Teradyne (TER) 8-K Teradyne Reports Second Quarter 2019 Results

Exhibit 99.1

Teradyne Reports Second Quarter 2019 Results

• Q2’19 GAAP earnings per share grew 6% andNon-GAAP earnings per share grew 12% from Q2’18

• Semiconductor Test revenue up 4% from Q2’18

• Industrial Automation revenue up 20% from Q2’18

	Q2’19		Q2’18		Q1’19
Revenue (mil)	$	564	$	527	$	494
GAAP EPS	$	0.55	$	0.52	$	0.62
Non-GAAP EPS	$	0.66	$	0.59	$	0.54

==========================================

NORTH READING, Mass. – July 23, 2019 –Teradyne, Inc. (NASDAQ: TER) reported revenue of $564 million for the second quarter of 2019 of which $375 million was in Semiconductor Test, $75 million in Industrial Automation, $73 million in System Test, and $41 million in Wireless Test. GAAP net income for the second quarter was $97.4 million or $0.55 per share. On anon-GAAP basis, Teradyne’s net income in the second quarter was $113.2 million, or $0.66 per diluted share, which excluded acquired intangible asset amortization, restructuring and other,non-cash convertible debt interest, discrete income tax adjustments, and included the related tax impact onnon-GAAP adjustments.

“We exceeded our revenue and profit guidance for the second quarter on stronger than expected results in semiconductor test as continued growth in 5G infrastructure, networking, and memory test spending more than offset lower demand from automotive and industrial device makers,” said Teradyne President and CEO Mark Jagiela. “In Industrial Automation, our Universal Robots and MiR collaborative robots business grew 20% in the quarter, highlighting their compelling value even in a challenging global industrial investment environment.”

Guidance for the third quarter of 2019 is revenue of $540 million to $580 million, with GAAP net income of $0.53 to $0.63 per diluted share andnon-GAAP net income of $0.64 to $0.74 per diluted share.Non-GAAP guidance excludes acquired intangible asset amortization,non-cash convertible debt interest, restructuring and other, and includes the related tax impact onnon-GAAP adjustments.

Webcast

A conference call to discuss the second quarter results, along with management’s business outlook, will follow at 10 a.m. ET, Wednesday, July 24. 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 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, and restructuring and other, and include 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. 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.

About Teradyne

Teradyne (NASDAQ:TER) brings high-quality innovations such as smart devices, life-saving medical equipment and data storage systems to market, faster. Its advanced test solutions for semiconductors, electronic systems, wireless devices and more ensure that products perform as they were designed. Its Industrial Automation offerings include collaborative and mobile robots that help manufacturers of all sizes improve productivity and lower costs. In 2018, Teradyne had revenue of $2.1 billion and today employs 5,200 people worldwide. For more information, visit teradyne.com. Teradyne^® is a registered trademark of Teradyne, Inc. in the U.S. and other countries.

Page 3

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, 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, 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. On May 16, 2019, Huawei and 68 of its affiliates, including HiSilicon, were added to the U.S. Department of Commerce Entity List under U.S. Export Administration Regulations (the “EAR”). This action by the U.S. Department of Commerce imposes new export licensing requirements on exports,re-exports, andin-country transfers of all U.S. - regulated products, software and technology to the designated Huawei entities. While most of our products are not subject to the EAR and therefore not affected by the Entity List restrictions, certain of our products are currently manufactured in the U.S. and thus subject to the Entity List restrictions. Compliance with the Entity List restrictions has not significantly impacted our sales, but could limit sales in the future. Important factors that could cause actual results, earnings per share, use of cash, dividend payments, repurchases of common stock, or payment of the senior convertible notes 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 or the repurchase of common stock 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; compliance with trade protection measures or export restrictions, including the addition of Huawei and HiSilicon to the U.S. Department of Commerce Entity List; 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, 2018 and the Quarterly Report on Form10-Q for the period ended March 31, 2019. 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 2019

