Teradyne Reports Third Quarter 2017 Results

• Q3’17 revenue and earnings exceeded guidance on strength of Semiconductor Test shipments
• Semiconductor Test revenue up 23% compared with Q3’16 and for the first 9 months compared with 2016
• Universal Robots revenue up 70% compared with Q3’16, up 77% for the first 9 months compared with 2016

NORTH READING, Mass.--(BUSINESS WIRE)--

Teradyne, Inc. (NYSE: TER):

												Q3’17			Q3’16			Q2’17
								Orders (mil)				$410			$378			$462
								Revenue (mil)				$503			$410			$697
								GAAP EPS				$0.52			$0.31			$0.87
								Non-GAAP EPS				$0.54			$0.33			$0.90

Teradyne, Inc. (NYSE: TER) reported revenue of $503 million for the third quarter of 2017 of which $397 million was in Semiconductor Test, $40 million in Industrial Automation, $35 million in System Test, and $31 million in Wireless Test. GAAP net income for the third quarter was $103.4 million or $0.52 per share. On a non-GAAP basis, Teradyne’s net income in the third quarter was $107.7 million, or $0.54 per diluted share, which excluded acquired intangible assets amortization, non-cash convertible debt interest, restructuring and other charges, and included the related tax impact on non-GAAP adjustments.

Orders in the third quarter of 2017 were $410 million of which $295 million were in Semiconductor Test, $40 million in Industrial Automation, $42 million in System Test, and $33 million in Wireless Test.

“Strong Semiconductor Test performance, with greater than expected image sensor test system shipments, drove Q3 revenue and earnings above the high end of our guidance,” said CEO and President Mark Jagiela. "Additionally, Universal Robots growth remained strong with Q3 revenue up 70% over the Q3'16 period and up 77% for the first 9 months of the year."

On the demand front, Semiconductor Test achieved its highest third quarter orders in over a decade driven mainly by record memory test orders. This, combined with continued strong growth at Universal Robots, positions the Company for full year sales over $2 billion and net income of over $2 per share at the mid-point of our Q4 guidance.”

