TERADYNE, INC Quarterly Report for Q2 Ended Apr 5, 2015

Summary

Teradyne, Inc. reported solid financial results for the first quarter of 2015, demonstrating a significant rebound from the prior year period. Total revenues increased by 6.6% year-over-year to $342.4 million, driven by strong performance in the Semiconductor Test and Wireless Test segments. The company achieved a substantial improvement in profitability, with net income soaring to $32.8 million ($0.15 per diluted share) from just $0.9 million ($0.00 per diluted share) in the first quarter of 2014. This improved profitability was supported by a higher gross profit margin and effectively managed operating expenses, despite increased R&D investments. From a balance sheet perspective, Teradyne maintained a strong liquidity position with cash and cash equivalents and marketable securities totaling approximately $1.27 billion. The company also initiated a significant share repurchase program and continued to pay quarterly dividends, reflecting confidence in its financial health and commitment to returning value to shareholders. The acquisition of Avionics Interface Technologies (AIT) in late 2014 is expected to complement the System Test segment's offerings.

Key Highlights

• 1Revenue increased by 6.6% to $342.4 million compared to the prior year quarter.
• 2Net income saw a dramatic increase to $32.8 million, or $0.15 per diluted share, from $0.9 million, or $0.00 per diluted share, in the prior year quarter.
• 3Gross profit margin improved to 56.2% from 52.0% in the prior year quarter.
• 4The Semiconductor Test and Wireless Test segments drove revenue growth.
• 5The company held a strong liquidity position with over $1.27 billion in cash and marketable securities.
• 6Teradyne repurchased $46.7 million of common stock and paid $13.0 million in dividends.
• 7An acquisition of Avionics Interface Technologies (AIT) in October 2014 was integrated into the System Test segment.

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