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TER · TERADYNE, INC

33 filings

10-K

TER 10-K Annual Reports

TERADYNE, INC - 33 annual reports

Filing record · 2016–202610-K1110-Q328-K91

2025
TERADYNE, INC Annual Report, Year Ended Dec 31, 2025
Teradyne, Inc. reported strong performance in its 2025 fiscal year, with notable growth in its Semiconductor Test segment driven by increasing demand for Artificial Intelligence (AI) applications. This segment's strategic pivot towards AI-related semiconductor testing proved successful, with AI customer demand dominating the latter half of the year and expected to continue into 2026. The Product Test segment also saw revenue growth, primarily fueled by strength in defense and aerospace applications. While the Robotics segment experienced a year-over-year revenue decline, it demonstrated sequential revenue growth for the third consecutive quarter, indicating a positive trend supported by strategic partnerships and cost reduction efforts. Teradyne continued its proactive acquisition strategy in 2025, acquiring Quantifi Photonics for PIC test solutions and Infineon's AET technology for its Semiconductor Test segment, both aimed at enhancing product offerings and market position. The company also announced a joint venture with MultiLane to target the AI Data Center equipment market. Financially, Teradyne managed its capital effectively, returning significant value to shareholders through share repurchases and dividends, while also maintaining a strong liquidity position supported by its credit facility. Despite some headwinds, such as the strengthening U.S. dollar impacting Robotics revenue and ongoing global trade complexities, the company's focus on high-growth areas like AI positions it well for continued expansion.
Feb 19, 2026
2024
TERADYNE, INC Annual Report, Year Ended Dec 31, 2024
Teradyne, Inc. reported a strong performance in its Semiconductor Test segment for 2024, driven by memory and compute offerings, with expectations of continued growth in mobile, automotive, and industrial sectors supported by AI inference advancements. The Robotics segment experienced a decline due to a weak industrial automation market but managed to outperform peers, with new product introductions expected to drive future growth. Financially, the company saw a revenue increase driven by its Semiconductor Test business, offset by a decrease in Robotics and 'All Other' segments. Despite a challenging industrial automation market affecting its Robotics division, Teradyne demonstrated resilience and strategic investment, including a notable stake in Technoprobe, positioning itself for future technological shifts.
Feb 20, 2025
2023
TERADYNE, INC Annual Report, Year Ended Dec 31, 2023
Teradyne, Inc. reported a challenging year in 2023, with total revenues decreasing by 15.2% to $2.68 billion, primarily driven by a significant slowdown in its Semiconductor Test segment. This decline was attributed to an industry-wide correction cycle and excess semiconductor inventory, particularly in the mobility sector. While demand from automotive and image sensor applications provided some offset, the overall semiconductor market downturn impacted the company's performance. The Robotics segment also experienced a revenue decline of 6.9% due to softening global industrial activity and macroeconomic headwinds, compounded by the company's channel transformation efforts. Despite these revenue pressures, Teradyne maintained a strong gross profit margin of 57.4% in 2023. The company is strategically focusing on gaining market share in its test businesses through product innovation and accelerating growth in its Robotics segment, while also balancing capital allocation towards stock repurchases and dividends. Looking ahead, Teradyne anticipates continued demand for its products from emerging technologies such as DDR5 and High Bandwidth Memory (HBM) devices for data centers, and expects growth drivers from 3-nanometer process technology and increasing multi-chip packaging in the medium term. In a significant strategic move, Teradyne announced a partnership with Technoprobe, a leader in probe cards, which includes an investment and the divestiture of Teradyne's Device Interface Solutions (DIS) business. This transaction, expected to close in the first half of 2024, aims to accelerate growth and enhance semiconductor test interfaces. The company also repurchased $397.2 million of its common stock in 2023 and paid dividends, demonstrating a commitment to returning capital to shareholders.
Feb 22, 2024
2022
TERADYNE, INC Annual Report, Year Ended Dec 31, 2022
Teradyne, Inc. (TER) reported a challenging 2022, with revenues declining 15% year-over-year to $3.16 billion. This downturn was primarily driven by a significant slowdown in the Semiconductor Test segment, which saw demand drop in mobility and compute applications, exacerbated by inventory corrections and a slower technology transition in a key end-market. Despite the revenue headwinds, Teradyne demonstrated resilience and strategic progress. The company's Robotics segment continued its growth trajectory, increasing revenue by 7.2% to $403 million, driven by strong demand for collaborative robotic arms and autonomous mobile robots. Teradyne is actively investing in its Robotics business, aiming for channel expansion and new product introductions to fuel future growth. The company also returned capital to shareholders through $752 million in share repurchases and $70 million in dividends in 2022, reflecting a commitment to shareholder value. Looking ahead, Teradyne anticipates a recovery in its Semiconductor Test business, driven by new process technologies (3nm and beyond) and increasing device complexity. Management is focused on gaining market share in its test businesses and accelerating growth in robotics, while carefully balancing capital allocation. Supply chain constraints and inflationary pressures remain as potential challenges, though the company has taken steps to mitigate these risks.
