Teradyne Reports Third Quarter 2016 Results

• Q3’16 orders up 20% compared with Q3’15
• Q3’16 revenue and earnings exceeded guidance on strength of semiconductor mobile device test demand
• Semiconductor Test revenues for the first 9 months up 10%, $101 million, compared with 2015

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

				Q3’16				Q3’15				Q2’16
Orders (mil)				$378				$314				$471
Revenue (mil)				$410				$466				$532
GAAP EPS				$0.31				$0.34				$(1.10)
Non-GAAP EPS				$0.33				$0.40				$0.55

Teradyne, Inc. (NYSE: TER) reported revenue of $410 million for the third quarter of 2016 of which $322 million was in Semiconductor Test, $37 million in System Test, $28 million in Wireless Test, and $24 million in Industrial Automation. GAAP net income for the third quarter was $63.8 million or $0.31 per share. On a non-GAAP basis, Teradyne’s net income in the third quarter was $67.7 million, or $0.33 per diluted share, which excluded acquired intangible asset amortization, restructuring and other charges, discrete income tax adjustments, and included the related tax impact on non-GAAP adjustments.

Orders in the third quarter of 2016 were $378 million of which $250 million were in Semiconductor Test, $76 million in System Test, $29 million in Wireless Test, and $24 million in Industrial Automation.

“Third quarter revenue came in above our guidance based on strong demand for our UltraFLEX System-on-a-Chip system,” said CEO and President Mark Jagiela. “While tester demand remained strong for mobile devices, we also saw a pick-up in orders for automotive analog and microcontroller testers. This, combined with across the board strength in System Test and Universal Robots, leads us to increase our fourth quarter production plan and puts us on track to deliver annual sales over $1.7B and above model operating profits.”

Guidance for the fourth quarter of 2016 is revenue of $330 million to $360 million, with GAAP net income of $0.17 to $0.26 per diluted share and non-GAAP net income of $0.18 to $0.25 per diluted share. Non-GAAP guidance excludes acquired intangible asset amortization 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 10 a.m. ET, Thursday, October 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 goodwill and intangible asset impairment charges, acquired intangible asset amortization, 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 2015, Teradyne had revenue of $1.64 billion and currently employs approximately 4,200 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 future business prospects, Teradyne’s 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 and 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, future events, future earnings per share, future payment of dividends, future repurchases of common stock or future availability of, or borrowing under, a 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, dividend payments, repurchases of common stock 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; market 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; the business judgment of the board of directors that a declaration of a dividend, the repurchase of common stock or debt 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 July 3, 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 THIRD FISCAL QUARTER OF 2016
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
									Quarter Ended															Nine Months Ended
									October 2, 2016					July 3, 2016					October 4, 2015					October 2, 2016					October 4, 2015
Net revenues									$	410,475				$	531,792				$	465,994				$	1,373,261				$	1,321,133
		Cost of revenues (exclusive of acquired intangible assets amortization shown separately below) (1) (2)								183,116					248,922					207,368					632,700					571,517
Gross profit										227,359					282,870					258,626					740,561					749,616
Operating expenses:
		Engineering and development (1)								71,400					76,109					74,027					220,973					221,309
		Selling and administrative (1)								78,794					81,425					77,481					239,393					226,595
		Acquired intangible assets amortization								8,487					16,244					20,053					44,725					49,119
		Acquired intangible assets impairment (3)								-					83,339					-					83,339					-
		Goodwill impairment (3)								-					254,946					-					254,946					-
		Restructuring and other (4)								12,177					2,608					261					16,372					(124	)
				Operating expenses						170,858					514,671					171,822					859,748					496,899
Income (loss) from operations										56,501					(231,801	)				86,804					(119,187	)				252,717
		Interest and other (5)								3,180					984					604					5,242					9,264
Income (loss) before income taxes										59,681					(230,817	)				87,408					(113,945	)				261,981
		Income tax (benefit) provision								(4,113	)				(7,271	)				15,955					(4,178	)				54,863
Net income (loss)									$	63,794				$	(223,546	)			$	71,453				$	(109,767	)			$	207,118
Net income (loss) per common share:
Basic									$	0.32				$	(1.10	)			$	0.34				$	(0.54	)			$	0.97
Diluted									$	0.31				$	(1.10	)			$	0.34				$	(0.54	)			$	0.96
Weighted average common shares - basic										202,211					203,018					210,032					203,167					213,688
Weighted average common shares - diluted										203,929					203,018					211,736					203,167					215,348
Cash dividend declared per common share									$	0.06				$	0.06				$	0.06				$	0.18				$	0.18
Net orders									$	378,461				$	471,026				$	314,222				$	1,238,904				$	1,333,272
(1	)	Pension actuarial losses (gains) included in our operating results were as follows:
									Quarter Ended															Nine Months Ended
									October 2, 2016					July 3, 2016					October 4, 2015					October 2, 2016					October 4, 2015
				Cost of revenues					$	364				$	(221	)			$	-				$	(250	)			$	-
				Engineering and development						106					(221	)				-					(509	)				-
				Selling and administrative						192					(227	)				-					(441	)				-
									$	662				$	(669	)			$	-				$	(1,200	)			$	-
(2	)	Cost of revenues includes:							Quarter Ended															Nine Months Ended
									October 2, 2016					July 3, 2016					October 4, 2015					October 2, 2016					October 4, 2015
				Provision for excess and obsolete inventory					$	3,033				$	7,742				$	3,058				$	15,148				$	18,939
				Sale of previously written down inventory						(1,794	)				(5,151	)				(1,983	)				(8,113	)				(6,659	)
				Inventory step-up						-					-					972					-					1,567
									$	1,239				$	2,591				$	2,047				$	7,035				$	13,847
(3	)	Goodwill and acquired intangible assets impairment related to Teradyne's Wireless Test business segment.
(4	)	Restructuring and other consists of:							Quarter Ended															Nine Months Ended
									October 2, 2016					July 3, 2016					October 4, 2015					October 2, 2016					October 4, 2015
				Contingent consideration fair value adjustment					$	7,974				$	1,305				$	(1,000	)			$	10,452				$	(2,600	)
				Employee severance						4,203					1,303					1,117					5,920					1,372
				Impairment of fixed assets and expenses related to Japan earthquake						312					5,051					-					5,363					-
				Property insurance recovery						(312	)				(5,051	)				-					(5,363	)				-
				Acquisition costs						-					-					144					-					1,104
									$	12,177				$	2,608				$	261				$	16,372				$	(124	)
(5	)	Interest and other includes:							Quarter Ended															Nine Months Ended
									October 2, 2016					July 3, 2016					October 4, 2015					October 2, 2016					October 4, 2015
				Gain from the sale of an equity investment					$	-				$	-				$	-				$	-				$	(5,406	)

CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands)
							October 2, 2016					December 31, 2015
Assets
	Cash and cash equivalents						$	297,937				$	264,705
	Marketable securities							598,501					477,696
	Accounts receivable							163,213					211,293
	Inventories, net							115,066					153,588
	Deferred tax assets							-					54,973
	Prepayments							104,078					91,519
	Other current assets							6,393					6,194
			Total current assets					1,285,188					1,259,968
	Net property, plant and equipment							261,821					273,414
	Marketable securities							357,751					265,928
	Deferred tax assets							90,546					7,404
	Other assets							12,777					13,080
	Retirement plans assets							4,869					636
	Intangible assets, net							114,146					239,831
	Goodwill							238,589					488,413
			Total assets				$	2,365,687				$	2,548,674
Liabilities
	Accounts payable						$	61,890				$	92,358
	Accrued employees' compensation and withholdings							89,723					113,994
	Deferred revenue and customer advances							138,916					85,527
	Other accrued liabilities							56,580					43,727
	Contingent consideration							1,050					15,500
	Accrued income taxes							20,925					21,751
			Total current liabilities					369,084					372,857
	Retirement plans liabilities							108,095					103,531
	Long-term deferred revenue and customer advances							26,336					25,745
	Deferred tax liabilities							16,837					26,663
	Long-term other accrued liabilities							31,354					32,156
	Long-term contingent consideration							31,837					21,936
			Total liabilities					583,543					582,888
Shareholders' equity								1,782,144					1,965,786
			Total liabilities and shareholders' equity				$	2,365,687				$	2,548,674

