787
			Cost of revenues (exclusive of acquired intangible assets amortization shown separately below) (1) (2)								305,682						191,980						248,922							497,662						449,584
Gross profit											391,219						264,933						282,870							656,152						513,203
Operating expenses:
			Engineering and development (1)								81,728						76,182						76,109							157,910						149,573
			Selling and administrative (1)								89,131						84,906						81,425							174,037						160,599
			Acquired intangible assets amortization								8,166						7,952						16,244							16,118						36,238
			Restructuring and other (3)								2,288						2,511						2,608							4,799						4,195
			Goodwill impairment (4)								-						-						254,946							-						254,946
			Acquired intangible assets impairment (4)								-						-						83,339							-						83,339
					Operating expenses						181,313						171,551						514,671							352,864						688,890
Income (loss) from operations											209,906						93,382						(231,801	)						303,288						(175,687	)
			Interest and other (5)								(3,029	)					(1,366	)					984							(4,395	)					2,062
Income (loss) before income taxes											206,877						92,016						(230,817	)						298,893						(173,625	)
			Income tax provision (benefit)								31,901						6,795						(7,271	)						38,696						(65	)
Net income (loss)										$	174,976					$	85,221					$	(223,546	)					$	260,197					$	(173,560	)
Net income (loss) per common share:
Basic										$	0.88					$	0.43					$	(1.10	)					$	1.30					$	(0.85	)
Diluted										$	0.87					$	0.42					$	(1.10	)					$	1.29					$	(0.85	)
Weighted average common shares - basic											198,774						200,005						203,018							199,390						203,645
Weighted average common shares - diluted (6)											201,529						201,936						203,018							201,732						203,645
Cash dividend declared per common share										$	0.07					$	0.07					$	0.06						$	0.14					$	0.12
Net orders										$	461,606					$	594,733					$	470,983						$	1,056,339					$	860,400
(1	)		Pension actuarial gains included in our operating results were as follows:							Quarter Ended																			Six Months Ended
										July 2, 2017						April 2, 2017						July 3, 2016							July 2, 2017						July 3, 2016
					Cost of revenues					$	(664	)				$	-					$	(221	)					$	(664	)				$	(614	)
					Engineering and development						(746	)					-						(221	)						(746	)					(615	)
					Selling and administrative						(1,094	)					-						(227	)						(1,094	)					(633	)
										$	(2,504	)				$	-					$	(669	)					$	(2,504	)				$	(1,862	)
(2	)		Cost of revenues includes:							Quarter Ended																			Six Months Ended
										July 2, 2017						April 2, 2017						July 3, 2016							July 2, 2017						July 3, 2016
					Provision for excess and obsolete inventory					$	2,569					$	2,726					$	7,742						$	5,295					$	12,115
					Sale of previously written down inventory						(2,149	)					(1,134	)					(5,151	)						(3,283	)					(6,319	)
										$	420					$	1,592					$	2,591						$	2,012					$	5,796
(3	)		Restructuring and other consists of:							Quarter Ended																			Six Months Ended
										July 2, 2017						April 2, 2017						July 3, 2016							July 2, 2017						July 3, 2016
					Contingent consideration fair value adjustment					$	1,499					$	634					$	1,305						$	2,133					$	2,478
					Employee severance						789						583						1,303							1,372						1,717
					Facility related						-						1,294						-							1,294						-
					Impairment of fixed assets and expenses related to Japan earthquake						-						-						5,051							-						5,051
					Property insurance recovery						-						-						(5,051	)						-						(5,051	)
										$	2,288					$	2,511					$	2,608						$	4,799					$	4,195
(4	)		Goodwill and acquired intangible assets impairment related to Teradyne's Wireless Test business segment.
(5	)		Interest and other includes:							Quarter Ended																			Six Months Ended
										July 2, 2017						April 2, 2017						July 3, 2016							July 2, 2017						July 3, 2016
					Non-cash convertible debt interest expense					$	3,088					$	3,050					$	-						$	6,138					$	-
(6		)	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 quarter ended July 2, 2017 and for the six months ended July 2, 2017, 0.7 million and 0.3 million shares, respectively, have been included in diluted shares.

CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands)
							July 2, 2017					December 31, 2016
Assets
	Cash and cash equivalents						$	598,349				$	307,884
	Marketable securities							809,338					871,024
	Accounts receivable, net							405,946					192,444
	Inventories, net							153,645					135,958
	Prepayments							105,960					108,454
	Other current assets							6,787					8,039
			Total current assets					2,080,025					1,623,803
	Property, plant and equipment, net							258,017					253,821
	Marketable securities							212,501					433,843
	Deferred tax assets							125,204					107,405
	Other assets							12,429					12,165
	Retirement plans assets							9,231					7,712
	Acquired intangible assets, net							90,603					100,401
	Goodwill							242,215					223,343
			Total assets				$	3,030,225				$	2,762,493
Liabilities
	Accounts payable						$	103,454				$	95,362
	Accrued employees' compensation and withholdings							122,246					109,944
	Deferred revenue and customer advances							81,087					84,478
	Other accrued liabilities							66,176					51,382
	Contingent consideration							22,432					1,050
	Accrued income taxes							43,812					30,480
			Total current liabilities					439,207					372,696
	Retirement plans liabilities							111,688					106,938
	Long-term deferred revenue and customer advances							32,679					23,463
	Deferred tax liabilities							10,714					12,144
	Long-term other accrued liabilities							11,061					28,642
	Long-term contingent consideration							16,983					37,282
	Long-term debt							359,245					352,669
			Total liabilities					981,577					933,834
Shareholders' equity								2,048,648					1,828,659
			Total liabilities and shareholders' equity				$	3,030,225				$	2,762,493

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)
							Quarter Ended											Six Months Ended
							July 2, 2017					July 3, 2016						July 2, 2017					July 3, 2016
Cash flows from operating activities:
	Net income (loss)						$	174,976				$	(223,546	)				$	260,197				$	(173,560	)
	Adjustments to reconcile net income (loss) to net cash provided by operating activities:
		Depreciation						16,331					15,976						32,474					32,168
		Amortization						11,342					16,710						22,412					37,180
		Stock-based compensation						8,367					7,532						17,312					15,457
		Provision for excess and obsolete inventory						2,569					7,742						5,295					12,115
		Contingent consideration adjustment						1,499					1,305						2,133					2,478
		Goodwill impairment						-					254,946						-					254,946
		Acquired intangible assets impairment						-					83,339						-					83,339
		Impairment of fixed assets						-					4,179						-					4,179
		Property insurance recovery						-					(5,051	)					-					(5,051	)
		Deferred taxes						(86	)				(15,962	)					(3,563	)				(21,458	)
		Retirement plans actuarial gains						(2,504	)				(669	)					(2,504	)				(1,862	)
		Other						1,151					92						1,153					576
		Changes in operating assets and liabilities:
			Accounts receivable					(90,397	)				(95,678	)					(214,189	)				(138,230	)
			Inventories					54,003					30,924						(8,149	)				30,222
			Prepayments and other assets					3,321					(12,509	)					4,425					(13,657	)
			Accounts payable and accrued expenses					22,002					34,745						14,449					(6,040	)
			Deferred revenue and customer advances					8,645					77,777						5,312					106,072
			Retirement plans contributions					(1,036	)				(1,048	)					(1,983	)				(2,298	)
			Income taxes					20,130					58						34,418					6
Net cash provided by operating activities								230,313					180,862						169,192					216,582
Cash flows from investing activities:
	Purchases of property, plant and equipment							(23,901	)				(26,259	)					(45,967	)				(46,593	)
	Purchases of available-for-sale marketable securities							(181,502	)				(215,533	)					(334,819	)				(437,311	)
	Proceeds from maturities of available-for-sale marketable securities							219,423					54,566						307,607					128,024
	Proceeds from sales of available-for-sale marketable securities							99,661					95,428						313,254					334,798
	Proceeds from property insurance							-					5,051						-					5,051
Net cash provided by (used for) investing activities								113,681					(86,747	)					240,075					(16,031	)
Cash flows from financing activities:
	Issuance of common stock under stock option and stock purchase plans							131					8,756						15,215					17,896
	Repurchase of common stock							(56,598	)				(28,782	)					(94,328	)				(56,783	)
	Dividend payments							(13,904	)				(12,172	)					(27,925	)				(24,425	)
	Payments related to net settlement of employee stock compensation awards							(149	)				(180	)					(12,438	)				(9,152	)
	Payments of contingent consideration							-					-						(1,050	)				(11,697	)
Net cash used for financing activities								(70,520	)				(32,378	)					(120,526	)				(84,161	)
Effects of exchange rate changes on cash and cash equivalents								129					-						1,724					-
Increase in cash and cash equivalents								273,603					61,737						290,465					116,390
Cash and cash equivalents at beginning of period								324,746					319,358						307,884					264,705
Cash and cash equivalents at end of period							$	598,349				$	381,095					$	598,349				$	381,095

GAAP to Non-GAAP Earnings Reconciliation