Feb 22, 2023
2021
TERADYNE, INC Annual Report, Year Ended Dec 31, 2021
Teradyne, Inc.'s 2021 10-K filing reveals a strong performance in its test businesses, particularly Semiconductor Test, driven by increased demand for high-performance processors and industrial/automotive devices. Revenue growth was also observed in System Test and Wireless Test segments. The Industrial Automation segment saw significant growth, driven by demand for collaborative robots and autonomous mobile robots. Despite a strong overall revenue increase of $581.4 million to $3,702.9 million, the company anticipates a slowdown in its Semiconductor Test business for 2022 due to a technology transition in a key end-market, with expectations for acceleration in 2023 driven by 3-nanometer technology adoption. Financially, Teradyne demonstrated robust profitability, with gross profit increasing by 2.4 percentage points to 59.6% of revenues, attributed to a favorable product mix and operating leverage. The company continued to return capital to shareholders through repurchases and dividends, repurchasing $600 million in common stock in 2021 and intending to repurchase at least $750 million in 2022. The company ended the year with a solid cash position of $1,122.2 million, demonstrating financial stability amidst ongoing global supply chain challenges, including semiconductor shortages.
Feb 23, 2022
2020
TERADYNE, INC Annual Report, Year Ended Dec 31, 2020
Teradyne, Inc.'s 2020 10-K filing reveals a strong year for its test businesses, particularly Semiconductor Test, which saw a significant revenue increase driven by demand in mobility and memory sectors. This growth was partly offset by a decline in the Industrial Automation segment, impacted by the COVID-19 pandemic and a general industrial downturn. However, the company anticipates a return to growth in Industrial Automation in 2021. Teradyne's strategy focuses on expanding market share in its test businesses through product differentiation and continued investment in Industrial Automation, while balancing capital allocation for shareholder returns and opportunistic acquisitions. The company's financial performance in 2020 demonstrated resilience, with overall revenue growth despite the challenges in its industrial automation segment. Key financial highlights include robust operating income and a healthy cash flow generation, enabling continued investment in R&D and potential returns to shareholders. Investors should note the significant concentration of revenue from a few key customers, particularly in the Semiconductor Test segment, which presents a potential risk.
Feb 22, 2021
2019
TERADYNE, INC Annual Report, Year Ended Dec 31, 2019
Teradyne, Inc. reported solid financial performance in its 2019 10-K filing. The company, a leading supplier of automation equipment for test and industrial applications, saw revenue growth driven by its Semiconductor Test and System Test businesses, primarily due to demand in China for 5G infrastructure and image sensors, as well as strength in aerospace and defense. While the Industrial Automation segment's growth was below plan, Teradyne made strategic acquisitions in this area, including AutoGuide and MiR, to bolster its position in autonomous mobile robots. The company's revenue is somewhat concentrated among a few key customers, and it faces risks associated with industry cyclicality, competition, and international operations. Despite these challenges, Teradyne's diverse product portfolio and strategic investments position it for continued development in the evolving automation and testing markets.
Mar 2, 2020
2018
TERADYNE, INC Annual Report, Year Ended Dec 31, 2018
Teradyne, Inc.'s 2018 Form 10-K filing highlights a company navigating diverse markets within test automation and industrial automation. The company experienced a slight revenue dip in 2018 compared to 2017, primarily driven by a decline in the Semiconductor Test segment's mobility and microcontroller test sales, though growth in memory and analog segments, along with increased service revenues, provided some offset. The Industrial Automation segment showed robust growth, fueled by increased demand for collaborative robotic arms and the recent acquisitions of MiR and Energid. Key risk factors include the cyclical nature of the semiconductor and electronics industries, intense competition, and significant customer concentration, with a single OEM and its supply partners contributing a notable portion of revenue. Despite these challenges, Teradyne continues to invest in product development and strategic acquisitions, expanding its Industrial Automation capabilities. The company's financial position remained solid, with significant cash and marketable securities, and it continued its share repurchase program and dividend payments.
Mar 1, 2019
2017
TERADYNE, INC Annual Report, Year Ended Dec 31, 2017
Teradyne, Inc. reported strong revenue growth of 22% in its Semiconductor Test segment for 2017, driven by increased sales across various semiconductor device types and services. The Industrial Automation segment also showed significant growth, with revenues increasing by 72% due to higher demand for collaborative robots, reflecting the successful integration of Universal Robots. However, the Wireless Test segment experienced a year-over-year revenue increase of 16%, recovering from a significant decline in 2016, which was largely attributed to operational efficiencies and slower smartphone growth from a major customer. Despite the overall revenue growth, the company faced a substantial increase in income tax provision for 2017, largely due to the U.S. Tax Cuts and Jobs Act, which resulted in a provisional tax expense of $186.0 million. The company also continued its commitment to shareholder returns, increasing its quarterly cash dividend and announcing a significant new share repurchase authorization. Teradyne's backlog at the end of 2017 stood at $626.4 million, with a substantial portion expected to be delivered in 2018, indicating continued demand for its products.
