Teradyne (TER) 8-K Teradyne Reports Third Quarter 2018 Results

Exhibit 99.1

Teradyne Reports Third Quarter 2018 Results

• Revenue of $567 million, organic growth of 11% from Q3’17

• Memory Test Q3’18 revenue of $87 million, up 83% from Q3’17

• Universal Robots revenue up 46% from Q3’17, Industrial Automation segment revenue up 64%

	Q3’18		Q2’18		Q3’17
Revenue (mil)	$	567	$	527	$	503
GAAP EPS	$	0.63	$	0.52	$	0.52
Non-GAAP EPS	$	0.71	$	0.59	$	0.54

NORTH READING, Mass. – October 23, 2018 –Teradyne, Inc. (NYSE: TER) reported revenue of $567 million for the third quarter of 2018 of which $417 million was in Semiconductor Test, $66 million in Industrial Automation, $50 million in System Test, and $34 million in Wireless Test. GAAP net profit for the third quarter was $120.0 million or $0.63 per diluted share. On anon-GAAP basis, Teradyne’s net income in the third quarter was $133.3 million, or $0.71 per diluted share, which excluded acquired intangible asset amortization,non-cash convertible debt interest, restructuring and other charges and included the related tax impact onnon-GAAP adjustments.

“Increased third quarter sales, combined with favorable product mix, drove earnings above our guidance,” said President and CEO Mark Jagiela. “In Semiconductor Test, sales increased 5% compared to Q3’17 due to continued strength in automotive and industrial chip test markets combined with increased memory test demand for our expanded Magnum product line. Universal Robots (UR) growth, combined with 2018 acquisitions MiR and Energid, drove our Industrial Automation sales up 64% compared to Q3’17. Growing traction for UR’s next generatione-Series Cobots and expanded distribution for MiR’s mobile platform powered the growth and positions us for a strong finish to the year.

With expected strong Industrial Automation and Semiconductor Test shipments, themid-point of our Q4 guidance delivers another year with over $2 billion in sales and over $2 of earnings per share.”

Guidance for the fourth quarter of 2018 is revenue of $480 million to $510 million, with GAAP net income of $0.39 to $0.46 per diluted share andnon-GAAP net income of $0.46 to $0.54 per diluted share.Non-GAAP guidance excludes acquired intangible asset amortization,non-cash convertible debt interest, restructuring and other charges and includes the related tax impact onnon-GAAP adjustments.

Webcast

A conference call to discuss the third quarter results, along with management’s business outlook, will follow at 10:00 a.m. ET, Wednesday, October 24. Interested investors should access the webcast atinvestors.teradyne.com/events-presentations at least five minutes before the call begins. Presentation materials will be available starting at 10:00 a.m. ET.

A replay will be available on the Teradyne website atwww.teradyne.com/investors.

Non-GAAP Results

In addition to disclosing results that are determined in accordance with GAAP, Teradyne also disclosesnon-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 andnon-GAAP net income exclude acquired intangible assets amortization,non-cash convertible debt interest, pension actuarial gains and losses, discrete income tax adjustments, fair value inventorystep-up related to Mobile Industrial Robots, and restructuring and other, and includes the related tax impact onnon-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, andnon-GAAP net income per share arenon-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. Thesenon-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 fair value inventorystep-up related to Mobile Industrial Robots. GAAP requires that this item be included in determining gross margin.Non-GAAP gross margin dollar amount and percentage arenon-GAAP performance measures that management believes provide useful supplemental information for management and the investor. Management usesnon-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 thesenon-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 tonon-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 toNon-GAAP Reconciliation” link. Thenon-GAAP performance measures discussed in this press release may not be comparable to similarly titled measures used by other companies. The presentation ofnon-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.

