Teradyne (TER) 8-K Teradyne Reports Strong Order, Earnings Growth in Second Quarter 2012

Exhibit 99.1

Teradyne Reports Strong Order, Earnings Growth in Second Quarter 2012

Q2’12 orders of $592 million, up 29% from Q1’12 and up 78% from Q2’11

Q2’12 revenue of $548 million, up 38% from Q1’12 and up 34% from Q2’11

Q2’12 diluted non-GAAP income from continuing operations of $0.77 per share, up 157% from $0.30 per share in Q1’12 and up 51% from $0.51 per share in Q2’11. Q2’12 diluted GAAP income from continuing operations of $0.49 per share

Q3’12 guidance: Revenue of $420 million to $460 million; Diluted non-GAAP income from continuing operations of $0.41 to $0.51 per share; Diluted GAAP income from continuing operations of $0.22 to $0.29 per share

NORTH READING, Mass. – July 25, 2012 – Teradyne, Inc. (NYSE: TER) reported revenue of $548 million for the second quarter of 2012 of which $365 million was in Semiconductor Test, $112 million in LitePoint Wireless Test and $71 million in the Systems Test Group. On a non-GAAP basis, Teradyne’s income from continuing operations in the second quarter was $156 million, or $0.77 per diluted share, which excluded acquired intangible asset amortization, non-cash convertible debt interest, and included income taxes on a cash basis. GAAP income from continuing operations for the second quarter was $111 million, or $0.49 per diluted share.

Bookings in the second quarter of 2012 were $592 million of which $358 million were in Semiconductor Test, $189 million in LitePoint Wireless Test and $45 million in the Systems Test Group.

“Explosive growth in our LitePoint Wireless Test segment and continued strength for the UltraFLEX in high performance System-on-a-Chip test powered Teradyne’s results in the second quarter,” said Mike Bradley, President and CEO. “LitePoint delivered record orders and revenue as customers continue to embrace its time to market and economic advantages in the fast moving mobility market. After recording a very strong first half, our third quarter outlook reflects seasonally slower industry trends.”

Guidance for the third quarter of 2012 is for revenue of $420 million to $460 million, with non-GAAP income from continuing operations per diluted share of $0.41 to $0.51 and GAAP income from continuing operations per diluted share of $0.22 to $0.29. Non-GAAP guidance excludes acquired intangible asset amortization and non-cash convertible debt interest and includes income taxes on a cash basis.

Webcast

A conference call to discuss the second quarter of 2012 results, along with management’s business outlook is scheduled at 10 a.m. EDT, Thursday, July 26, 2012. The call will be broadcast simultaneously over the Internet. Interested investors should access the webcast atwww.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 is10287705. A replay will also be available on the Teradyne website atwww.teradyne.com. Click on “Investors” for a link to the replay. The replay will be available via phone and website through August 11, 2012.

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 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 these items 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.

About Teradyne

Teradyne (NYSE: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 2011, Teradyne had sales of $1.4 billion and currently employs approximately 3,400 people worldwide. For more information, visitwww.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; 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 April 1, 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 SECOND FISCAL QUARTER OF 2012

CONDENSED CONSOLIDATED OPERATING STATEMENTS

(In thousands, except per share amounts)

