Revenue and earnings at the high-end of Q4 guidance
Revenue of $753 million in Q4'24, up 12% from Q4'23
Q4 growth driven by strong AI-related demand and improved broader market dynamics

Teradyne, Inc. (NASDAQ:TER):

Q4'24

Q4'23

Q3'24

FY 2024

FY 2023

Revenue (mil)

753

671

737

2,820

2,676

GAAP EPS

0.90

0.72

0.89

3.32

2.73

Non-GAAP EPS

0.95

0.79

0.90

3.22

2.93

Teradyne, Inc. (NASDAQ:TER) reported revenue of $753 million for the fourth quarter of 2024 of which $561 million was in Semiconductor Test and $98 million in Robotics. GAAP net income for the fourth quarter of 2024 was $146.3 million or $0.90 per diluted share. On a non-GAAP basis, Teradyne's net income in the fourth quarter of 2024 was $155.0 million, or $0.95 per diluted share, which excluded acquired intangible asset amortization, restructuring and other charges, amortization on our investment in Technoprobe, pension mark-to-market, and included the related tax impact on non-GAAP adjustments.

"Our Q4 results were toward the high end of our guidance range, driven by demand in our Semi Test business. For the quarter, AI compute and related memory remained strong while Mobile and Auto/Industrial exceeded our expectations," said Teradyne CEO, Greg Smith. "In 2025, we expect year-over-year revenue acceleration with improving conditions in our test businesses. We expect the secular growth opportunities in AI compute and memory to remain, and we will continue to invest into these areas. Additionally, we plan to strategically realign our Robotics business to enhance customer experience and drive operational efficiency. Over the mid-term, we expect that this realignment will support our growth and profitability objectives."

Guidance for the first quarter of 2025 is revenue of $660 million to $700 million, with GAAP net income of $0.48 to $0.59 per diluted share and non-GAAP net income of $0.58 to $0.68 per diluted share. Non-GAAP guidance excludes acquired intangible asset amortization, amortization on our investment in Technoprobe, restructuring and other costs, as well as the related tax impact on non-GAAP adjustments.

Note that the Semiconductor Test segment revenue includes the results of the Integrated Systems Test ("IST") component, with product lines for system level and hard disk drive testing, that was previously included in our System Test segment results. IST contributed $19 million to Semiconductor Test in the fourth quarter.

Webcast

A conference call to discuss the fourth quarter results, along with management's business outlook, will follow at 8:30 a.m. ET, Thursday, January 30, 2025. 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 8:30 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 acquired intangible assets amortization, restructuring and other, pension actuarial gains and losses, stock compensation modification expense, gains and losses on foreign exchange options in connection with acquisitions and divestitures, gain on sale of business, legal settlement, discrete income tax adjustments, and includes the related tax impact on non-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, and non-GAAP net income per share are non-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. These non-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 diluted shares include the impact of Teradyne's call option on its shares. Management believes each of these non-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 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 "Investor Relations" and then selecting "Financials" and the "GAAP to Non-GAAP Reconciliation" link. The non-GAAP performance 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 (NASDAQ:TER) designs, develops, and manufactures automated test equipment and advanced robotics systems. Its test solutions for semiconductors and electronics products enable Teradyne's customers to consistently deliver on their quality standards. Its advanced robotics business includes collaborative robots and mobile robots that support manufacturing and warehouse operations for companies of all sizes. For more information, visit teradyne.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 including statements regarding Teradyne's future business prospects, financial performance or position and results of operations. You can identify forward-looking statements by their use of forward-looking words such as "anticipate," "expect," "plan," "could," "may," "will," "believe," "estimate," "goal" or other comparable terms. Forward-looking statements in this press release address various matters, including statements regarding Teradyne's financial guidance. Investors are cautioned that such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements due to known and unknown risks, uncertainties, assumptions, and other factors. Such factors include, but are not limited to, macroeconomic factors and slowdowns or downturns in economic conditions generally and in the markets in which Teradyne operates; decreased or delayed product demand from one or more significant customers; a slowdown or inability in the development, delivery and acceptance of new products; the ability to grow the Robotics business; the impact of increased research and development spending; the impact of epidemics or pandemics such as COVID-19; the impact of a supply shortage on our supply chain and contract manufacturers; the consummation and success of any mergers or acquisitions; unexpected cash needs; the business judgment of the board of directors that a declaration of a dividend or the repurchase of common stock is not in Teradyne's best interests; changes to U.S. or global tax regulations or guidance; the impact of any tariffs or export controls imposed by the U.S. or China; the impact of U.S. Department of Commerce or other government agency regulations relating to Huawei, HiSilicon and other customers or potential customers; the impact of U.S. Department Commerce export control regulations for certain U.S. products and technology sold to military end users or for military end-use in China; the impact of the current conflicts in Israel; the impact of regulations published by the U.S. Department of Commerce relating to semiconductors and semiconductor manufacturing equipment destined for certain end uses in China.

