Teradyne, Inc.
Jul 27, 2016

Teradyne Reports Revenue Growth in Second Quarter and First Half 2016

NORTH READING, Mass.--(BUSINESS WIRE)-- Teradyne, Inc. (NYSE: TER):

                               

Q2'16

Q2'15 Q1'16 1H 2016 1H 2015
Orders (mil) $471 $529 $389 $860 $1,019
Revenue (mil) $532 $513 $431 $963 $855
GAAP EPS $(1.10) $0.48 $0.24 $(0.85) $0.62
Non-GAAP EPS $0.55 $0.53 $0.31 $0.86 $0.70
 

Teradyne, Inc. (NYSE: TER) reported revenue of $532 million for the second quarter of 2016 of which $435 million was in Semiconductor Test, $49 million in System Test, $25 million in Industrial Automation, and $22 million in Wireless Test. GAAP net loss for the second quarter was $(223.5) million or $(1.10) per share, which included a Wireless Test goodwill and intangible asset impairment charge of $338.3 million. On a non-GAAP basis, Teradyne's net income in the second quarter was $112.4 million, or $0.55 per diluted share, which excluded the Wireless Test goodwill and intangible asset impairment charge as well as acquired intangible asset amortization, restructuring and other charges and discrete income tax adjustments.

Orders in the second quarter of 2016 were $471 million of which $391 million were in Semiconductor Test, $30 million in System Test, $26 million in Industrial Automation, and $23 million in Wireless Test.

"Strong customer demand for our semiconductor test products drove second quarter revenue to the highest level in 4 years and contributed to our highest first half revenue in 15 years," said CEO and President Mark Jagiela. "On the bookings front, we saw continued solid System-on-a-Chip test demand in the mobile device market, record orders for our Magnum family of memory test systems, and another quarter of explosive growth in collaborative robot demand.

"At the same time, we've seen a significant decline in the projected size of the wireless production test market served by our Wireless Test segment. In light of this, we've written down the goodwill and intangible asset carrying values of this segment. While disappointing, we're taking the actions necessary to put the business on a solid financial foundation for the future.

"Looking ahead, our guidance for the third quarter reflects continued strength in Industrial Automation, seasonal patterns in Semiconductor Test, and continued weakness in Wireless Test."

Guidance for the third quarter of 2016 is revenue of $375 million to $405 million, with GAAP net income of $0.22 to $0.30 per diluted share and non-GAAP net income of $0.23 to $0.30 per diluted share. Non-GAAP guidance excludes acquired intangible asset amortization and includes non-GAAP tax adjustments.

Webcast

A conference call to discuss the second quarter results, along with management's business outlook, will follow at 10 a.m. ET, Thursday, July 28. Interested investors should access the webcast at www.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 at www.teradyne.com/investors.

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 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 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 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 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 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, 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, market conditions, earnings per share, the payment of 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 April 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 SECOND FISCAL QUARTER OF 2016
 
CONDENSED CONSOLIDATED OPERATING STATEMENTS
(In thousands, except per share amounts)
                                 
Quarter Ended Six Months Ended
July 3, 2016 April 3, 2016 July 5, 2015 July 3, 2016 July 5, 2015
 
Net revenues $ 531,792 $ 430,994 $ 512,739 $ 962,787 $ 855,140
 
Cost of revenues (exclusive of acquired intangible asset amortization shown separately below) (1) (2)   248,922     200,662     214,171     449,584     364,149  
 
Gross profit 282,870 230,332 298,568 513,203 490,991
 
Operating expenses:
Engineering and development (1) 76,109 73,464 75,832 149,573 147,282
Selling and administrative (1) 81,425 79,174 77,073 160,599 149,114
Acquired intangible asset amortization 16,244 19,994 15,258 36,238 29,066
Goodwill impairment (3) 254,946 - - 254,946 -
Restructuring and other (4)   85,947     1,587     (385 )   87,534     (385 )
Operating expenses 514,671 174,219 167,778 688,890 325,077
 
(Loss) income from operations (231,801 ) 56,113 130,790 (175,687 ) 165,914
 
Interest and other (5)   984     1,079     1,346     2,062     8,660  
 
(Loss) income before income taxes (230,817 ) 57,192 132,136 (173,625 ) 174,574
Income tax (benefit) provision   (7,271 )   7,206     29,257     (65 )   38,908  
Net (loss) income $ (223,546 ) $ 49,986   $ 102,879   $ (173,560 ) $ 135,666  
 