	Quarter Ended										Six Months Ended
	July 1, 2012			April 1, 2012				July 3, 2011			July 1, 2012			July 3, 2011
Net Revenues	$	548,284		$	396,668			$	410,519		$	944,952		$	787,680
Cost of Revenues (1)		238,778			205,742				195,841			444,520			380,110
Gross Profit		309,506			190,926				214,678			500,432			407,570
Operating Expenses:
Engineering and Development		66,532			60,135				48,392			126,667			95,536
Selling and Administrative		73,366			67,777				57,880			141,143			115,611
Acquired Intangible Asset Amortization		18,429			18,429				7,291			36,858			14,582
Restructuring and Other, net (2)		(6,262	)		(1,825	)			1,279			(8,087	)		1,692
Operating Expenses		152,065			144,516				114,842			296,581			227,421
Income from Operations		157,441			46,410				99,836			203,851			180,149
Interest & Other (3)		(5,449	)		(5,166	)			(3,913	)		(10,615	)		(8,802	)
Income from Continuing Operations Before Income Taxes		151,992			41,244				95,923			193,236			171,347
Income Tax Provision		40,605			7,680				7,839			48,285			13,325
Income from Continuing Operations		111,387			33,564				88,084			144,951			158,022
Income from Discontinued Operations Before Income Taxes (4)		—			—				—			—			1,436
Income Tax (Benefit)		—			—				—			—			(267	)
Income from Discontinued Operations		—			—				—			—			1,703
(Loss) / Gain on Disposal of Discontinued Operations (net of income tax provision of $0 and $4,578, respectively)		—			—				(832	)		—			24,371
Net Income	$	111,387		$	33,564			$	87,252		$	144,951		$	184,096
Income per Common Share from Continuing Operations:
Basic	$	0.60		$	0.18		��	$	0.48		$	0.78		$	0.85
Diluted	$	0.49		$	0.15			$	0.38		$	0.63		$	0.68
Net Income per Common Share:
Basic	$	0.60		$	0.18			$	0.47		$	0.78		$	0.99
Diluted	$	0.49		$	0.15			$	0.38		$	0.63		$	0.80
Weighted Average Common Shares—Basic		186,573			185,838				185,367			186,205			185,044
Weighted Average Common Shares—Diluted (5)		229,646			231,153				230,452			230,399			231,266
Net Orders	$	591,703		$	458,082			$	333,170		$	1,049,785		$	768,247
(1) Cost of Revenues includes:
	Quarter Ended										Six Months Ended
	July 1, 2012			April 1, 2012				July 3, 2011			July 1, 2012			July 3, 2011
Provision for Excess and Obsolete Inventory	$	9,353		$	1,574			$	1,716		$	10,927		$	6,343
Inventory Step-Up		1,218			4,871				—			6,089			—
Sale of Previously Written Down Inventory		—			(1,272	)			(764	)		(1,272	)		(3,786	)
	$	10,571		$	5,173			$	952		$	15,744		$	2,557
(2) Restructuring and Other, net consists of:
	Quarter Ended										Six Months Ended
	July 1, 2012			April 1, 2012				July 3, 2011			July 1, 2012			July 3, 2011
Contingent Consideration Fair Value Adjustment	$	(6,548	)	$	(1,825	)		$	—		$	(8,373	)	$	—
Employee Severance		286			—				344			286			1,188
Non-U.S. Pension Settlement		—			—				935			—			935
Facility Related		—			—				—			—			(431	)
	$	(6,262	)	$	(1,825	)		$	1,279		$	(8,087	)	$	1,692
(3) Interest & Other includes:
	Quarter Ended										Six Months Ended
	July 1, 2012			April 1, 2012				July 3, 2011			July 1, 2012			July 3, 2011
Non-Cash Convertible Debt Interest	$	3,389		$	3,275			$	2,957			6,664		$	5,815

(4) On March 21, 2011, Teradyne completed the sale of its Diagnostic Solutions business unit to SPX Corporation for a gain of $24.4 million. The results for the discontinued business unit have been included within discontinued operations for all periods presented.

(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 quarters ended July 1, 2012, April 1, 2012 and July 3, 2011, and six months ended July 1, 2012 and July 3, 2011, 22.3 million, 23.0 million, 22.7 million, 22.7 million and 23.0 million shares, respectively, have been included in diluted shares.

CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands)

	July 1, 2012		December 31, 2011
Assets
Cash and Cash Equivalents	$	589,056	$	573,736
Marketable Securities		105,947		96,502
Accounts Receivable		346,124		129,330
Inventories (1)		137,898		160,063
Deferred Tax Assets		56,888		53,948
Prepayments and Other Current Assets		80,895		86,308
Total Current Assets		1,316,808		1,099,887
Net Property, Plant and Equipment		248,000		232,207
Long-Term Marketable Securities		133,750		84,407
Retirement Plan Assets		7,182		8,840
Intangible Assets		356,117		392,975
Goodwill		352,778		352,778
Other Assets		20,035		17,545
Total Assets	$	2,434,670	$	2,188,639
Liabilities
Accounts Payable	$	117,343	$	69,842
Accrued Employees' Compensation and Withholdings		80,118		90,427
Deferred Revenue and Customer Advances		83,710		78,670
Contingent Consideration		54,662		68,892
Other Accrued Liabilities		64,298		62,420
Income Taxes Payable		23,218		860
Current Debt		2,522		2,573
Total Current Liabilities		425,871		373,684
Long-Term Deferred Revenue and Customer Advances		22,303		33,541
Retirement Plan Liabilities		77,295		76,638
Deferred Tax Liabilities		37,915		16,049
Other Long-Term Liabilities		20,573		23,711
Long-Term Debt		165,283		159,956
Total Liabilities		749,240		683,579
Shareholders' Equity		1,685,430		1,505,060
Total Liabilities and Shareholders' Equity	$	2,434,670	$	2,188,639