The risks included above are not exhaustive. For a more detailed description of the risk factors associated with Teradyne, please refer to Teradyne's Annual Report on Form 10-K for the fiscal year ended December 31, 2023. Many of these factors are macroeconomic in nature and are, therefore, beyond Teradyne's control. We caution readers not to place undue reliance on any forward-looking statements included in this press release which speak only as to the date of this press release. Teradyne specifically disclaims any obligation to update any forward-looking information contained in this press release or with respect to the announcements described herein.

TERADYNE, INC. REPORT FOR FOURTH FISCAL QUARTER OF 2024
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

	Quarter Ended									Year Ended
	December 31, 2024			September 29, 2024			December 31, 2023			December 31, 2024			December 31, 2023
Net revenues	$	752,884		$	737,298		$	670,600		$	2,819,880		$	2,676,298
Cost of revenues (exclusive of acquired intangible assets amortization shown separately below) (1)		305,597			300,784			291,055			1,170,953			1,139,550
Gross profit		447,287			436,514			379,545			1,648,927			1,536,748
Operating expenses:
Selling and administrative (2)		155,739			157,649			142,336			617,047			577,315
Engineering and development		128,387			117,474			102,207			460,876			418,089
Acquired intangible assets amortization		4,656			4,748			4,651			18,764			18,999
Restructuring and other (3)		4,554			4,578			6,027			15,571			21,277
Loss (gain) on sale of business (4)		367			—			—			(57,119	)		—
Operating expenses		293,703			284,449			255,221			1,055,139			1,035,680
Income from operations		153,584			152,065			124,324			593,788			501,068
Interest and other (income) expense (5)		(4,213	)		(6,919	)		(15,482	)		(15,298	)		(24,504	)
Income before income taxes and equity in net earnings of affiliate		157,797			158,984			139,806			609,086			525,572
Income tax provision		5,408			12,260			22,752			59,503			76,820
Income before equity in net earnings of affiliate		152,389			146,724			117,054			549,583			448,752
Equity in net earnings of affiliate		(6,136	)		(1,075	)		—			(7,211	)		—
Net income	$	146,253		$	145,649		$	117,054		$	542,372		$	448,752

Net income per common share:
Basic	$	0.90		$	0.89		$	0.77		$	3.41		$	2.91
Diluted	$	0.90		$	0.89		$	0.72		$	3.32		$	2.73
Weighted average common shares - basic		162,478			163,002			152,812			159,083			154,310
Weighted average common shares - diluted (6)		163,184			164,253			162,106			163,314			164,304

Cash dividend declared per common share	$	0.12		$	0.12		$	0.11		$	0.48		$	0.44

(1)

Cost of revenues includes:

	Quarter Ended									Year Ended
	December 31, 2024			September 29, 2024			December 31, 2023			December 31, 2024			December 31, 2023
Provision for excess and obsolete inventory	$	3,406		$	6,078		$	5,289		$	18,921		$	28,358
Legal settlement		—			3,600			—			3,600			—
Sale of previously written down inventory		(441	)		(472	)		(1,115	)		(2,227	)		(5,161	)
	$	2,965		$	9,206		$	4,174		$	20,294		$	23,197

(2)		For the twelve months ended December 31, 2024, selling and administrative expenses included an equity charge of $1.7 million for the modification of Teradyne executives' retirement agreements. For the twelve months ended December 31, 2023, selling and administrative expenses included an equity charge of $5.9 million for the modification of Teradyne's retired CEO's outstanding equity awards in connection with his February 1, 2023, retirement.
(3)		Restructuring and other consists of:

