Teradyne (TER) 8-K Teradyne Reports Third Quarter 2016 Results

Exhibit 99.1

Teradyne Reports Third Quarter 2016 Results •    Q3’16 orders up 20% compared with Q3’15 •    Q3’16 revenue and earnings exceeded guidance on strength of semiconductor mobile device test demand •    Semiconductor Test revenues for the first 9 months up 10%, $101 million, compared with 2015
	Q3’16		Q3’15		Q2’16
Orders (mil)	$	378	$	314	$	471
Revenue (mil)	$	410	$	466	$	532
GAAP EPS	$	0.31	$	0.34	$	(1.10	)
Non-GAAP EPS	$	0.33	$	0.40	$	0.55

NORTH READING, Mass.– October 26, 2016 –Teradyne, Inc. (NYSE: TER) reported revenue of $410 million for the third quarter of 2016 of which $322 million was in Semiconductor Test, $37 million in System Test, $28 million in Wireless Test, and $24 million in Industrial Automation. GAAP net income for the third quarter was $63.8 million or $0.31 per share. On a non-GAAP basis, Teradyne’s net income in the third quarter was $67.7 million, or $0.33 per diluted share, which excluded acquired intangible asset amortization, restructuring and other charges, discrete income tax adjustments, and included the related tax impact on non-GAAP adjustments.

Orders in the third quarter of 2016 were $378 million of which $250 million were in Semiconductor Test, $76 million in System Test, $29 million in Wireless Test, and $24 million in Industrial Automation.

“Third quarter revenue came in above our guidance based on strong demand for our UltraFLEX System-on-a-Chip system,” said CEO and President Mark Jagiela. “While tester demand remained strong for mobile devices, we also saw a pick-up in orders for automotive analog and microcontroller testers. This, combined with across the board strength in System Test and Universal Robots, leads us to increase our fourth quarter production plan and puts us on track to deliver annual sales over $1.7B and above model operating profits.”

Guidance for the fourth quarter of 2016 is revenue of $330 million to $360 million, with GAAP net income of $0.17 to $0.26 per diluted share and non-GAAP net income of $0.18 to $0.25 per diluted share. Non-GAAP guidance excludes acquired intangible asset amortization and includes the related tax impact on non-GAAP adjustments.

Webcast

A conference call to discuss the third quarter results, along with management’s business outlook, will follow at 10 a.m. ET, Thursday, October 27. Interested investors should access the webcast atwww.teradyne.com and click on “Investors” at least five minutes before the call begins. Presentation materials will be available starting at 10 a.m. ET. A replay will be available on the Teradyne website atwww.teradyne.com/investors.

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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 goodwill and intangible asset impairment charges, acquired intangible asset amortization, pension actuarial gains and losses, fair value inventory step-up related to Universal Robots, discrete income tax adjustments, restructuring and other, and a gain from the sale of an equity investment. 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 and 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 gross margin excludes inventory step-up and pension 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 performance 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. 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 “Investors” and then selecting 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 (NYSE:TER) is a leading supplier of automation equipment for test and industrial applications. Teradyne Automatic Test Equipment (ATE) is used to test semiconductors, wireless products, data storage and complex electronic systems, which serve consumer, communications, industrial and government customers. Our Industrial Automation products include Collaborative Robots used by global manufacturing and light industrial customers to improve quality and increase manufacturing efficiency. In 2015, Teradyne had revenue of $1.64 billion and currently employs approximately 4,200 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, market conditions, earnings per share, the payment of

