TERADYNE, INC Quarterly Report for Q1 Ended Mar 30, 2014

Summary

Teradyne, Inc. reported its first-quarter 2014 financial results, with total net revenues reaching $321.0 million, a 14.5% increase compared to the same period last year. This growth was primarily driven by a strong performance in the Semiconductor Test segment, which saw a 24% revenue increase year-over-year, largely due to higher system-on-a-chip (SOC) product volume. However, the Wireless Test segment experienced a significant revenue decline of 37%, impacting overall profitability. The company reported a net income of $0.9 million, or $0.00 per diluted share, a substantial decrease from $6.6 million, or $0.03 per diluted share, in the first quarter of 2013. This decline was influenced by several factors including increased cost of revenues, higher operating expenses, particularly a one-time stock-based compensation charge related to the former CEO's retirement, and a reduction in income tax benefit due to the non-recurrence of a significant R&D tax credit from the prior year. Despite the profitability drop, Teradyne's balance sheet remains solid with $966.8 million in cash, cash equivalents, and marketable securities.

Key Highlights

• 1Total net revenues increased by 14.5% to $321.0 million, driven by the Semiconductor Test segment.
• 2Semiconductor Test segment revenue grew by 24% year-over-year, primarily due to increased SOC product volume.
• 3Wireless Test segment revenue declined significantly by 37% ($12.4 million).
• 4Net income decreased substantially to $0.9 million from $6.6 million in the prior year's quarter.
• 5Diluted earnings per share were $0.00, down from $0.03 in Q1 2013.
• 6The company declared its initial quarterly cash dividend of $0.06 per share.
• 7Total operating expenses increased, notably due to a $6.6 million stock-based compensation charge for the former CEO's retirement agreement.

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