	Quarter Ended						Year Ended
	December 31, 2024		September 29, 2024		December 31, 2023		December 31, 2024		December 31, 2023
Lease terminations	$	1,284	$	—	$	—	$	1,284	$	—
Employee severance		378		1,280		2,892		5,234		14,727
Acquisition and divestiture related expenses		—		—		3,132		2,214		3,132
Contract termination		—		—		—		—		1,511
Other		2,892		3,298		3		6,840		1,907
	$	4,554	$	4,578	$	6,027	$	15,572	$	21,277

(4)		On May 27, 2024, Teradyne sold Teradyne's Device Interface Solution ("DIS") business, a component of the Semiconductor Test segment, to Technoprobe S.p.A. ("Technoprobe"), for $85.0 million, net of cash and cash equivalents sold and a working capital adjustment.
(5)		Interest and other includes:

	Quarter Ended									Year Ended
	December 31, 2024			September 29, 2024			December 31, 2023			December 31, 2024			December 31, 2023
Pension actuarial losses (gains)	$	(1,842	)	$	(2,262	)	$	2,575		$	(4,355	)	$	2,703
Loss (gain) on foreign exchange option		—			—			(7,464	)		9,765			(7,464	)

(6)

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 quarter ended December 31, 2023, 0.2 million shares have been included in diluted shares. For the twelve months ended December 31, 2023, 0.6 million shares have been included in diluted shares. For the quarters ended September 29, 2024, and December 31, 2023, diluted shares included 0.5 million, and 8.6 million shares, respectively, from the convertible note hedge transaction. For the twelve months ended December 31, 2024, and December 31, 2023, diluted shares included 3.6 million and 8.9 million shares, respectively, from the convertible note hedge transaction.

CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands)

	December 31, 2024		December 31, 2023
Assets
Cash and cash equivalents	$	553,354	$	757,571
Marketable securities		46,312		62,154
Accounts receivable, net		471,426		422,124
Inventories, net		298,492		309,974
Prepayments		429,086		548,970
Other current assets		17,727		37,992
Current assets held for sale		—		23,250
Total current assets		1,816,397		2,162,035
Property, plant and equipment, net		508,171		445,492
Operating lease right-of-use assets, net		70,185		73,417
Marketable securities		124,121		117,434
Deferred tax assets		222,438		175,775
Retirement plans assets		11,994		11,504
Equity method investment		494,494		—
Other assets		49,620		38,580
Acquired intangible assets, net		15,927		35,404
Goodwill		395,367		415,652
Assets held for sale		—		11,531
Total assets	$	3,708,714	$	3,486,824
Liabilities
Accounts payable	$	134,792	$	180,131
Accrued employees' compensation and withholdings		204,991		191,750
Deferred revenue and customer advances		107,710		99,804
Other accrued liabilities		90,777		114,712
Operating lease liabilities		18,699		17,522
Income taxes payable		67,610		48,653
Current liabilities held for sale		—		7,379
Total current liabilities		624,579		659,951
Retirement plans liabilities		133,338		132,090
Long-term deferred revenue and customer advances		40,505		37,282
Long-term other accrued liabilities		7,442		19,998
Deferred tax liabilities		1,038		183
Long-term operating lease liabilities		57,922		65,092
Long-term income taxes payable		24,596		44,331
Liabilities held for sale		—		2,000
Total liabilities		889,420		960,927
Shareholders' equity		2,819,294		2,525,897
Total liabilities and shareholders' equity	$	3,708,714	$	3,486,824

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)

