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Teradyne Reports Fourth Quarter 2024 Results

Teradyne, Inc. (NASDAQ:TER):     Q4'24     Q4'23     Q3'24     FY 2024     FY 2023   Revenue (mil)   $ 753     $ 671     $ 737     $ 2,820     $ 2,676   GAAP EPS   $ 0.90

Business Wire
  • Revenue and earnings at the high-end of Q4 guidance
  • Revenue of $753 million in Q4’24, up 12% from Q4’23
  • Q4 growth driven by strong AI-related demand and improved broader market dynamics

NORTH READING, Mass.: Teradyne, Inc. (NASDAQ:TER):

 

 

Q4'24

 

 

Q4'23

 

 

Q3'24

 

 

FY 2024

 

 

FY 2023

 

Revenue (mil)

 

$

753

 

 

$

671

 

 

$

737

 

 

$

2,820

 

 

$

2,676

 

GAAP EPS

 

$

0.90

 

 

$

0.72

 

 

$

0.89

 

 

$

3.32

 

 

$

2.73

 

Non-GAAP EPS

 

$

0.95

 

 

$

0.79

 

 

$

0.90

 

 

$

3.22

 

 

$

2.93

 

Teradyne, Inc. (NASDAQ: TER) reported revenue of $753 million for the fourth quarter of 2024 of which $561 million was in Semiconductor Test and $98 million in Robotics. GAAP net income for the fourth quarter of 2024 was $146.3 million or $0.90 per diluted share. On a non-GAAP basis, Teradyne’s net income in the fourth quarter of 2024 was $155.0 million, or $0.95 per diluted share, which excluded acquired intangible asset amortization, restructuring and other charges, amortization on our investment in Technoprobe, pension mark-to-market, and included the related tax impact on non-GAAP adjustments.

“Our Q4 results were toward the high end of our guidance range, driven by demand in our Semi Test business. For the quarter, AI compute and related memory remained strong while Mobile and Auto/Industrial exceeded our expectations,” said Teradyne CEO, Greg Smith. “In 2025, we expect year-over-year revenue acceleration with improving conditions in our test businesses. We expect the secular growth opportunities in AI compute and memory to remain, and we will continue to invest into these areas. Additionally, we plan to strategically realign our Robotics business to enhance customer experience and drive operational efficiency. Over the mid-term, we expect that this realignment will support our growth and profitability objectives.”

Guidance for the first quarter of 2025 is revenue of $660 million to $700 million, with GAAP net income of $0.48 to $0.59 per diluted share and non-GAAP net income of $0.58 to $0.68 per diluted share. Non-GAAP guidance excludes acquired intangible asset amortization, amortization on our investment in Technoprobe, restructuring and other costs, as well as the related tax impact on non-GAAP adjustments.

Note that the Semiconductor Test segment revenue includes the results of the Integrated Systems Test ("IST") component, with product lines for system level and hard disk drive testing, that was previously included in our System Test segment results. IST contributed $19 million to Semiconductor Test in the fourth quarter.

Webcast

A conference call to discuss the fourth quarter results, along with management’s business outlook, will follow at 8:30 a.m. ET, Thursday, January 30, 2025. Interested investors should access the webcast at www.teradyne.com and click on "Investors" at least five minutes before the call begins. Presentation materials will be available starting at 8:30 a.m. ET. A replay will be available on the Teradyne website at www.teradyne.com/investors.

Non-GAAP Results

In addition to disclosing results that are determined in accordance with GAAP, Teradyne also discloses non-GAAP results of operations that exclude certain income items and charges. These results are provided as a complement to results provided in accordance with GAAP. Non-GAAP income from operations and non-GAAP net income exclude acquired intangible assets amortization, restructuring and other, pension actuarial gains and losses, stock compensation modification expense, gains and losses on foreign exchange options in connection with acquisitions and divestitures, gain on sale of business, legal settlement, discrete income tax adjustments, and includes the related tax impact on non-GAAP adjustments. GAAP requires that these items be included in determining income from operations and net income. Non-GAAP income from operations, non-GAAP net income, non-GAAP income from operations as a percentage of revenue, non-GAAP net income as a percentage of revenue, and non-GAAP net income per share are non-GAAP performance measures presented to provide meaningful supplemental information regarding Teradyne’s baseline performance before gains, losses or other charges that may not be indicative of Teradyne’s current core business or future outlook. These non-GAAP performance measures are used to make operational decisions, to determine employee compensation, to forecast future operational results, and for comparison with Teradyne’s business plan, historical operating results and the operating results of Teradyne’s competitors. Non-GAAP diluted shares include the impact of Teradyne’s call option on its shares. Management believes each of these non-GAAP performance measures provides useful supplemental information for investors, allowing greater transparency to the information used by management in its operational decision making and in the review of Teradyne’s financial and operational performance, as well as facilitating meaningful comparisons of Teradyne’s results in the current period compared with those in prior and future periods. A reconciliation of each available GAAP to non-GAAP financial measure discussed in this press release is contained in the attached exhibits and on the Teradyne website at www.teradyne.com by clicking on “Investor Relations” and then selecting “Financials” and the “GAAP to Non-GAAP Reconciliation” link. The non-GAAP performance measures discussed in this press release may not be comparable to similarly titled measures used by other companies. The presentation of non-GAAP measures is not meant to be considered in isolation, as a substitute for, or superior to, financial measures or information provided in accordance with GAAP.