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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, autonomous mobile robots and sensing and simulation software, used by global manufacturing and industrial customers to improve quality and increase manufacturing efficiency. In 2017, Teradyne had revenue of $2.14 billion and currently employs approximately 4,800 people worldwide. For more information, visitteradyne.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 regarding Teradyne’s future business prospects, results of operations, market conditions, earnings per share, the payment of a quarterly dividend, the repurchase of Teradyne common stock pursuant to a share repurchase program, use of proceeds and potential dilution from the senior convertible notes offering, potential borrowings under a senior secured credit facility, and the impact of the U.S. tax reform, export and tariff laws. Such statements are based on the current assumptions and expectations of Teradyne’s management and are neither promises nor guarantees of future performance, events, earnings per share, use of cash, payment of dividends, repurchases of common stock, payment of the senior convertible notes, availability of, or borrowing under, the credit facility, or the impact of the U.S. tax reform, export and tariff laws. 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, use of cash, dividend payments, repurchases of common stock, payment of the senior convertible notes 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 from one or more significant customers; development, delivery and acceptance of new products; the ability to grow the Industrial Automation business; increased research and development spending; deterioration of Teradyne’s financial condition; the consummation and success of any mergers or acquisitions; unexpected cash needs; insufficient cash flow to make required payments and pay the principal amount on the senior convertible notes; the business judgment of the board of directors that a declaration of a dividend, the repurchase of common stock or borrowing under the credit facility is not in the company’s best interests; additional U.S. tax regulations or IRS guidance; the impact of any tariffs or export controls imposed in the U.S. or China; 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 Form10-K for the fiscal year ended December 31, 2017 and the Quarterly Report on Form10-Q for the period ended July 1, 2018. 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.

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TERADYNE, INC. REPORT FOR THIRD FISCAL QUARTER OF 2018

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

	Quarter Ended									Nine Months Ended
	September 30, 2018			July 1, 2018			October 1, 2017 (1)			September 30, 2018			October 1, 2017 (1)
Net revenues	$	566,848		$	526,929		$	503,378		$	1,581,244		$	1,657,191
Cost of revenues (exclusive of acquired intangible assets amortization shown separately below) (2)		233,155			219,595			208,509			670,385			706,667
Gross profit		333,693			307,334			294,869			910,859			950,524
Operating expenses:
Selling and administrative		100,199			99,410			86,130			290,115			261,034
Engineering and development		77,049			75,342			76,986			226,799			235,235
Acquired intangible assets amortization		11,142			9,793			7,028			28,633			23,145
Restructuring and other (3)		1,710			2,389			(4,407	)		3,785			392
Operating expenses		190,100			186,934			165,737			549,332			519,806
Income from operations		143,593			120,400			129,132			361,527			430,718
Interest and other (4)		(2,749	)		(388	)		(1,695	)		(4,852	)		(4,389	)
Income before income taxes		140,844			120,012			127,437			356,675			426,329
Income tax provision		20,863			18,975			24,017			48,684			62,713
Net income	$	119,981		$	101,037		$	103,420		$	307,991		$	363,616
Net income per common share:
Basic	$	0.65		$	0.53		$	0.52		$	1.62		$	1.83
Diluted	$	0.63		$	0.52		$	0.52		$	1.57		$	1.81
Weighted average common shares — basic		185,744			190,730			197,485			190,576			198,755
Weighted average common shares — diluted (5)		190,505			194,909			200,775			196,300			201,413
Cash dividend declared per common share	$	0.09		$	0.09		$	0.07		$	0.27		$	0.21
(1)   Certain prior period amounts were reclassified to conform with the first quarter 2018 adoption of new accounting guidance for the presentation of pension and post retirement costs.
(2)   Cost of revenues includes:
	Quarter Ended									Nine Months Ended
	September 30, 2018			July 1, 2018			October 1, 2017			September 30, 2018			October 1, 2017
Provision for excess and obsolete inventory	$	3,347		$	2,653		$	1,859		$	9,522		$	7,154
Sale of previously written down inventory		(1,013	)		(1,922	)		(3,121	)		(5,178	)		(6,404	)
	$	2,334		$	731		$	(1,262	)	$	4,344		$	750
(3)   Restructuring and other consists of:
	Quarter Ended									Nine Months Ended
	September 30, 2018			July 1, 2018			October 1, 2017			September 30, 2018			October 1, 2017
Employee severance	$	1,667		$	2,398		$	581		$	7,945		$	1,953
Acquisition related expenses and compensation		811			2,544			—			4,129			—
Contingent consideration fair value adjustment		(768	)		(3,500	)		(286	)		(9,236	)		1,847
Other		—			947			362			947			1,656
Property insurance recovery		—			—			(5,064	)		—			(5,064	)
	$	1,710		$	2,389		$	(4,407	)	$	3,785		$	392
(4)   Interest and other includes:
	Quarter Ended									Nine Months Ended
	September 30, 2018			July 1, 2018			October 1, 2017			September 30, 2018			October 1, 2017
Non-cash convertible debt interest	$	3,286		$	3,245		$	3,127		$	9,737		$	9,265
Pension actuarial loss (gain)		267			(71	)		—			196			(2,504	)
	$	3,553		$	3,174		$	3,127		$	9,933		$	6,761
(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 September 30, 2018, July 1, 2018 and October 1, 2017, 3.0 million, 2.6 million and 1.1 million shares, respectively, have been included in diluted shares. For the nine months ended September 30, 2018 and October 1, 2017, 3.4 million and 0.6 million shares, respectively, have been included in diluted shares. For the quarter ended September 30, 2018 and the nine months ended September 30, 2018, diluted shares also included 0.1 million and 0.6 million shares, respectively, from the convertible note hedge transaction.

CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands)

	September 30, 2018		December 31, 2017
Assets
Cash and cash equivalents	$	814,019	$	429,843
Marketable securities		418,410		1,347,979
Accounts receivable, net		352,476		272,783
Inventories, net		154,705		107,525
Prepayments and other current assets		139,785		112,151
Total current assets		1,879,395		2,270,281
Property, plant and equipment, net		278,071		268,447
Marketable securities		91,982		125,926
Deferred tax assets		70,772		84,026
Other assets		11,421		12,275
Retirement plans assets		17,885		17,491
Acquired intangible assets, net		139,963		79,088
Goodwill		392,998		252,011
Total assets	$	2,882,487	$	3,109,545
Liabilities
Accounts payable	$	107,890	$	86,393
Accrued employees’ compensation and withholdings		116,546		141,694
Deferred revenue and customer advances		77,953		83,614
Other accrued liabilities		95,888		59,083
Contingent consideration		35,532		24,497
Income taxes payable		24,603		59,055
Total current liabilities		458,412		454,336
Retirement plans liabilities		127,037		119,776
Long-term deferred revenue and customer advances		29,387		30,127
Deferred tax liabilities		21,748		6,720
Long-term other accrued liabilities		28,956		10,273
Long-term contingent consideration		25,410		20,605
Long-term income taxes payable		147,360		148,075
Long-term debt		376,417		365,987
Total liabilities		1,214,727		1,155,899
Shareholders’ equity		1,667,760		1,953,646
Total liabilities and shareholders’ equity	$	2,882,487	$	3,109,545

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)