Mar 1, 2018
2016
TERADYNE, INC Annual Report, Year Ended Dec 31, 2016
Teradyne, Inc.'s Form 10-K for the fiscal year ended December 31, 2016, reveals a challenging year marked by a significant net loss of $43.4 million, largely driven by substantial impairment charges within its Wireless Test segment. This segment experienced a sharp decline in projected demand, leading to a goodwill impairment charge of $254.9 million and an acquired intangible asset impairment of $83.3 million. Despite this, the company's core Semiconductor Test segment showed resilience, with revenues increasing by 14% due to strong demand in the mobile application processor market. The company continues to invest in innovation, with engineering and development expenses remaining stable. The acquisition of Universal Robots in 2015 has established a new growth engine in the Industrial Automation segment, contributing significantly to revenue growth in 2016. However, overall financial performance was impacted by the significant write-downs and industry cyclicality. Teradyne is focused on managing costs and market share while navigating these challenges, as evidenced by its ongoing share repurchase program and dividend payments.
Mar 1, 2017
2015
TERADYNE, INC Annual Report, Year Ended Dec 31, 2015
Teradyne, Inc. reported stable revenues for the fiscal year ended December 31, 2015, totaling $1.64 billion, a slight decrease from the previous year. The company successfully integrated the Universal Robots acquisition in June 2015, contributing positively to the newly formed Industrial Automation segment. Despite a decline in Semiconductor Test revenue due to market shifts, this segment remained the largest revenue contributor. System Test saw growth driven by storage test products. However, the Wireless Test segment experienced a decline, leading to a significant goodwill impairment charge of $98.9 million in 2014, which impacted the prior year's results more heavily. Net income for 2015 was $206.5 million, a substantial increase from $81.3 million in 2014, largely due to the absence of the prior year's impairment charge and improved gross profit margins. Teradyne continues to focus on innovation and strategic acquisitions to drive growth. The company's financial position remains robust, with a significant cash balance and no outstanding debt. Management is committed to returning value to shareholders through dividends and share repurchases. Investors should monitor the company's ability to adapt to cyclical market conditions and leverage its new industrial automation segment for future growth.
Feb 29, 2016
2014
TERADYNE, INC Annual Report, Year Ended Dec 31, 2014
Teradyne, Inc.'s 2014 Form 10-K filing reveals a company navigating shifts in its core markets. While Semiconductor Test revenue saw a significant increase of 27% in 2014, driven by demand in application processors, the Wireless Test segment experienced a substantial 27% decline, largely due to lower cellular and connectivity product volumes. This decline in Wireless Test led to a goodwill impairment charge of $98.9 million, highlighting strategic challenges within that segment. The company's overall revenue grew by 15% to $1.65 billion in 2014, supported by the strong performance in Semiconductor Test. However, gross profit margin decreased by 3.3 percentage points due to an unfavorable product mix in Semiconductor Test and lower Wireless Test sales. Despite revenue growth, the company's income from operations was significantly impacted by the goodwill impairment and increased pension expenses. Teradyne also initiated a quarterly dividend in 2014 and announced a substantial $500 million stock repurchase program in early 2015, signaling a focus on returning capital to shareholders.
Feb 27, 2015
2013
TERADYNE, INC Annual Report, Year Ended Dec 31, 2013
Teradyne, Inc. reported consolidated net revenues of $1.43 billion for the fiscal year ended December 31, 2013, a decrease of approximately 14% from $1.66 billion in 2012. This decline was primarily driven by weaker performance in the Semiconductor Test segment, which saw a 9% revenue drop due to lower demand for application processors, and a significant 37% decrease in the System Test segment, largely attributed to reduced hard disk drive demand. The Wireless Test segment also experienced a 12% revenue decline, though this was partly offset by the recent acquisition of ZTEC Instruments Inc. The company highlighted increased investment in R&D, with expenses rising to 18.5% of revenue, reflecting a strategic focus on innovation. Despite the revenue challenges, Teradyne initiated a quarterly cash dividend program in January 2014, signaling confidence in future cash flows. The company's financial position remains solid, with a substantial cash balance and manageable debt. Investors should note the company's reliance on a few significant customers, which contributed 26% of aggregate net revenues in 2013, and the ongoing competitive pressures in its core markets. The report also disclosed the maturity of convertible senior notes in March 2014 and the potential for dilution from related warrant exercises.
Feb 28, 2014
2012
TERADYNE, INC Annual Report, Year Ended Dec 31, 2012
Teradyne, Inc.'s 2013 10-K filing details its position as a leading global supplier of automatic test equipment (ATE) for semiconductors, wireless devices, and other electronic systems. The company strategically expanded its offerings through acquisitions, notably LitePoint in 2011, significantly boosting its Wireless Test segment. The report highlights the cyclical nature of the semiconductor industry and its impact on Teradyne's revenue, as well as the increasing importance of international sales, particularly from China and Taiwan. Key financial performance indicators show a revenue increase in 2012 driven by the LitePoint acquisition, though the Semiconductor Test segment experienced a decline compared to the prior year. The company emphasizes its focus on product development and technological advancement, as evidenced by substantial engineering and development expenditures. Investors should note the company's concentration of revenue from its top customers and its ongoing efforts to manage costs and adapt to market dynamics.
