Summary
Teradyne, Inc. reported its financial results for the second quarter and first six months ended July 5, 2015. The company demonstrated solid revenue growth driven by its Semiconductor Test and System Test segments, with System Test showing a significant increase. Notably, the company completed the acquisition of Universal Robots A/S in June 2015, adding a new Industrial Automation segment and enhancing its growth potential. Financially, Teradyne saw an increase in gross profit margin due to improved product mix and sales of previously leased testers, although this was partially offset by higher provisions for excess and obsolete inventory. Operating expenses saw a modest increase in R&D, while SG&A remained relatively flat. The company also announced a new $350 million revolving credit facility, demonstrating its commitment to maintaining strong liquidity. Shareholder returns were supported by $128.3 million in stock repurchases and $25.9 million in dividend payments for the first six months of the year.
Financial Highlights
51 data points| Revenue | $512.74M |
| Cost of Revenue | $214.17M |
| Gross Profit | $298.57M |
| SG&A Expenses | $77.07M |
| Operating Expenses | $167.78M |
| Operating Income | $130.79M |
| Interest Expense | $444K |
| Net Income | $102.88M |
| EPS (Basic) | $0.48 |
| EPS (Diluted) | $0.48 |
| Shares Outstanding (Basic) | 213.84M |
| Shares Outstanding (Diluted) | 215.50M |
Key Highlights
- 1Acquisition of Universal Robots A/S for approximately $284 million in cash, establishing the Industrial Automation segment and adding collaborative robot capabilities.
- 2Total revenues for the six months ended July 5, 2015, increased by 1% to $855.1 million compared to $846.6 million for the same period in 2014.
- 3Gross profit margin improved to 58.2% in Q2 2015 from 55.3% in Q2 2014, driven by product mix and sales of previously leased equipment.
- 4Significant increase in System Test revenue, up 29% in Q2 2015 and 13% for the first six months, primarily from Storage Test segment for cloud storage applications.
- 5A new five-year, $350 million senior secured revolving credit facility was entered into on April 27, 2015, providing enhanced liquidity.
- 6Shareholders were returned capital through $128.3 million in stock repurchases and $25.9 million in dividend payments during the first six months of 2015.