What is the company's overall financial performance for the nine months ended September 29, 2013?

For the nine months ended September 29, 2013, Teradyne experienced a decline in net revenues to $1.14 billion from $1.41 billion in the same period of 2012, primarily due to lower sales in its Semiconductor Test and System Test segments. However, the company improved its gross profit margin to 56.8% from 54.0% year-over-year, reflecting a more favorable product mix and lower inventory provisions. Net income decreased to $142.6 million from $233.6 million.

How has Teradyne's cash position evolved?

Teradyne's cash and cash equivalents significantly increased to $572.9 million as of September 29, 2013, a notable rise from $338.9 million at the end of 2012. This improvement was driven by strong net cash provided by operating activities, which generated $223.4 million during the first nine months of 2013.

What were the main drivers of the revenue decline in the Semiconductor Test and System Test segments?

The decrease in Semiconductor Test revenues was primarily attributed to lower sales of system-on-a-chip (SOC) test products due to a weaker application processor market in 2013 compared to 2012. The significant drop in System Test revenues was mainly due to lower product volume in Storage Test systems, driven by reduced demand for hard disk drives as personal computer shipments declined.

What significant corporate events occurred in the period or shortly after?

In October 2013, Teradyne completed the acquisition of ZTEC Instruments, Inc., a supplier of modular wireless test instruments, to expand its wireless segment. Also in October 2013, Teradyne sold its equity interest in Empirix Inc. for $34.2 million, a transaction expected to result in a gain recorded in the fourth quarter of 2013.

TER 10-Q Quarterly Report Q3 FY2013 — Revenue, Net Income, EPS

Summary

Teradyne, Inc. (TER) reported its third quarter and nine-month results for the period ending September 29, 2013. For the nine months, net revenues decreased to $1.14 billion from $1.41 billion in the prior year, primarily driven by declines in Semiconductor Test and System Test segments, with lower demand in the hard disk drive market impacting System Test. Despite revenue challenges, gross profit as a percentage of revenue improved to 56.8% from 54.0% year-over-year, reflecting favorable product mix and lower inventory provisions. Cash and cash equivalents saw a significant increase, rising to $572.9 million from $338.9 million at the end of 2012, fueled by strong operating cash flow. The company ended the period with a healthy liquidity position. Teradyne completed the acquisition of ZTEC Instruments, Inc. and the sale of its equity interest in Empirix Inc. in October 2013, which are expected to impact future financial performance.

Financial Highlights

49 data points

Beta

Revenue

$433.38M

0.6% Gross Margin

Net Income

$69.46M

0.2% Net Margin

EPS (Diluted)

$0.29

Total Assets

$2.61B

Cash & Equivalents

$572.87M

Free Cash Flow

$123.33M

Financial Statements

Beta

Revenue	$433.38M
Cost of Revenue	$179.08M
Gross Profit	$254.29M
SG&A Expenses	$72.92M
Operating Expenses	$160.79M
Operating Income	$93.51M
Interest Expense	$6.49M
Net Income	$69.46M
EPS (Basic)	$0.36
EPS (Diluted)	$0.29
Shares Outstanding (Basic)	191.31M
Shares Outstanding (Diluted)	235.83M

Key Highlights

1Total net revenues for the nine months ended September 29, 2013, decreased to $1.14 billion from $1.41 billion in the same period of 2012.
2Gross profit margin improved to 56.8% for the nine months ended September 29, 2013, from 54.0% in the prior year's period.
3Cash and cash equivalents increased significantly to $572.9 million as of September 29, 2013, from $338.9 million at December 31, 2012.
4Net income for the nine months ended September 29, 2013, was $142.6 million, down from $233.6 million in the comparable period of 2012.
5Operating expenses increased for the nine-month period, with Engineering & Development up to $199.4 million from $193.1 million, and Selling & Administrative expenses rising to $210.0 million from $207.7 million.
6The company reported a book-to-bill ratio of 0.6 for the total company in Q3 2013, compared to 0.5 in Q3 2012, indicating a slight improvement in new orders relative to sales.
7Teradyne completed the acquisition of ZTEC Instruments, Inc. and the divestiture of its equity interest in Empirix Inc. in October 2013.

TERADYNE, INC Quarterly Report for Q3 Ended Sep 29, 2013

Summary

Financial Highlights

Key Highlights

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