Mar 1, 2013
2011
TERADYNE, INC Annual Report, Year Ended Dec 30, 2011
Teradyne, Inc.'s 2011 10-K filing highlights a year of significant strategic shifts, notably the acquisition of LitePoint Corporation, which bolstered its presence in the wireless test market. While overall net revenue saw a slight decrease from $1.57 billion in 2010 to $1.43 billion in 2011, this was largely driven by a downturn in the Semiconductor Test segment, which experienced a 22% revenue decline. This segment, however, still represented the largest portion of revenue at 77%. The company's Systems Test Group saw substantial growth, with revenue increasing by 93% due to strong performance in Storage Test systems. Despite the revenue dip, Teradyne managed its costs effectively, and importantly, released its deferred tax valuation allowance, significantly boosting net income to $373.8 million in 2011 from a loss of $133.8 million in 2009. The company's strong cash position and ongoing investments in R&D position it to navigate the cyclical nature of its end markets.
Feb 29, 2012
2010
TERADYNE, INC Annual Report, Year Ended Dec 31, 2010
Teradyne, Inc. (TER) in its March 1, 2011 10-K filing showcases a significant recovery in its Semiconductor Test segment, which rebounded strongly in 2010 after a challenging 2009 impacted by the global economic downturn. This segment now represents 88% of the company's revenue, a substantial increase from 67% in 2009. The Systems Test Group, while smaller, saw a revenue decrease in 2010 but still contributes to the diversified portfolio which includes Mil/Aero, HDD, and Commercial Board Test. Financially, the company demonstrated a strong turnaround, posting significant income from continuing operations in 2010 after losses in 2008 and 2009, largely driven by the Semiconductor Test segment's recovery and effective cost management. Teradyne has also bolstered its financial position by increasing its cash and marketable securities balance substantially in 2010. The company's strategic acquisitions of Nextest and Eagle Test in 2008 have expanded its product offerings and market reach within the semiconductor testing space.
Mar 1, 2011
2009
TERADYNE, INC Annual Report, Year Ended Dec 31, 2009
Teradyne, Inc.'s 2009 10-K report reflects a challenging year marked by the significant impact of the global economic downturn. Net revenues declined substantially, primarily driven by a nearly 39% decrease in the Semiconductor Test segment due to customer capacity issues and reduced capital spending. The Systems Test Group saw revenue growth, largely due to the introduction of Hard Disk Drive test systems, but this was insufficient to offset the decline in the larger Semiconductor Test segment. The company implemented significant cost-reduction measures, including workforce reductions and facility consolidations, to navigate the downturn. Despite the revenue challenges, Teradyne continued to invest in new product introductions, such as the UltraFLEX-M for High Speed DRAM and the Neptune product for the HDD market. The company also completed strategic acquisitions of Nextest and Eagle Test in the prior year, expanding its semiconductor test portfolio. Financially, Teradyne recorded a substantial net loss in 2009, heavily influenced by a goodwill impairment charge of $329.7 million taken in 2008, which continued to impact profitability in 2009. The company also saw increased debt from convertible senior notes issued to strengthen its liquidity. Looking ahead, Teradyne expressed cautious optimism for a market recovery and highlighted its efforts to improve profitability through cost management and strategic product development.
Mar 1, 2010
2008
TERADYNE, INC Annual Report, Year Ended Dec 31, 2008
Teradyne Inc.'s 2008 Form 10-K details a challenging year marked by significant macroeconomic headwinds, including the global financial crisis. The company experienced a net loss of $397.8 million for the year, largely impacted by a substantial goodwill impairment charge of $333.3 million. This impairment reflects the downturn in demand for semiconductor test equipment. Despite the difficult economic climate, Teradyne made strategic acquisitions, notably Eagle Test Systems, Inc. and Nextest Systems Corporation, to expand its product offerings within the semiconductor test segment. The company's revenue remained relatively stable year-over-year, aided by these acquisitions, though bookings declined. The report highlights the cyclical nature of the semiconductor and electronics industries as a key risk factor. Teradyne's liquidity position remained adequate, with cash and cash equivalents totaling $322.7 million at year-end.
Mar 2, 2009
2007
TERADYNE, INC Annual Report, Year Ended Dec 31, 2007
Teradyne, Inc.'s 2007 Form 10-K details a year of strategic adjustments and operational performance within the automatic test equipment (ATE) industry. The company reported a decline in net revenue from $1.36 billion in 2006 to $1.10 billion in 2007, primarily driven by a 20% decrease in its Semiconductor Test segment due to slower growth in System-on-Chip (SoC) device units. Despite this revenue contraction, Teradyne managed to improve its gross margin by 1.5 percentage points to 46.6% in 2007, a testament to cost management and product mix shifts. The company completed significant strategic actions during the year, including the sale of its Broadband Test Division and the acquisition of Nextest Systems Corporation in January 2008 for $325 million, aiming to strengthen its position in the flash memory semiconductor test market. Teradyne also continued its share repurchase program, demonstrating a commitment to returning value to shareholders. Looking ahead, the company emphasized its ongoing investment in new product development, particularly for its FLEX Test Platform, to navigate the cyclical nature of the electronics industry and maintain its competitive edge.