Net (loss) income per common share:

Basic $ (1.10 ) $ 0.24   $ 0.48   $ (0.85 ) $ 0.63  
Diluted $ (1.10 ) $ 0.24   $ 0.48   $ (0.85 ) $ 0.62  
 
Weighted average common shares - basic   203,018     204,271     213,845     203,645     215,516  

 

 

Weighted average common shares - diluted   203,018     205,732     215,496     203,645     217,154  
 
 
Cash dividend declared per common share $ 0.06   $ 0.06   $ 0.06   $ 0.12   $ 0.12  
 
 
Net orders $ 470,983   $ 389,417   $ 528,693   $ 860,400   $ 1,019,050  
 
 
(1 ) Pension actuarial gains included in our operating results were as follows: Quarter Ended Six Months Ended
July 3, 2016 April 3, 2016 July 5, 2015 July 3, 2016 July 5, 2015
Cost of revenues $ (221 ) $ (393 ) $ - $ (614 ) $ -
Engineering and development (221 ) (394 ) - (615 ) -
Selling and administrative   (227 )   (406 )   -     (633 )   -  
$ (669 ) $ (1,193 ) $ -   $ (1,862 ) $ -  
 
 
(2 ) Cost of revenues includes: Quarter Ended Six Months Ended
July 3, 2016 April 3, 2016 July 5, 2015 July 3, 2016 July 5, 2015
Provision for excess and obsolete inventory $ 7,742 $ 4,373 $ 14,441 $ 12,115 $ 15,881
Sale of previously written down inventory (5,151 ) (1,168 ) (2,745 ) (6,319 ) (4,676 )
Inventory step-up   -     -     595     -     595  
$ 2,591   $ 3,205   $ 12,291   $ 5,796   $ 11,800  
 
(3 ) Goodwill impairment related to Teradyne's Wireless Test business segment.
 
(4 ) Restructuring and other consists of: Quarter Ended Six Months Ended
July 3, 2016 April 3, 2016 July 5, 2015 July 3, 2016 July 5, 2015
Wireless Test business segment intangible asset impairment $ 83,339 $ - $ - $ 83,339 $ -
Impairment of fixed assets and expenses related to Japan earthquake 5,051 - - 5,051 -
Property insurance recovery and proceeds (5,051 ) - - (5,051 ) -
Contingent consideration fair value adjustment 1,305 1,173 (1,600 ) 2,478 (1,600 )
Employee severance 1,303 414 255 1,717 255
Acquisition costs   -     -     960     -     960  
$ 85,947   $ 1,587   $ (385 ) $ 87,534   $ (385 )
 
 
(5 ) Interest and other includes: Quarter Ended Six Months Ended
July 3, 2016 April 3, 2016 July 5, 2015 July 3, 2016 July 5, 2015
Gain from the sale of an equity investment $ - $ - $ (624 ) $ - $ (5,406 )
             
CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands)
 
July 3, 2016 December 31, 2015
 
Assets
Cash and cash equivalents $ 381,095 $ 264,705
Marketable securities 442,154 477,696
Accounts receivable 349,547 211,293
Inventories, net 129,278 153,588
Deferred tax assets - 54,973
Prepayments 103,131 91,519
Other current assets   7,681   6,194
Total current assets 1,412,886 1,259,968
 
Net property, plant and equipment 264,555 273,414
Marketable securities 282,545 265,928
Deferred tax assets 72,708 7,404
Other assets 13,074 13,080
Retirement plans assets 2,811 636
Intangible assets, net 122,069 239,831
Goodwill   237,210   488,413
Total assets $ 2,407,858 $ 2,548,674
 
Liabilities
Accounts payable $ 103,090 $ 92,358
Accrued employees' compensation and withholdings 89,167 113,994
Deferred revenue and customer advances 190,920 85,527
Other accrued liabilities 47,150 43,727
Contingent consideration 1,050 15,500
Accrued income taxes   23,972   21,751
Total current liabilities 455,349 372,857
 
Retirement plans liabilities 106,618 103,531
Long-term deferred revenue and customer advances 26,927 25,745
Deferred tax liabilities 16,110 26,663
Long-term other accrued liabilities 33,411 32,156
Long-term contingent consideration   23,864   21,936
Total liabilities 662,279 582,888
 
Shareholders' equity 1,745,579 1,965,786
   
Total liabilities and shareholders' equity $ 2,407,858 $ 2,548,674
                         
 

