Press release
Teradyne Reports First Quarter 2025 Results
Revenue towards the high end and earnings above Q1 guidance ranges Revenue of $686 million in Q1’25, up 14% from Q1’24 Strong year-over-year growth driven by
About this update from Teradyne, Inc.
Revenue towards the high end and earnings above Q1 guidance ranges Revenue of $686 million in Q1’25, up 14% from Q1’24 Strong year-over-year growth driven by Semiconductor Test Board of Directors approves $1B share repurchase program NORTH READING, Mass. --(BUSINESS WIRE)-- Teradyne, Inc. (NASDAQ:TER): Q1'25 Q1'24 Q4'24 Revenue (mil) $ 686 $ 600 $ 753 GAAP EPS $ 0.61 $ 0.40 $ 0.90 Non-GAAP EPS $ 0.75 $ 0.51 $ 0.95 Teradyne, Inc . (NASDAQ: TER) reported revenue of $686 million for the first quarter of 2025 of which $543 million was in Semiconductor Test, $69 million in Robotics, and $74 million in Product Test. GAAP net income for the first quarter was $98.9 million or $0.61 per diluted share. On a non-GAAP basis, Teradyne’s net income in the first quarter was $121.5 million , or $0.75 per diluted share, which excluded acquired intangible asset amortization, restructuring and other charges, and included the related tax impact on non-GAAP adjustments. “Teradyne delivered 14% year-over-year growth in the first quarter driven by strong results in Semiconductor Test. System-on-a-Chip (SOC), primarily for Mobile, was the strongest growth driver,” said Teradyne CEO, Greg Smith . “Visibility in the second half is limited and the impact of trade policy on end market demand is still in flux. Despite the current market uncertainty, Teradyne is well positioned for the long-term demand drivers of AI, electrification, and verticalization.” Guidance for the second quarter of 2025 is revenue of $610 million to $680 million , with GAAP net income of $0.35 to $0.58 per diluted share and non-GAAP net income of $0.41 to $0.64 per diluted share. Non-GAAP guidance excludes acquired intangible asset amortization, as well as the related tax impact on non-GAAP adjustments. Teradyne announced that it is increasing the magnitude of the share repurchase program from a target of $400M in 2025 to up to $1B , to be completed by the end of 2026. Webcast A conference call to discuss the first quarter results, along with management’s business outlook, will follow at 8:30 a.m. ET , Tuesday, April 29, 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 restructuring and other, acquired intangible assets amortization, ERP related expenses, inventory step-up, 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, 2024 . 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 FIRST FISCAL QUARTER OF 2025 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Quarter Ended March 30 , 2025 December 31 , 2024 March 31 , 2024 Net revenues $ 685,680 $ 752,884 $ 599,819 Cost of revenues (exclusive of acquired intangible assets amortization shown separately below) (1) 270,344 305,597 260,537 Gross profit 415,336 447,287 339,282 Operating expenses: Selling and administrative (2) 157,257 155,739 149,188 Engineering and development 118,188 128,387 103,199 Acquired intangible assets amortization 4,573 4,656 4,697 Restructuring and other (3) 14,515 4,554 4,427 Loss (gain) on sale of business — 367 — Operating expenses 294,533 293,703 261,511 Income from operations 120,803 153,584 77,771 Interest and other (income) expense (4) 1,779 (4,213 ) 4,869 Income before income taxes 119,024 157,797 72,902 Income tax provision 14,544 5,408 8,705 Income before equity in net earnings of affiliate 104,480 152,389 64,197 Equity in net earnings of affiliate (5,584 ) (6,136 ) — Net income $ 98,896 $ 146,253 $ 64,197 Net income per common share: Basic $ 0.61 $ 0.90 $ 0.42 Diluted $ 0.61 $ 0.90 $ 0.40 Weighted average common shares - basic 161,501 162,478 153,047 Weighted average common shares - diluted (5) 161,996 163,184 162,348 Cash dividend declared per common share $ 0.12 $ 0.12 $ 0.12 (1) Cost of revenues includes: Quarter Ended March 30 , 2025 December 31 , 2024 March 31 , 2024 Provision for excess and obsolete inventory $ 4,945 $ 3,406 $ 6,177 Inventory step-up 216 — — Sale of previously written down inventory (324 ) (441 ) (722 ) $ 4,837 $ 2,965 $ 5,455 (2) For the quarter ended March 30, 2025 , selling and administrative expenses included $0.7 million of expenses directly related to a planned ERP system implementation. For the quarter ended March 31, 