Feb 28, 2008
2006
TERADYNE, INC Annual Report, Year Ended Dec 31, 2006
Teradyne, Inc.'s Form 10-K for the fiscal year ended December 31, 2006, showcases a significant recovery and transition, particularly driven by a strong performance in its Semiconductor Test Systems segment. Following a challenging 2005, the company reported a substantial increase in revenue and a return to profitability in 2006, largely attributed to demand for its new FLEX Test Platform Architecture, which addresses the critical need for efficient multi-site testing in the semiconductor industry. The divestiture of the Connection Systems business in late 2005 allowed Teradyne to sharpen its focus on its core automated test equipment offerings. Key financial highlights for 2006 include a revenue increase of 28% to $1.38 billion and a significant improvement in gross margin to 48.0% from 38.3% in the prior year, driven by higher sales volumes and a more favorable product mix. The company also ended the year with a strong cash position of $944.6 million, providing ample liquidity. While facing ongoing industry cyclicality and intense competition, Teradyne's strategic investments in new product development, particularly the FLEX platform, position it to capitalize on future growth opportunities in the semiconductor and electronics testing markets.
Mar 1, 2007
2005
TERADYNE, INC Annual Report, Year Ended Dec 31, 2005
Teradyne, Inc. reported a challenging year for 2005, with a significant revenue decline driven by a slowdown in its core Semiconductor Test Systems segment. While the company completed the sale of its Connection Systems business, resulting in a substantial gain, the continuing operations faced headwinds. Revenue decreased by 24% year-over-year, primarily due to reduced demand from 'Subcon' customers in the Semiconductor Test Systems segment. This segment, which represents the majority of Teradyne's revenue, experienced a 29% drop in net revenue. The company also recorded a significant inventory provision in Semiconductor Test Systems, impacting gross margins. Despite these challenges, Teradyne continued to invest in its new FLEX Test Platform Architecture and saw growth in its Other Test Systems segment, largely due to a large project in Diagnostic Solutions. Looking ahead, Teradyne is focused on the performance of its core semiconductor and assembly test businesses. The company's financial position remains solid with a strong cash balance, although it continues to navigate industry cyclicality and competitive pressures. Investors should monitor the demand trends within the semiconductor industry and the successful adoption of Teradyne's new test platforms, as these will be key drivers of future revenue and profitability. The company's strategy to focus on its core test businesses after the divestiture of Connection Systems is a significant strategic shift to watch.
Mar 14, 2006
2004
TERADYNE, INC Annual Report, Year Ended Dec 31, 2004
Teradyne, Inc.'s 2004 Form 10-K highlights a significant turnaround from the previous year, marked by a substantial increase in net revenue and a return to profitability. The Semiconductor Test Systems segment was the primary growth driver, benefiting from strong demand in the System-on-a-Chip (SOC) market, particularly from Asian sub-contractors and fabless companies. This segment now represents the largest portion of Teradyne's revenue. The company has also seen a healthy increase in its Connection Systems segment, driven by demand in networking and telecommunications. Operationally, Teradyne has made strides in improving its gross margin through increased sales volumes, a favorable product mix, and cost reductions stemming from prior restructuring efforts. The company has been managing its expenses diligently, with notable reductions in R&D and SG&A as a percentage of revenue compared to prior years. Despite a challenging market environment in previous years that led to significant restructuring charges and goodwill impairment, Teradyne has positioned itself for future growth by investing in new product development, such as the FLEX test system. Financially, Teradyne has improved its liquidity, with a significant increase in cash, cash equivalents, and marketable securities. The company's long-term debt has decreased, and it continues to manage its convertible senior notes. Investors should note the company's ongoing commitment to research and development, which is crucial for maintaining its competitive edge in the rapidly evolving semiconductor and electronics industries. The company currently does not pay dividends, reinvesting earnings for growth.
Mar 16, 2005
2003
TERADYNE, INC Annual Report, Year Ended Dec 31, 2003
Teradyne, Inc. reported a net loss for the fiscal year ended December 31, 2003. Despite a revenue increase of 11% year-over-year to $1.35 billion, the company incurred a net loss of $194 million, a significant improvement from the $718 million net loss in 2002. This loss was primarily driven by the ongoing impact of the technology and semiconductor industry downturn, although recent upticks in business activity suggest a potential recovery. The Semiconductor Test Systems segment showed strong growth, with revenue up 32% and bookings increasing by 74%, driven by demand from subcontractors in Asia and the wireless/baseband industries. Conversely, the Connection Systems segment experienced a revenue decline of 10%, largely due to exiting lower-margin EMS business. The company has been actively managing its cost structure through workforce reductions, facility consolidations, and product line rationalization to navigate the challenging market environment.
