Q1’12 orders increased 22% from Q4’11 driven by 55% increase in Semiconductor Test and 117% increase in LitePoint Wireless Test

Q1’12 revenue of $397 million, up 34% from Q4’11 and up 5% from Q1’11

Q1’12 diluted non-GAAP income from continuing operations of $0.30 per share, up from $0.17 per share in Q4’11 and down from $0.40 per share in Q1’11; Q1’12 diluted GAAP income from continuing operations of $0.15 per share

Q2’12 guidance: Revenue of $490 million to $530 million; Diluted non-GAAP income from continuing operations of $0.53 to $0.62 per share; Diluted GAAP income from continuing operations of $0.31 to $0.37 per share

Company Website: http://www.teradyne.com
NORTH READING, Mass. -- (Business Wire)

Teradyne, Inc. (NYSE: TER) reported revenue of $397 million for the first quarter of 2012 of which $268 million was in Semiconductor Test, $98 million in Systems Test Group and $31 million in LitePoint Wireless Test. On a non-GAAP basis, Teradyne’s income from continuing operations in the first quarter was $60.2 million, or $0.30 per diluted share, which excluded acquired intangible asset and inventory fair value amortization, non-cash convertible debt interest, and restructuring and other charges. GAAP income from continuing operations for the first quarter was $33.6 million, or $0.15 per diluted share.

Bookings in the first quarter of 2012 were $458 million of which $363 million were in Semiconductor Test, $53 million in the Systems Test Group and $42 million in LitePoint Wireless Test.

“Record UltraFlex System-on-a-Chip (SOC) orders drove our Semiconductor Test bookings in the first quarter,” said Mike Bradley, President and CEO. “High performance mobile devices continue to drive demand in our Semiconductor and LitePoint Wireless Test segments. In Storage Test, we delivered the second highest revenue in our history as earlier design wins ramp into volume production. Looking ahead, with the mobility outlook remaining strong, we’ve raised our second quarter revenue plan to meet customer needs.”

Guidance for the second quarter of 2012 is revenue of $490 million to $530 million, with non-GAAP income from continuing operations per diluted share of $0.53 to $0.62 and GAAP income from continuing operations per diluted share of $0.31 to $0.37. Non-GAAP guidance excludes acquired intangible asset and inventory fair value amortization, non-cash convertible debt interest, and restructuring and other charges.

Change in Pension Accounting Method

In the first quarter of 2012, we elected to change our method of recognizing gains and losses for our defined benefit pension plans and other post retirement benefits. We believe the new policy is preferable as it eliminates the delay in recognizing gains and losses in our operating results and will improve financial transparency.

We previously recognized gains and losses as a component of shareholders' equity on our consolidated balance sheets annually and amortized them into our operating results to the extent such gains and losses were outside of a specified range. We will now recognize changes in the fair value of plan assets and net actuarial gains and losses annually in the fourth quarter of each year. We have applied these changes retrospectively, as required.

Webcast

A conference call to discuss the first quarter of 2012 results, along with management's business outlook is scheduled at 10 a.m. EDT, Thursday, April 26, 2012. The call will be broadcast simultaneously over the Internet. Interested investors should access the webcast at www.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 is 71342974. A replay will also be available on the Teradyne website www.teradyne.com. Click on "Investors" for a link to the replay. The replay will be available via phone and website through May 12, 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. 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 this item 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 the Company’s current core business and future outlook and for comparison with our business plan, historical gross margin results and the gross margin results of the Company’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 3,300 people worldwide. For more information, visit www.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. 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.

Contacts:

Teradyne, Inc.
Andrew Blanchard, 978-370-2425
Investor Relations
investorrelations@teradyne.com
http://www.teradyne.com

Source: Teradyne, Inc.