Teradyne Reviews Fourth Quarter and Fiscal 12 months 2022

• Income of $732 million in This fall’22, down 17% from document This fall’21
• Income of $3,155 million in FY 2022, down 15% from document FY 2021
• Check Income contracted 17% in FY 2022
• Industrial Automation income grew 7% in greenback phrases in FY2022,
  15% in fixed forex.
• Count on to repurchase as much as $500 million in shares in 2023

NORTH READING, Mass., Jan. 25, 2023 (GLOBE NEWSWIRE) — Teradyne, Inc. (NASDAQ: TER) reported income of $732 million for the fourth quarter of 2022 of which $481 million was in Semiconductor Check, $100 million in System Check, $40 million in Wi-fi Check and $110 million in Industrial Automation (IA). GAAP web earnings for the fourth quarter was $172.3 million or $1.04 per diluted share. On a non-GAAP foundation, Teradyne’s web earnings within the fourth quarter was $150.8 million, or $0.92 per diluted share, which excluded pension actuarial good points, acquired intangible asset amortization, restructuring and different expenses, and included the associated tax impression on non-GAAP changes.

“We delivered higher than anticipated ends in the fourth quarter on increased income and gross margins and decrease bills than deliberate,” mentioned Teradyne CEO Mark Jagiela. “Elevated shipments of our Eagle merchandise serving the automotive and industrial chip markets mixed with stronger demand for UR cobots within the quarter drove the improved outcomes.” 

Teradyne President Greg Smith added, “Balancing these constructive This fall outcomes, we anticipate a step down in demand in our Semiconductor and Storage Check markets which is able to persist a minimum of via the primary half of the yr as machine producers alter their manufacturing to rebalance provide, demand, and stock ranges. This near-term slow-down is according to previous business cycles and we imagine the long-term drivers of check demand stay firmly in place supported by increasing purposes for advanced semiconductor gadgets in compute, mobility, automotive and throughout the worldwide economic system.”

Teradyne’s Board of Administrators declared a quarterly money dividend of $0.11 per share, payable on March 17, 2023 to shareholders of document as of the shut of enterprise on February 17, 2023. The Board additionally approved a $2 billion share repurchase program and the corporate expects to repurchase as much as $500 million of its frequent inventory in 2023.

Steering for the primary quarter of 2023 is income of $550 million to $630 million, with GAAP web earnings of $0.26 to $0.49 per diluted share and non-GAAP web earnings of $0.28 to $0.52 per diluted share. Non-GAAP steering excludes acquired intangible asset amortization and consists of the associated tax impression on non-GAAP changes.

Webcast
A convention name to debate the fourth quarter outcomes, together with administration’s enterprise outlook, will comply with at 8:30 a.m. ET, Thursday, January 26. buyers ought to entry the webcast at www.teradyne.com and click on on “Traders” a minimum of 5 minutes earlier than the decision begins. Presentation supplies can be obtainable beginning at 8:30 a.m. ET. A replay can be obtainable on the Teradyne web site at https://buyers.teradyne.com/events-presentations.

Non-GAAP Outcomes
Along with disclosing outcomes which are decided in accordance with GAAP, Teradyne additionally discloses non-GAAP outcomes of operations that exclude sure earnings objects and expenses and discloses sure income at fixed forex. These outcomes are supplied as a complement to outcomes supplied in accordance with GAAP. Non-GAAP earnings from operations and non-GAAP web earnings exclude acquired intangible property amortization, restructuring and different, pension actuarial good points and losses, losses on convertible debt conversions, non-cash convertible debt curiosity, discrete earnings tax changes, and consists of the associated tax impression on non-GAAP changes. GAAP requires that this stuff be included in figuring out earnings from operations and web earnings. Non-GAAP earnings from operations, non-GAAP web earnings, non-GAAP earnings from operations as a proportion of income, non-GAAP web earnings as a proportion of income, and non-GAAP web earnings per share are non-GAAP efficiency measures introduced to offer significant supplemental data relating to Teradyne’s baseline efficiency earlier than good points, losses or different expenses that is probably not indicative of Teradyne’s present core enterprise or future outlook. Fixed forex income excludes the impression of modifications in international forex trade charges, that are required by GAAP. These non-GAAP efficiency measures are used to make operational choices, to find out worker compensation, to forecast future operational outcomes, and for comparability with Teradyne’s marketing strategy, historic working outcomes and the working outcomes of Teradyne’s opponents. Non-GAAP diluted shares embody the impression of Teradyne’s name possibility on its shares. Administration believes every of those non-GAAP efficiency measures offers helpful supplemental data for buyers, permitting better transparency to the data utilized by administration in its operational resolution making and within the evaluate of Teradyne’s monetary and operational efficiency, in addition to facilitating significant comparisons of Teradyne’s ends in the present interval in contrast with these in prior and future durations. A reconciliation of every obtainable GAAP to non-GAAP monetary measure mentioned on this press launch is contained within the hooked up reveals and on the Teradyne web site at www.teradyne.com by clicking on “Investor Relations” after which choosing “Financials” and the “GAAP to Non-GAAP Reconciliation” hyperlink. The non-GAAP efficiency measures mentioned on this press launch is probably not corresponding to equally titled measures utilized by different firms. The presentation of non-GAAP measures is just not meant to be thought-about in isolation, as an alternative to, or superior to, monetary measures or data supplied in accordance with GAAP.

