10-QPeriod: Q2 FY2022

TERADYNE, INC Quarterly Report for Q2 Ended Apr 3, 2022

Filed May 6, 2022For Securities:TER

Summary

Teradyne, Inc. (TER) reported Q1 2022 revenues of $755.4 million, a decrease of 3.4% year-over-year, primarily driven by lower sales in its Semiconductor Test and System Test segments. Despite the revenue decline, the company saw significant growth in its Industrial Automation segment, up 29% year-over-year, and Wireless Test segment, up 25.9%. Net income for the quarter was $161.9 million, or $0.92 per diluted share, compared to $205.5 million, or $1.09 per diluted share, in the prior year period. Key factors impacting the quarter included ongoing supply chain constraints affecting product delivery and costs, alongside a shift in geographic revenue distribution. The company also recorded a $14.7 million charge related to a settled arbitration claim concerning the AutoGuide acquisition. Teradyne continues to manage its capital through stock repurchases and dividends, and maintains a strong liquidity position with $1.2 billion in cash and cash equivalents and marketable securities as of April 3, 2022.

Financial Highlights

50 data points
Beta

Revenue

$755.37M

60.2% Gross Margin

Net Income

$161.93M

21.4% Net Margin

EPS (Diluted)

$0.92

Total Assets

$3.61B

Cash & Equivalents

$794.60M

Free Cash Flow

-$36.54M

Financial Statements
Beta
Revenue$755.37M
Cost of Revenue$300.44M
Gross Profit$454.93M
SG&A Expenses$140.19M
Operating Expenses$269.08M
Operating Income$185.85M
Interest Expense$1.01M
Net Income$161.93M
EPS (Basic)$1.00
EPS (Diluted)$0.92
Shares Outstanding (Basic)162.05M
Shares Outstanding (Diluted)175.57M

Key Highlights

  • 1Total revenues for the first quarter of 2022 were $755.4 million, a decrease of 3.4% compared to $781.7 million in the first quarter of 2021.
  • 2Net income decreased to $161.9 million ($0.92 per diluted share) from $205.5 million ($1.09 per diluted share) in the prior year period.
  • 3The Semiconductor Test segment experienced a revenue decline of 8.7% to $482.3 million.
  • 4The Industrial Automation segment showed strong growth, with revenues increasing by 29.0% to $103.2 million.
  • 5Cash and cash equivalents, along with marketable securities, totaled $1.2 billion as of April 3, 2022.
  • 6The company recorded a $14.7 million charge related to an arbitration claim settlement for the AutoGuide acquisition.
  • 7Teradyne repurchased approximately 1.8 million shares of common stock for $201.5 million during the quarter.

Frequently Asked Questions

The primary driver for the revenue decrease was a decline in sales within the Semiconductor Test segment, down 8.7% due to lower tester sales in high-performance compute processor and industrial applications, and reduced memory test sales of flash memory testers. The System Test segment also saw a decrease.

The Industrial Automation segment demonstrated robust growth, with revenues increasing by 29.0% year-over-year to $103.2 million. This growth was primarily attributed to higher demand for collaborative robotic arms and MiR's autonomous mobile robots.

Teradyne recorded a $14.7 million charge related to a settlement of an arbitration claim concerning an earn-out dispute for the AutoGuide acquisition. In the prior year period, the company recognized a $7.2 million gain from a decrease in the fair value of the AutoGuide contingent consideration liability.

Teradyne continues to be impacted by global supply chain constraints, particularly for electrical components. The company anticipates these constraints may affect its ability to meet customer demand and could lead to increased manufacturing costs for the remainder of 2022 and into 2023.