Summary
Teradyne, Inc. reported a decrease in net revenues for the first quarter of 2013 compared to the same period in 2012, primarily driven by lower sales in the Semiconductor Test and Systems Test segments. Despite the revenue decline, the company's gross profit margin improved due to a favorable product mix and reduced sales of lower-margin storage test systems. Operating expenses also increased, particularly in Engineering & Development and Selling & Administrative, as a percentage of revenue. The company reported a net income of $6.6 million for the quarter, a significant drop from $33.6 million in the prior year, resulting in diluted EPS of $0.03. Financially, Teradyne maintained a strong liquidity position with cash, cash equivalents, and marketable securities totaling $956.3 million. However, operating activities consumed cash during the quarter, largely due to unfavorable changes in operating assets and liabilities. The company's debt structure includes convertible senior notes, and it has a significant amount of intangible assets and goodwill on its balance sheet, reflecting past acquisitions. Management expects current cash resources to be sufficient for at least the next twelve months.
Financial Highlights
48 data points| Revenue | $280.37M |
| Cost of Revenue | $126.95M |
| Gross Profit | $153.42M |
| SG&A Expenses | $67.89M |
| Operating Expenses | $149.01M |
| Operating Income | $4.41M |
| Interest Expense | $6.40M |
| Net Income | $6.59M |
| EPS (Basic) | $0.03 |
| EPS (Diluted) | $0.03 |
| Shares Outstanding (Basic) | 189.69M |
| Shares Outstanding (Diluted) | 234.76M |
Key Highlights
- 1Net revenues decreased by 29.3% year-over-year to $280.4 million, impacted by declines in Semiconductor Test and Systems Test segments.
- 2Gross profit margin improved to 54.7% from 48.1% in the prior year's quarter, driven by favorable product mix and lower Storage Test system sales.
- 3Net income significantly declined to $6.6 million ($0.03 diluted EPS) from $33.6 million ($0.15 diluted EPS) in Q1 2012.
- 4Operating expenses as a percentage of revenue increased, with Engineering & Development rising to 22.4% and Selling & Administrative to 24.2%.
- 5The company maintained a strong liquidity position with $956.3 million in cash, cash equivalents, and marketable securities as of March 31, 2013.
- 6Operating cash flow was negative at $(36.5) million for the quarter, primarily due to changes in working capital.
- 7The Semiconductor Test segment saw a book-to-bill ratio of 1.2, while Wireless Test was strong at 3.3, and Systems Test was 0.9.