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

	Quarter Ended									Six Months Ended
	June 30, 2019			March 31, 2019			July 1, 2018			June 30, 2019			July 1, 2018
Net revenues	$	564,178		$	494,099		$	526,929		$	1,058,277		$	1,014,396
Cost of revenues (exclusive of acquired intangible assets amortization shown separately below) (1)		240,260			206,464			219,595			446,724			437,230
Gross profit		323,918			287,635			307,334			611,553			577,166
Operating expenses:
Selling and administrative		108,811			102,013			99,410			210,824			189,916
Engineering and development		81,434			76,791			75,342			158,225			149,750
Acquired intangible assets amortization		10,083			10,634			9,793			20,717			17,491
Restructuring and other (2)		(10,404	)		5,112			2,389			(5,292	)		2,076
Operating expenses		189,924			194,550			186,934			384,474			359,233
Income from operations		133,994			93,085			120,400			227,079			217,933
Interest and other (income) expense (3)		2,817			(894	)		388			1,923			2,102
Income before income taxes		131,177			93,979			120,012			225,156			215,831
Income tax provision (benefit) (4)		33,780			(15,159	)		18,975			18,621			27,821
Net income	$	97,397		$	109,138		$	101,037		$	206,535		$	188,010
Net income per common share:
Basic	$	0.57		$	0.63		$	0.53		$	1.20		$	0.97
Diluted	$	0.55		$	0.62		$	0.52		$	1.16		$	0.94
Weighted average common shares — basic		171,241			173,532			190,730			172,387			192,992
Weighted average common shares — diluted (5)		178,590			176,972			194,909			177,781			199,197
Cash dividend declared per common share	$	0.09		$	0.09		$	0.09		$	0.18		$	0.18
(1)   Cost of revenues includes:	Quarter Ended									Six Months Ended
	June 30, 2019			March 31, 2019			July 1, 2018			June 30, 2019			July 1, 2018
Provision for excess and obsolete inventory	$	3,402		$	2,397		$	2,653		$	5,799		$	6,175
Sale of previously written down inventory		(363	)		(778	)		(1,922	)		(1,141	)		(4,165	)
Inventorystep-up		383			—			372			383			372
	$	3,422		$	1,619		$	1,103		$	5,041		$	2,382
(2)   Restructuring and other consists of:	Quarter Ended									Six Months Ended
	June 30, 2019			March 31, 2019			July 1, 2018			June 30, 2019			July 1, 2018
Contingent consideration fair value adjustment	$	(11,671	)	$	2,970		$	(3,500	)	$	(8,701	)	$	(8,468	)
Employee severance		803			799			2,398			1,602			6,279
Acquisition related expenses and compensation		464			1,343			2,544			1,807			3,318
Other		—			—			947			—			947
	$	(10,404	)	$	5,112		$	2,389		$	(5,292	)	$	2,076
(3)   Interest and other includes:	Quarter Ended									Six Months Ended
	June 30, 2019			March 31, 2019			July 1, 2018			June 30, 2019			July 1, 2018
Non-cash convertible debt interest	$	3,410		$	3,368		$	3,245		$	6,778		$	6,451
Pension actuarial loss (gain)		448			—			(71	)		448			(71	)
	$	3,858		$	3,368		$	3,174		$	7,226		$	6,380

(4) For the quarter ended June 30, 2019, income tax provision (benefit) includes a $15 million tax provision related to the finalization of our toll tax charge. For the quarter ended March 31, 2019, income tax provision (benefit) includes a $26 million tax benefit from the release of uncertain tax position reserves due to the IRS completion of its audit of Teradyne’s 2015 Federal tax return.

(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 June 30, 2019, March 31, 2019 and July 1, 2018, 4.4 million, 2.2 million and 2.6 million shares, respectively, have been included in diluted shares. For the six months ended June 30, 2019 and July 1, 2018, 3.3 million and 3.5 million shares, respectively, have been included in diluted shares. For the three months ended June 30, 2019, diluted shares also included 1.8 million shares from the convertible note hedge transaction. For the six months ended June 30, 2019 and July 1, 2018, diluted shares included 0.9 million shares from the convertible note hedge transaction.

CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands)