Guidance for the fourth quarter of 2017 is revenue of $420 million to $450 million, with GAAP net income of $0.27 to $0.33 per diluted share and non-GAAP net income of $0.31 to $0.37 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 third quarter results, along with management's business outlook, will follow at 10 a.m. ET, Thursday, October 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 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 July 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 THIRD FISCAL QUARTER OF 2017
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
							Quarter Ended																Nine Months Ended
							October 1, 2017					July 2, 2017					October 2, 2016						October 1, 2017					October 2, 2016
Net revenues							$	503,378				$	696,901				$	410,475					$	1,657,191				$	1,373,261
Cost of revenues (exclusive of acquired intangible assets amortization shown separately below) (1) (2)								208,592					305,682					183,116						706,253					632,700
Gross profit								294,786					391,219					227,359						950,938					740,561
Operating expenses:
Selling and administrative (1)								86,244					89,131					78,794						260,282					239,393
Engineering and development (1)								77,190					81,728					71,400						235,101					220,973
Acquired intangible assets amortization								7,028					8,166					8,487						23,145					44,725
Restructuring and other (3)								(4,407	)				2,288					12,177						392					16,372
Goodwill impairment (4)								-					-					-						-					254,946
Acquired intangible assets impairment (4)								-					-					-						-					83,339
Operating expenses								166,055					181,313					170,858						518,920					859,748
Income (loss) from operations								128,731					209,906					56,501						432,018					(119,187	)
Interest and other (5)								(1,294	)				(3,029	)				3,180						(5,689	)				5,242
Income (loss) before income taxes								127,437					206,877					59,681						426,329					(113,945	)
Income tax provision (benefit)								24,017					31,901					(4,113	)					62,713					(4,178	)
Net income (loss)							$	103,420				$	174,976				$	63,794					$	363,616				$	(109,767	)
Net income (loss) per common share:
Basic							$	0.52				$	0.88				$	0.32					$	1.83				$	(0.54	)
Diluted							$	0.52				$	0.87				$	0.31					$	1.81				$	(0.54	)
Weighted average common shares - basic								197,485					198,774					202,211						198,755					203,167
Weighted average common shares - diluted								200,775					201,529					203,929						201,413					203,167
Cash dividend declared per common share							$	0.07				$	0.07				$	0.06					$	0.21				$	0.18
Net orders							$	410,229				$	461,606				$	378,461					$	1,466,567				$	1,238,862
(1	)		Pension actuarial (gains) losses included in our operating results were as follows:
							Quarter Ended																Nine Months Ended
							October 1, 2017					July 2, 2017					October 2, 2016						October 1, 2017					October 2, 2016
			Cost of revenues				$	-				$	(664	)			$	364					$	(664	)			$	(250	)
			Selling and administrative					-					(1,094	)				192						(1,094	)				(441	)
			Engineering and development					-					(746	)				106						(746	)				(509	)
							$	-				$	(2,504	)			$	662					$	(2,504	)			$	(1,200	)
(2	)		Cost of revenues includes:				Quarter Ended																Nine Months Ended
							October 1, 2017					July 2, 2017					October 2, 2016						October 1, 2017					October 2, 2016
			Provision for excess and obsolete inventory				$	1,859				$	2,569				$	3,033					$	7,154				$	15,148
			Sale of previously written down inventory					(3,121	)				(2,149	)				(1,794	)					(6,404	)				(8,113	)
							$	(1,262	)			$	420				$	1,239					$	750				$	7,035
(3	)		Restructuring and other consists of:				Quarter Ended																Nine Months Ended
							October 1, 2017					July 2, 2017					October 2, 2016						October 1, 2017					October 2, 2016
			Employee severance				$	581				$	789				$	4,203					$	1,953				$	5,920
			Contingent consideration fair value adjustment					(286	)				1,499					7,974						1,847					10,452
			Facility related					(393	)				-					-						901					-
			Property insurance recovery					(5,064	)				-					-						(5,064	)				(5,051	)
			Expenses and impairment of fixed assets related to Japan earthquake					755					-					-						755					5,051
							$	(4,407	)			$	2,288				$	12,177					$	392				$	16,372
(4	)		Goodwill and acquired intangible assets impairment related to Teradyne's Wireless Test business segment.
(5	)		Interest and other includes:				Quarter Ended																Nine Months Ended
							October 1, 2017					July 2, 2017					October 2, 2016						October 1, 2017					October 2, 2016
			Non-cash convertible debt interest expense				$	3,127				$	3,088				$	-					$	9,265				$	-

CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands)
							October 1, 2017					December 31, 2016
Assets
Cash and cash equivalents							$	418,677				$	307,884
Marketable securities								1,217,830					871,024
Accounts receivable, net								268,068					192,444
Inventories, net								125,183					135,958
Prepayments								105,309					108,454
Other current assets								5,021					8,039
Total current assets								2,140,088					1,623,803
Property, plant and equipment, net								259,080					253,821
Marketable securities								211,943					433,843
Deferred tax assets								120,228					107,405
Other assets								12,028					12,165
Retirement plans assets								10,954					7,712
Acquired intangible assets, net								85,729					100,401
Goodwill								249,277					223,343
Total assets							$	3,089,327				$	2,762,493
Liabilities
Accounts payable							$	79,429				$	95,362
Accrued employees' compensation and withholdings								113,634					109,944
Deferred revenue and customer advances								111,506					84,478
Other accrued liabilities								62,611					51,382
Contingent consideration								21,818					1,050
Accrued income taxes								42,377					30,480
Total current liabilities								431,375					372,696
Retirement plans liabilities								114,316					106,938
Long-term deferred revenue and customer advances								31,686					23,463
Deferred tax liabilities								10,543					12,144
Long-term other accrued liabilities								11,604					28,642
Long-term contingent consideration								17,311					37,282
Long-term debt								362,595					352,669
Total liabilities								979,430					933,834
Shareholders' equity								2,109,897					1,828,659
Total liabilities and shareholders' equity							$	3,089,327				$	2,762,493