(1) As of December 31, 2011, Inventories included approximately $6.1 million of LitePoint inventory step-up.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)

	Quarter Ended						Six Months Ended
	July 1, 2012			July 3, 2011			July 1, 2012			July 3, 2011
Cash flows from operating activities:
Net income	$	111,387		$	87,252		$	144,951		$	184,096
Less: Income from discontinued operations		—			—			—			1,703
Less: (Loss) Gain on disposal of discontinued operations		—			(832	)		—			24,371
Income from continuing operations		111,387			88,084			144,951			158,022
Adjustments to reconcile income from continuing operations to net cash provided by operating activities:
Depreciation		13,290			12,588			25,578			25,645
Amortization		21,929			10,463			43,744			20,816
Stock-based compensation		10,630			7,218			21,396			14,682
Provision for excess and obsolete inventory		9,353			1,716			10,927			6,343
Deferred taxes		8,238			—			15,937			—
Inventory step-up		1,218			—			6,089			—
Contingent consideration adjustment		(6,548	)		—			(8,373	)		—
Tax benefit related to stock options and restricted stock units		(7,600	)		(3,717	)		(7,600	)		(3,717	)
Other		16			804			(471	)		1,422
Changes in operating assets and liabilities, net of businesses acquired and sold:
Accounts receivable		(124,577	)		(21,569	)		(216,794	)		(39,067	)
Inventories		(2,190	)		(4,297	)		21,446			(15,006	)
Other assets		5,922			(6,894	)		7,807			(9,158	)
Deferred revenue and customer advances		(4,494	)		(3,786	)		(6,198	)		(28,339	)
Accounts payable and accrued expenses		36,673			20,018			27,414			(5,996	)
Retirement plan contributions		(1,489	)		(4,069	)		(2,550	)		(5,245	)
Accrued income taxes		30,334			5,406			29,958			5,406
Net cash provided by continuing operations		102,092			101,965			113,261			125,808
Net cash used for discontinued operations		—			—			—			(4,225	)
Net cash provided by operating activities		102,092			101,965			113,261			121,583
Cash flows from investing activities:
Purchases of property, plant and equipment		(30,730	)		(22,336	)		(57,804	)		(44,467	)
Purchases of available-for-sale marketable securities		(76,676	)		(287,252	)		(156,771	)		(498,541	)
Proceeds from sales and maturities of available-for-sale marketable securities		46,315			232,029			99,120			420,477
Net cash used for continuing operations		(61,091	)		(77,559	)		(115,455	)		(122,531	)
Net cash provided by discontinued operations		—			32			—			39,062
Net cash used for investing activities		(61,091	)		(77,527	)		(115,455	)		(83,469	)
Cash flows from financing activities:
Issuance of common stock		7,059			6,976			16,984			17,052
Tax benefit related to stock options and restricted stock units		7,600			3,717			7,600			3,717
Payments of long-term debt		—			—			(1,246	)		(1,222	)
Payments of contingent consideration		—			—			(5,824	)		—
Net cash provided by financing activities		14,659			10,693			17,514			19,547
Increase in cash and cash equivalents		55,660			35,131			15,320			57,661
Cash and cash equivalents at beginning of period		533,396			420,267			573,736			397,737
Cash and cash equivalents at end of period	$	589,056		$	455,398		$	589,056		$	455,398

GAAP to Non-GAAP Earnings Reconciliation

(In millions, except per share amounts)

