Summary
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.
Financial Highlights
52 data points| Revenue | $1.65B |
| Cost of Revenue | $769.02M |
| Gross Profit | $878.81M |
| SG&A Expenses | $319.71M |
| Operating Expenses | $782.38M |
| Operating Income | $96.42M |
| Interest Expense | $6.93M |
| Net Income | $81.27M |
| EPS (Basic) | $0.40 |
| EPS (Diluted) | $0.37 |
| Shares Outstanding (Basic) | 202.91M |
| Shares Outstanding (Diluted) | 222.55M |
Key Highlights
- 1Semiconductor Test revenue increased by 27% to $1.30 billion in 2014, driven by strong demand in the application processor market.
- 2Wireless Test revenue decreased by 27% to $184.5 million in 2014, impacting overall segment performance.
- 3The company recorded a significant goodwill impairment charge of $98.9 million in the Wireless Test segment due to decreased projected demand.
- 4Total revenues for 2014 reached $1.65 billion, an increase of 15% compared to 2013.
- 5Gross profit margin decreased to 53.3% in 2014 from 56.6% in 2013, influenced by product mix and lower Wireless Test sales.
- 6Teradyne initiated a quarterly dividend of $0.06 per share in 2014.
- 7A new $500 million stock repurchase program was authorized in January 2015.