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)
							Quarter Ended												Nine Months Ended
							October 2, 2016						October 4, 2015						October 2, 2016						October 4, 2015
Cash flows from operating activities:
	Net income (loss)						$	63,794					$	71,453					$	(109,767	)				$	207,118
	Adjustments to reconcile net income (loss) to net cash provided by operating activities:
		Depreciation						16,269						16,301						48,437						52,531
		Amortization						9,095						20,764						46,275						52,159
		Provision for excess and obsolete inventory						3,033						3,058						15,148						18,939
		Stock-based compensation						7,555						7,675						23,012						23,080
		Contingent consideration adjustment						7,974						(1,000	)					10,452						(2,600	)
		Goodwill impairment						-						-						254,946						-
		Acquired intangible assets impairment						-						-						83,339						-
		Deferred taxes						(21,110	)					(3,602	)					(42,568	)					(13,973	)
		Impairment of fixed assets						-						-						4,179						-
		Property insurance recovery						(312	)					-						(5,363	)					-
		Retirement plans actuarial losses (gains)						662						-						(1,200	)					-
		Non-cash charge for the sale of inventories revalued at the date of acquisition						-						972						-						1,567
		Gain from the sale of an equity investment						-						-						-						(5,406	)
		Tax benefit related to employee stock compensation awards						(3,399	)					(2,321	)					(3,399	)					(3,213	)
		Other						(426	)					1,368						150						2,523
		Changes in operating assets and liabilities, net of business acquired:
			Accounts receivable					186,371						51,376						45,660						(91,117	)
			Inventories					18,378						9,876						48,601						33,376
			Prepayments and other assets					696						1,475						(12,961	)					15,529
			Accounts payable and accrued expenses					(32,749	)					(729	)					(47,941	)					52,663
			Deferred revenue and customer advances					(52,692	)					1,066						53,380						6,751
			Retirement plans contributions					(3,573	)					(999	)					(5,871	)					(2,998	)
			Accrued income taxes					4,221						2,416						4,227						25,677
Net cash provided by operating activities								203,787						179,149						408,736						372,606
Cash flows from investing activities:
	Purchases of property, plant and equipment							(19,659	)					(20,617	)					(66,252	)					(66,727	)
	Purchases of available-for-sale marketable securities							(438,526	)					(367,356	)					(875,837	)					(957,606	)
	Proceeds from sales of available-for-sale marketable securities							131,946						212,334						466,744						843,734
	Proceeds from maturities of available-for-sale marketable securities							74,138						98,947						202,162						330,363
	Proceeds from property insurance							-						-						5,051						-
	Acquisition of business, net of cash acquired							-						(409	)					-						(282,741	)
	Proceeds from the sale of an equity investment							-						-						-						5,406
	Proceeds from life insurance							-						-						-						1,098
Net cash used for investing activities								(252,101	)					(77,101	)					(268,132	)					(126,473	)
Cash flows from financing activities:
	Issuance of common stock under stock purchase and stock option plans							2,189						267						20,085						18,145
	Repurchase of common stock							(28,309	)					(98,527	)					(85,092	)					(226,843	)
	Dividend payments							(12,123	)					(12,577	)					(36,548	)					(38,434	)
	Tax benefit related to employee stock compensation awards							3,399						2,321						3,399						3,213
	Payment of revolving credit facility costs							-						-						-						(2,253	)
	Payment of contingent consideration							-						-						(11,697	)					-
Net cash used for financing activities								(34,844	)					(108,516	)					(109,853	)					(246,172	)
Effects of exchange rate changes on cash and cash equivalents								-						-						2,481						-
(Decrease) increase in cash and cash equivalents								(83,158	)					(6,468	)					33,232						(39	)
Cash and cash equivalents at beginning of period								381,095						300,685						264,705						294,256
Cash and cash equivalents at end of period							$	297,937					$	294,217					$	297,937					$	294,217