Mar 15, 2004
2002
TERADYNE, INC Annual Report, Year Ended Dec 31, 2002
Teradyne, Inc.'s 2002 10-K filing reveals a company navigating a challenging economic landscape, with a significant decline in net sales and a substantial net loss compared to the previous year. The company's primary segments, Semiconductor Test Systems and Connection Systems, both experienced revenue decreases, while Circuit Board Test and Inspection Systems saw growth, largely attributed to the GenRad acquisition. Teradyne implemented significant cost-cutting measures, including workforce reductions and asset impairments, reflecting the difficult market conditions and a strategic re-evaluation of its business lines. The company's financial performance was heavily impacted by decreased customer orders, order cancellations, and pricing pressures. Despite these headwinds, Teradyne continued to invest in engineering and development, suggesting a focus on future product innovation. The balance sheet shows a decrease in total assets and a significant increase in net loss, with a substantial portion of deferred tax assets being offset by a full valuation allowance. Investors should pay close attention to the company's ability to recover demand, manage its debt obligations, and execute its product development strategy in a competitive market.
Mar 28, 2003
2001-A
TERADYNE, INC Annual Report (Amendment), Year Ended Dec 31, 2001
This filing is Amendment No. 1 (Form 10-K/A) to Teradyne's annual report for fiscal 2001, filed June 28, 2002. It does not contain Teradyne's core financial statements, revenue, earnings, or segment results. Its sole purpose, under General Instruction F of Form 10-K and Rule 15d-21, is to add the audited financial statements of the GenRad Choice Investment Plan, a 401(k)-style employee plan inherited from Teradyne's October 26, 2001 acquisition of GenRad. Investors seeking Teradyne's operating performance should consult the original 10-K filed March 29, 2002. The only Teradyne-level data in the filing shows about 182.4 million common shares outstanding as of February 24, 2002, and a non-affiliate market value of roughly $5.4 billion on the NYSE. The allowance for doubtful accounts rose to $6.3 million at year-end 2001 from $5.2 million a year earlier, after $1.2 million of provisions. The exhibit index also references the October 2001 private placement of Convertible Senior Notes due 2006, the Megatest and GenRad acquisitions, and several change-in-control agreements with executives. The GenRad plan's financials show net assets of about $66.5 million at the start of 2001 and $59.2 million at the end, with a net depreciation of $5.7 million in investment value and $9.4 million of benefit payments. The plan ceased to exist on December 31, 2001, and its assets were transferred to the Teradyne Savings Plan effective January 1, 2002. The plan held 1.17 million dollars of Teradyne common stock at year-end. These details are of limited relevance to equity valuation.
Jun 28, 2002
2000
TERADYNE, INC Annual Report, Year Ended Dec 31, 2000
Teradyne, Inc.'s 2000 10-K filing reveals a company experiencing substantial growth, particularly in its semiconductor test systems and connection systems segments, which together comprised 91% of net sales in 2000. Net sales surged by 70% to a record $3.04 billion, driven by increased demand from semiconductor manufacturers and high-technology customers. The company also saw a significant increase in incoming orders and backlog, reaching $3.32 billion and $1.38 billion respectively. This robust performance was underpinned by substantial investments in engineering and development, though these expenses as a percentage of sales decreased. Teradyne's financial position remained strong, with cash and equivalents increasing, and no significant long-term debt. However, the report also signals potential headwinds, acknowledging a slowdown in global economies that began in late 2000 and the cyclical nature of the electronics industry. Management noted a downturn in demand and anticipated a reduction in sales from Q4 2000 levels, leading to cost-saving measures including workforce reductions. The company also disclosed the divestiture of a controlling interest in its software test business. Investors should monitor the impact of the economic slowdown on future demand and Teradyne's ability to adapt its operations and product development in a competitive market.
Mar 27, 2001
1999
TERADYNE, INC Annual Report, Year Ended Dec 31, 1999
Teradyne, Inc. (TER) reported a strong 1999, with net sales rising 20% to a record $1,790.9 million from $1,489.2 million in 1998, and net income more than doubling to $191.7 million ($1.07 diluted EPS) from $102.1 million. The growth was driven primarily by a 25% increase in semiconductor test system shipments tied to semiconductor capacity expansion, which accounted for 68% of sales, and a 39% rise in backplane connection system sales. Incoming orders surged 82% to a record $2,190.6 million, pushing backlog up 69% to a record $979.5 million, with most of the semiconductor and backplane backlog expected to ship in 2000. Operating margin improved as cost of sales fell from 64% to 59% of sales, though the other test systems segment (telecom and circuit-board test) swung to a pre-tax loss of $14.3 million as telecom orders fell 59%. The balance sheet strengthened, with cash, equivalents and marketable securities rising to $387.4 million, operating cash flow of $367.5 million, and shareholders' equity of $1.15 billion against only $13.6 million of long-term debt. The company repurchased $207.8 million of stock in 1999 and has never paid cash dividends. Investors should weigh the record bookings against the company's history of semiconductor industry cyclicality, customer concentration (top three customers accounted for 26% of sales, Motorola 11%), exposure to Asian markets, and the 2000 implementation of SAB 101, whose impact is not yet quantified. The filing also flags risks including competitive pricing pressure, the possibility of order cancellations, and potential patent infringement claims. Year 2000 remediation was completed within the $5.0 million budget with no material disruptions reported.
