Exhibit 99.1
Teradyne Reports Second Quarter, 2007 Results
NORTH READING, Mass.—(BUSINESS WIRE)—July 18, 2007—Teradyne, Inc. reported sales of $289 million in the second quarter of 2007. Net income was $27.7 million, or $0.14 per diluted share. Income from continuing operations was $27.2 million or $0.14 per diluted share. Bookings for the second quarter were $307 million.
"Our semiconductor test bookings grew 28% sequentially in the second quarter, with strong Outsourced Assembly and Test (OSAT) business driving record FLEXTM test platform orders,” said Michael Bradley, Teradyne president and CEO. “Our semiconductor test product orders were up 38% over the first quarter, as we saw demand from a broad range of market segments, including wireless, automotive and power management devices.”
Guidance for the third quarter of 2007 is for sales between $300 million and $320 million, with earnings from continuing operations between $0.15 and $0.19 per diluted share.
During the second quarter of 2007, Teradyne repurchased 1.4 million shares of its common stock for $24 million under its previously announced Stock Repurchase Program.
Webcast
A webcast to discuss second quarter 2007 results, along with management’s outlook, will be held at 10 a.m. EDT, Thursday, July 19, 2007. Interested investors should access the webcast atwww.teradyne.com and click on "Investors" at least five minutes before the call begins. A conference call replay will be available approximately two hours after the call. The replay number in the U.S. & Canada is 1-800-642-1687. The replay number outside the U.S. & Canada is 1-706-645-9291. The pass code for both numbers is 6348562. In addition, a webcast replay will also be available on the Teradyne web sitewww.teradyne.com. Click on "Investors" for a link to the replay. The replay will be available via phone and web site through August 2, 2007.
About Teradyne, Inc.
Teradyne (NYSE:TER) is a leading supplier of Automatic Test Equipment used to test complex electronics used in the consumer electronics, automotive, computing, telecommunications, and aerospace and defense industries. In 2006, Teradyne had sales of $1.38 billion, and currently employs about 3,700 people worldwide. For more information, visitwww.teradyne.com. Teradyne (R) is a registered trademark of Teradyne, Inc. in the U.S. and other countries. All product names are trademarks of Teradyne, Inc. (including its subsidiaries).
Safe Harbor Statement
The forward-looking statements included in this release are made only as of the date of publication and Teradyne undertakes no obligation to update the information set forth in this release.
This release contains forward-looking statements regarding expected future revenues and earnings, future market conditions and business prospects. Such statements are based on the current assumptions and expectations of Teradyne’s management and are neither promises nor guarantees. You can generally 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 our future results will be achieved. Important factors that could cause actual results to differ materially from those presently expected include: adverse changes in
general economic or market conditions (including market demand for electronics and downturns in the semiconductor industry); the decision by customers to cancel or defer orders that previously had been accepted; reductions or delays in capital investment by our customers; competitive pressures (including pricing and gross margin pressures); the risks of operating internationally, disruptions, delays or an inadequate supply of raw materials, components or internal and external manufacturing capability; the effectiveness of our implementation of cost cutting and expense control measures (including facility consolidations, the centralization of certain shared services, seeking lower prices from suppliers and the outsourcing of selected manufacturing, information technology and engineering activities); and other events, factors and risks previously and from time to time disclosed in our filings with the Securities and Exchange Commission, including, but not limited to, our annual report on Form 10-K for the fiscal year ended December 31, 2006 and our periodic reports on Forms 10-Q and 8-K.
