Teradyne, Inc. Q4 FY2023 results: revenue $671 million, down 8.4% on the year

Teradyne, Inc. (TER) reported revenue of $671 million for Q4 FY2023, the quarter ended 31 December 2023, down 8.4% on the same quarter a year earlier. Net income was $117 million, down 32.1% on the year, and diluted earnings per share $0.72. The figures are the company's own, from the 10-K it filed with the SEC on 22 February 2024.

Revenue$671 milliondown 8.4%

Net income$117 milliondown 32.1%

Diluted EPS$0.72

QuarterQ4 FY2023ended 31 December 2023

The quarter, against the one before and a year earlier

Line	Q4 FY2023	Q3 FY2023	A year earlier	Change on the year
Revenue	671	704	n/a	n/a
Cost of revenue	291	305	n/a	n/a
Gross profit	380	398	n/a	n/a
Gross margin	56.6%	56.6%	n/a
Research and development	102	104	n/a	n/a
Selling, general and administrative	142	138	n/a	n/a
Operating income	124	144	n/a	n/a
Operating margin	18.5%	20.5%	n/a
Interest expense	0.8	1.0	n/a	n/a
Pre-tax income	140	144	n/a	n/a
Income tax	22.8	16.2	n/a	n/a
Effective tax rate	16.3%	11.2%	n/a
Net income	117	128	n/a	n/a
Net margin	17.5%	18.2%	n/a
Diluted EPS	$0.72	$0.78	n/a	n/a

$ million except per share. Fourth quarters are the year less the first three quarters. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow and capital returned

Line	Q4 FY2023	Q3 FY2023	A year earlier	Change on the year
Operating cash flow	249	174	n/a	n/a
Capital expenditure	44.3	34.6	n/a	n/a
Free cash flow	204	140	n/a	n/a
Free cash flow margin	30.5%	19.9%	n/a
Depreciation and amortisation	27.9	28.3	n/a	n/a
Share-based compensation	12.4	12.8	n/a	n/a
Buybacks	50.7	119	n/a	n/a
Dividends paid	16.8	16.9	n/a	n/a
Dividend per share	n/a	$0.11	n/a	n/a
Diluted shares, weighted	164m	n/a	n/a	n/a
Shares outstanding at period end	153m	153m	n/a	n/a

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet at quarter end

Line	Q4 FY2023	Q3 FY2023	A year earlier	Change on the year
Total assets	3,487	3,371	n/a	n/a
Cash and equivalents	758	637	n/a	n/a
Receivables	422	456	n/a	n/a
Inventory	310	323	n/a	n/a
Goodwill	416	401	n/a	n/a
Operating lease liabilities	65.1	69.4	n/a	n/a
Shareholders' equity	2,526	2,441	n/a	n/a

Quarterly results, the last 12 quarters

	Q3 FY2023	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026
Revenue	704	671	600	730	737	753	686	652	769	1,083	1,282	1,329
Cost of revenue	305	291	261	304	301	306	270	279	320	464	502	534
Gross profit	398	380	339	426	437	447	415	373	449	620	781	795
Gross margin	57%	57%	57%	58%	59%	59%	61%	57%	58%	57%	61%	60%
R&D	104	102	103	112	117	128	118	118	125	143	136	156
SG&A	138	142	149	154	158	156	157	158	169	165	167	193
Operating income	144	124	77.8	210	152	154	121	90.7	145	293	473	438
Operating margin	20%	19%	13%	29%	21%	20%	18%	14%	19%	27%	37%	33%
Interest expense	1.0	0.8	0.7	1.5	0.8	0.6	0.8	0.8	1.3	3.9	3.2	3.0
Pre-tax income	144	140	72.9	219	159	158	119	96.6	148	290	466	444
Tax rate	11%	16%	12%	15%	8%	3%	12%	13%	16%	10%	13%	15%
Net income	128	117	64.2	186	146	146	98.9	78.4	120	257	399	375
Net margin	18%	17%	11%	26%	20%	19%	14%	12%	16%	24%	31%	28%
Diluted EPS	$0.78	$0.72	$0.40	$1.14	$0.89	$0.89	$0.61	$0.49	$0.75	$1.62	$2.53	$2.38
Operating cash flow	174	249	7.3	216	166	283	162	182	49.0	282	265	469
Capital expenditure	34.6	44.3	44.0	44.8	51.8	57.4	64.0	50.4	46.7	62.9	64.7	90.7
Free cash flow	140	204	-36.7	171	114	225	97.6	132	2.4	219	200	378
Buybacks	119	50.7	22.1	8.2	24.7	144	157	117	244	183	5.5	68.7
Dividends paid	16.9	16.8	18.4	19.0	19.6	19.5	19.4	19.2	19.0	18.7	20.4	20.3
Shares outstanding	153m	153m	154m	162m	163m	162m	161m	159m	157m	156m	157m	156m
Filing	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

Source

10-K for the period ended 31 December 2023, filed 22 February 2024, accession 0000950170-24-018701: the filing on EDGAR. All of Teradyne, Inc.'s filings: EDGAR company page.

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