TERADYNE, INC Quarterly Report for Q1 Ended Mar 29, 2020

Summary

Teradyne, Inc.'s first quarter 2020 results showed a significant increase in revenue and net income compared to the prior year period. Total revenues surged by 42.6% to $704.4 million, driven by strong performance in Semiconductor Test and System Test segments, bolstered by increased demand in mobility, 5G, and memory test markets. Net income also saw a substantial rise of 61.4% to $176.2 million, or $0.97 per diluted share. Despite the overall strong performance, the company noted an increase in operating expenses, including selling and administrative, and engineering and development costs, which rose by 9.2% and 10.9% respectively. The Industrial Automation segment experienced an 8.8% revenue decline, partly attributed to the early impacts of the COVID-19 pandemic on automotive and manufacturing markets. The company also highlighted its proactive measures to protect its workforce and operations amidst the evolving COVID-19 situation, while maintaining liquidity and a strong balance sheet, including the establishment of a new revolving credit facility.

Key Highlights

• 1Total revenues increased by 42.6% to $704.4 million in Q1 2020 compared to Q1 2019.
• 2Net income increased by 61.4% to $176.2 million, with diluted EPS rising to $0.97 from $0.62.
• 3Semiconductor Test revenue grew significantly by 42.1% driven by mobility, 5G, and memory test demand.
• 4System Test revenue nearly doubled (99.5% increase) due to higher sales in Storage Test and Defense/Aerospace.
• 5Industrial Automation revenue declined by 8.8%, impacted by early effects of COVID-19.
• 6Operating expenses increased, with Selling and Administrative up 9.2% and Engineering & Development up 10.9%.
• 7The company maintained strong liquidity with $905.0 million in cash and cash equivalents and marketable securities as of March 29, 2020.

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