2024 , selling and administrative expenses included an equity charge of $1.7 million for the modification of Teradyne executives' retirement agreements. (3) Restructuring and other consists of: Quarter Ended March 30 , 2025 December 31 , 2024 March 31 , 2024 Employee severance (a) $ 11,395 $ 378 $ 2,026 Acquisition and divestiture related expenses 1,972 — 2,214 Lease terminations 1,142 1,284 — Other 6 2,892 187 $ 14,515 $ 4,554 $ 4,427 (a) For the quarter ended March 30, 2025 , employee severance relates primarily to Robotics restructuring which impacted approximately 150 employees. (4) Interest and other includes: Quarter Ended March 30 , 2025 December 31 , 2024 March 31 , 2024 Loss (gain) on foreign exchange contract $ (561 ) $ — $ 13,918 Pension actuarial losses (gains) — (1,842 ) — (5) Under GAAP, when calculating diluted earnings per share, convertible debt must be assumed to have converted if the effect on EPS would be dilutive. Diluted shares assume the conversion of the convertible debt as the effect would be dilutive. Accordingly, for the quarter ended March 31, 2024 , diluted shares included 8.9 million shares from the convertible note hedge transaction. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) March 30 , 2025 December 31 , 2024 Assets Cash and cash equivalents $ 475,632 $ 553,354 Marketable securities 32,145 46,312 Accounts receivable, net 460,397 471,426 Inventories, net 345,063 298,492 Prepayments 423,729 429,086 Other current assets 18,635 17,727 Total current assets 1,755,601 1,816,397 Property, plant and equipment, net 541,520 508,171 Operating lease right-of-use assets, net 63,090 70,185 Marketable securities 113,754 124,121 Deferred tax assets 230,937 222,438 Retirement plans assets 12,193 11,994 Equity method investment 509,626 494,494 Other assets 51,832 49,620 Acquired intangible assets, net 17,971 15,927 Goodwill 409,313 395,367 Total assets $ 3,705,837 $ 3,708,714 Liabilities Accounts payable $ 187,034 $ 134,792 Accrued employees’ compensation and withholdings 143,019 204,991 Deferred revenue and customer advances 119,886 107,710 Other accrued liabilities 100,058 90,777 Operating lease liabilities 18,340 18,699 Income taxes payable 80,729 67,610 Total current liabilities 649,066 624,579 Retirement plans liabilities 136,228 133,338 Long-term deferred revenue and customer advances 39,438 40,505 Deferred tax liabilities 869 1,038 Long-term other accrued liabilities 7,718 7,442 Long-term operating lease liabilities 50,423 57,922 Long-term income taxes payable 24,596 24,596 Total liabilities 908,338 889,420 Shareholders’ equity 2,797,499 2,819,294 Total liabilities and shareholders’ equity $ 3,705,837 $ 3,708,714 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) Quarter Ended March 30 , 2025 March 31 , 2024 Cash flows from operating activities: Net income $ 98,896 $ 64,197 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 25,523 23,354 Stock-based compensation 15,204 15,758 Equity in net earnings of affiliate 5,584 — Provision for excess and obsolete inventory 4,945 6,177 Amortization 4,779 4,766 Losses (gains) on investments 3,372 10,466 Deferred taxes (7,811 ) (9,669 ) Other 3,483 787 Changes in operating assets and liabilities, net of businesses acquired: Accounts receivable 13,053 (8,055 ) Inventories (31,049 ) (6,932 ) Prepayments and other assets 13,650 11,089 Accounts payable and other liabilities (9,950 ) (105,548 ) Deferred revenue and customer advances 10,200 (1,444 ) Retirement plans contributions (1,282 ) (1,421 ) Income taxes 13,040 3,754 Net cash provided by operating activities 161,637 7,279 Cash flows from investing activities: Purchases of property, plant and equipment (64,021 ) (44,023 ) Investments in businesses (20,013 ) — Purchases of marketable securities (10,753 ) (16,042 ) Proceeds from maturities of marketable securities 27,381 14,438 Proceeds from sales of marketable securities 5,633 20,734 Proceeds from life insurance — 873 Net cash used for investing activities (61,773 ) (24,020 ) Cash flows from financing activities: Repurchase of common stock (157,475 ) (22,117 ) Dividend payments (19,406 ) (18,370 ) Payments related to net settlement of employee stock compensation awards (14,726 ) (13,115 ) Issuance of common stock under stock purchase and stock option plans 14,792 16,934 Net cash used for financing activities (176,815 ) (36,668 ) Effects of exchange rate changes on cash