Summary
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.
Financial Highlights
51 data points| Revenue | $1.75B |
| Cost of Revenue | $793.68M |
| Gross Profit | $958.61M |
| SG&A Expenses | $316.54M |
| Operating Expenses | $1.02B |
| Operating Income | -$62.97M |
| Interest Expense | $3.64M |
| Net Income | -$43.42M |
| EPS (Basic) | $-0.21 |
| EPS (Diluted) | $-0.21 |
| Shares Outstanding (Basic) | 202.58M |
| Shares Outstanding (Diluted) | 202.58M |
Key Highlights
- 1Teradyne reported a net loss of $43.4 million for the fiscal year ended December 31, 2016, a significant reversal from the $206.5 million net income in the prior year.
- 2The Wireless Test segment incurred substantial impairment charges, including $254.9 million for goodwill and $83.3 million for intangible assets, due to a sharp decline in projected demand.
- 3The Semiconductor Test segment was a key performer, with revenues increasing by 14% to $1.37 billion, driven by demand in the mobile application processor market.
- 4The Industrial Automation segment, bolstered by the acquisition of Universal Robots, saw significant revenue growth, contributing $99.0 million in 2016.
- 5The company repurchased $146.3 million of its common stock in 2016 and plans to repurchase at least $200 million in 2017.
- 6Teradyne continues to pay a quarterly cash dividend, increasing it to $0.07 per share in January 2017.