(In millions, except per share amounts)
							Quarter Ended
							July 2, 2017					% of Net Revenues																			April 2, 2017					% of Net Revenues																	July 3, 2016					% of Net Revenues
Net revenues							$	696.9																							$	456.9																					$	531.8
Gross profit - GAAP							$	391.2					56.1	%																	$	264.9				58.0	%																$	282.9				53.2	%
		Pension mark-to-market adjustment (1)						(0.7	)				-0.1	%																		-				-																		(0.2	)			0.0	%
Gross profit - non-GAAP							$	390.5					56.0	%																	$	264.9				58.0	%																$	282.7				53.2	%
Income (loss) from operations - GAAP							$	209.9					30.1	%																	$	93.4				20.4	%																$	(231.8	)			-43.6	%
		Acquired intangible assets amortization						8.2					1.2	%																		8.0				1.8	%																	16.2				3.0	%
		Restructuring and other (2)						2.3					0.3	%																		2.5				0.5	%																	2.6				0.5	%
		Pension mark-to-market adjustment (1)						(2.5	)				-0.4	%																		-				-																		(0.7	)			-0.1	%
		Goodwill impairment (3)						-					-																			-				-																		254.9				47.9	%
		Acquired intangible assets impairment (3)						-					-																			-				-																		83.3				15.7	%
Income from operations - non-GAAP							$	217.9					31.3	%																	$	103.9				22.7	%																$	124.5				23.4	%
																		Net Income per Common Share																						Net Income per Common Share																						Net (Loss) Income per Common Share
							July 2, 2017					% of Net Revenues						Basic					Diluted								April 2, 2017					% of Net Revenues				Basic					Diluted								July 3, 2016					% of Net Revenues				Basic					Diluted
Net income (loss) - GAAP							$	175.0					25.1	%				$	0.88				$	0.87							$	85.2				18.6	%			$	0.43				$	0.42							$	(223.5	)			-42.0	%			$	(1.10	)			$	(1.10	)
		Acquired intangible assets amortization						8.2					1.2	%					0.04					0.04								8.0				1.8	%				0.04					0.04								16.2				3.0	%				0.08					0.08
		Interest and other (4)						3.1					0.4	%					0.02					0.02								3.1				0.7	%				0.02					0.02								-				-					-					-
		Restructuring and other (2)						2.3					0.3	%					0.01					0.01								2.5				0.5	%				0.01					0.01								2.6				0.5	%				0.01					0.01
		Pension mark-to-market adjustment (1)						(2.5	)				-0.4	%					(0.01	)				(0.01	)							-				-					-					-								(0.7	)			-0.1	%				(0.00	)				(0.00	)
		Goodwill impairment (3)						-					-						-					-								-				-					-					-								254.9				47.9	%				1.26					1.24
		Acquired intangible assets impairment (3)						-					-						-					-								-				-					-					-								83.3				15.7	%				0.41					0.41
		Exclude discrete tax adjustments (5)						0.5					0.1	%					0.00					0.00								(7.0	)			-1.5	%				(0.04	)				(0.03	)							25.1				4.7	%				0.12					0.12
		Non-GAAP tax adjustments (6)						(5.1	)				-0.7	%					(0.03	)				(0.03	)							(3.1	)			-0.7	%				(0.02	)				(0.02	)							(45.5	)			-8.6	%				(0.22	)				(0.22	)
Net income - non-GAAP							$	181.5					26.0	%				$	0.91				$	0.90							$	88.7				19.4	%			$	0.44				$	0.44							$	112.4				21.1	%			$	0.55				$	0.55
GAAP and non-GAAP weighted average common shares - basic								198.8																								200.0																						203.0
GAAP weighted average common shares - diluted								201.5																								201.9																						203.0
		Exclude dilutive shares from convertible note						(0.7	)																							-																						-
		Include dilutive shares						-																								-																						1.9
Non-GAAP weighted average common shares - diluted								200.8																								201.9																						204.9
(1	)	Actuarial gains recognized under GAAP in accordance with Teradyne's mark-to-market pension accounting.
(2	)	Restructuring and other consists of:
							Quarter Ended
							July 2, 2017																								April 2, 2017																						July 3, 2016
			Contingent consideration fair value adjustment				$	1.5																							$	0.6																					$	1.3
			Employee severance					0.8																								0.6																						1.3
			Facility related					-																								1.3																						-
			Impairment of fixed assets and expenses related to Japan earthquake					-																								-																						5.1
			Property insurance recovery					-																								-																						(5.1	)
							$	2.3																							$	2.5																					$	2.6
(3	)	Goodwill and acquired intangible assets impairment related to Teradyne's Wireless Test business segment.
(4	)	For the quarters ended July 2, 2017 and April 2, 2017, interest and other included non-cash convertible debt interest expense.
(5	)	For the quarters ended July 2, 2017, April 2, 2017 and July 3, 2016 adjustment to exclude discrete income tax items. For the quarter ended July 3, 2016, adjustment to treat Wireless Test business segment goodwill and intangible assets impairments as discrete tax items.
(6	)	For periods after December 31, 2016, the non-GAAP annual effective tax rate is based on a with and without calculation with respect to non-GAAP reconciling items.