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)
					Quarter Ended											Nine Months Ended
					October 1, 2017					October 2, 2016						October 1, 2017					October 2, 2016
Cash flows from operating activities:
Net income (loss)					$	103,420				$	63,794					$	363,616				$	(109,767	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation						16,769					16,269						49,243					48,437
Amortization						9,901					9,095						32,313					46,275
Stock-based compensation						8,308					7,555						25,620					23,012
Deferred taxes						2,884					(21,110	)					(679	)				(42,568	)
Provision for excess and obsolete inventory						1,859					3,033						7,154					15,148
Contingent consideration fair value adjustment						(286	)				7,974						1,847					10,452
Property insurance recovery						(4,309	)				-						(4,309	)				(5,051	)
Impairment of fixed assets						-					-						-					4,179
Retirement plans actuarial losses (gains)						-					662						(2,504	)				(1,200	)
Tax benefit related to employee stock compensation awards						-					(3,399	)					-					(3,399	)
Goodwill impairment						-					-						-					254,946
Acquired intangible assets impairment						-					-						-					83,339
Other						36					(426	)					429					151
Changes in operating assets and liabilities:
Accounts receivable						137,807					183,890						(75,623	)				45,660
Inventories						31,919					18,378						23,770					48,600
Prepayments and other assets						2,937					384						7,362					(13,273	)
Accounts payable and accrued expenses						(27,778	)				(32,672	)					5,298					(38,712	)
Deferred revenue and customer advances						29,223					(52,692	)					34,535					53,380
Retirement plans contributions						(2,875	)				(3,573	)					(4,858	)				(5,871	)
Income taxes						15					4,221						15,808					4,227
Net cash provided by operating activities						309,830					201,383						479,022					417,965
Cash flows from investing activities:
Purchases of property, plant and equipment						(27,280	)				(19,659	)					(73,247	)				(66,252	)
Purchases of available-for-sale marketable securities						(701,704	)				(438,526	)					(1,036,523	)				(875,837	)
Proceeds from sales of available-for-sale marketable securities						129,915					131,946						443,169					466,744
Proceeds from maturities of available-for-sale marketable securities						165,648					74,138						473,255					202,162
Proceeds from property insurance						5,064					-						5,064					5,051
Net cash used for investing activities						(428,357	)				(252,101	)					(188,282	)				(268,132	)
Cash flows from financing activities:
Issuance of common stock under stock purchase and stock option plans						9,247					2,189						24,462					20,085
Repurchase of common stock						(57,493	)				(28,309	)					(151,821	)				(85,092	)
Dividend payments						(13,805	)				(12,123	)					(41,730	)				(36,548	)
Tax benefit related to employee stock compensation awards						-					3,399						-					3,399
Payments related to net settlement of employee stock compensation awards						(146	)				(77	)					(12,584	)				(9,229	)
Payments of contingent consideration						-					-						(1,050	)				(11,697	)
Net cash used for financing activities						(62,197	)				(34,921	)					(182,723	)				(119,082	)
Effects of exchange rate changes on cash and cash equivalents						1,052					2,481						2,776					2,481
(Decrease) increase in cash and cash equivalents						(179,672	)				(83,158	)					110,793					33,232
Cash and cash equivalents at beginning of period						598,349					381,095						307,884					264,705
Cash and cash equivalents at end of period					$	418,677				$	297,937					$	418,677				$	297,937