Mar 27, 2000
1998
TERADYNE, INC Annual Report, Year Ended Dec 31, 1998
Teradyne, Inc. (TER) reported record 1998 net sales of $1,489.2 million, up 18% from $1,266.3 million in 1997, driven by strong beginning-of-year backlog and a 14% increase in semiconductor test system shipments. However, profitability declined: net income fell 20% to $102.1 million ($1.19 diluted EPS) from $127.6 million, as cost of sales rose to 64% of sales (including a $23.0 million excess inventory charge) and engineering and development spending increased. Excluding the inventory charge, the company's pre-tax income would have fallen from $198.4 million to $168.9 million in the wake of the semiconductor downturn. The outlook is weaker. Incoming orders fell 25% to $1,206.5 million, with semiconductor test system orders down 40%, and total backlog declined 33% to $579.8 million. Management attributed this to the semiconductor industry downturn, and approximately 98% of semiconductor backlog is expected to ship in 1999, leaving limited visibility beyond that. Despite this, the balance sheet remains strong, with $297.9 million in cash and marketable securities, no borrowings under a $120.0 million revolver, and shareholders' equity of $1,026.4 million. The company continued to repurchase stock ($51.2 million in 1998) and has never paid cash dividends. Investors should weigh the record revenue and solid liquidity against the sharp order decline, margin compression, and heavy reliance on the cyclical semiconductor test market, which generated 65% of 1998 sales. Capital spending remained elevated at $164.4 million, including a new 273,000 square foot North Reading, Massachusetts facility, which adds fixed-cost exposure if order volumes do not recover.
Mar 30, 1999
1997
TERADYNE, INC Annual Report, Year Ended Dec 31, 1997
Teradyne, Inc. (NYSE: TER) reported record 1997 net sales of $1,266.3 million, up 8% from $1,171.6 million in 1996, and net income of $127.6 million ($1.48 diluted EPS), up 36% from $93.6 million. The growth was driven by a 12% increase in semiconductor test system shipments and a 23% rise in backplane connection system sales, partly offset by declines in telecommunications and circuit-board test systems. Results were also helped by a smaller nonrecurring charge ($5.0 million pre-tax in 1997 versus $48.9 million in 1996), and the gross margin improved as cost of sales fell from 62% to 58% of sales. Order momentum was the most notable development. Incoming orders rose 54% to $1,612.4 million, and total backlog grew 67% to $862.5 million at year-end, with about 88% of electronic test backlog expected to ship in 1998. However, the backlog build pushed working capital sharply higher: operating cash flow fell to $13.5 million from $250.8 million, accounts receivable rose $122.5 million, inventories rose $133.4 million, and cash plus marketable securities declined $181.6 million to $249.9 million. Capital spending nearly doubled to $132.1 million to expand production capacity, and the company repurchased $104.5 million of stock. Investors should weigh the strong order book and earnings recovery against the cyclical semiconductor exposure, customer concentration (the three largest customers were 26% of sales), and the cash-flow strain from rapid growth. The company has never paid cash dividends and intends to retain earnings. Management states that existing liquidity and an undrawn $120.0 million revolving credit line are sufficient for 1998 needs, and no material litigation was reported.
Mar 30, 1998
1996
TERADYNE, INC Annual Report, Year Ended Dec 31, 1996
Teradyne, Inc. (TER) reported a year of sharply weaker profitability in fiscal 1996 after a record 1995. Net sales declined 2% to $1,171.6 million from $1,191.0 million, while net income fell 41% to $93.6 million ($1.10 per share) from $159.3 million ($1.89 per share). The decline was driven by a 37% drop in semiconductor test system orders, which reduced total incoming orders 27% to $1,045.1 million. Results were also hit by $48.9 million of pre-tax nonrecurring charges, including a $34.1 million product line consolidation (Megatest and Teradyne VLSI lines) and a $10.8 million workforce reduction provision. Excluding these charges, net income would have been about $125.6 million, still down from the prior year's comparable $164.9 million. Gross margin compressed as cost of sales rose to 62% of sales from 54%, partly due to fixed manufacturing costs and a shift toward lower-margin backplane and circuit-board products. The balance sheet remains strong. Cash, cash equivalents and marketable securities totaled $431.5 million at year-end, with operating cash flow of $250.8 million, and total shareholders' equity rose to $842.0 million. Total debt is modest at roughly $17.4 million, and the company has an undrawn $120.0 million revolving credit line. Management believes liquidity is sufficient for 1997 working capital and capital expenditure needs. The company also repurchased 1.4 million shares for $29.8 million under a 5.0 million share authorization and has never paid cash dividends. Looking forward, the year-end backlog fell to $516.4 million from $659.3 million, with about 82% of electronic test backlog and 91% of backplane backlog expected to ship in 1997. The backlog includes $36.1 million of unfunded U.S. Navy orders, and the company notes that some orders may be canceled. Investors should weigh the cyclicality of the semiconductor capital equipment market, heavy exposure to international sales (54% of revenue), and the expectation of continued volatility in quarterly results against the company's cash position and its continued heavy investment in engineering and development, which rose to 12% of sales.