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a quarterly dividend, the repurchase of Teradyne common stock pursuant to a share repurchase program and a senior secured credit facility. Such statements are based on the current assumptions and expectations of Teradyne’s management and are neither promises nor guarantees of future performance, future events, future earnings per share, future payment of dividends, future repurchases of common stock or future availability of, or borrowing under, a credit facility. There can be no assurance that management’s estimates of Teradyne’s future results or other forward-looking statements will be achieved. Additionally, the current dividend and share repurchase programs may be modified, suspended or discontinued at any time. Important factors that could cause actual results, earnings per share, dividend payments, repurchases of common stock or borrowings under the credit facility to differ materially from those presently expected include: conditions affecting the markets in which Teradyne operates; decreased or delayed product demand; market acceptance of new products; the ability to grow Universal Robots’ business; increased research and development spending; deterioration of Teradyne’s financial condition; the consummation and success of any mergers or acquisitions; the business judgment of the board of directors that a declaration of a dividend, the repurchase of common stock or debt under the credit facility is not in the company’s best interests; 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, 2015 and the Quarterly Report on Form 10-Q for the period ended July 3, 2016. 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 THIRD FISCAL QUARTER OF 2016

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

	Quarter Ended									Nine Months Ended
	October 2, 2016			July 3, 2016			October 4, 2015			October 2, 2016			October 4, 2015
Net revenues	$	410,475		$	531,792		$	465,994		$	1,373,261		$	1,321,133
Cost of revenues (exclusive of acquired intangible assets amortization shown separately below) (1) (2)		183,116			248,922			207,368			632,700			571,517
Gross profit		227,359			282,870			258,626			740,561			749,616
Operating expenses:
Engineering and development (1)		71,400			76,109			74,027			220,973			221,309
Selling and administrative (1)		78,794			81,425			77,481			239,393			226,595
Acquired intangible assets amortization		8,487			16,244			20,053			44,725			49,119
Acquired intangible assets impairment (3)		—			83,339			—			83,339			—
Goodwill impairment (3)		—			254,946			—			254,946			—
Restructuring and other (4)		12,177			2,608			261			16,372			(124	)
Operating expenses		170,858			514,671			171,822			859,748			496,899
Income (loss) from operations		56,501			(231,801	)		86,804			(119,187	)		252,717
Interest and other (5)		3,180			984			604			5,242			9,264
Income (loss) before income taxes		59,681			(230,817	)		87,408			(113,945	)		261,981
Income tax (benefit) provision		(4,113	)		(7,271	)		15,955			(4,178	)		54,863
Net income (loss)	$	63,794		$	(223,546	)	$	71,453		$	(109,767	)	$	207,118
Net income (loss) per common share:
Basic	$	0.32		$	(1.10	)	$	0.34		$	(0.54	)	$	0.97
Diluted	$	0.31		$	(1.10	)	$	0.34		$	(0.54	)	$	0.96
Weighted average common shares—basic		202,211			203,018			210,032			203,167			213,688
Weighted average common shares—diluted		203,929			203,018			211,736			203,167			215,348
Cash dividend declared per common share	$	0.06		$	0.06		$	0.06		$	0.18		$	0.18
Net orders	$	378,461		$	471,026		$	314,222		$	1,238,904		$	1,333,272
(1) Pension actuarial losses (gains) included in our operating results were as follows:
	Quarter Ended									Nine Months Ended
	October 2, 2016			July 3, 2016			October 4, 2015			October 2, 2016			October 4, 2015
Cost of revenues	$	364		$	(221	)	$	—		$	(250	)	$	—
Engineering and development		106			(221	)		—			(509	)		—
Selling and administrative		192			(227	)		—			(441	)		—
	$	662		$	(669	)	$	—		$	(1,200	)	$	—
(2) Cost of revenues includes:
	Quarter Ended									Nine Months Ended
	October 2, 2016			July 3, 2016			October 4, 2015			October 2, 2016			October 4, 2015
Provision for excess and obsolete inventory	$	3,033		$	7,742		$	3,058		$	15,148		$	18,939
Sale of previously written down inventory		(1,794	)		(5,151	)		(1,983	)		(8,113	)		(6,659	)
Inventory step-up		—			—			972			—			1,567
	$	1,239		$	2,591		$	2,047		$	7,035		$	13,847
(3) Goodwill and acquired intangible assets impairment related to Teradyne’s Wireless Test business segment.
(4) Restructuring and other consists of:
	Quarter Ended									Nine Months Ended
	October 2, 2016			July 3, 2016			October 4, 2015			October 2, 2016			October 4, 2015
Contingent consideration fair value adjustment	$	7,974		$	1,305		$	(1,000	)	$	10,452		$	(2,600	)
Employee severance		4,203			1,303			1,117			5,920			1,372
Impairment of fixed assets and expenses related to Japan earthquake		312			5,051			—			5,363			—
Property insurance recovery		(312	)		(5,051	)		—			(5,363	)		—
Acquisition costs		—			—			144			—			1,104
	$	12,177		$	2,608		$	261		$	16,372		$	(124	)
(5) Interest and other includes:
	Quarter Ended									Nine Months Ended
	October 2, 2016			July 3, 2016			October 4, 2015			October 2, 2016			October 4, 2015
Gain from the sale of an equity investment	$	—		$	—		$	—		$	—		$	(5,406	)

CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands)

	October 2, 2016		December 31, 2015
Assets
Cash and cash equivalents	$	297,937	$	264,705
Marketable securities		598,501		477,696
Accounts receivable		163,213		211,293
Inventories, net		115,066		153,588
Deferred tax assets		—		54,973
Prepayments		104,078		91,519
Other current assets		6,393		6,194
Total current assets		1,285,188		1,259,968
Net property, plant and equipment		261,821		273,414
Marketable securities		357,751		265,928
Deferred tax assets		90,546		7,404
Other assets		12,777		13,080
Retirement plans assets		4,869		636
Intangible assets, net		114,146		239,831
Goodwill		238,589		488,413
Total assets	$	2,365,687	$	2,548,674
Liabilities
Accounts payable	$	61,890	$	92,358
Accrued employees’ compensation and withholdings		89,723		113,994
Deferred revenue and customer advances		138,916		85,527
Other accrued liabilities		56,580		43,727
Contingent consideration		1,050		15,500
Accrued income taxes		20,925		21,751
Total current liabilities		369,084		372,857
Retirement plans liabilities		108,095		103,531
Long-term deferred revenue and customer advances		26,336		25,745
Deferred tax liabilities		16,837		26,663
Long-term other accrued liabilities		31,354		32,156
Long-term contingent consideration		31,837		21,936
Total liabilities		583,543		582,888
Shareholders’ equity		1,782,144		1,965,786
Total liabilities and shareholders’ equity	$	2,365,687	$	2,548,674

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)

