Teradyne Reports Increase in Fourth Quarter 2012 Orders; Expects Revenue Growth in First Quarter of
Teradyne Reports Increase in Fourth Quarter 2012 Orders; Expects Revenue Growth in First Quarter of 2013
Q4'12 orders increased 18% from Q3'12
Q4'12 revenue of $248 million, down 46 percent from Q3'12 and down 16 percent from Q4'11
Q4'12 diluted non-GAAP income from continuing operations of $0.07 per share, down from $0.53 per share in Q3'12 and down from $0.17 per share in Q4'11; Q4'12 diluted GAAP loss from continuing operations of ($0.09) per share
Q1'13 guidance: Revenue of $260 million to $280 million; Diluted non-GAAP income (loss) from continuing operations of ($0.01) to $0.05 per share; Diluted GAAP loss from continuing operations of ($0.06) to ($0.01) per share
NORTH READING, Mass.--(BUSINESS WIRE)-- Teradyne, Inc. (NYS: TER) reported revenue of $248 million for the fourth quarter of 2012 of which $184 million was in Semiconductor Test, $40 million in Systems Test Group and $24 million in Wireless Test. On a non-GAAP basis, Teradyne's income from continuing operations in the fourth quarter was $12.6 million, or $0.07 per diluted share, which excluded acquired intangible asset amortization, pension actuarial losses, non-cash convertible debt interest, and included income taxes on a cash basis. GAAP loss from continuing operations was ($16.5) million or ($0.09) per diluted share.
Bookings in the fourth quarter of 2012 were $273 million of which $183 million were in Semiconductor Test, $64 million in the Systems Test Group and $26 million in Wireless Test.
For fiscal year 2012, revenue was $1.66 billion. Income from continuing operations for the year was $337.5 million or $1.67 per diluted share on a non-GAAP basis. GAAP income from continuing operations was $217.0 million or $0.94 per diluted share. Bookings for the year were $1.6 billion.
"2012 was a very good year for Teradyne as we increased sales by 16%, operating profit by 26% and generated $285 million in free cash flow," said CEO, Mike Bradley. "While the fourth quarter sales were seasonally slower, orders in the fourth quarter were up 18% sequentially and we've set our first quarter revenue plan to meet that improving demand."
Guidance for the first quarter of 2013 is revenue of $260 million to $280 million, with diluted non-GAAP income (loss) from continuing operations of ($0.01) to $0.05 per share and diluted GAAP loss from continuing operations of ($0.06) to ($0.01) per share. Non-GAAP guidance excludes acquired intangible asset amortization, non-cash convertible debt interest, and includes income taxes on a cash basis.
A conference call to discuss the fourth quarter of 2012 results, along with management's business outlook is scheduled at 10 a.m. EST, Thursday, January 24, 2013. The call will be broadcast simultaneously over the Internet. Interested investors should access the webcast at www.teradyne.com and click on "Investors" at least five minutes before the call begins.
A replay will be available approximately two hours after the completion of the call. The replay number in the U.S. & Canada is 855-859-2056. The replay number outside the U.S. & Canada is 404-537-3406. The pass code for both numbers is 88747113. A replay will also be available on the Teradyne website www.teradyne.com. Click on "Investors" for a link to the replay. The replay will be available via phone and website through February 9, 2013.
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 income from continuing operations exclude acquired intangible asset amortization, non-cash convertible debt interest, fair value inventory step-up related to LitePoint, pension and post retirement actuarial gains and losses, and restructuring and other net, and include income taxes on a cash basis. GAAP requires that these items be included in determining income from operations and income from continuing operations. Non-GAAP income from operations, non-GAAP income from continuing operations, non-GAAP income from operations and non-GAAP income from continuing operations as a percentage of revenue, and non-GAAP income from continuing operations per share are non-GAAP 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 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 gross margin excludes charges related to the fair value inventory step-up recorded as part of acquisition purchase accounting and pension and post retirement actuarial gains and losses. GAAP requires that this item be included in determining gross margin. Non-GAAP gross margin dollar amount and percentage are non-GAAP measures that management believes provide useful supplemental information for management and the investor. Management uses non-GAAP gross margin as a performance measure for Teradyne's current core business and future outlook and for comparison with Teradyne's business plan, historical gross margin results and the gross margin 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 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 "Investors" and then selecting the "GAAP to Non-GAAP Reconciliation" link. The non-GAAP financial 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.
