Summary
Teradyne, Inc. reported strong first-quarter 2017 results, demonstrating significant year-over-year growth in both revenue and net income. Total revenues increased by 5.9% to $456.9 million, driven by robust performance in the Semiconductor Test and Industrial Automation segments, with the latter experiencing substantial growth due to demand for collaborative robots. The company's profitability saw a notable improvement, with gross profit margin expanding to 58.0% from 53.4% in the prior year, benefiting from a favorable product mix and lower inventory provisions. Net income more than doubled, reaching $85.2 million, or $0.42 per diluted share, compared to $49.9 million, or $0.24 per diluted share, in Q1 2016. This performance reflects effective cost management and operational efficiencies. Teradyne also continued its capital return strategy, repurchasing $37.7 million in stock and paying $14.0 million in dividends, underscoring its commitment to shareholder value.
Financial Highlights
51 data points| Revenue | $456.91M |
| Cost of Revenue | $191.90M |
| Gross Profit | $265.02M |
| SG&A Expenses | $84.79M |
| Operating Expenses | $171.23M |
| Operating Income | $93.78M |
| Interest Expense | $5.40M |
| Net Income | $85.22M |
| EPS (Basic) | $0.43 |
| EPS (Diluted) | $0.42 |
| Shares Outstanding (Basic) | 200.00M |
| Shares Outstanding (Diluted) | 201.94M |
Key Highlights
- 1Total revenues increased by 5.9% to $456.9 million compared to the prior year quarter.
- 2Net income surged to $85.2 million, a significant increase from $49.9 million in Q1 2016, resulting in diluted EPS of $0.42.
- 3Gross profit margin improved to 58.0% from 53.4% year-over-year, driven by a favorable product mix and reduced inventory provisions.
- 4The Semiconductor Test segment showed a 4.5% revenue increase, while Industrial Automation revenues grew by an impressive 117.4%.
- 5The company's book-to-bill ratio for the total company was 1.3, indicating strong order intake relative to sales.
- 6Teradyne continued to return capital to shareholders through $37.7 million in share repurchases and $14.0 million in dividend payments during the quarter.
- 7The effective tax rate decreased significantly to 7.4% from 12.6% in the prior year, partly due to increased discrete benefits from stock-based compensation.