TERADYNE, INC. REPORT FOR SECOND FISCAL QUARTER OF 2007
CONDENSED CONSOLIDATED OPERATING STATEMENTS
(In thousands, except per share amounts)
| Quarter Ended: | Six Months Ended: | |||||||||||||||||||
| July 1, 2007 | April 1, 2007 | July 2, 2006 | July 1, 2007 | July 2, 2006 | ||||||||||||||||
Net Revenues | $ | 288,710 | $ | 253,693 | $ | 386,819 | $ | 542,403 | $ | 742,848 | ||||||||||
Cost of Revenues (1)(2) | 151,490 | 140,296 | 196,244 | 291,786 | 385,139 | |||||||||||||||
Gross Profit | 137,220 | 113,397 | 190,575 | 250,617 | 357,709 | |||||||||||||||
Operating Expenses: | ||||||||||||||||||||
Engineering and Development (1) | 52,417 | 49,262 | 51,840 | 101,679 | 102,402 | |||||||||||||||
Selling and Administrative (1) | 62,760 | 63,012 | 73,913 | 125,772 | 144,336 | |||||||||||||||
In-process Research and Development (3) | — | 16,700 | — | 16,700 | — | |||||||||||||||
Restructuring and Other, net (4) | 568 | 2,247 | (20,596 | ) | 2,815 | (21,693 | ) | |||||||||||||
Operating Expenses | 115,745 | 131,221 | 105,157 | 246,966 | 225,045 | |||||||||||||||
Income/(Loss) from Operations | 21,475 | (17,824 | ) | 85,418 | 3,651 | 132,664 | ||||||||||||||
Interest Income | 9,299 | 10,099 | 11,659 | 19,398 | 21,142 | |||||||||||||||
Interest Expense | (74 | ) | (436 | ) | (3,470 | ) | (510 | ) | (6,841 | ) | ||||||||||
Other Income (5) | — | 1,832 | — | 1,832 | — | |||||||||||||||
Income/(Loss) from Continuing Operations Before Income Taxes | 30,700 | (6,329 | ) | 93,607 | 24,371 | 146,965 | ||||||||||||||
Income Tax Provision | 3,454 | 1,385 | 9,420 | 4,839 | 18,008 | |||||||||||||||
Income/(Loss) from Continuing Operations | 27,246 | (7,714 | ) | 84,187 | 19,532 | 128,957 | ||||||||||||||
Income/(Loss) from Discontinued Operations (6) | 618 | 93 | (1,825 | ) | 711 | (1,715 | ) | |||||||||||||
Income Tax Provision/(Benefit) | 210 | 15 | (43 | ) | 225 | (76 | ) | |||||||||||||
Income/(Loss) from Discontinued Operations | 408 | 78 | (1,782 | ) | 486 | (1,639 | ) | |||||||||||||
Net Income/(Loss) | $ | 27,654 | $ | (7,636 | ) | $ | 82,405 | 20,018 | $ | 127,318 | ||||||||||
Income/(Loss) per Common Share from Continuing Operations: | ||||||||||||||||||||
Basic | $ | 0.14 | $ | (0.04 | ) | $ | 0.42 | $ | 0.10 | $ | 0.65 | |||||||||
Diluted (7) | $ | 0.14 | $ | (0.04 | ) | $ | 0.41 | $ | 0.10 | $ | 0.64 | |||||||||
Net Income/(Loss) per Common Share: | ||||||||||||||||||||
Basic | $ | 0.15 | $ | (0.04 | ) | $ | 0.42 | $ | 0.11 | $ | 0.64 | |||||||||
Diluted (7) | $ | 0.14 | $ | (0.04 | ) | $ | 0.40 | $ | 0.10 | $ | 0.63 | |||||||||
Weighted Average Common Shares—Basic | 189,391 | 189,625 | 198,243 | 189,508 | 198,130 | |||||||||||||||
Weighted Average Common Shares—Diluted (7) | 191,405 | 189,625 | 210,356 | 191,184 | 210,601 | |||||||||||||||
Net Orders | $ | 306,553 | $ | 245,975 | $ | 401,352 | $ | 552,528 | $ | 761,168 | ||||||||||
(1) Includes the following amounts related to stock-based compensation:
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| July 1, 2007 | April 1, 2007 | July 2, 2006 | July 1, 2007 | July 2, 2006 | ||||||||||||||||
Cost of Revenues | $ | 1,289 | $ | 1,384 | �� | $ | 1,129 | $ | 2,673 | $ | 2,233 | |||||||||
Engineering and Development | 2,103 | 2,259 | 1,841 | $ | 4,362 | 3,643 | ||||||||||||||
Selling and Administrative | 3,391 | 3,642 | 2,971 | 7,033 | 5,876 | |||||||||||||||
| $ | 6,783 | $ | 7,285 | $ | 5,941 | $ | 14,068 | $ | 11,752 | |||||||||||
| (2) | Cost of revenues includes an inventory provision of $8.0 million in the six months ended July 2, 2006 for non-FLEX products in the Semiconductor Test Division. For the quarter and six months ended July 1, 2007, $0.5 million was recorded as a credit related to previously written off inventory in the Semiconductor Test Division. |