	June 30, 2019		December 31, 2018
Assets
Cash and cash equivalents	$	495,107	$	926,752
Marketable securities		400,227		190,096
Accounts receivable, net		372,199		291,267
Inventories, net		164,461		153,541
Prepayments and other current assets		184,832		170,826
Total current assets		1,616,826		1,732,482
Property, plant and equipment, net		295,895		279,821
Operating leaseright-of-use assets, net		56,315		—
Marketable securities		99,001		87,731
Deferred tax assets		67,886		70,848
Other assets		25,712		11,509
Retirement plans assets		16,449		16,883
Acquired intangible assets, net		109,494		125,482
Goodwill		383,936		381,850
Total assets	$	2,671,514	$	2,706,606
Liabilities
Accounts payable	$	103,449	$	100,688
Accrued employees’ compensation and withholdings		121,940		148,566
Deferred revenue and customer advances		89,837		77,711
Other accrued liabilities		77,053		78,272
Operating lease liabilities		18,041		—
Contingent consideration		11,753		34,865
Income taxes payable		44,927		36,185
Total current liabilities		467,000		476,287
Retirement plans liabilities		122,596		117,456
Long-term deferred revenue and customer advances		37,365		32,750
Deferred tax liabilities		17,800		20,662
Long-term other accrued liabilities		9,660		37,547
Long-term contingent consideration		15,094		35,678
Long-term operating lease liabilities		46,460		—
Long-term income taxes payable		88,884		83,891
Long-term debt		387,243		379,981
Total liabilities		1,192,102		1,184,252
Shareholders’ equity		1,479,412		1,522,354
Total liabilities and shareholders’ equity	$	2,671,514	$	2,706,606

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)

	Quarter Ended						Six Months Ended
	June 30, 2019			July 1, 2018			June 30, 2019			July 1, 2018
Cash flows from operating activities:
Net income	$	97,397		$	101,037		$	206,535		$	188,010
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		17,231			16,820			33,882			33,156
Amortization		12,034			10,973			24,976			20,177
Deferred taxes		(691	)		8,616			515			17,312
Stock-based compensation		8,635			8,081			18,109			17,625
Provision for excess and obsolete inventory		3,402			2,653			5,799			6,175
Contingent consideration fair value adjustment		(11,671	)		(3,500	)		(8,701	)		(8,468	)
Retirement plan actuarial loss (gain)		448			(71	)		448			(71	)
(Gains) losses on marketable securities		(913	)		(479	)		(3,741	)		762
Other		210			254			429			406
Changes in operating assets and liabilities, net of businesses acquired:
Accounts receivable		(37,772	)		(40,332	)		(79,478	)		(179,403	)
Inventories		470			(266	)		(2,447	)		(21,283	)
Prepayments and other assets		1,581			2,320			(17,067	)		1,641
Accounts payable and accrued expenses		38,887			38,551			(14,436	)		(8,155	)
Deferred revenue and customer advances		9,371			874			15,826			10,518
Retirement plans contributions		(1,204	)		(1,153	)		(2,414	)		(2,173	)
Income taxes		7,831			(14,203	)		(14,973	)		(26,308	)
Net cash provided by operating activities		145,246			130,175			163,262			49,921
Cash flows from investing activities:
Purchases of property, plant and equipment		(33,245	)		(27,866	)		(58,956	)		(62,663	)
Purchases of marketable securities		(108,997	)		(156,747	)		(484,181	)		(647,071	)
Proceeds from sales of marketable securities		37,014			28,382			42,454			829,053
Proceeds from maturities of marketable securities		91,992			257,164			233,193			469,862
Proceeds from life insurance		—			—			273			—
Purchase of investments and acquisition of businesses, net of cash acquired		(15,000	)		(145,276	)		(21,970	)		(170,632	)
Net cash (used for) provided by investing activities		(28,236	)		(44,343	)		(289,187	)		418,549
Cash flows from financing activities:
Issuance of common stock under stock purchase and stock option plans		833			27			15,101			10,681
Repurchase of common stock		(90,754	)		(226,519	)		(247,222	)		(360,795	)
Dividend payments		(15,392	)		(17,094	)		(31,019	)		(34,682	)
Payment related to net settlement of employee stock compensation awards		(128	)		(122	)		(14,446	)		(19,751	)
Payment of contingent consideration		—			—			(27,615	)		(13,571	)
Net cash used for financing activities		(105,441	)		(243,708	)		(305,201	)		(418,118	)
Effects of exchange rate changes on cash and cash equivalents		(190	)		387			(519	)		189
Increase (decrease) in cash and cash equivalents		11,379			(157,489	)		(431,645	)		50,541
Cash and cash equivalents at beginning of period		483,728			637,873			926,752			429,843
Cash and cash equivalents at end of period	$	495,107		$	480,384		$	495,107		$	480,384

GAAP toNon-GAAP Earnings Reconciliation

(In millions, except per share amounts)