	Quarter Ended						Nine Months Ended
	October 2, 2016			October 4, 2015			October 2, 2016			October 4, 2015
Cash flows from operating activities:
Net income (loss)	$	63,794		$	71,453		$	(109,767	)	$	207,118
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation		16,269			16,301			48,437			52,531
Amortization		9,095			20,764			46,275			52,159
Provision for excess and obsolete inventory		3,033			3,058			15,148			18,939
Stock-based compensation		7,555			7,675			23,012			23,080
Contingent consideration adjustment		7,974			(1,000	)		10,452			(2,600	)
Goodwill impairment		—			—			254,946			—
Acquired intangible assets impairment		—			—			83,339			—
Deferred taxes		(21,110	)		(3,602	)		(42,568	)		(13,973	)
Impairment of fixed assets		—			—			4,179			—
Property insurance recovery		(312	)		—			(5,363	)		—
Retirement plans actuarial losses (gains)		662			—			(1,200	)		—
Non-cash charge for the sale of inventories revalued at the date of acquisition		—			972			—			1,567
Gain from the sale of an equity investment		—			—			—			(5,406	)
Tax benefit related to employee stock compensation awards		(3,399	)		(2,321	)		(3,399	)		(3,213	)
Other		(426	)		1,368			150			2,523
Changes in operating assets and liabilities, net of business acquired:
Accounts receivable		186,371			51,376			45,660			(91,117	)
Inventories		18,378			9,876			48,601			33,376
Prepayments and other assets		696			1,475			(12,961	)		15,529
Accounts payable and accrued expenses		(32,749	)		(729	)		(47,941	)		52,663
Deferred revenue and customer advances		(52,692	)		1,066			53,380			6,751
Retirement plans contributions		(3,573	)		(999	)		(5,871	)		(2,998	)
Accrued income taxes		4,221			2,416			4,227			25,677
Net cash provided by operating activities		203,787			179,149			408,736			372,606
Cash flows from investing activities:
Purchases of property, plant and equipment		(19,659	)		(20,617	)		(66,252	)		(66,727	)
Purchases of available-for-sale marketable securities		(438,526	)		(367,356	)		(875,837	)		(957,606	)
Proceeds from sales of available-for-sale marketable securities		131,946			212,334			466,744			843,734
Proceeds from maturities of available-for-sale marketable securities		74,138			98,947			202,162			330,363
Proceeds from property insurance		—			—			5,051			—
Acquisition of business, net of cash acquired		—			(409	)		—			(282,741	)
Proceeds from the sale of an equity investment		—			—			—			5,406
Proceeds from life insurance		—			—			—			1,098
Net cash used for investing activities		(252,101	)		(77,101	)		(268,132	)		(126,473	)
Cash flows from financing activities:
Issuance of common stock under stock purchase and stock option plans		2,189			267			20,085			18,145
Repurchase of common stock		(28,309	)		(98,527	)		(85,092	)		(226,843	)
Dividend payments		(12,123	)		(12,577	)		(36,548	)		(38,434	)
Tax benefit related to employee stock compensation awards		3,399			2,321			3,399			3,213
Payment of revolving credit facility costs		—			—			—			(2,253	)
Payment of contingent consideration		—			—			(11,697	)		—
Net cash used for financing activities		(34,844	)		(108,516	)		(109,853	)		(246,172	)
Effects of exchange rate changes on cash and cash equivalents		—			—			2,481			—
(Decrease) increase in cash and cash equivalents		(83,158	)		(6,468	)		33,232			(39	)
Cash and cash equivalents at beginning of period		381,095			300,685			264,705			294,256
Cash and cash equivalents at end of period	$	297,937		$	294,217		$	297,937		$	294,217

GAAP to Non-GAAP Earnings Reconciliation

(In millions, except per share amounts)

