Summary
Teradyne, Inc. reported total net revenues of $396.7 million for the first quarter of 2012, an increase of 5.2% compared to $377.2 million in the same period of 2011. This growth was primarily driven by the Systems Test Group segment and the acquisition of LitePoint (Wireless Test segment). Despite increased revenues, net income saw a significant decline to $33.6 million ($0.15 per diluted share) from $96.8 million ($0.42 per diluted share) in the prior year's quarter. This reduction is largely attributable to higher cost of revenues, particularly for products, and increased operating expenses, including engineering and development and selling and administrative costs, partly due to the LitePoint acquisition. The Semiconductor Test segment experienced a revenue decline, impacting overall profitability. The company's cash position remains strong with $533.4 million in cash and cash equivalents at the end of the quarter.
Financial Highlights
48 data points| Revenue | $548.28M |
| Cost of Revenue | $238.78M |
| Gross Profit | $309.51M |
| SG&A Expenses | $72.06M |
| Operating Expenses | $152.06M |
| Operating Income | $157.44M |
| Interest Expense | $6.32M |
| Net Income | $111.39M |
| EPS (Basic) | $0.60 |
| EPS (Diluted) | $0.49 |
| Shares Outstanding (Basic) | 185.84M |
| Shares Outstanding (Diluted) | 231.15M |
Key Highlights
- 1Total net revenues increased by 5.2% to $396.7 million, primarily driven by the Systems Test Group and the addition of Wireless Test revenue from the LitePoint acquisition.
- 2Net income decreased significantly to $33.6 million from $96.8 million in the prior year's quarter, resulting in diluted EPS of $0.15 compared to $0.42.
- 3Cost of revenues increased by 11.7% to $205.7 million, outpacing revenue growth and impacting gross profit margin.
- 4Operating expenses rose by 28.4% to $144.5 million, largely due to increased spending on engineering, selling, administrative, and acquired intangible asset amortization, with a notable impact from the LitePoint acquisition.
- 5The Semiconductor Test segment's revenue decreased by 16% to $267.6 million, reflecting lower sales across System-on-a-Chip and memory products.
- 6The company's liquidity remains robust, with cash and cash equivalents totaling $533.4 million as of April 1, 2012.
- 7Teradyne adopted a new accounting principle for recognizing actuarial gains and losses for its defined benefit pension and postretirement plans, effective January 1, 2012, which had a retrospective impact on prior periods.