GAAP to Non-GAAP Earnings Reconciliation
(In millions, except per share amounts)
							Quarter Ended
							October 1, 2017					% of Net Revenues																			July 2, 2017					% of Net Revenues																		October 2, 2016					% of Net Revenues
Net revenues							$	503.4																							$	696.9																						$	410.5
Gross profit - GAAP							$	294.8					58.6	%																	$	391.2				56.1	%																	$	227.4				55.4	%
Pension mark-to-market adjustment (1)								-					-																			(0.7	)			-0.1	%																		0.4				0.1	%
Gross profit - non-GAAP							$	294.8					58.6	%																	$	390.5				56.0	%																	$	227.8				55.5	%
Income from operations - GAAP							$	128.7					25.6	%																	$	209.9				30.1	%																	$	56.5				13.8	%
Acquired intangible assets amortization								7.0					1.4	%																		8.2				1.2	%																		8.5				2.1	%
Restructuring and other (2)								(4.4	)				-0.9	%																		2.3				0.3	%																		12.2				3.0	%
Pension mark-to-market adjustment (1)								-					-																			(2.5	)			-0.4	%																		0.7				0.2	%
Income from operations - non-GAAP							$	131.3					26.1	%																	$	217.9				31.3	%																	$	77.9				19.0	%
																		Net Income per Common Share																						Net Income per Common Share																							Net Income per Common Share
							October 1, 2017					% of Net Revenues						Basic					Diluted								July 2, 2017					% of Net Revenues				Basic					Diluted									October 2, 2016					% of Net Revenues				Basic					Diluted
Net income - GAAP							$	103.4					20.5	%				$	0.52				$	0.52							$	175.0				25.1	%			$	0.88				$	0.87								$	63.8				15.5	%			$	0.32				$	0.31
Acquired intangible assets amortization								7.0					1.4	%					0.04					0.04								8.2				1.2	%				0.04					0.04									8.5				2.1	%				0.04					0.04
Interest and other (3)								3.1					0.6	%					0.02					0.02								3.1				0.4	%				0.02					0.02									-				-					-					-
Restructuring and other (2)								(4.4	)				-0.9	%					(0.02	)				(0.02	)							2.3				0.3	%				0.01					0.01									12.2				3.0	%				0.06					0.06
Pension mark-to-market adjustment (1)								-					-						-					-								(2.5	)			-0.4	%				(0.01	)				(0.01	)								0.7				0.2	%				0.00					0.00
Exclude discrete tax adjustments (4)								0.3					0.1	%					0.00					0.00								0.5				0.1	%				0.00					0.00									(10.7	)			-2.6	%				(0.05	)				(0.05	)
Non-GAAP tax adjustments (5)								(1.7	)				-0.3	%					(0.01	)				(0.01	)							(5.1	)			-0.7	%				(0.03	)				(0.03	)								(6.8	)			-1.7	%				(0.03	)				(0.03	)
Net income - non-GAAP							$	107.7					21.4	%				$	0.55				$	0.54							$	181.5				26.0	%			$	0.91				$	0.90								$	67.7				16.5	%			$	0.33				$	0.33
GAAP and non-GAAP weighted average common shares - basic								197.5																								198.8																							202.2
GAAP weighted average common shares - diluted								200.8																								201.5																							203.9
Exclude dilutive shares from convertible note								(1.1	)																							(0.7	)																						-
Non-GAAP weighted average common shares - diluted								199.7																								200.8																							203.9
(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
							October 1, 2017																								July 2, 2017																							October 2, 2016
			Employee severance				$	0.6																							$	0.8																						$	4.2
			Contingent consideration fair value adjustment					(0.3	)																							1.5																							8.0
			Facility related					(0.4	)																							-																							-
			Property insurance recovery					(5.1	)																							-																							-
			Expenses and Impairment of fixed assets related to Japan earthquake					0.8																								-																							-
							$	(4.4	)																						$	2.3																						$	12.2
(3	)		For the quarters ended October 1, 2017 and July 2, 2017, interest and other included non-cash convertible debt interest expense.
(4	)		For the quarters ended October 1, 2017, July 2, 2017 and October 2, 2016 adjustment to exclude discrete income tax items.
(5	)		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.
							Nine Months Ended
							October 1, 2017					% of Net Revenues																			October 2, 2016					% of Net Revenues