	Quarter Ended						Nine Months Ended
	September 30, 2018			October 1, 2017			September 30, 2018			October 1, 2017
Cash flows from operating activities:
Net income	$	119,981		$	103,420		$	307,991		$	363,616
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		16,774			16,769			49,930			49,243
Amortization		12,732			9,901			32,909			32,313
Stock-based compensation		7,702			8,308			25,327			25,620
Deferred taxes		7,130			2,884			24,442			(679	)
Provision for excess and obsolete inventory		3,347			1,859			9,522			7,154
Contingent consideration adjustment		(768	)		(286	)		(9,236	)		1,847
Retirement plan actuarial losses		267			—			196			(2,504	)
Property insurance recovery		—			(4,309	)		—			(4,309	)
Other		(652	)		36			516			429
Changes in operating assets and liabilities, net of businesses acquired:
Accounts receivable		101,596			137,807			(77,807	)		(75,623	)
Inventories		(12,834	)		31,919			(34,117	)		23,770
Prepayments and other assets		(30,360	)		2,937			(28,719	)		7,362
Accounts payable and other accrued expenses		24,279			(27,778	)		16,124			5,298
Deferred revenue and customer advances		(695	)		29,223			9,823			34,535
Retirement plans contributions		(1,071	)		(2,875	)		(3,244	)		(4,858	)
Income taxes		(6,844	)		15			(33,152	)		15,808
Net cash provided by operating activities		240,584			309,830			290,505			479,022
Cash flows from investing activities:
Purchases of property, plant and equipment		(25,606	)		(27,280	)		(88,269	)		(73,247	)
Proceeds from government subsidy for property, plant and equipment		7,920			—			7,920			—
Purchases of marketable securities		(162,450	)		(701,704	)		(809,521	)		(1,036,523	)
Proceeds from sales of marketable securities		14,111			129,915			843,164			443,169
Proceeds from maturities of marketable securities		464,238			165,648			934,100			473,255
Proceed from property insurance		—			5,064			—			5,064
Proceed from life insurance		1,126			—			1,126			—
Acquisition of businesses, net of cash acquired		1,158			—			(169,474	)		—
Net cash provided by (used for) investing activities		300,497			(428,357	)		719,046			(188,282	)
Cash flows from financing activities:
Issuance of common stock under stock purchase and stock option plans		10,278			9,247			20,959			24,462
Repurchase of common stock		(201,468	)		(57,493	)		(562,263	)		(151,821	)
Dividend payments		(16,638	)		(13,805	)		(51,320	)		(41,730	)
Payments related to net settlement of employee stock compensation awards		(90	)		(146	)		(19,841	)		(12,584	)
Payments of contingent consideration		—			—			(13,571	)		(1,050	)
Net cash used for financing activities		(207,918	)		(62,197	)		(626,036	)		(182,723	)
Effects of exchange rate changes on cash and cash equivalents		472			1,052			661			2,776
Increase (decrease) in cash and cash equivalents		333,635			(179,672	)		384,176			110,793
Cash and cash equivalents at beginning of period		480,384			598,349			429,843			307,884
Cash and cash equivalents at end of period	$	814,019		$	418,677		$	814,019		$	418,677

GAAP toNon-GAAP Earnings Reconciliation

(In millions, except per share amounts)