Teradyne (NYS: TER) is a leading supplier of Automatic Test Equipment used to test semiconductors, wireless products, data storage and complex electronic systems which serve consumer, communications, industrial and government customers. In 2012, Teradyne had sales of $1.66 billion and currently employs approximately 3,600 people worldwide. For more information, visit www.teradyne.com. Teradyne(R) is a registered trademark of Teradyne, Inc. in the U.S. and other countries.
Safe Harbor Statement
This release contains forward-looking statements regarding future business prospects, Teradyne's results of operations and market conditions. Such statements are based on the current assumptions and expectations of Teradyne's management and are neither promises nor guarantees of future performance. You can identify these forward-looking statements based on the context of the statements and by the fact that they use words such as "will," "anticipate," "expect," "project," "intend," "plan," "believe," "target" and other words and terms of similar meaning in connection with any discussion of future operating or financial performance. There can be no assurance that management's estimates of Teradyne's future results or other forward looking statements will be achieved. Important factors that could cause actual results to differ materially from those presently expected include: conditions affecting the markets in which Teradyne operates; decreased or delayed product demand; increased research and development spending and other events, factors and risks disclosed in filings with the SEC, including, but not limited to, the "Risk Factors" section of Teradyne's Annual Report on Form 10-K for the fiscal year ended December 31, 2011 and Quarterly Report on Form 10-Q for the period ended September 30, 2012. The forward-looking statements provided by Teradyne in this press release represent management's views as of the date of this release. Teradyne anticipates that subsequent events and developments may cause management's views to change. However, while Teradyne may elect to update these forward-looking statements at some point in the future, Teradyne specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Teradyne's views as of any date subsequent to the date of this release.
|TERADYNE, INC. REPORT FOR FOURTH FISCAL QUARTER OF 2012|
|CONDENSED CONSOLIDATED OPERATING STATEMENTS|
|(In thousands, except per share amounts)|
|Quarter Ended||Year Ended|
|December 31, 2012||
September 30, 2012
|December 31, 2011||December 31, 2012||December 31, 2011|
|Cost of revenues (2)||122,999||203,194||163,006||(1||)||770,713||717,131||(1||)|
|Engineering and development||61,660||63,055||56,364||(1||)||251,382||197,796||(1||)|
|Selling and administrative||70,436||69,921||64,941||(1||)||281,500||235,327||(1||)|
|Acquired intangible asset amortization||18,221||18,429||19,129||73,508||40,465|
|Restructuring and other, net (3)||(317||)||683||5,345||(7,721||)||8,502|
|(Loss) income from operations||(24,595||)||108,112||(11,793||)||287,368||229,840|
Interest and other (4)
|(Loss) income from continuing operations before income taxes||(30,285||)||103,025||(17,049||)||265,976||212,763|
|Income tax (benefit) provision||(13,742||)||14,384||(144,340||)||48,927||(129,256||)|
|(Loss) income from continuing operations||(16,543||)||88,641||127,291||217,049||342,019|
|Income from discontinued operations before income taxes (5)||-||-||-||-||1,436|
|Income tax benefit||-||-||-||-||(267||)|
|Income from discontinued operations||-||-||-||-||1,703|
|Gain on disposal of discontinued operations (net of income tax provision of $4,578)||-||-||-||-||24,371|
|Net (loss) income||$||(16,543||)||$||88,641||$||127,291||$||217,049||$||368,093|
(Loss) income per common share from continuing operations:
Net (loss) income per common share:
|Weighted average common shares - basic||187,737||187,364||183,544||186,878||184,683|
|Weighted average common shares - diluted (6)||187,737||229,210||222,858||230,246||226,820|
(1) In the first quarter of 2012, we elected to change our accounting method from delayed recognition of gains and losses for our defined benefit pension plans and other post retirement benefit plans to immediate recognition. We have applied these changes retrospectively, as required, and the adjusted amounts are shown above. Below are the amounts as originally reported:
December 31, 2011
December 31, 2011
|Cost of revenues||$||160,639||$||715,368|
|Engineering and development||53,431||195,600|
|Selling and administrative||62,697||233,711|
|Income per common share from continuing operations:|
(2) Cost of revenues includes:
|Quarter Ended||Year Ended|
|December 31, 2012||September 30, 2012||December 31, 2011||December 31, 2012||December 31, 2011|
|Provision for excess and obsolete inventory||$||10,441||$||5,481||$||845||$||26,849||$||11,601|
|Sale of previously written down inventory||(1,101||)||(651||)||(2,859||)||(4,271||)||(8,100||)|
(3) Restructuring and other, net consists of:
|Quarter Ended||Year Ended|