Summary
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.
Financial Highlights
50 data points| Revenue | $1.66B |
| Cost of Revenue | $770.71M |
| Gross Profit | $886.04M |
| SG&A Expenses | $277.02M |
| Operating Expenses | $598.67M |
| Operating Income | $287.37M |
| Interest Expense | $24.53M |
| Net Income | $217.05M |
| EPS (Basic) | $1.16 |
| EPS (Diluted) | $0.94 |
| Shares Outstanding (Basic) | 186.88M |
| Shares Outstanding (Diluted) | 230.25M |
Key Highlights
- 1Teradyne operates in three main segments: Semiconductor Test, Wireless Test, and Systems Test Group.
- 2The acquisition of LitePoint in 2011 significantly expanded the Wireless Test segment, contributing a substantial portion of the 2012 revenue increase.
- 3The Semiconductor Test segment, historically the largest, saw a revenue decrease from 2010 to 2011 due to lower demand, but a slight increase from 2011 to 2012.
- 4International sales are critical, with China and Taiwan being the largest geographic markets for revenue.
- 5The company faces significant competition and relies on a few key customers, with one customer representing 10% of consolidated net revenues in 2012.
- 6Teradyne made substantial investments in engineering and development, indicating a commitment to innovation.
- 7The company has a history of stock repurchases but has not paid cash dividends, reinvesting earnings into growth.