GAAP to Non-GAAP Earnings Reconciliation
(In millions, except per share amounts)
						Quarter Ended
						October 2, 2016						% of Net Revenues																July 3, 2016							% of Net Revenues																	October 4, 2015							% of Net Revenues
Net revenues						$	410.5																					$	531.8																							$	466.0
Gross profit - GAAP						$	227.4						55.4	%														$	282.9						53.2	%																$	258.6						55.5	%
	Inventory step-up						-						-																-						-																		1.0						0.2	%
	Pension mark-to-market adjustment (1)						0.4						0.1	%															(0.2	)					0.0	%																	-						-
Gross profit - non-GAAP						$	227.8						55.5	%														$	282.7						53.2	%																$	259.6						55.7	%
Income (loss) from operations - GAAP						$	56.5						13.8	%														$	(231.8	)					-43.6	%																$	86.8						18.6	%
	Restructuring and other (2)						12.2						3.0	%															2.6						0.5	%																	0.3						0.1	%
	Acquired intangible assets amortization						8.5						2.1	%															16.2						3.0	%																	20.1						4.3	%
	Pension mark-to-market adjustment (1)						0.7						0.2	%															(0.7	)					-0.1	%																	-						-
	Goodwill impairment (3)						-						-																254.9						47.9	%																	-						-
	Acquired intangible assets impairment (3)						-						-																83.3						15.7	%																	-						-
	Inventory step-up						-						-																-						-																		1.0						0.2	%
Income from operations - non-GAAP						$	77.9						19.0	%														$	124.5						23.4	%																$	108.2						23.2	%
																	Net Income per Common Share																							Net (Loss) Income per Common Share																								Net Income per Common Share
						October 2, 2016						% of Net Revenues					Basic					Diluted						July 3, 2016							% of Net Revenues					Basic						Diluted						October 4, 2015							% of Net Revenues					Basic						Diluted
Net income (loss) - GAAP						$	63.8						15.5	%			$	0.32				$	0.31					$	(223.5	)					-42.0	%				$	(1.10	)				$	(1.10	)				$	71.5						15.3	%				$	0.34					$	0.34
	Restructuring and other (2)						12.2						3.0	%				0.06					0.06						2.6						0.5	%					0.01						0.01						0.3						0.1	%					0.00						0.00
	Acquired intangible assets amortization						8.5						2.1	%				0.04					0.04						16.2						3.0	%					0.08						0.08						20.1						4.3	%					0.10						0.09
	Pension mark-to-market adjustment (1)						0.7						0.2	%				0.00					0.00						(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						-						-						-						-
	Inventory step-up						-						-					-					-						-						-						-						-						1.0						0.2	%					0.00						0.00
	Exclude discrete tax adjustments (4)						(10.7	)					-2.6	%				(0.05	)				(0.05	)					25.1						4.7	%					0.12						0.12						(3.3	)					-0.7	%					(0.02	)					(0.02	)
	Tax effect of non-GAAP adjustments						(6.8	)					-1.7	%				(0.03	)				(0.03	)					(45.5	)					-8.6	%					(0.22	)					(0.22	)					(4.7	)					-1.0	%					(0.02	)					(0.02	)
Net income - non-GAAP						$	67.7						16.5	%			$	0.33				$	0.33					$	112.4						21.1	%				$	0.55					$	0.55					$	84.9						18.2	%				$	0.40					$	0.40
GAAP and non-GAAP weighted average common shares - basic							202.2																						203.0																								210.0
GAAP weighted average common shares - diluted							203.9																						203.0																								211.7
	Include dilutive shares						-																						1.9																								-
Non-GAAP weighted average common shares - diluted							203.9																						204.9																								211.7
(1)	Actuarial losses (gains) recognized under GAAP in accordance with Teradyne's mark-to-market pension accounting.
(2)	Restructuring and other consists of:
						Quarter Ended
						October 2, 2016																						July 3, 2016																								October 4, 2015
		Contingent consideration fair value adjustment				$	8.0																					$	1.3																							$	(1.0	)
		Employee severance					4.2																						1.3																								1.2
		Impairment of fixed assets and expenses related to Japan earthquake					0.3																						5.1																								-
		Property insurance recovery					(0.3	)																					(5.1	)																							-
		Acquisition costs					-																						-																								0.1
						$	12.2																					$	2.6																							$	0.3
(3)	Goodwill and acquired intangible assets impairment related to Teradyne's Wireless Test business segment.