CONDENSED  CONSOLIDATED  STATEMENTS OF CASH FLOWS (In thousands)

 
Quarter Ended Six Months Ended
July 3, 2016 July 5, 2015 July 3, 2016 July 5, 2015
Cash flows from operating activities:
Net (loss) income $ (223,546 ) $ 102,879 $ (173,560 ) $ 135,666
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation 15,976 16,885 32,168 36,230
Amortization 16,710 16,256 37,180 31,395
Provision for excess and obsolete inventory 7,742 14,441 12,115 15,881
Stock-based compensation 7,532 7,442 15,457 15,405
Contingent consideration adjustment 1,305 (1,600 ) 2,478 (1,600 )
Goodwill impairment 254,946 - 254,946 -
Intangible asset impairment 83,339 - 83,339 -
Deferred taxes (15,962 ) (8,540 ) (21,458 ) (10,371 )
Impairment of fixed assets 4,179 - 4,179 -
Property insurance recovery and proceeds (5,051 ) - (5,051 ) -
Retirement plans actuarial gains (669 ) - (1,862 ) -
Non-cash charge for the sale of inventories revalued at the date of acquisition - 595 - 595
Gain from the sale of an equity investment - (624 ) - (5,406 )
Tax benefit related to stock options and restricted stock units - (892 ) - (892 )
Other 92 2,571 576 1,154
Changes in operating assets and liabilities, net of business acquired:
Accounts receivable (95,678 ) (117,744 ) (138,230 ) (142,493 )
Inventories 30,924 17,540 30,222 23,500
Prepayments and other assets (12,509 ) 10,908 (13,657 ) 14,054
Accounts payable and accrued expenses 34,565 73,542 (15,192 ) 53,392
Deferred revenue and customer advances 77,777 4,647 106,072 5,685
Retirement plans contributions (1,048 ) (980 ) (2,298 ) (1,999 )
Accrued income taxes   58     18,599     6     23,261  
Net cash provided by operating activities 180,682 155,925 207,430 193,457
 
Cash flows from investing activities:
Purchases of property, plant and equipment (26,259 ) (24,961 ) (46,593 ) (46,110 )
Purchases of available-for-sale marketable securities (215,533 ) (254,615 ) (437,311 ) (590,250 )
Proceeds from maturities of available-for-sale marketable securities 54,566 91,194 128,024 231,416
Proceeds from sales of available-for-sale marketable securities 95,428 482,761 334,798 631,400
Proceeds from property insurance 5,051 - 5,051 -
Acquisition of business, net of cash acquired - (282,332 ) - (282,332 )
Proceeds from the sale of an equity investment - 624 - 5,406
Proceeds from life insurance   -     -     -     1,098  
Net cash (used for) provided by investing activities (86,747 ) 12,671 (16,031 ) (49,372 )
 
Cash flows from financing activities:
Issuance of common stock under stock option and stock purchase plans 8,756 8,979 17,896 17,878
Repurchase of common stock (28,782 ) (81,666 ) (56,783 ) (128,316 )
Dividend payments (12,172 ) (12,808 ) (24,425 ) (25,857 )
Tax benefit related to stock options and restricted stock units - 892 - 892
Payment of revolving credit facility costs - (2,253 ) - (2,253 )
Payment of contingent consideration   -     -     (11,697 )   -  
Net cash used for financing activities (32,198 ) (86,856 ) (75,009 ) (137,656 )
 
Increase in cash and cash equivalents 61,737 81,740 116,390 6,429
Cash and cash equivalents at beginning of period   319,358     218,945     264,705     294,256  
Cash and cash equivalents at end of period $ 381,095   $ 300,685   $ 381,095   $ 300,685  
GAAP to Non-GAAP Earnings Reconciliation                                                                        
     
(In millions, except per share amounts)
Quarter Ended

July 3,
2016

 

% of Net
Revenues

April 3,
2016

% of Net
Revenues

July 5,
2015

% of Net
Revenues

 
Net revenues $ 531.8 $ 431.0 $ 512.7
 
Gross profit - GAAP $ 282.9 53.2 % $ 230.3 53.4 % $ 298.6 58.2 %
Inventory step-up - - - - 0.6 0.1 %
Pension mark-to-market adjustment (1)   (0.2 )   0.0 %   (0.4 ) -0.1 %   -   -  
Gross profit - non-GAAP $ 282.7 53.2 % $ 229.9 53.3 % $ 299.2 58.4 %
 