							Six Months Ended
							July 2, 2017					% of Net Revenues																			July 3, 2016					% of Net Revenues
Net Revenues							$	1,153.8																							$	962.8
Gross profit - GAAP							$	656.1					56.9	%																	$	513.2				53.3	%
		Pension mark-to-market adjustment (1)						(0.7	)				-0.1	%																		(0.6	)			-0.1	%
Gross profit - non-GAAP							$	655.4					56.8	%																	$	512.6				53.2	%
Income (loss) from operations - GAAP							$	303.3					26.3	%																	$	(175.7	)			-18.2	%
		Acquired intangible assets amortization						16.1					1.4	%																		36.2				3.8	%
		Restructuring and other (2)						4.8					0.4	%																		4.2				0.4	%
		Pension mark-to-market adjustment (1)						(2.5	)				-0.2	%																		(1.9	)			-0.2	%
		Goodwill impairment (3)						-					-																			254.9				26.5	%
		Acquired intangible assets impairment (3)						-					-																			83.3				8.7	%
Income from operations - non-GAAP							$	321.7					27.9	%																	$	201.0				20.9	%
																		Net Income per Common Share																						Net (Loss) Income per Common Share
							July 2, 2017					% of Net Revenues						Basic					Diluted								July 3, 2016					% of Net Revenues				Basic					Diluted
Net income (loss) - GAAP							$	260.2					22.6	%				$	1.30				$	1.29							$	(173.6	)			-18.0	%			$	(0.85	)			$	(0.85	)
		Acquired intangible assets amortization						16.1					1.4	%					0.08					0.08								36.2				3.8	%				0.18					0.18
		Interest and other (4)						6.1					0.5	%					0.03					0.03								-				-					-					-
		Restructuring and other (2)						4.8					0.4	%					0.02					0.02								4.2				0.4	%				0.02					0.02
		Pension mark-to-market adjustment (1)						(2.5	)				-0.2	%					(0.01	)				(0.01	)							(1.9	)			-0.2	%				(0.01	)				(0.01	)
		Goodwill impairment (3)						-					-						-					-								254.9				26.5	%				1.25					1.24
		Acquired intangible assets impairment (3)						-					-						-					-								83.3				8.7	%				0.41					0.41
		Exclude discrete tax adjustments (5)						(6.5	)				-0.6	%					(0.03	)				(0.03	)							22.7				2.4	%				0.11					0.11
		Non-GAAP tax adjustments (6)						(8.2	)				-0.7	%					(0.04	)				(0.04	)							(49.0	)			-5.1	%				(0.24	)				(0.24	)
Net income - non-GAAP							$	270.0					23.4	%				$	1.35				$	1.34							$	176.8				18.4	%			$	0.87				$	0.86
GAAP and non-GAAP weighted average common shares - basic								199.4																								203.6
GAAP weighted average common shares - diluted								201.7																								203.6
		Exclude dilutive shares from convertible note						(0.3	)																							-
		Include dilutive shares						-																								1.7
Non-GAAP weighted average common shares - diluted								201.4																								205.3
(1	)	Actuarial gains recognized under GAAP in accordance with Teradyne's mark-to-market pension accounting.
(2	)	Restructuring and other consists of:
							Six Months Ended
							July 2, 2017																								July 3, 2016
			Contingent consideration fair value adjustment				$	2.1																							$	2.5
			Employee severance					1.4																								1.7
			Facility related					1.3																								-
			Impairment of fixed assets and expenses related to Japan earthquake					-																								5.1
			Property insurance recovery					-																								(5.1	)
							$	4.8																							$	4.2
(3	)	Goodwill and acquired intangible assets impairment related to Teradyne's Wireless Test business segment.
(4	)	For the six months ended July 2, 2017, Interest and other included non-cash convertible debt interest expense.
(5	)	For the six months ended July 2, 2017 and July 3, 2016, adjustment to exclude discrete income tax items. For the six months ended July 3, 2016, adjustment to treat Wireless Test business segment goodwill and intangible assets impairments as discrete tax items.
(6	)	For periods after December 31, 2016, the non-GAAP annual effective tax rate is based on a with and without calculation with respect to non-GAAP reconciling items.
GAAP to Non-GAAP Reconciliation of Third Quarter 2017 guidance:
GAAP and non-GAAP third quarter revenue guidance:												$455 million				to		$485 million
GAAP net income per diluted share												$	0.35					$	0.42
		Exclude acquired intangible assets amortization											0.04						0.04
		Exclude non-cash convertible debt interest											0.02						0.02
		Non-GAAP tax adjustment											(0.02	)					(0.02	)
Non-GAAP net income per diluted share												$	0.39					$	0.46

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/20170726006252/en/

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

Source: Teradyne, Inc.