	Quarter Ended
	July 1, 2012			% of Net Revenues									April 1, 2012			% of Net Revenues									July 3, 2011			% of Net Revenues
Net Revenues	$	548.3											$	396.7											$	410.5
Gross Profit—GAAP	$	309.5			56.4	%							$	190.9			48.1	%							$	214.7			52.3	%
Inventory Step-Up		1.2			0.2	%								4.9			1.2	%								—			—
Pension Mark-to-Market adjustments (1)		0.8			0.1	%								—			—									1.1			0.3	%
Gross Profit—Non-GAAP	$	311.5			56.8	%							$	195.8			49.4	%							$	215.8			52.6	%
Income from Operations—GAAP	$	157.4			28.7	%							$	46.4			11.7	%							$	99.8			24.3	%
Acquired intangible asset amortization		18.4			3.4	%								18.4			4.6	%								7.3			1.8	%
Inventory Step-Up		1.2			0.2	%								4.9			1.2	%								—			—
Pension Mark-to-Market adjustments (1)		3.1			0.6	%								—			—									4.2			1.0	%
Restructuring and other, net (2)		(6.3	)		-1.1	%								(1.8	)		-0.5	%								1.3			0.3	%
Income from Operations—non-GAAP	$	173.8			31.7	%							$	67.9			17.1	%							$	112.6			27.4	%
							Income per Common Share from Continuing Operations												Income per Common Share from Continuing Operations												Income per Common Share from Continuing Operations
	July 1, 2012			% of Net Revenues			Basic			Diluted			April 1, 2012			% of Net Revenues			Basic			Diluted			July 3, 2011			% of Net Revenues			Basic		Diluted
Income from Continuing Operations—GAAP	$	111.4			20.3	%	$	0.60		$	0.49		$	33.6			8.5	%	$	0.18		$	0.15		$	88.1			21.5	%	$	0.48	$	0.38
Income Tax adjustment (3)		25.1			4.6	%		0.13			0.12			1.8			0.5	%		0.01			0.01			—			—			—		—
Acquired intangible asset amortization		18.4			3.4	%		0.10			0.09			18.4			4.6	%		0.10			0.09			7.3			1.8	%		0.04		0.04
Interest and other (4)		3.4			0.6	%		0.02			0.02			3.3			0.8	%		0.02			0.02			3.0			0.7	%		0.02		0.01
Pension Mark-to-Market adjustments (1)		3.1			0.6	%		0.02			0.01			—			—			—			—			4.2			1.0	%		0.02		0.02
Inventory Step-Up		1.2			0.2	%		0.01			0.01			4.9			1.2	%		0.03			0.02			—			—			—		—
Restructuring and other, net (2)		(6.3	)		-1.1	%		(0.03	)		(0.03	)		(1.8	)		-0.5	%		(0.01	)		(0.01	)		1.3			0.3	%		0.01		0.01
Convertible share adjustment (5)		—			—			—			0.06			—			—			—			0.02			—			—			—		0.05
Income from Continuing Operations—non-GAAP	$	156.3			28.5	%	$	0.84		$	0.77		$	60.2			15.2	%	$	0.32		$	0.30		$	103.9			25.3	%	$	0.56	$	0.51
GAAP and Non-GAAP Weighted Average Common Shares—Basic		186.6												185.8												185.4
GAAP Weighted Average Common Shares—Diluted		229.6												231.2												230.5
Exclude dilutive shares from convertible note		(22.3	)											(23.0	)											(22.7	)
Non-GAAP Weighted Average Common Shares—Diluted (5)		207.3												208.2												207.8
(1)    Actuarial loss recognized under GAAP in accordance with the Company's mark-to-market pension accounting.
(2)    Restructuring and other, net consists of:
	Quarter Ended
	July 1, 2012												April 1, 2012												July 3, 2011
Contingent Consideration Fair Value Adjustment	$	(6.5	)										$	(1.8	)										$	—
Employee Severance		0.3												—												0.3
Non-U.S. Pension Settlement		—												—												0.9
	$	(6.3	)										$	(1.8	)										$	1.3

(3) For the quarters ended July 1, 2012 and April 1, 2012, adjustment to record income tax provision on a cash basis.

(4) For the quarters ended July 1, 2012, April 1, 2012 and July 3, 2011, Interest and Other included non-cash convertible debt interest.

(5) For the quarters ended July 1, 2012, April 1, 2012 and July 3, 2011, the calculation of non-GAAP diluted earnings per share gives benefit to the Company's call option on its stock for 34.7 million shares at $5.48. As a result, 17.3 million, 18.3 million and 17.9 million shares, respectively, have been included in non-GAAP diluted shares and net interest expense of $2.3 million has been added back to non-GAAP net income for the non-GAAP diluted earnings per share calculation.