About Teradyne
Teradyne (NASDAQ:TER) brings high-quality improvements corresponding to sensible gadgets, life-saving medical tools and knowledge storage methods to market, quicker. Its superior check options for semiconductors, digital methods, wi-fi gadgets and extra be certain that merchandise carry out as they had been designed. Its Industrial Automation choices embody collaborative and cell robots that assist producers of all sizes enhance productiveness and decrease prices. In 2022, Teradyne had income of $3.2 billion and right now employs over 6,500 folks worldwide. For extra data, go to teradyne.com. Teradyne^® is a registered trademark of Teradyne, Inc. within the U.S. and different nations.

Secure Harbor Assertion
This launch incorporates forward-looking statements relating to Teradyne’s future enterprise prospects, the impression of the worldwide pandemic of the novel pressure of the coronavirus (COVID-19), outcomes of operations, market circumstances, earnings per share, the impression of provide chain circumstances on the enterprise, buyer gross sales expectations, the cost of a quarterly dividend, the repurchase of Teradyne frequent inventory pursuant to a share repurchase program, sanctions towards Russia and Russian firms, and the impression of U.S. and Chinese language export and tariff legal guidelines, together with new laws printed by the U.S. Division of Commerce on October 7, 2022. Such statements are primarily based on the present assumptions and expectations of Teradyne’s administration and are neither guarantees nor ensures of future efficiency, occasions, buyer gross sales, provide chain circumstances or enhancements, earnings per share, use of money, cost of dividends, repurchases of frequent inventory, cost of the senior convertible notes, the impression of the COVID-19 pandemic, the impression of value will increase from inflation on supplies, worker wages, third get together labor, and contract manufacturing, sanctions towards Russia and Russian firms, the impression of any tariffs or export controls imposed by the U.S. or China, compliance with commerce safety measures or export restrictions, the impression of U.S. Division of Commerce or different authorities company laws referring to Huawei, HiSilicon and different prospects or potential prospects, the impression of U.S. Division Commerce export management laws for sure U.S. merchandise and know-how bought to army finish customers or for army end-use in China, Russia and Venezuela, or the impression of laws printed by the U.S. Division of Commerce referring to the export of semiconductors and semiconductor manufacturing tools destined to sure finish customers and for sure finish makes use of in China. There could be no assurance that administration’s estimates of Teradyne’s future outcomes or different forward-looking statements can be achieved. Particularly, Teradyne’s 2026 earnings mannequin is aspirational and consists of many assumptions. There could be no assurance that these assumptions can be correct or that mannequin outcomes can be achieved. As set forth beneath, there are various components that would trigger our 2026 earnings mannequin and precise outcomes to vary materially from these presently anticipated. Moreover, the present dividend and share repurchase applications could also be modified, suspended or discontinued at any time.

On October 7, 2022, the U.S. Division of Commerce printed new laws proscribing the export to China of superior semiconductors, supercomputer know-how, tools for the manufacturing of superior semiconductors and elements and know-how for the manufacturing in China of sure semiconductor manufacturing tools. The brand new restrictions are prolonged and sophisticated. Teradyne continues to evaluate the impression of those laws on its enterprise. At the moment, the Firm has decided that restrictions on the sale of semiconductor testers in China to check sure superior semiconductors will impression Teradyne’s gross sales to sure firms in China. A number of multinational firms manufacturing these superior semiconductors in China have obtained one-year licenses permitting suppliers corresponding to Teradyne to proceed to offer testers to the amenities operated by these firms. We anticipate that different firms manufacturing superior semiconductors in China is not going to obtain licenses, thereby proscribing Teradyne’s means to offer testers to the amenities operated by these firms that don’t obtain a license. The Firm is also assessing the submitting of license requests to promote to and help sure prospects in China for sure finish makes use of that, if granted, might scale back the impression of those restrictions on the Firm’s enterprise. At the moment, Teradyne doesn’t know the impression these finish consumer and finish use restrictions may have on its enterprise in China or on future revenues. Along with the precise restrictions impacting Teradyne’s enterprise, the laws might have an opposed impression on sure precise or potential prospects and on the worldwide semiconductor business. To the extent the laws impression precise and potential prospects or disrupt the worldwide semiconductor business, Teradyne’s enterprise and revenues can be adversely impacted.

The Firm additionally has decided that the restrictions on the export of sure US origin elements and know-how to be used within the growth and manufacturing in China of sure semiconductor manufacturing tools impression its manufacturing and growth operations in China. Teradyne has obtained a brief authorization from the Division of Commerce permitting the Firm to proceed its manufacturing and growth operations in China till the Division of Commerce points a license to switch this short-term authorization. The Firm can’t assess the probability or timing of receiving this license. Along with requesting a license, the Firm is implementing procedures for minimizing the impression of those new laws, however there isn’t a assurance that these procedures will succeed.