Mar 27, 1997
1995
TERADYNE, INC Annual Report, Year Ended Dec 31, 1995
Teradyne, Inc. (TER) reported a banner 1995 for its fiscal year ended December 31, 1995. Net sales rose 53% to $1.19 billion (from $777.7 million in 1994), and net income reached $159.3 million, or $1.89 per share, up from $76.4 million, or $0.95 per share. Growth was driven by semiconductor test systems, which grew 70% and represented 69% of consolidated sales, along with a 84% increase in telecommunications test systems tied to Deutsche Telekom. Incoming orders rose 59% to $1.4 billion, and the backlog grew 58% to $659.3 million, providing strong visibility into 1996. Note that these figures are restated for the December 1995 pooling-of-interests merger with Megatest and the two-for-one stock split in August 1995. Margin performance improved as cost of sales fell to 54% of sales from 56%, and selling and administrative expenses dropped to 15% of sales from 19%, reflecting strong operating leverage. Operating income climbed to $244.4 million from $108.0 million. The company ended 1995 with $182.2 million in cash, $93.7 million in marketable securities, and total shareholders' equity of $759.9 million, with long-term debt of only $18.7 million and an undrawn $120 million revolving credit line (expanded in January 1996). Management expects the effective tax rate to return to roughly the 35% statutory rate in 1996. Investors should weigh the company's heavy dependence on the cyclical semiconductor capital equipment market, which management explicitly warns could reverse after the current capacity build-out. Risks also include intensifying price competition, international exposure (52% of sales were export or foreign), and a $40.2 million unfunded U.S. Navy CASS order included in backlog that is not scheduled for delivery until 1997 or later. Engineering spending rose to $123.5 million, reflecting continued investment in new products.
Mar 26, 1996
1994
TERADYNE, INC Annual Report, Year Ended Dec 31, 1994
Teradyne, Inc. (NYSE: TER) closed 1994 with a strong year of growth and improved profitability. Net sales rose 22% to $677.4 million from $554.7 million, driven by semiconductor test systems (up 22%) and backplane connection systems (up 48%). Income before extraordinary item nearly doubled to $70.9 million, or $1.91 per share, from $35.9 million, and the net margin expanded to about 10% from 6%. Incoming orders grew 28% to $803.4 million, and backlog rose 44% to $414.0 million, which gives management good visibility into 1995 revenue, with roughly 91-92% of year-end backlog expected to ship during 1995. The balance sheet is conservative. Cash and equivalents reached $182.8 million, shareholder equity was $493.3 million, and long-term debt was only $8.8 million. Operating cash flow was $89.4 million, and the company bought back $24.6 million of stock. Management expects a tax rate near the 35% statutory rate in 1995, up from an effective 31% in 1994 that benefited from carryforwards that are no longer as available. Gross margin slipped slightly, as lower-margin backplane sales grew faster, and engineering spending (about 10% of sales) is rising to support new semiconductor test products. Key risks for investors include customer concentration (Motorola accounted for about 10% of 1994 sales), cyclicality tied to semiconductor capacity spending, intense competition from larger rivals, and international exposure, with 46% of sales coming from outside the U.S. The company has never paid a cash dividend and plans to retain earnings for growth. The company's auditor, Coopers & Lybrand, issued an unqualified opinion.
Mar 23, 1995
1993
TERADYNE, INC Annual Report, Year Ended Dec 31, 1993
Teradyne, Inc. (TER) reported a strong 1993 recovery in its 10-K for fiscal year ended December 31, 1993. Net sales rose 5% to $554.7 million from $529.6 million, and income before extraordinary item more than doubled to $35.9 million ($1.00 per share) from $22.5 million ($0.67 per share in 1992). Gross margin improved as cost of sales fell to 57% of sales from 59%, driven by a 13% increase in semiconductor test system sales and cost-reduction programs, partly offset by an 18% decline in telecommunications systems and a 7% decline in circuit-board test systems. Incoming orders grew 19% to $625.0 million, and backlog reached roughly $288.0 million (electronic test $238.9 million plus backplane $49.1 million), supporting near-term revenue visibility. The balance sheet strengthened considerably. Cash and equivalents rose to $143.6 million from $67.4 million, operating cash flow was $91.8 million, and the company retired its 9.25% convertible subordinated debentures, eliminating most long-term debt (long-term obligations fell to $9.1 million from $23.6 million). Shareholders' equity grew to $420.1 million, and the company had an undrawn $80.0 million revolving credit line. Management stated it expects to retain all earnings and has never paid cash dividends. Customer concentration is notable: Motorola accounted for $69.3 million, or more than 10% of 1993 sales, and overseas customers represented 41% of sales. Key risks for investors include the cyclical nature of semiconductor capital equipment spending, the company's large backlog cancellation risk, intense competition from larger rivals, a tax rate of 30% that is expected to rise as carryforwards are used up, and foreign currency exposure, which the company partially hedges with $51.9 million of foreign exchange contracts. The company also disclosed that its 1993 results benefited from lower circuit-board test operating costs following 1992 consolidation actions.
Mar 31, 1994