About Teradyne

Teradyne (NASDAQ:TER) designs, develops, and manufactures automated test equipment and advanced robotics systems. Its test solutions for semiconductors and electronics products enable Teradyne’s customers to consistently deliver on their quality standards. Its advanced robotics business includes collaborative robots and mobile robots that support manufacturing and warehouse operations for companies of all sizes. For more information, visit teradyne.com. Teradyne® is a registered trademark of Teradyne, Inc., in the U.S. and other countries.

Safe Harbor Statement

This release contains forward-looking statements including statements regarding Teradyne’s future business prospects, financial performance or position and results of operations. You can identify forward-looking statements by their use of forward-looking words such as “anticipate,” “expect,” “plan,” “could,” “may,” “will,” “believe,” “estimate,” “goal” or other comparable terms. Forward-looking statements in this press release address various matters, including statements regarding Teradyne’s financial guidance. Investors are cautioned that such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements due to known and unknown risks, uncertainties, assumptions, and other factors. Such factors include, but are not limited to, macroeconomic factors and slowdowns or downturns in economic conditions generally and in the markets in which Teradyne operates; decreased or delayed product demand from one or more significant customers; a slowdown or inability in the development, delivery and acceptance of new products; the ability to grow the Robotics business; the impact of increased research and development spending; the impact of epidemics or pandemics such as COVID-19; the impact of a supply shortage on our supply chain and contract manufacturers; the consummation and success of any mergers or acquisitions; unexpected cash needs; the business judgment of the board of directors that a declaration of a dividend or the repurchase of common stock is not in Teradyne’s best interests; changes to U.S. or global tax regulations or guidance; the impact of any tariffs or export controls imposed by the U.S. or China; the impact of U.S. Department of Commerce or other government agency regulations relating to Huawei, HiSilicon and other customers or potential customers; the impact of U.S. Department Commerce export control regulations for certain U.S. products and technology sold to military end users or for military end-use in China; the impact of the current conflicts in Israel; the impact of regulations published by the U.S. Department of Commerce relating to semiconductors and semiconductor manufacturing equipment destined for certain end uses in China.

The risks included above are not exhaustive. For a more detailed description of the risk factors associated with Teradyne, please refer to Teradyne’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023. Many of these factors are macroeconomic in nature and are, therefore, beyond Teradyne’s control. We caution readers not to place undue reliance on any forward-looking statements included in this press release which speak only as to the date of this press release. Teradyne specifically disclaims any obligation to update any forward-looking information contained in this press release or with respect to the announcements described herein.

TERADYNE, INC. REPORT FOR FOURTH FISCAL QUARTER OF 2024

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 

 

 

Quarter Ended

 

 

Year Ended

 

 

 

December 31,
2024

 

 

September 29,
2024

 

 

December 31,
2023

 

 

December 31,
2024

 

 

December 31,
2023

 

Net revenues

 

$

752,884

 

 

$

737,298

 

 

$

670,600

 

 

$

2,819,880

 

 

$

2,676,298

 

Cost of revenues (exclusive of acquired intangible assets amortization shown separately below) (1)

 

 

305,597

 

 

 

300,784

 

 

 

291,055

 

 

 

1,170,953

 

 

 

1,139,550

 

Gross profit

 

 

447,287

 

 

 

436,514

 

 

 

379,545

 

 

 

1,648,927

 

 

 

1,536,748

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling and administrative (2)

 

 

155,739

 

 

 

157,649

 

 

 

142,336

 

 

 

617,047

 

 

 

577,315

 

Engineering and development

 

 

128,387

 

 

 

117,474

 

 

 

102,207

 

 

 

460,876

 

 

 

418,089

 

Acquired intangible assets amortization

 

 

4,656

 

 

 

4,748

 

 

 

4,651

 

 

 

18,764

 

 

 

18,999

 

Restructuring and other (3)

 

 

4,554

 

 

 

4,578

 

 

 

6,027

 

 

 

15,571

 

 

 

21,277

 

Loss (gain) on sale of business (4)

 

 

367

 

 

 

 

 

 

 

 

 

(57,119

)

 

 

 

Operating expenses

 

 

293,703

 

 

 

284,449

 

 

 

255,221

 

 

 

1,055,139

 

 

 

1,035,680

 

Income from operations

 

 

153,584

 

 

 

152,065

 

 

 

124,324

 

 

 

593,788

 

 

 

501,068

 

Interest and other (income) expense (5)

 

 

(4,213

)

 

 

(6,919

)

 

 

(15,482

)

 

 

(15,298

)

 

 

(24,504

)

Income before income taxes and equity in net earnings of affiliate

 

 

157,797

 

 

 

158,984

 

 

 

139,806

 

 

 

609,086

 

 

 

525,572

 

Income tax provision

 

 

5,408

 

 

 

12,260

 

 

 

22,752

 

 

 

59,503

 

 

 

76,820

 

Income before equity in net earnings of affiliate

 

 

152,389

 

 

 

146,724

 

 

 

117,054

 

 

 

549,583

 

 

 

448,752

 

Equity in net earnings of affiliate

 

 

(6,136

)

 

 

(1,075

)

 

 

 

 

 

(7,211

)

 

 

 

Net income

 

$

146,253

 

 

$

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