(Loss) income from operations - GAAP $ (231.8 ) -43.6 % $ 56.1 13.0 % $ 130.8 25.5 %
Goodwill impairment (2) 254.9 47.9 % - - - -
Restructuring and other (3) 85.9 16.2 % 1.6 0.4 % (0.4 ) -0.1 %
Acquired intangible asset amortization 16.2 3.0 % 20.0 4.6 % 15.3 3.0 %
Pension mark-to-market adjustment (1) (0.7 ) -0.1 % (1.2 ) -0.3 % - -
Inventory step-up   -     -     -   -     0.6   0.1 %
Income from operations - non-GAAP $ 124.5     23.4 % $ 76.5   17.7 % $ 146.3   28.5 %
 

Net (Loss) Income
per Common Share

     

Net Income
per Common Share

Net Income
per Common Share

July 3,
2016

% of Net
Revenues

Basic Diluted

April 3,
2016

 

% of Net
Revenues

Basic Diluted

July 5,
2015

% of Net
Revenues

Basic Diluted
Net (loss) income - GAAP $ (223.5 ) -42.0 % $ (1.10 ) $ (1.10 ) $ 50.0 11.6 % $ 0.24 $ 0.24 $ 102.9 20.1 % $ 0.48 $ 0.48
Goodwill impairment (2) 254.9 47.9 % 1.26 1.24 - - - - - - - -
Restructuring and other (3) 85.9 16.2 % 0.42 0.42 1.6 0.4 % 0.01 0.01 (0.4 ) -0.1 % (0.00 ) (0.00 )
Acquired intangible asset amortization 16.2 3.0 % 0.08 0.08 20.0 4.6 % 0.10 0.10 15.3 3.0 % 0.07 0.07
Interest and other (4) - - - - - - - - (0.6 ) -0.1 % (0.00 ) (0.00 )
Pension mark-to-market adjustment (1) (0.7 ) -0.1 % (0.00 ) (0.00 ) (1.2 ) -0.3 % (0.01 ) (0.01 ) - - - -
Inventory step-up - - - - - - - - 0.6 0.1 % 0.00 0.00
Exclude discrete tax adjustments (5) 25.1 4.7 % 0.12 0.12 (2.5 ) -0.6 % (0.01 ) (0.01 ) 0.2 0.0 % 0.00 0.00
Tax effect of non-GAAP adjustments   (45.5 )   -8.6 %   (0.22 )   (0.22 )   (3.5 ) -0.8 %   (0.02 )   (0.02 )   (3.4 ) -0.7 %   (0.02 )   (0.02 )
Net income - non-GAAP $ 112.4     21.1 % $ 0.55   $ 0.55   $ 64.4   14.9 % $ 0.32   $ 0.31   $ 114.6   22.4 % $ 0.54   $ 0.53  
 
GAAP and non-GAAP weighted average common shares - basic 203.0 204.3 213.8
GAAP weighted average common shares - diluted 203.0 205.7 215.5
Include dilutive shares   1.9     -     -  
Non-GAAP weighted average common shares - diluted   204.9     205.7     215.5  
 
 
(1 ) Actuarial gains recognized under GAAP in accordance with Teradyne's mark-to-market pension accounting.
 
(2 ) Goodwill impairment related to Teradyne's Wireless Test business segment.
 
(3 ) Restructuring and other consists of:
Quarter Ended

July 3,
2016

April 3,
2016

July 5,
2015

Wireless Test business segment intangible asset impairment $ 83.3 $ - $ -
Impairment of fixed assets and expenses related to Japan earthquake 5.1 - -
Property insurance recovery and proceeds (5.1 ) - -
Contingent consideration fair value adjustment 1.3 1.2 (1.6 )
Employee severance 1.3 0.4 0.2
Acquisition costs   -     -     1.0  
$ 85.9   $ 1.6   $ (0.4 )
 
 
(4 ) For the quarter ended July 5, 2015, Interest and other included a gain from the sale of an equity investment.
 
(5 ) For the quarters ended July 3, 2016, April 3, 2016 and July 5, 2015, adjustment to exclude discrete income tax items. For the quarter ended July 3, 2016, adjustment to treat Wireless Test business segment goodwill and intangible asset impairments as discrete tax items.
 