	Quarter Ended						Twelve Months Ended
	December 31, 2024			December 31, 2023			December 31, 2024			December 31, 2023
Cash flows from operating activities:
Net income	$	146,253		$	117,054		$	542,372		$	448,752
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		26,497			23,260			100,977			92,118
Stock-based compensation		14,855			12,443			60,122			57,682
Equity in net earnings of affiliate		6,136			—			7,211			—
Amortization		4,631			4,685			18,764			18,768
Provision for excess and obsolete inventory		3,406			5,289			18,922			28,358
Loss (gain) on sale of business		367			—			(57,119	)		—
Deferred taxes		(20,099	)		(13,616	)		(46,360	)		(37,642	)
Retirement plan actuarial losses (gains)		(1,842	)		2,575			(4,355	)		2,703
Losses (gains) on investments		(83	)		(11,756	)		10,056			(14,915	)
Other		2,751			(811	)		(2,290	)		(955	)
Changes in operating assets and liabilities
Accounts receivable		12,607			40,786			(52,659	)		70,977
Inventories		(2,420	)		(1,068	)		8,707			5,327
Prepayments and other assets		58,016			20,881			119,454			(43,101	)
Accounts payable and other liabilities		9,279			42,783			(54,386	)		46,782
Deferred revenue and customer advances		8,552			(7,693	)		12,176			(57,210	)
Retirement plans contributions		(1,645	)		(1,794	)		(5,814	)		(5,492	)
Income taxes		15,296			15,762			(3,602	)		(26,921	)
Net cash provided by operating activities		282,557			248,780			672,176			585,231
Cash flows from investing activities:
Purchases of property, plant and equipment		(57,385	)		(44,336	)		(198,095	)		(159,642	)
Purchases of marketable securities		(10,700	)		(24,120	)		(45,796	)		(161,906	)
Purchases of investments in businesses		(5,000	)		—			(532,060	)		—
Issuance of convertible loan		—			—			—			(5,000	)
Proceeds from maturities of marketable securities		5,190			13,595			38,353			85,042
Proceeds from sales of marketable securities		436			24,438			24,035			61,401
Proceeds from the sale of a business, net of cash and cash equivalents sold		—			—			90,348			—
Proceeds from life insurance		—			—			873			460
Net cash used for investing activities		(67,459	)		(30,423	)		(622,342	)		(179,645	)
Cash flows from financing activities:
Repurchase of common stock		(143,521	)		(50,749	)		(198,574	)		(397,241	)
Dividend payments		(19,487	)		(16,797	)		(76,423	)		(67,878	)
Payments related to net settlement of employee stock compensation awards		(267	)		(202	)		(14,100	)		(20,788	)
Payments of borrowings on revolving credit facility		—			—			(185,000	)		—
Payments of convertible debt principal		—			(23,529	)		—			(50,264	)
Proceeds from borrowings on revolving credit facility		—			—			185,000			—
Issuance of common stock under stock purchase and stock option plans		65			175			37,330			34,259
Net cash used for financing activities		(163,210	)		(91,102	)		(251,767	)		(501,912	)
Effects of exchange rate changes on cash and cash equivalents		(8,570	)		(6,645	)		(2,284	)		(876	)
Increase (decrease) in cash and cash equivalents		43,318			120,610			(204,217	)		(97,202	)
Cash and cash equivalents at beginning of period		510,036			636,961			757,571			854,773
Cash and cash equivalents at end of period	$	553,354		$	757,571		$	553,354		$	757,571

GAAP to Non-GAAP Earnings Reconciliation
(In millions, except per share amounts)

	Quarter Ended
	December 31, 2024		% of Net Revenues			September 29, 2024		% of Net Revenues			December 31, 2023		% of Net Revenues
Net revenues	$	752.9				$	737.3				$	670.6
Gross profit - GAAP		447.3		59.4	%		436.5		59.2	%		379.5		56.6	%
Legal settlement (1)		—		—			3.6		0.5	%		—		—
Gross profit - non-GAAP		447.3		59.4	%		440.1		59.7	%		379.5		56.6	%
Income from operations - GAAP		153.6		20.4	%		152.1		20.6	%		124.3		18.5	%
Acquired intangible assets amortization		4.7		0.6	%		4.7		0.6	%		4.7		0.7	%
Restructuring and other (2)		4.6		0.6	%		4.6		0.6	%		6.0		0.9	%
Legal settlement (1)		—		—			3.6		0.5	%		—		—
Loss (Gain) on sale of business (3)		0.4		0.0	%		—		—			—		—
Income from operations - non-GAAP	$	163.2		21.7	%	$	165.0		22.4	%	$	135.0		20.1	%