(4)	For the quarters ended October 2, 2016, July 3, 2016 and October 4, 2015, adjustment to exclude discrete income tax items. For the quarters ended October 2, 2016 and July 3, 2016, adjustment to treat Wireless Test business segment goodwill and intangible assets impairments as discrete tax items.
						Nine Months Ended
						October 2, 2016						% of Net Revenues																October 4, 2015							% of Net Revenues
Net Revenues						$	1,373.3																					$	1,321.1
Gross profit - GAAP						$	740.6						53.9	%														$	749.6						56.7	%
	Inventory step-up						-						-																1.6						0.1	%
	Pension mark-to-market adjustment (1)						(0.3	)					0.0	%															-						-
Gross profit - non-GAAP						$	740.3						53.9	%														$	751.2						56.9	%
(Loss) income from operations - GAAP						$	(119.2	)					-8.7	%														$	252.7						19.1	%
	Goodwill impairment (2)						254.9						18.6	%															-						-
	Acquired intangible assets impairment (2)						83.3						6.1	%															-						-
	Acquired intangible assets amortization						44.7						3.3	%															49.1						3.7	%
	Restructuring and other (3)						16.4						1.2	%															(0.1	)					0.0	%
	Pension mark-to-market adjustment (1)						(1.2	)					-0.1	%															-						-
	Inventory step-up						-						-																1.6						0.1	%
Income from operations - non-GAAP						$	278.9						20.3	%														$	303.3						23.0	%
																	Net (Loss) Income per Common Share																							Net Income per Common Share
						October 2, 2016						% of Net Revenues					Basic					Diluted						October 4, 2015							% of Net Revenues					Basic						Diluted
Net (loss) income - GAAP						$	(109.8	)					-8.0	%			$	(0.54	)			$	(0.54	)				$	207.1						15.7	%				$	0.97					$	0.96
	Goodwill impairment (2)						254.9						18.6	%				1.25					1.24						-						-						-						-
	Acquired intangible assets impairment (2)						83.3						6.1	%				0.41					0.41						-						-						-						-
	Acquired intangible assets amortization						44.7						3.3	%				0.22					0.22						49.1						3.7	%					0.23						0.23
	Restructuring and other (3)						16.4						1.2	%				0.08					0.08						(0.1	)					0.0	%					(0.00	)					(0.00	)
	Pension mark-to-market adjustment (1)						(1.2	)					-0.1	%				(0.01	)				(0.01	)					-						-						-						-
	Interest and other (4)						-						-					-					-						(5.4	)					-0.4	%					(0.03	)					(0.03	)
	Inventory step-up						-						-					-					-						1.6						0.1	%					0.01						0.01
	Exclude discrete tax adjustments (5)						11.8						0.9	%				0.06					0.06						(4.9	)					-0.4	%					(0.02	)					(0.02	)
	Tax effect of non-GAAP adjustments						(55.7	)					-4.1	%				(0.27	)				(0.27	)					(10.5	)					-0.8	%					(0.05	)					(0.05	)
Net income - non-GAAP						$	244.4						17.8	%			$	1.20				$	1.19					$	236.9						17.9	%				$	1.11					$	1.10
GAAP and non-GAAP weighted average common shares - basic							203.2																						213.7
GAAP weighted average common shares - diluted							203.2																						215.3
	Include dilutive shares						1.7																						-
Non-GAAP weighted average common shares - diluted							204.9																						215.3
(1)	Actuarial gains 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:
						Nine Months Ended
						October 2, 2016																						October 4, 2015
		Contingent consideration fair value adjustment				$	10.5																					$	(2.6	)
		Employee severance					5.9																						1.4
		Impairment of fixed assets and expenses related to Japan earthquake					5.4																						-
		Property insurance recovery					(5.4	)																					-
		Acquisition costs					-																						1.1
						$	16.4																					$	(0.1	)
(4)	For the nine months ended October 4, 2015, Interest and other included a gain from the sale of an equity investment.
(5)	For the nine months ended October 2, 2016 and October 4, 2015, adjustment to exclude discrete income tax items. For the nine months ended October 2, 2016, adjustment to treat Wireless Test business segment goodwill and intangible assets impairments as discrete tax items.
GAAP to Non-GAAP Reconciliation of Fourth Quarter 2016 guidance:
GAAP and non-GAAP fourth quarter revenue guidance:												$330 million				to	$360 million
GAAP net income per diluted share												$	0.17				$	0.26
	Exclude acquired intangible assets amortization												0.04					0.04
	Non-GAAP tax adjustment												(0.03	)				(0.05	)
Non-GAAP net income per diluted share												$	0.18				$	0.25

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/20161026006637/en/

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

Source: Teradyne, Inc.