| (3) | In-process research and development charge from the acquisition of enabling test technology from MOSAID Technologies in the quarter ended April 1, 2007 and the six months ended July 1, 2007 for the Semiconductor Test Division. |
| (4) | Restructuring and Other, net consists of: |
| Quarter Ended: | Six Months Ended: | ||||||||||||||||||
| July 1, 2007 | April 1, 2007 | July 2, 2006 | July 1, 2007 | July 2, 2006 | |||||||||||||||
Severance | $ | 1,505 | $ | 2,201 | $ | 1,528 | $ | 3,706 | $ | 1,595 | |||||||||
Facility Related | (52 | ) | 36 | (182 | ) | (16 | ) | (1,268 | ) | ||||||||||
Loss/(Gain) on Sale of Real Estate | 21 | 10 | (21,736 | ) | 31 | (21,736 | ) | ||||||||||||
Gain on Sale of Product Lines | (906 | ) | — | (157 | ) | (906 | ) | (386 | ) | ||||||||||
Long-Lived Asset Impairment | — | — | — | — | 50 | ||||||||||||||
Other | — | — | (49 | ) | — | 52 | |||||||||||||
| $ | 568 | $ | 2,247 | $ | (20,596 | ) | $ | 2,815 | $ | (21,693 | ) | ||||||||
| (5) | Recognition of fair value of an asset related to an equity investment. |
| (6) | On May 31, 2007 Teradyne entered into a definitive agreement with Tollgrade Communications, Inc. for the sale of our Broadband Test Systems Division, the results of which have been included within discontinued operations for all periods presented. |
| (7) | Teradyne had convertible debentures that matured in the fourth quarter of 2006. Under GAAP, when calculating diluted earnings per share, convertible debentures must be assumed to have converted if the effect on EPS would be dilutive. For Teradyne, dilution occured when earnings were greater than $0.24 per share per quarter. |
| Quarter Ended: | Six Months Ended: | ||||||||||||||
| July 1, 2007 | April 1, 2007 | July 2, 2006 | July 1, 2007 | July 2, 2006 | |||||||||||
Shares included in diluted shares | — | — | 11.0 | — | 11.1 | ||||||||||
Net interest expense added back to net income | $ | — | $ | — | $ | 2.6 | $ | — | $ | 5.3 | |||||
CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands)
| July 1, 2007 | December 31, 2006 | |||||
Assets | ||||||
Cash and Cash Equivalents | $ | 393,215 | $ | 568,025 | ||
Marketable Securities | 187,134 | 47,766 | ||||
Accounts Receivable | 211,461 | 155,770 | ||||
Inventories | 88,043 | 92,813 | ||||
Other Current Assets | 24,314 | 21,527 | ||||
Current Assets from Discontinued Operations (1) | 5,487 | 3,509 | ||||
| 909,654 | 889,410 | |||||
Net Property, Plant and Equipment | 357,595 | 365,521 | ||||
Long-term Marketable Securities | 303,656 | 328,827 | ||||
Goodwill | 69,147 | 69,147 | ||||
Intangible and Other Assets | 34,610 | 35,819 | ||||
Retirement Plans Assets | 32,194 | 31,503 | ||||
Long-term Assets from Discontinued Operations (1) | 818 | 828 | ||||
| $ | 1,707,674 | $ | 1,721,055 | |||
Liabilities | ||||||
Accounts Payable | 55,822 | 39,918 | ||||
Accrued Employees’ Compensation and Withholdings | 65,594 | 87,811 | ||||
Deferred Revenue and Customer Advances | 41,963 | 44,053 | ||||
Other Accrued Liabilities | 44,149 | 47,023 | ||||
Income Taxes Payable | 10,099 | 36,052 | ||||
Current Liabilities from Discontinued Operations (1) | 2,709 | 4,859 | ||||
| 220,336 | 259,716 | |||||
Retirement Plans Liabilities | 79,644 | 81,121 | ||||
Other Long-term Liabilities | 19,219 | 18,352 | ||||
Long-term Liabilities from Discontinued Operations (1) | 674 | 679 | ||||
| 319,873 | 359,868 | |||||
Shareholders’ Equity | 1,387,801 | 1,361,187 | ||||
| $ | 1,707,674 | $ | 1,721,055 | |||
(1) On May 31, 2007 Teradyne entered into a definitive agreement with Tollgrade Communications, Inc. for the sale of our Broadband Test Systems Division, whose assets and liabilities have been included within discontinued operations.
For press releases and other information of interest to investors, please visit Teradyne’s homepage on the World Wide Web at http://www.teradyne.com.
Contact: Teradyne, Inc.
Tom Newman, 978-370-2425
VP of Corporate Relations