							Net Income per Common Share												Net Income per Common Share												Net Income per Common Share
	December 31, 2024			% of Net Revenues			Basic			Diluted			September 29, 2024			% of Net Revenues			Basic			Diluted			December 31, 2023			% of Net Revenues			Basic		Diluted
Net income - GAAP	$	146.3			19.4	%	$	0.90		$	0.90		$	145.6			19.7	%	$	0.89		$	0.89		$	117.1			17.5	%	$	0.77	$	0.72
Amortization of equity method investment		8.0			1.1	%		0.05			0.05			2.4			0.3	%		0.01			0.01			—			—			—		—
Acquired intangible assets amortization		4.7			0.6	%		0.03			0.03			4.7			0.6	%		0.03			0.03			4.7			0.7	%		0.03		0.03
Restructuring and other (2)		4.6			0.6	%		0.03			0.03			4.6			0.6	%		0.03			0.03			6.0			0.9	%		0.04		0.04
Loss (gain) on sale of business (3)		0.4			0.1	%		0.00			0.00			—			—			—			—			—			—			—		—
Legal settlement (1)		—			—			—			—			3.6			0.5	%		0.02			0.02			—			—			—		—
Loss (gain) on foreign exchange option		—			—			—			—			—			—			—			—			(7.5	)		-1.1	%		—		(0.05	)
Pension mark-to-market adjustment (4)		(1.8	)		-0.2	%		(0.01	)		(0.01	)		(2.3	)		-0.3	%		(0.01	)		(0.01	)		2.6			0.4	%		0.02		0.02
Exclude discrete tax adjustments		(8.0	)		-1.1	%		(0.05	)		(0.05	)		(8.9	)		-1.2	%		(0.05	)		(0.05	)		3.3			0.5	%		0.02		0.02
Non-GAAP tax adjustments		0.9			0.1	%		0.01			0.01			(2.1	)		-0.3	%		(0.01	)		(0.01	)		1.0			0.1	%		0.01		0.01
Net income - non-GAAP	$	155.0			20.6	%	$	0.95		$	0.95		$	147.6			20.0	%	$	0.91		$	0.90		$	127.2			19.0	%	$	0.83	$	0.79

GAAP and non-GAAP weighted average common shares - basic		162.5												163.0												152.8
GAAP weighted average common shares - diluted (6)		163.2												164.3												162.1
Exclude dilutive shares related to convertible note transaction		—												—												(0.2	)
Non-GAAP weighted average common shares - diluted		163.2												164.3												161.9

(1)		For the quarter ended September 29, 2024, legal settlement includes charges for a settlement following a judgment against the Company for infringement of expired patents.
(2)		Restructuring and other consists of:

	Quarter Ended
	December 31, 2024		September 29, 2024		December 31, 2023
Lease terminations	$	1.3	$	—	$	—
Employee severance		0.4		1.3		2.9
Acquisition and divestiture related expenses		—		—		3.1
Other		2.9		3.3		—
	$	4.6	$	4.6	$	6.0

(3)		On May 27, 2024, Teradyne sold DIS, a component of the Semiconductor Test segment, to Technoprobe, for $85.0 million, net of cash and cash equivalents sold and a working capital adjustment.
(4)		For the quarters ended December 31, 2024, September 29, 2024, and December 31, 2023, adjustments to exclude actuarial gains and losses, respectively, recognized under GAAP in accordance with Teradyne's mark-to-market pension accounting.
(5)		For the quarters ended September 29, 2024, and December 31, 2023, non-GAAP weighted average diluted common shares included 0.5 million and 8.6 million shares, respectively, from the convertible note hedge transaction.

	Twelve Months Ended
	December 31, 2024			% of Net Revenues			December 31, 2023		% of Net Revenues
Net Revenues	$	2,819.9					$	2,676.3
Gross profit - GAAP		1,648.9			58.5	%		1,536.7		57.4	%
Legal settlement (1)		3.6			0.1	%		—		—
Gross profit - non-GAAP		1,652.5			58.6	%		1,536.7		57.4	%
Income from operations - GAAP		593.8			21.1	%		501.1		18.7	%
Acquired intangible assets amortization		18.8			0.7	%		19.0		0.7	%
Restructuring and other (2)		15.6			0.6	%		21.3		0.8	%
Legal settlement (1)		3.6			0.1	%		—		—
Equity modification charge (3)		1.7			0.1	%		5.9		0.2	%
Loss (gain) on sale of business (4)		(57.1	)		-2.0	%		—		—
Income from operations - non-GAAP	$	576.3			20.4	%	$	547.3		20.4	%