Following Russia’s invasion of Ukraine in February 2022, the U.S. and different nations imposed important sanctions towards the Russian authorities and lots of Russian firms and people. Though Teradyne doesn’t have important operations in Russia, the sanctions may impression Teradyne’s enterprise in different nations and will have a destructive impression on the Firm’s provide chain, both of which may adversely have an effect on Teradyne’s enterprise and monetary outcomes.

COVID-19 has resulted in authorities implementing quite a few measures to attempt to comprise the virus, corresponding to journey bans and restrictions, quarantines, authorities vaccination mandates and different authorities laws. These measures have impacted and should additional impression Teradyne’s workforce and operations, the operations of its prospects, and people of its contract producers and suppliers. As Teradyne implements measures to adjust to extra laws, the Firm might expertise elevated compliance prices, elevated danger of non-compliance and elevated danger of worker attrition.

The COVID-19 pandemic has adversely impacted the Firm’s outcomes of operations, together with elevated prices company-wide and constraints throughout the Firm’s provide chain. The Firm can’t precisely estimate the quantity of the impression on Teradyne’s 2022 monetary outcomes and to its future monetary outcomes. The COVID-19 outbreak has considerably elevated financial and demand uncertainty in Teradyne’s markets. This uncertainty resulted in a big lower in demand for sure Teradyne merchandise and will proceed to impression demand for an unsure time frame. The unfold of COVID-19 has brought on Teradyne to switch its enterprise practices (together with worker journey, workers working remotely, and cancellation of in individual participation in conferences, occasions and conferences) and the Firm might take additional actions as could also be required by authorities authorities or that it determines are in the most effective pursuits of its workers, prospects, contract producers and suppliers. There’s uncertainty that such measures can be ample to mitigate the dangers posed by the virus, and Teradyne’s means to carry out important capabilities could possibly be impacted. The diploma to which COVID-19 continues to impression Teradyne’s outcomes will rely upon future developments, that are extremely unsure and can’t be predicted, together with, however not restricted to, the period and continued unfold of the virus, its severity, the actions to comprise the virus or the provision and impression of vaccines in nations the place the Firm does enterprise, and the way shortly and to what extent regular financial and working circumstances can resume.

Essential components that would trigger precise outcomes, the 2026 earnings mannequin, earnings per share, use of money, dividend funds, repurchases of frequent inventory, or cost of the senior convertible notes to vary materially from these presently anticipated embody: circumstances affecting the markets wherein Teradyne operates; decreased or delayed product demand from a number of important prospects; growth, supply and acceptance of recent merchandise; the power to develop the Industrial Automation enterprise; elevated analysis and growth spending; deterioration of Teradyne’s monetary situation; the continued impression of the COVID-19 pandemic and associated authorities responses available on the market and demand for Teradyne’s merchandise, on its contract producers and provide chain, and on its workforce; the impression of the worldwide semiconductor provide scarcity on our provide chain and contract producers; the consummation and success of any mergers or acquisitions; the impression of value will increase from inflation on supplies, worker wages, third get together labor, and contract manufacturing; surprising money wants; inadequate money movement to make required funds and pay the principal quantity on the senior convertible notes; the enterprise judgment of the board of administrators {that a} declaration of a dividend or the repurchase of frequent inventory is just not within the Firm’s greatest pursuits; extra U.S. tax laws or IRS steering; the impression of any tariffs or export controls imposed by the U.S. or China; compliance with commerce safety measures or export restrictions; the impression of U.S. Division of Commerce or different authorities company laws referring to Huawei, HiSilicon and different prospects or potential prospects; the impression of U.S. Division Commerce export management laws for sure U.S. merchandise and know-how bought to army finish customers or for army end-use in China, Russia and Venezuela; sanctions imposed towards the Russian authorities and sure Russian firms and people by the U.S., and different nations; the impression of laws printed by the U.S. Division of Commerce referring to semiconductors and semiconductor manufacturing tools destined for sure finish makes use of in China; and different occasions, components and dangers disclosed in filings with the SEC, together with, however not restricted to, the “Danger Components” sections of Teradyne’s Annual Report on Kind 10-Okay for the fiscal yr ended December 31, 2021 and Quarterly Report on Kind 10-Q for the fiscal quarter ended October 2, 2022. The forward-looking statements supplied by Teradyne on this press launch symbolize administration’s views as of the date of this launch. Teradyne anticipates that subsequent occasions and developments might trigger administration’s views to vary. Nevertheless, whereas Teradyne might elect to replace these forward-looking statements sooner or later sooner or later, Teradyne particularly disclaims any obligation to take action. These forward-looking statements shouldn’t be relied upon as representing Teradyne’s views as of any date subsequent to the date of this launch.