Summary
Teradyne, Inc. reported first-quarter 2019 revenues of $494.1 million, a slight increase from the prior year's $487.5 million. This growth was primarily driven by strong performance in the Industrial Automation, System Test, and Wireless Test segments, which offset a decline in the Semiconductor Test segment, particularly in memory and mobility test sales. The company's gross profit margin improved to 58.2% from 55.4% year-over-year, attributed to a favorable product mix. Net income for the quarter was $109.1 million, or $0.62 per diluted share, compared to $87.0 million, or $0.43 per diluted share, in the first quarter of 2018. The company saw a significant improvement in its effective tax rate due to discrete tax benefits, including the release of reserves for uncertain tax positions. Teradyne continued its capital return programs, repurchasing $156.5 million of common stock and paying $15.6 million in dividends during the quarter, reflecting confidence in its ongoing financial strength and future prospects.
Financial Highlights
51 data points| Revenue | $494.10M |
| Cost of Revenue | $206.46M |
| Gross Profit | $287.63M |
| SG&A Expenses | $102.01M |
| Operating Expenses | $194.55M |
| Operating Income | $93.08M |
| Interest Expense | $5.52M |
| Net Income | $109.14M |
| EPS (Basic) | $0.63 |
| EPS (Diluted) | $0.62 |
| Shares Outstanding (Basic) | 173.53M |
| Shares Outstanding (Diluted) | 176.97M |
Key Highlights
- 1Total revenues increased slightly to $494.1 million from $487.5 million year-over-year, driven by growth in Industrial Automation, System Test, and Wireless Test segments.
- 2Gross profit margin improved to 58.2% from 55.4%, primarily due to a more favorable product mix.
- 3Net income rose to $109.1 million ($0.62 diluted EPS) from $87.0 million ($0.43 diluted EPS) in the prior year's period.
- 4The effective tax rate significantly improved due to discrete tax benefits, including the release of reserves for uncertain tax positions.
- 5The company repurchased $156.5 million of its common stock and paid $15.6 million in dividends during the quarter.
- 6Adoption of ASC 842 (Leases) effective January 1, 2019, resulted in the recognition of operating lease right-of-use assets and liabilities on the balance sheet, with no material impact on the income statement or cash flows.
- 7The Semiconductor Test segment experienced a revenue decline, primarily due to lower memory and mobility test sales, though image sensor test sales saw an increase.