Summary
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.
Financial Highlights
51 data points| Revenue | $2.14B |
| Cost of Revenue | $912.73M |
| Gross Profit | $1.22B |
| SG&A Expenses | $348.91M |
| Operating Expenses | $696.11M |
| Operating Income | $525.34M |
| Interest Expense | $21.66M |
| Net Income | $257.69M |
| EPS (Basic) | $1.30 |
| EPS (Diluted) | $1.28 |
| Shares Outstanding (Basic) | 198.07M |
| Shares Outstanding (Diluted) | 201.64M |
Key Highlights
- 1Semiconductor Test segment revenue grew 22% in 2017, driven by strong demand across multiple product categories and services.
- 2Industrial Automation segment revenue surged 72% in 2017, showcasing successful integration and growing demand for collaborative robots.
- 3The Wireless Test segment revenue increased 16% in 2017, marking a recovery from a challenging 2016 performance.
- 4A provisional tax expense of $186.0 million was recorded in 2017 due to the U.S. Tax Cuts and Jobs Act.
- 5The company increased its quarterly cash dividend in January 2018 and authorized a new $1.5 billion share repurchase program.
- 6Backlog at the end of 2017 was $626.4 million, with most expected to ship in 2018, indicating continued business momentum.
- 7The company highlighted the concentration of its customer base, with its top five customers accounting for 32% of consolidated revenues in 2017, and a single OEM customer (including sales to its OSATs) contributing 22%.