	Quarter Ended
	September 30, 2018			% of Net Revenues									July 1, 2018			% of Net Revenues									October 1, 2017 (1)			% of Net Revenues
Net revenues	$	566.8											$	526.9											$	503.4
Gross profit GAAP	$	333.7			58.9	%							$	307.3			58.3	%							$	294.8			58.6	%
Inventorystep-up		—			—									0.4			0.1	%								—			—
Gross profit non-GAAP	$	333.7			58.9	%							$	307.7			58.4	%							$	294.8			58.6	%
Income from operations - GAAP	$	143.6			25.3	%							$	120.4			22.9	%							$	129.1			25.6	%
Acquired intangible assets amortization		11.1			2.0	%								9.8			1.9	%								7.0			1.4	%
Restructuring and other (2)		1.7			0.3	%								2.4			0.5	%								(4.4	)		-0.9	%
Inventorystep-up		—			—									0.4			0.1	%								—			—
Income from operations -non-GAAP	$	156.4			27.6	%							$	133.0			25.2	%							$	131.7			26.2	%
							Net Income per Common Share												Net Income per Common Share												Net Income per Common Share
	September 30, 2018			% of Net Revenues			Basic			Diluted			July 1, 2018			% of Net Revenues			Basic			Diluted			October 1, 2017			% of Net Revenues			Basic			Diluted
Net income - GAAP	$	120.0			21.2	%	$	0.65		$	0.63		$	101.0			19.2	%	$	0.53		$	0.52		$	103.4			20.5	%	$	0.52		$	0.51
Acquired intangible assets amortization		11.1			2.0	%		0.06			0.06			9.8			1.9	%		0.05			0.05			7.0			1.4	%		0.04			0.03
Interest and other (3)		3.3			0.6	%		0.02			0.02			3.2			0.6	%		0.02			0.02			3.1			0.6	%		0.02			0.02
Restructuring and other (2)		1.7			0.3	%		0.01			0.01			2.4			0.5	%		0.01			0.01			(4.4	)		-0.9	%		(0.02	)		(0.02	)
Pensionmark-to-market adjustment (3)		0.3			0.1	%		0.00			0.00			(0.1	)		0.0	%		(0.00	)		(0.00	)		—			—			—			—
Inventorystep-up		—			—			—			—			0.4			0.1	%		0.00			0.00			—			—			—			—
Exclude discrete tax adjustments (4)		0.3			0.1	%		0.00			0.00			(0.5	)		-0.1	%		(0.00	)		(0.00	)		0.3			0.1	%		0.00			0.00
Non-GAAP tax adjustments		(3.4	)		-0.6	%		(0.02	)		(0.02	)		(3.4	)		-0.6	%		(0.02	)		(0.02	)		(1.7	)		-0.3	%		(0.01	)		(0.01	)
Convertible share adjustment		—			—			—			0.01			—			—			—			0.01			—			—			—			—
Net income -non-GAAP	$	133.3			23.5	%	$	0.72		$	0.71		$	112.8			21.4	%	$	0.59		$	0.59		$	107.7			21.4	%	$	0.55		$	0.54
GAAP andnon-GAAP weighted average common shares - basic		185.7												190.7												197.5
GAAP weighted average common shares - diluted		190.5												194.9												200.8
Exclude dilutive shares related to convertible note transaction		(3.1	)											(2.6	)											(1.1	)
Non-GAAP weighted average common shares - diluted		187.4												192.3												199.7
(1)   Certain prior period amounts were reclassified to conform with the first quarter 2018 adoption of new accounting guidance for the presentation of pension and post retirement costs. (2)   Restructuring and other consists of:
	Quarter Ended
	September 30, 2018												July 1, 2018												October 1, 2017
Employee severance	$	1.7											$	2.4											$	0.6
Acquisition related expenses and compensation		0.8												2.5												—
Contingent consideration fair value adjustment		(0.8	)											(3.5	)											(0.3	)
Other		—												0.9												0.4
Property insurance recovery		—												—												(5.1	)
	$	1.7											$	2.4											$	(4.4	)
(3)   For the quarters ended September 30, 2018, July 1, 2018 and October 1, 2017, adjustment to excludenon-cash convertible debt interest expense. For the quarters ended September 30, 2018 and July 1, 2018, adjustments to exclude actuarial losses recognized under GAAP in accordance with Teradyne’smark-to-market pension accounting policy. (4)   For the quarters ended September 30, 2018, July 1, 2018 and October 1, 2017, adjustment to exclude discrete income tax items.