	Quarter Ended
	June 30, 2019			% of Net Revenues									March 31, 2019			% of Net Revenues									July 1, 2018			% of Net Revenues
Net revenues	$	564.2											$	494.1											$	526.9
Gross profit GAAP	$	323.9			57.4	%							$	287.6			58.2	%							$	307.3			58.3	%
Inventorystep-up		0.4			0.1	%								—			—									0.4			0.1	%
Gross profitnon-GAAP	$	324.3			57.5	%							$	287.6			58.2	%							$	307.7			58.4	%
Income from operations — GAAP	$	134.0			23.8	%							$	93.1			18.8	%							$	120.4			22.9	%
Acquired intangible assets amortization		10.1			1.8	%								10.6			2.1	%								9.8			1.9	%
Restructuring and other (1)		(10.4	)		-1.8	%								5.1			1.0	%								2.4			0.5	%
Inventorystep-up		0.4			0.1	%								—			—									0.4			0.1	%
Income from operations —non-GAAP	$	134.1			23.8	%							$	108.8			22.0	%							$	133.0			25.2	%
							Net Income per Common Share												Net Income per Common Share												Net Income per Common Share
	June 30, 2019			% of Net Revenues			Basic			Diluted			March 31, 2019			% of Net Revenues			Basic			Diluted			July 1, 2018			% of Net Revenues			Basic			Diluted
Net income — GAAP	$	97.4			17.3	%	$	0.57		$	0.55		$	109.1			22.1	%	$	0.63		$	0.62		$	101.0			19.2	%	$	0.53		$	0.52
Acquired intangible assets amortization		10.1			1.8	%		0.06			0.06			10.6			2.1	%		0.06			0.06			9.8			1.9	%		0.05			0.05
Interest and other (2)		3.4			0.6	%		0.02			0.02			3.4			0.7	%		0.02			0.02			3.2			0.6	%		0.02			0.02
Restructuring and other (1)		(10.4	)		-1.8	%		(0.06	)		(0.06	)		5.1			1.0	%		0.03			0.03		��	2.4			0.5	%		0.01			0.01
Pensionmark-to-market adjustment (2)		0.4			0.1	%		0.00			0.00			—			—			—			—			(0.1	)		0.0	%		(0.00	)		(0.00	)
Inventorystep-up		0.4			0.1	%		0.00			0.00			—			—			—			—			0.4			0.1	%		0.00			0.00
Exclude discrete tax adjustments (3)		13.9			2.5	%		0.08			0.08			(30.1	)		-6.1	%		(0.17	)		(0.17	)		(0.5	)		-0.1	%		(0.00	)		(0.00	)
Non-GAAP tax adjustments		(2.0	)		-0.4	%		(0.01	)		(0.01	)		(3.5	)		-0.7	%		(0.02	)		(0.02	)		(3.4	)		-0.6	%		(0.02	)		(0.02	)
Convertible share adjustment		—			—			—			0.02			—			—			—			—			—			—			—			0.01
Net income —non-GAAP	$	113.2			20.1	%	$	0.66		$	0.66		$	94.6			19.1	%	$	0.55		$	0.54		$	112.8			21.4	%	$	0.59		$	0.59
GAAP andnon-GAAP weighted average common shares — basic		171.2												173.5												190.7
GAAP weighted average common shares — diluted		178.6												177.0												194.9
Exclude dilutive shares related to convertible note transaction		(6.2	)											(2.2	)											(2.6	)
Non-GAAP weighted average common shares — diluted		172.4												174.8												192.3
(1)   Restructuring and other consists of:
	Quarter Ended
	June 30, 2019												March 31, 2019												July 1, 2018
Contingent consideration fair value adjustment	$	(11.7	)										$	3.0											$	(3.5	)
Acquisition related expenses and compensation		0.5												1.3												2.5
Employee severance		0.8												0.8												2.4
Other		—												—												0.9
	$	(10.4	)										$	5.1											$	2.4

(2) For the quarters ended June 30, 2019, March 31, 2019, and July 1, 2018, adjustment to excludenon-cash convertible debt interest expense. For the quarters ended June 30, 2019 and July 1, 2018, adjustment to exclude actuarial loss (gain) recognized under GAAP in accordance with Teradyne’smark-to-market pension accounting.