 
Six Months Ended

July 3,
2016

% of Net
Revenues

July 5,
2015

% of Net
Revenues

 
Net Revenues $ 962.8 $ 855.1
 
Gross profit - GAAP $ 513.2 53.3 % $ 491.0 57.4 %
Inventory step-up - - 0.6 0.1 %
Pension mark-to-market adjustment (1)   (0.6 )   -0.1 %   -   -  
Gross profit - non-GAAP $ 512.6 53.2 % $ 491.6 57.5 %
 
(Loss) income from operations - GAAP $ (175.7 ) -18.2 % $ 165.9 19.4 %
Goodwill impairment (2) 254.9 26.5 % - -
Restructuring and other (3) 87.5 9.1 % (0.4 ) 0.0 %
Acquired intangible asset amortization 36.2 3.8 % 29.1 3.4 %
Pension mark-to-market adjustment (1) (1.9 ) -0.2 % - -
Inventory step-up   -     -     0.6   0.1 %
Income from operations - non-GAAP $ 201.0     20.9 % $ 195.2   22.8 %
 
Net (Loss) Income

per Common Share

Net Income

per Common Share

July 3,
2016

% of Net
Revenues

Basic Diluted

July 5,
2015

 

% of Net
Revenues

Basic Diluted
Net (loss) income - GAAP $ (173.6 ) -18.0 % $ (0.85 ) $ (0.85 ) $ 135.7 15.9 % $ 0.63 $ 0.62
Goodwill impairment (2) 254.9 26.5 % 1.25 1.24 - - - -
Restructuring and other (3) 87.5 9.1 % 0.43 0.43 (0.4 ) 0.0 % (0.00 ) (0.00 )
Acquired intangible asset amortization 36.2 3.8 % 0.18 0.18 29.1 3.4 % 0.14 0.13
Interest and other (4) - - - - (5.4 ) -0.6 % (0.03 ) (0.02 )
Pension mark-to-market adjustment (1) (1.9 ) -0.2 % (0.01 ) (0.01 ) - - - -
Inventory step-up - - - - 0.6 0.1 % 0.00 0.00
Exclude discrete tax adjustments (5) 22.7 2.4 % 0.11 0.11 (1.6 ) -0.2 % (0.01 ) (0.01 )
Tax effect of non-GAAP adjustments   (49.0 )   -5.1 %   (0.24 )   (0.24 )   (5.8 ) -0.7 %   (0.03 )   (0.03 )
Net income - non-GAAP $ 176.8     18.4 % $ 0.87   $ 0.86   $ 152.2   17.8 % $ 0.71   $ 0.70  
 
GAAP and non-GAAP weighted average common shares - basic 203.6 215.5
GAAP weighted average common shares - diluted 203.6 217.2
Include dilutive shares   1.7     -  
Non-GAAP weighted average common shares - diluted   205.3     217.2  
 
(1 ) Actuarial gains recognized under GAAP in accordance with Teradyne's mark-to-market pension accounting.
 
(2 ) Goodwill impairment related to Teradyne's Wireless Test business segment.
 
(3 ) Restructuring and other consists of:
Six Months Ended

July 3,
2016

July 5,
2015

Wireless Test business segment intangible asset impairment $ 83.3 $ -
Impairment of fixed assets and expenses related to Japan earthquake 5.1 -
Property insurance recovery and proceeds (5.1 ) -
Contingent consideration fair value adjustment 2.5 (1.6 )
Employee severance 1.7 0.2
Acquisition costs   -     1.0  
$ 87.5   $ (0.4 )
 
 
(4 ) For the six months ended July 5, 2015, Interest and other included a gain from the sale of an equity investment.
 
(5 ) For the six months ended July 3, 2016 and July 5, 2015, adjustment to exclude discrete income tax items. For the six months ended July 3, 2016, adjustment to treat Wireless Test business segment goodwill and intangible asset impairments as discrete tax items.
 
 
GAAP to Non-GAAP Reconciliation of Third Quarter 2016 guidance:
 
GAAP and non-GAAP third quarter revenue guidance: $375 million to $405 million
GAAP net income per diluted share $ 0.22 $ 0.30
Exclude acquired intangible asset amortization 0.04 0.04
Non-GAAP tax adjustment   (0.03 )   (0.04 )
Non-GAAP net income per diluted share $ 0.23 $ 0.30

For press releases and other information of interest to investors, please visit Teradyne's homepage at http://www.teradyne.com.

Teradyne, Inc.
Andy Blanchard, 978-370-2425
Vice President of Corporate Relations

Source: Teradyne, Inc

News Provided by Acquire Media