Summary
Teradyne, Inc. reported a decrease in net revenues for both the three and six-month periods ended June 30, 2013, compared to the prior year, driven primarily by declines in its Semiconductor Test and Systems Test segments. This revenue contraction, particularly in Storage Test systems due to lower PC demand, led to a decrease in income from operations. Despite lower revenues, gross profit margin remained relatively stable for the three-month period, but improved for the six-month period due to a more favorable product mix and lower Storage Test system sales. The company also benefited from a lower effective tax rate in the current periods, primarily due to U.S. federal research and development tax credits. Management expressed confidence in the company's liquidity, with cash, cash equivalents, and marketable securities remaining strong.
Financial Highlights
49 data points| Revenue | $428.89M |
| Cost of Revenue | $187.66M |
| Gross Profit | $241.23M |
| SG&A Expenses | $69.23M |
| Operating Expenses | $155.32M |
| Operating Income | $85.91M |
| Interest Expense | $6.43M |
| Net Income | $66.56M |
| EPS (Basic) | $0.35 |
| EPS (Diluted) | $0.28 |
| Shares Outstanding (Basic) | 190.57M |
| Shares Outstanding (Diluted) | 234.91M |
Key Highlights
- 1Net revenues decreased by 20% and 22% year-over-year for the three and six months ended June 30, 2013, respectively.
- 2The Semiconductor Test segment experienced a significant revenue decline of 20% and 20% for the three and six-month periods, respectively.
- 3Systems Test revenue saw a substantial decrease of 48% and 57% for the three and six-month periods, attributed to lower Storage Test system sales.
- 4Gross profit margin remained stable at 56.2% for the three-month period, but improved to 55.6% for the six-month period compared to 53.0% in the prior year, aided by product mix and reduced Storage Test sales.
- 5Operating expenses, specifically Selling and Administrative, decreased in the three-month period due to lower variable compensation.
- 6The effective tax rate decreased significantly to 17% and 7% for the three and six months ended June 30, 2013, respectively, compared to 27% and 25% in the prior year, largely due to R&D tax credits.
- 7The company reported a book-to-bill ratio of 1.1 for both the three and six-month periods, indicating orders received were in line with or slightly exceeded sales.