Net Revenues							$	1,657.2																							$	1,373.3
Gross profit - GAAP							$	950.9					57.4	%																	$	740.6				53.9	%
			Pension mark-to-market adjustment (1)					(0.7	)				0.0	%																		(0.3	)			0.0	%
Gross profit - non-GAAP							$	950.2					57.3	%																	$	740.3				53.9	%
Income (loss) from operations - GAAP							$	432.0					26.1	%																	$	(119.2	)			-8.7	%
			Acquired intangible assets amortization					23.1					1.4	%																		44.7				3.3	%
			Restructuring and other (2)					0.4					0.0	%																		16.4				1.2	%
			Pension mark-to-market adjustment (1)					(2.5	)				-0.2	%																		(1.2	)			-0.1	%
			Goodwill impairment (3)					-					-																			254.9				18.6	%
			Acquired intangible assets impairment (3)					-					-																			83.3				6.1	%
Income from operations - non-GAAP							$	453.0					27.3	%																	$	278.9				20.3	%
																		Net Income per Common Share																						Net (Loss) Income per Common Share
							October 1, 2017					% of Net Revenues						Basic					Diluted								October 2, 2016					% of Net Revenues				Basic					Diluted
Net income (loss) - GAAP							$	363.6					21.9	%				$	1.83				$	1.81							$	(109.8	)			-8.0	%			$	(0.54	)			$	(0.54	)
			Acquired intangible assets amortization					23.1					1.4	%					0.12					0.12								44.7				3.3	%				0.22					0.22
			Interest and other (4)					9.3					0.6	%					0.05					0.05								-				-					-					-
			Restructuring and other (2)					0.4					0.0	%					0.00					0.00								16.4				1.2	%				0.08					0.08
			Pension mark-to-market adjustment (1)					(2.5	)				-0.2	%					(0.01	)				(0.01	)							(1.2	)			-0.1	%				(0.01	)				(0.01	)
			Goodwill impairment (3)					-					-						-					-								254.9				18.6	%				1.25					1.24
			Acquired intangible assets impairment (3)					-					-						-					-								83.3				6.1	%				0.41					0.41
			Exclude discrete tax adjustments (5)					(6.1	)				-0.4	%					(0.03	)				(0.03	)							11.8				0.9	%				0.06					0.06
			Non-GAAP tax adjustments (6)					(9.9	)				-0.6	%					(0.05	)				(0.05	)							(55.7	)			-4.1	%				(0.27	)				(0.27	)
Net income - non-GAAP							$	377.9					22.8	%				$	1.90				$	1.88							$	244.4				17.8	%			$	1.20				$	1.19
GAAP and non-GAAP weighted average common shares - basic								198.8																								203.2
GAAP weighted average common shares - diluted								201.4																								203.2
			Exclude dilutive shares from convertible note					(0.6	)																							-
			Include dilutive shares					-																								1.7
Non-GAAP weighted average common shares - diluted								200.8																								204.9
(1	)		Actuarial gains recognized under GAAP in accordance with Teradyne's mark-to-market pension accounting.
(2	)		Restructuring and other consists of:
							Nine Months Ended
							October 1, 2017																								October 2, 2016
			Employee severance				$	2.0																							$	5.9
			Contingent consideration fair value adjustment					1.8																								10.5
			Facility related					0.9																								-
			Expenses and impairment of fixed assets related to Japan earthquake					0.8																								5.1
			Property insurance recovery					(5.1	)																							(5.1	)
							$	0.4																							$	16.4
(3	)		Goodwill and acquired intangible assets impairment related to Teradyne's Wireless Test business segment.
(4	)		For the nine months ended October 1, 2017, Interest and other included non-cash convertible debt interest expense.
(5	)		For the nine months ended October 1, 2017 and October 2, 2016, 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.
(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 Fourth Quarter 2017 guidance:
GAAP and non-GAAP fourth quarter revenue guidance:												$420 million				to		$450 million
GAAP net income per diluted share												$	0.27					$	0.33
			Exclude acquired intangible assets amortization										0.04						0.04
			Exclude non-cash convertible debt interest										0.02						0.02
			Non-GAAP tax adjustment										(0.01	)					(0.01	)
Non-GAAP net income per diluted share												$	0.31					$	0.37

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/20171025006392/en/

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

Source: Teradyne, Inc.