(3) For the quarters ended June 30, 2019, March 31, 2019, and July 1, 2018, adjustment to exclude discrete income tax items. For the quarter ended June 30, 2019, income tax (benefit) provision includes a $15 million tax provision related to the finalization of our toll tax charge. For the quarter ended March 31, 2019, income tax (benefit) provision includes a $26 million tax benefit from the release of uncertain tax position reserves due to the IRS completion of its audit of Teradyne’s 2015 Federal tax return.

	Six Months Ended
	June 30, 2019			% of Net Revenues									July 1, 2018			% of Net Revenues
Net Revenues	$	1,058.3											$	1,014.4
Gross profit GAAP	$	611.6			57.8	%							$	577.2			56.9	%
Inventorystep-up		0.4			0.0	%								0.4			0.0	%
Gross profitnon-GAAP	$	612.0			57.8	%							$	577.6			56.9	%
Income from operations — GAAP	$	227.1			21.5	%							$	217.9			21.5	%
Acquired intangible assets amortization		20.7			2.0	%								17.5			1.7	%
Restructuring and other (1)		(5.3	)		-0.5	%								2.1			0.2	%
Inventorystep-up		0.4			0.0	%								0.4			0.0	%
Income from operations —non-GAAP	$	242.9			23.0	%							$	237.9			23.5	%
							Net Income per Common Share												Net Income per Common Share
	June 30, 2019			% of Net Revenues			Basic			Diluted			July 1, 2018			% of Net Revenues			Basic			Diluted
Net income — GAAP	$	206.5			19.5	%	$	1.20		$	1.16		$	188.0			18.5	%	$	0.97		$	0.94
Acquired intangible assets amortization		20.7			2.0	%		0.12			0.12			17.5			1.7	%		0.09			0.09
Interest and other (2)		6.8			0.6	%		0.04			0.04			6.5			0.6	%		0.03			0.03
Restructuring and other (1)		(5.3	)		-0.5	%		(0.03	)		(0.03	)		2.1			0.2	%		0.01			0.01
Inventorystep-up		0.4			0.0	%		0.00			0.00			0.4			0.0	%		0.00			0.00
Pensionmark-to-market adjustment (2)		0.4			0.0	%		0.00			0.00			(0.1	)		0.0	%		(0.00	)		(0.00	)
Exclude discrete tax adjustments (3)		(16.2	)		-1.5	%		(0.09	)		(0.09	)		(6.8	)		-0.7	%		(0.04	)		(0.03	)
Non-GAAP tax adjustments		(5.5	)		-0.5	%		(0.03	)		(0.03	)		(5.3	)		-0.5	%		(0.03	)		(0.03	)
Convertible share adjustment		—			—			—			0.03			—			—			—			0.02
Net income —non-GAAP	$	207.8			19.6	%	$	1.21		$	1.20		$	202.3			19.9	%	$	1.05		$	1.04
GAAP andnon-GAAP weighted average common shares — basic		172.4												193.0
GAAP weighted average common shares — diluted		177.8												199.2
Exclude dilutive shares from convertible note		(4.2	)											(4.4	)
Non-GAAP weighted average common shares — diluted		173.6												194.8
(1)   Restructuring and other consists of:
	Six Months Ended
	June 30, 2019												July 1, 2018
Contingent consideration fair value adjustment	$	(8.7	)										$	(8.5	)
Acquisition related expenses and compensation		1.8												3.3
Employee severance		1.6												6.3
Other		—												0.9
	$	(5.3	)										$	2.1

(2) For the six months ended June 30, 2019 and July 1, 2018, Interest and other includednon-cash convertible debt interest expense. For the six months ended June 30, 2019 and July 1, 2018, adjustments to exclude actuarial loss (gain) recognized under GAAP in accordance with Teradyne’smark-to-market pension accounting.

(3) For the six months ended June 30, 2019 and July 1, 2018, adjustment to exclude discrete income tax items. For the six months ended June 30, 2019, income tax (benefit) provision includes a $26 million tax benefit from the release of uncertain tax position reserves due to the IRS completion of its audit of Teradyne’s 2015 Federal tax return and includes a $15 million tax provision related to the finalization of our toll tax charge.

GAAP toNon-GAAP Reconciliation of Third Quarter 2019 guidance:

GAAP andnon-GAAP third quarter revenue guidance:	$	540 million		to	$	580 million
GAAP net income per diluted share	$	0.53			$	0.63
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		(0.01	)			(0.01	)
Convertible share adjustment		0.02				0.02
Non-GAAP net income per diluted share	$	0.64			$	0.74
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