	Quarter Ended
	October 2, 2016			% of Net Revenues									July 3, 2016			% of Net Revenues									October 4, 2015			% of Net Revenues
Net revenues	$	410.5											$	531.8											$	466.0
Gross profit—GAAP	$	227.4			55.4	%							$	282.9			53.2	%							$	258.6			55.5	%
Inventory step-up		—			—									—			—									1.0			0.2	%
Pension mark-to-market adjustment (1)		0.4			0.1	%								(0.2	)		0.0	%								—			—
Gross profit—non-GAAP	$	227.8			55.5	%							$	282.7			53.2	%							$	259.6			55.7	%
Income (loss) from operations—GAAP	$	56.5			13.8	%							$	(231.8	)		-43.6	%							$	86.8			18.6	%
Restructuring and other (2)		12.2			3.0	%								2.6			0.5	%								0.3			0.1	%
Acquired intangible assets amortization		8.5			2.1	%								16.2			3.0	%								20.1			4.3	%
Pension mark-to-market adjustment (1)		0.7			0.2	%								(0.7	)		-0.1	%								—			—
Goodwill impairment (3)		—			—									254.9			47.9	%								—			—
Acquired intangible assets impairment (3)		—			—									83.3			15.7	%								—			—
Inventory step-up		—			—									—			—									1.0			0.2	%
Income from operations—non-GAAP	$	77.9			19.0	%							$	124.5			23.4	%							$	108.2			23.2	%
							Net Income per Common Share												Net (Loss) Income per Common Share												Net Income per Common Share
	October 2, 2016			% of Net Revenues			Basic			Diluted			July 3, 2016			% of Net Revenues			Basic			Diluted			October 4, 2015			% of Net Revenues			Basic			Diluted
Net income (loss)—GAAP	$	63.8			15.5	%	$	0.32		$	0.31		$	(223.5	)		-42.0	%	$	(1.10	)	$	(1.10	)	$	71.5			15.3	%	$	0.34		$	0.34
Restructuring and other (2)		12.2			3.0	%		0.06			0.06			2.6			0.5	%		0.01			0.01			0.3			0.1	%		0.00			0.00
Acquired intangible assets amortization		8.5			2.1	%		0.04			0.04			16.2			3.0	%		0.08			0.08			20.1			4.3	%		0.10			0.09
Pension mark-to-market adjustment (1)		0.7			0.2	%		0.00			0.00			(0.7	)		-0.1	%		(0.00	)		(0.00	)		—			—			—			—
Goodwill impairment (3)		—			—			—			—			254.9			47.9	%		1.26			1.24			—			—			—			—
Acquired intangible assets impairment (3)		—			—			—			—			83.3			15.7	%		0.41		��	0.41			—			—			—			—
Inventory step-up		—			—			—			—			—			—			—			—			1.0			0.2	%		0.00			0.00
Exclude discrete tax adjustments (4)		(10.7	)		-2.6	%		(0.05	)		(0.05	)		25.1			4.7	%		0.12			0.12			(3.3	)		-0.7	%		(0.02	)		(0.02	)
Tax effect of non-GAAP adjustments		(6.8	)		-1.7	%		(0.03	)		(0.03	)		(45.5	)		-8.6	%		(0.22	)		(0.22	)		(4.7	)		-1.0	%		(0.02	)		(0.02	)
Net income—non-GAAP	$	67.7			16.5	%	$	0.33		$	0.33		$	112.4			21.1	%	$	0.55		$	0.55		$	84.9			18.2	%	$	0.40		$	0.40
GAAP and non-GAAP weighted average common shares—basic		202.2												203.0												210.0
GAAP weighted average common shares—diluted		203.9												203.0												211.7
Include dilutive shares		—												1.9												—
Non-GAAP weighted average common shares—diluted		203.9												204.9												211.7
(1)    Actuarial losses (gains) recognized under GAAP in accordance with Teradyne’s mark-to-market pension accounting.

(2)    Restructuring and other consists of:

	Quarter Ended
	October 2, 2016			July 3, 2016			October 4, 2015
Contingent consideration fair value adjustment	$	8.0		$	1.3		$	(1.0	)
Employee severance		4.2			1.3			1.2
Impairment of fixed assets and expenses related to Japan earthquake		0.3			5.1			—
Property insurance recovery		(0.3	)		(5.1	)		—
Acquisition costs		—			—			0.1
	$	12.2		$	2.6		$	0.3

(3) Goodwill and acquired intangible assets impairment related to Teradyne’s Wireless Test business segment.

(4) For the quarters ended October 2, 2016, July 3, 2016 and October 4, 2015, adjustment to exclude discrete income tax items. For the quarters ended October 2, 2016 and July 3, 2016, adjustment to treat Wireless Test business segment goodwill and intangible assets impairments as discrete tax items.

