Teradyne (TER) FY2023 results: revenue $2.7 billion, down 15.2% on the year

Teradyne, Inc. (TER) reported revenue of $2.7 billion for fiscal 2023, the year ended 31 December 2023, down 15.2% on the year before. Net income was $449 million, down 37.3%, and diluted earnings per share $2.73. The figures are the company's own, from the 10-K it filed with the SEC on 22 February 2024.

Revenue

$2.7 billion

-15.2% on the year

FY2016FY2023

Operating margin

18.7%

26.4% a year earlier

FY2016FY2023

Net income

$449 million

-37.3% on the year

FY2016FY2023

Diluted EPS

$2.73

-35.3% on the year

FY2016FY2023

this yearthe year beforeHover a bar for its figure.

The year in brief

The four quarters: Q1 FY2023 · Q2 FY2023 · Q3 FY2023 · Q4 FY2023

Income statement (profit and loss)

$ million	FY2023	FY2022	FY2021	On the year
Revenue	2,676	3,155	3,703	-15.2%
Cost of revenue	1,140	1,288	1,496	-11.5%
Gross profit	1,537	1,867	2,207	-17.7%
Gross margin	57.4%	59.2%	59.6%
Research and development	418	441	428	-5.1%
Selling, general and administrative	577	558	548	+3.4%
Operating income	501	832	1,201	-39.8%
Operating margin	18.7%	26.4%	32.4%
Interest expense	3.8	3.7	17.8	+2.3%
Pre-tax income	526	840	1,161	-37.5%
Income tax	76.8	125	146	-38.5%
Effective tax rate	14.6%	14.9%	12.6%
Net income	449	716	1,015	-37.3%
Net margin	16.8%	22.7%	27.4%
Diluted EPS	$2.73	$4.22	$5.53	-35.3%

$ million except per share.

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

$ million	FY2023	FY2022	FY2021	On the year
Operating cash flow	585	578	1,098	+1.3%
Capital expenditure	160	163	132	-2.2%
Free cash flow	426	415	966	+2.6%
Free cash flow margin	15.9%	13.1%	26.1%
Cash from investing	-180	43.8	120
Cash from financing	-502	-893	-1,009
Depreciation and amortisation	111	111	125	+0.2%
Share-based compensation	57.7	48.2	45.6	+19.6%
Buybacks	397	752	600	-47.2%
Dividends paid	67.9	69.7	66.0	-2.6%
Dividend per share	$0.44	$0.44	$0.40	0.0%
Diluted shares, weighted	164m	170m	184m	-3.2%
Shares outstanding at period end	153m	156m	162m	-2.0%

Balance sheet

$ million	FY2023	FY2022	FY2021	On the year
Shareholders' equity	2,526	2,451	2,562	+3.0%
Debt	0.0	50.1	108
Operating lease liabilities	65.1	64.2	56.2	+1.4%
Other liabilities	896	936	1,082	-4.3%
Total liabilities and equity	3,487	3,501	3,809	-0.4%
Fixed assets	445	419	387	+6.4%
Goodwill	416	403	426	+3.1%
Intangible assets	35.4	53.5	75.6	-33.8%
Securities held for sale or to maturity	132	113	339	+17.4%
Cash and equivalents	758	855	1,122	-11.4%
Receivables	422	491	551	-14.1%
Inventory	310	325	243	-4.6%
Other assets	968	842	665	+15.0%
Total assets	3,487	3,501	3,809	-0.4%

10-K for the year ended 31 December 2023, filed 22 February 2024: the filing.