	Six Months Ended
	July 1, 2012			% of Net Revenues									July 3, 2011			% of Net Revenues
Net Revenues	$	945.0											$	787.7
Gross Profit—GAAP	$	500.4			53.0	%							$	407.6			51.7	%
Inventory Step-Up		6.1			0.6	%								—			—
Pension Mark-to-Market adjustments (1)		0.8			0.1	%								1.1			0.1	%
Gross Profit—Non-GAAP	$	507.3			53.7	%							$	408.7			51.9	%
Income from Operations—GAAP	$	203.9			21.6	%							$	180.1			22.9	%
Acquired intangible asset amortization		36.9			3.9	%								14.6			1.9	%
Inventory Step-Up		6.1			0.6	%								—			—
Pension Mark-to-Market adjustments (1)		3.1			0.3	%								4.2			0.5	%
Restructuring and other, net (2)		(8.1	)		-0.9	%								1.7			0.2	%
Income from Operations—non-GAAP	$	241.9			25.6	%							$	200.6			25.5	%
							Income per Common Share from Continuing Operations												Income per Common Share from Continuing Operations
	July 1, 2012			% of Net Revenues			Basic			Diluted			July 3, 2011			% of Net Revenues			Basic		Diluted
Income from Continuing Operations—GAAP	$	145.0			15.3	%	$	0.78		$	0.63		$	158.0			20.1	%	$	0.85	$	0.68
Acquired intangible asset amortization		36.9			3.9	%		0.20			0.18			14.6			1.9	%		0.08		0.07
Income Tax adjustment (3)		26.9			2.8	%		0.14			0.13			—			—			—		—
Interest and other (4)		6.7			0.7	%		0.04			0.03			5.8			0.7	%		0.03		0.03
Inventory Step-Up		6.1			0.6	%		0.03			0.03			—			—			—		—
Pension Mark-to-Market adjustments (1)		3.1			0.3	%		0.02			0.01			4.2			0.5	%		0.02		0.02
Restructuring and other, net (2)		(8.1	)		-0.9	%		(0.04	)		(0.04	)		1.7			0.2	%		0.01		0.01
Convertible share adjustment (5)		—			—			—			0.10			—			—			—		0.10
Income from Continuing Operations—non-GAAP	$	216.6			22.9	%	$	1.16		$	1.07		$	184.3			23.4	%	$	1.00	$	0.91
GAAP and Non-GAAP Weighted Average Common Shares—Basic		186.2												185.0
GAAP Weighted Average Common Shares—Diluted		230.4												231.3
Exclude dilutive shares from convertible note		(22.7	)											(23.0	)
Non-GAAP Weighted Average Common Shares—Diluted (5)		207.7												208.3
(1)    Actuarial loss recognized under GAAP in accordance with the Company's mark-to-market pension accounting.
(2)    Restructuring and other, net consists of:
	Six Months Ended
	July 1, 2012												July 3, 2011
Contingent Consideration Fair Value Adjustment	$	(8.4	)										$	—
Employee Severance		0.3												1.2
Non-U.S. Pension Settlement		—												0.9
Facility Related		—												(0.4	)
	$	(8.1	)										$	1.7
(3)    For the six months ended July 1, 2012 adjustment to record income tax provision on a cash basis.
(4)    For the six months ended July 1, 2012 and July 3 , 2011, Interest and Other included non-cash convertible debt interest.
(5)    For the six months ended July 1, 2012 and July 3, 2011, the calculation of non-GAAP diluted earnings per share gives benefit to the Company's call option on its stock for 34.7 million shares at $5.48. As a result, 17.8 million and 18.4 million shares, respectively, have been included in non-GAAP diluted shares and net interest expense of approximately $4.7 million has been added back to non-GAAP net income for the non-GAAP diluted earnings per share calculation.

GAAP to Non-GAAP Reconciliation of Third Quarter 2012 guidance:
GAAP and Non-GAAP third quarter revenue guidance:		$420 million to $460 million
GAAP income from continuing operations per diluted share	$	0.22	$	0.29
Exclude acquired intangible asset amortization		0.09		0.09
Exclude non-cash convertible debt interest		0.02		0.02
Include income tax adjustment		0.05		0.05
Exclude dilutive shares from convertible note		0.03		0.06
Non-GAAP income from continuing operations per diluted share	$	0.41	$	0.51

For press releases and other information of interest to investors, please visit Teradyne's homepage at http://www.teradyne.com.

Contact: Teradyne, Inc.

      Andy Blanchard 978-370-2425

      Vice President of Corporate Relations