	Nine Months Ended
	October 2, 2016			% of Net Revenues									October 4, 2015			% of Net Revenues
Net Revenues	$	1,373.3											$	1,321.1
Gross profit—GAAP	$	740.6			53.9	%							$	749.6			56.7	%
Inventory step-up		—			—									1.6			0.1	%
Pension mark-to-market adjustment (1)		(0.3	)		0.0	%								—			—
Gross profit—non-GAAP	$	740.3			53.9	%							$	751.2			56.9	%
(Loss) income from operations—GAAP	$	(119.2	)		-8.7	%							$	252.7			19.1	%
Goodwill impairment (2)		254.9			18.6	%								—			—
Acquired intangible assets impairment (2)		83.3			6.1	%								—			—
Acquired intangible assets amortization		44.7			3.3	%								49.1			3.7	%
Restructuring and other (3)		16.4			1.2	%								(0.1	)		0.0	%
Pension mark-to-market adjustment (1)		(1.2	)		-0.1	%								—			—
Inventory step-up		—			—									1.6			0.1	%
Income from operations—non-GAAP	$	278.9			20.3	%							$	303.3			23.0	%
							Net (Loss) Income per Common Share												Net Income per Common Share
	October 2, 2016			% of Net Revenues			Basic			Diluted			October 4, 2015			% of Net Revenues			Basic			Diluted
Net (loss) income—GAAP	$	(109.8	)		-8.0	%	$	(0.54	)	$	(0.54	)	$	207.1			15.7	%	$	0.97		$	0.96
Goodwill impairment (2)		254.9			18.6	%		1.25			1.24			—			—			—			—
Acquired intangible assets impairment (2)		83.3			6.1	%		0.41			0.41			—			—			—			—
Acquired intangible assets amortization		44.7			3.3	%		0.22			0.22			49.1			3.7	%		0.23			0.23
Restructuring and other (3)		16.4			1.2	%		0.08			0.08			(0.1	)		0.0	%		(0.00	)		(0.00	)
Pension mark-to-market adjustment (1)		(1.2	)		-0.1	%		(0.01	)		(0.01	)		—			—			—			—
Interest and other (4)		—			—			—			—			(5.4	)		-0.4	%		(0.03	)		(0.03	)
Inventory step-up		—			—			—			—			1.6			0.1	%		0.01			0.01
Exclude discrete tax adjustments (5)		11.8			0.9	%		0.06			0.06			(4.9	)		-0.4	%		(0.02	)		(0.02	)
Tax effect of non-GAAP adjustments		(55.7	)		-4.1	%		(0.27	)		(0.27	)		(10.5	)		-0.8	%		(0.05	)		(0.05	)
Net income—non-GAAP	$	244.4			17.8	%	$	1.20		$	1.19		$	236.9			17.9	%	$	1.11		$	1.10
GAAP and non-GAAP weighted average common shares—basic		203.2												213.7
GAAP weighted average common shares—diluted		203.2												215.3
Include dilutive shares		1.7												—
Non-GAAP weighted average common shares—diluted		204.9												215.3
(1)    Actuarial gains recognized under GAAP in accordance with Teradyne’s mark-to-market pension accounting.
(2)    Goodwill and acquired intangible assets impairment related to Teradyne’s Wireless Test business segment.
(3)    Restructuring and other consists of:
	Nine Months Ended
	October 2, 2016												October 4, 2015
Contingent consideration fair value adjustment	$	10.5											$	(2.6	)
Employee severance		5.9												1.4
Impairment of fixed assets and expenses related to Japan earthquake		5.4												—
Property insurance recovery		(5.4	)											—
Acquisition costs		—												1.1
	$	16.4											$	(0.1	)
(4)    For the nine months ended October 4, 2015, Interest and other included a gain from the sale of an equity investment.
(5)    For the nine months ended October 2, 2016 and October 4, 2015, adjustment to exclude discrete income tax items. For the nine months ended October 2, 2016, adjustment to treat Wireless Test business segment goodwill and intangible assets impairments as discrete tax items.

GAAP to Non-GAAP Reconciliation of Fourth Quarter 2016 guidance:

GAAP and non-GAAP fourth quarter revenue guidance:	$	330 million		to	$	360 million
GAAP net income per diluted share	$	0.17			$	0.26
Exclude acquired intangible assets amortization		0.04				0.04
Non-GAAP tax adjustment		(0.03	)			(0.05	)
Non-GAAP net income per diluted share	$	0.18			$	0.25

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