	Nine Months Ended
	September 30, 2018			% of Net Revenues									October 1, 2017 (1)			% of Net Revenues
Net Revenues	$	1,581.2											$	1,657.2
Gross profit GAAP	$	910.9			57.6	%							$	950.5			57.4	%
Inventorystep-up		0.4			0.0	%								—			—
Gross profitnon-GAAP	$	911.3			57.6	%							$	950.5			57.4	%
Income from operations - GAAP	$	361.5			22.9	%							$	430.7			26.0	%
Acquired intangible assets amortization		28.6			1.8	%								23.1			1.4	%
Restructuring and other (2)		3.8			0.2	%								0.4			0.0	%
Inventorystep-up		0.4			0.0	%								—			—
Income from operations -non-GAAP	$	394.3			24.9	%							$	454.2			27.4	%
							Net Income per Common Share												Net Income per Common Share
	September 30, 2018			% of Net Revenues			Basic			Diluted			October 1, 2017			% of Net Revenues			Basic			Diluted
Net income - GAAP	$	308.0			19.5	%	$	1.62		$	1.57		$	363.6			21.9	%	$	1.83		$	1.81
Acquired intangible assets amortization		28.6			1.8	%		0.15			0.15			23.1			1.4	%		0.12			0.11
Interest and other (3)		9.7			0.6	%		0.05			0.05			9.3			0.6	%		0.05			0.05
Restructuring and other (2)		3.8			0.2	%		0.02			0.02			0.4			0.0	%		0.00			0.00
Inventorystep-up		0.4			0.0	%		0.00			0.00			—			—			—			—
Pensionmark-to-market adjustment (3)		0.2			0.0	%		0.00			0.00			(2.5	)		-0.2	%		(0.01	)		(0.01	)
Exclude discrete tax adjustments (4)		(6.5	)		-0.4	%		(0.03	)		(0.03	)		(6.1	)		-0.4	%		(0.03	)		(0.03	)
Non-GAAP tax adjustments		(8.7	)		-0.6	%		(0.05	)		(0.04	)		(9.9	)		-0.6	%		(0.05	)		(0.05	)
Convertible share adjustment		—			—			—			0.03			—			—			—			—
Net income -non-GAAP	$	335.5			21.2	%	$	1.76		$	1.74		$	377.9			22.8	%	$	1.90		$	1.88
GAAP andnon-GAAP weighted average common shares - basic		190.6												198.8
GAAP weighted average common shares - diluted		196.3												201.4
Exclude dilutive shares from convertible note		(4.0	)											(0.6	)
Non-GAAP weighted average common shares - diluted		192.3												200.8
(1)   Certain prior period amounts were reclassified to conform with the first quarter 2018 adoption of new accounting guidance for the presentation of pension and post retirement costs.
(2)   Restructuring and other consists of:
	Nine Months Ended
	September 30, 2018												October 1, 2017
Employee severance	$	7.9											$	2.0
Acquisition related expenses and compensation		4.1												—
Other		0.9												1.7
Contingent consideration fair value adjustment		(9.2	)											1.8
Property insurance recovery		—												(5.1	)
	$	3.8											$	0.4
(3)   For the nine months ended September 30, 2018 and October 1, 2017, Interest and other includednon-cash convertible debt interest expense. For the nine months ended September 30, 2018 and October 1, 2017, adjustments to exclude actuarial gains recognized under GAAP in accordance with Teradyne’smark-to-market pension accounting policy.
(4)   For the nine months ended September 30, 2018 and October 1, 2017, adjustment to exclude discrete income tax items.
GAAP toNon-GAAP Reconciliation of Fourth Quarter 2018 guidance:
GAAP andnon-GAAP fourth quarter revenue guidance:	$	480 million			to		$	510 million
GAAP net income per diluted share	$	0.39					$	0.46
Exclude acquired intangible assets amortization		0.06						0.06
Excludenon-cash convertible debt interest		0.02						0.02
Exclude restructuring and other		0.01						0.01
Tax effect ofnon-GAAP adjustments		(0.02	)					(0.02	)
Convertible share adjustment		0.01						0.01
Non-GAAP net income per diluted share	$	0.46					$	0.54
For press releases and other information of interest to investors, please visit Teradyne’s homepage at http://www.teradyne.com.     Contact: Teradyne, Inc.                     Andy Blanchard978-370-2425                 Vice President of Corporate Relations