and cash equivalents (771 ) 3,241 Decrease in cash and cash equivalents (77,722 ) (50,168 ) Cash and cash equivalents at beginning of period 553,354 757,571 Cash and cash equivalents at end of period $ 475,632 $ 707,403 GAAP to Non-GAAP Earnings Reconciliation (In millions, except per share amounts) Quarter Ended March 30 , 2025 % of Net Revenues December 31 , 2024 % of Net Revenues March 31 , 2024 % of Net Revenues Net revenues $ 685.7 $ 752.9 $ 599.8 Gross profit GAAP 415.3 60.6 % 447.3 59.4 % 339.3 56.6 % Inventory step-up 0.2 0.0 % — — — — Gross profit non-GAAP 415.5 60.6 % 447.3 59.4 % 339.3 56.6 % Income from operations - GAAP 120.8 17.6 % 153.6 20.4 % 77.8 13.0 % Restructuring and other (1) 14.5 2.1 % 4.6 0.6 % 4.4 0.7 % Acquired intangible assets amortization 4.6 0.7 % 4.7 0.6 % 4.7 0.8 % ERP related expenses (2) 0.7 0.1 % — — — — Inventory step-up 0.2 0.0 % — — — — Loss (gain) on sale of business — — 0.4 0.1 % — — Equity modification charge (3) — — — — 1.7 0.3 % Income from operations - non-GAAP $ 140.8 20.5 % $ 163.3 21.7 % $ 88.6 14.8 % Net Income per Common Share Net Income per Common Share Net Income per Common Share March 30 , 2025 % of Net Revenues Basic Diluted December 31 , 2024 % of Net Revenues Basic Diluted March 31 , 2024 % of Net Revenues Basic Diluted Net income - GAAP $ 98.9 14.4 % $ 0.61 $ 0.61 $ 146.3 19.4 % $ 0.90 $ 0.90 $ 64.2 10.7 % $ 0.42 $ 0.40 Restructuring and other (1) 14.5 2.1 % 0.09 0.09 4.6 0.6 % 0.03 0.03 4.4 0.7 % 0.03 0.03 Amortization of equity method investment 7.4 1.1 % 0.05 0.05 8.0 1.1 % 0.05 0.05 — — — — Acquired intangible assets amortization 4.6 0.7 % 0.03 0.03 4.7 0.6 % 0.03 0.03 4.7 0.8 % 0.03 0.03 ERP related expenses (2) 0.7 0.1 % 0.00 0.00 — — — — — — — — Inventory step-up 0.2 0.0 % 0.00 0.00 — — — — — — — — Loss (gain) on sale of business — — — — 0.4 0.1 % 0.00 0.00 — — — — Equity modification charge (3) — — — — — — — — 1.7 0.3 % 0.01 0.01 Pension mark-to-market adjustment (4) — — — — (1.8 ) -0.2 % (0.01 ) (0.01 ) — — — — Loss (gain) of foreign exchange contract (0.6 ) -0.1 % (0.00 ) (0.00 ) — — — — 13.9 2.3 % 0.09 0.09 Exclude discrete tax adjustments 0.9 0.1 % 0.01 0.01 (8.0 ) -1.1 % (0.05 ) (0.05 ) (2.2 ) -0.4 % (0.01 ) (0.01 ) Non-GAAP tax adjustments (5.1 ) -0.7 % (0.03 ) (0.03 ) 0.9 0.1 % 0.01 0.01 (4.2 ) -0.7 % (0.03 ) (0.03 ) Net income - non-GAAP $ 121.5 17.7 % $ 0.75 $ 0.75 $ 155.0 20.6 % $ 0.95 $ 0.95 $ 82.5 13.8 % $ 0.54 $ 0.51 GAAP and non-GAAP weighted average common shares - basic 161.5 162.5 153.0 GAAP and non-GAAP weighted average common shares - diluted (5) 162.0 163.2 162.3 (1) Restructuring and other consists of: Quarter Ended March 30 , 2025 December 31 , 2024 March 31 , 2024 Employee severance (a) $ 11.4 $ 0.4 $ 2.0 Acquisition and divestiture related expenses 2.0 — 2.2 Lease terminations 1.1 1.3 — Other — 2.9 0.2 $ 14.5 $ 4.6 $ 4.4 (a) For the quarter ended March 30, 2025 , employee severance relates primarily to Robotics restructuring which impacted approximately 150 employees. (2) For the quarter ended March 30, 2025 , selling and administrative expenses included costs directly related to a planned ERP system implementation. (3) For the quarter ended March 31, 2024 , selling and administrative expenses included an equity charge of $1.7 million for the modification of Teradyne’s executives' retirement agreements. (4) For the quarter ended December 31, 2024 , adjustment to exclude actuarial loss recognized under GAAP in accordance with Teradyne’s mark-to-market pension accounting. (5) For the quarter ended March 31, 2024 , non-GAAP weighted average diluted common shares includes 8.9 million shares from the convertible note hedge transaction. GAAP to Non-GAAP Reconciliation of Second Quarter 2025 guidance: GAAP and non-GAAP second quarter revenue guidance: $610 million to $680 million GAAP net income per diluted share $ 0.35 $ 0.58 Exclude equity method investment amortization 0.05 0.05 Exclude acquired intangible assets amortization 0.02 0.02 Non-GAAP tax adjustments (0.01 ) (0.01 ) Non-GAAP net income per diluted share $ 0.41 $ 0.64 For press releases and other information of interest to investors, please visit Teradyne’s homepage at http://www.teradyne.com . View source version on businesswire.com : https://www.businesswire.com/news/home/20250428011372/en/ Teradyne, Inc. Traci Tsuchiguchi 978-370-2444 Vice President of Corporate Relations Source: Teradyne, Inc.