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Dec 31, 2019

Teradyne Q4 2019 Earnings Report

Reported revenue growth driven by strong Semiconductor Test and LitePoint Wireless shipments.

Key Takeaways

Teradyne reported Q4 2019 revenue of $655 million, a 26% increase from Q4 2018. GAAP EPS was $0.75 and non-GAAP EPS was $0.88. The company's revenue exceeded the high end of guidance due to strong Semiconductor Test and LitePoint Wireless shipments.

Revenue of $655 million in Q4’19, growth of 26% from Q4’18

Strong Semiconductor Test and LitePoint Wireless shipments drove Q4 revenue above the high end of guidance

Industrial Automation revenue growth of 5% in Q4

Board authorized a $1 billion share repurchase program

Total Revenue
$655M
Previous year: $520M
+26.0%
EPS
$0.88
Previous year: $0.63
+39.7%
Gross Profit
$383M
Previous year: $310M
+23.8%
Cash and Equivalents
$774M
Previous year: $927M
-16.5%
Free Cash Flow
$178M
Previous year: $160M
+10.9%
Total Assets
$2.79B
Previous year: $2.71B
+3.0%

Teradyne

Teradyne

Teradyne Revenue by Segment

Forward Guidance

Teradyne anticipates Q1 2020 revenue between $670 million and $710 million, with GAAP net income per diluted share of $0.75 to $0.85 and non-GAAP net income per diluted share of $0.86 to $0.96.

Positive Outlook

  • Revenue of $670 million to $710 million
  • GAAP net income of $0.75 to $0.85 per diluted share
  • Non-GAAP net income of $0.86 to $0.96 per diluted share
  • Customer production ramps from several design wins using these new products
  • Early test demand for smartphone related silicon and storage test capacity expansions.

Challenges Ahead

  • Guidance excludes acquired intangible asset amortization
  • Guidance excludes non-cash convertible debt interest
  • Includes the related tax impact on non-GAAP adjustments
  • Revenue profile to continue through the second quarter before tapering in the second half of the year.
  • Business environment for Huawei is both fluid and uncertain

Revenue & Expenses

Visualization of income flow from segment revenue to net income