							Net Income per Common Share												Net Income per Common Share
	December 31, 2024			% of Net Revenues			Basic			Diluted			December 31, 2023			% of Net Revenues			Basic			Diluted
Net income - GAAP	$	542.4			19.2	%	$	3.39		$	3.32		$	448.8			16.8	%	$	2.91		$	2.73
Acquired intangible assets amortization		18.8			0.7	%		0.12			0.11			19.0			0.7	%		0.12			0.12
Restructuring and other (2)		15.6			0.6	%		0.10			0.10			21.8			0.8	%		0.14			0.13
Amortization of equity method investment		10.4			0.4	%		0.07			0.06			—			—			—			—
Loss (gain) on foreign exchange option		9.8			0.3	%		0.06			0.06			(7.5	)		-0.3	%		(0.05	)		(0.05	)
Legal settlement (1)		3.6			0.1	%		0.02			0.02			—			—			—			—
Equity modification charge (3)		1.7			0.1	%		0.01			0.01			5.9			0.2	%		0.04			0.04
Pension mark-to-market adjustment (5)		(4.4	)		-0.2	%		(0.03	)		(0.03	)		2.7			0.1	%		0.02			0.02
Loss (gain) on sale of business (4)		(57.1	)		-2.0	%		(0.36	)		(0.35	)		—			—			—			—
Exclude discrete tax adjustments		(8.7	)		-0.3	%		(0.05	)		(0.05	)		(3.4	)		-0.1	%		(0.02	)		(0.02	)
Non-GAAP tax adjustments		(6.9	)		-0.2	%		(0.04	)		(0.04	)		(7.7	)		-0.3	%		(0.05	)		(0.05	)
Convertible share adjustment (6)		—			—			—			—			—			—			—			0.01
Net income - non-GAAP	$	525.1			18.6	%	$	3.29		$	3.22		$	479.6			17.9	%	$	3.11		$	2.93

GAAP and non-GAAP weighted average common shares - basic		159.8												154.3
GAAP weighted average common shares - diluted (6)		163.3												164.3
Exclude dilutive shares from convertible note		—												(0.6	)
Non-GAAP weighted average common shares - diluted		163.3												163.7

(1)		For the twelve months ended December 31, 2024, a legal settlement includes charges for a settlement following a judgment against the Company for infringement of expired patents.
(2)		Restructuring and other consists of:

	Twelve Months Ended
	December 31, 2024		December 31, 2023
Employee severance	$	5.2	$	14.8
Acquisition and divestiture related expenses		2.2		3.1
Lease terminations		1.3		—
Contract termination		—		1.5
Other		6.8		1.9
	$	15.6	$	21.3

(3)		For the twelve months ended December 31, 2024, selling and administrative expenses included an equity charge of $1.7 million for the modification of Teradyne's executives' retirement agreements. For the twelve months ended December 31, 2023, selling and administrative expenses included an equity charge of $5.9 million for the modification of Teradyne's retired CEO's outstanding equity awards in connection with his February 1, 2023, retirement.
(4)		On May 27, 2024, Teradyne sold DIS, a component of the Semiconductor Test segment, to Technoprobe, for $85.0 million, net of cash and cash equivalents sold and a working capital adjustment.
(5)		For twelve months ended December 31, 2024, and December 31, 2023, adjustments to exclude actuarial gains and losses, respectively, recognized under GAAP in accordance with Teradyne's mark-to-market pension accounting.
(6)		For the twelve months ended December 31, 2024 and December 31, 2023, non-GAAP weighted average diluted common shares included 3.6 million and 8.9 million shares, respectively, from the convertible note hedge transaction.

GAAP to Non-GAAP Reconciliation of First Quarter 2025 guidance:

GAAP and non-GAAP first quarter revenue guidance:	$660 million			to	$700 million
GAAP net income per diluted share	$	0.48			$	0.59
Exclude acquired intangible assets amortization		0.03				0.03
Exclude restructuring and other charges		0.03				0.03
Exclude equity method investment amortization		0.05				0.05
Non-GAAP tax adjustments		(0.01	)			(0.01	)
Non-GAAP net income per diluted share	$	0.58			$	0.68

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

View source version on businesswire.com: https://www.businesswire.com/news/home/20250128031178/en/

Teradyne, Inc.

Traci Tsuchiguchi 978-370-2444

Vice President of Corporate Relations

Teradyne Reports Fourth Quarter 2024 Results