Teradyne : Q1 Quarterly Results (Q1 2025 GAAP to Non GAAP Reconciliations)

Published: 2025-04-29 09:03:10 ET TER

Teradyne, Inc.

Certain Non-GAAP financial measures discussed during the First Quarter of 2025 Earnings Conference Call

April 29, 2025

On the Company's earnings conference call on April 29, 2025, the following non-GAAP financial measures were discussed or presented:

EPS

Operating Profit

Gross Margin

Operating Expenses

Tax rate (excluding discretes)

FCF

Net Income

Q1 2025

0.75

20.5%

141

60.6%

416

40.1%

$275

13.5%

162

122

Q4 2024

0.95

21.7%

163

59.4%

447

37.8%

$284

7.6%

163

225

155

Q1 2024

0.51

14.8%

56.6%

339

41.8%

$251

15.5%

162

(37)

Q2'25 Guidance

$0.41 to $0.64

12.0% to 17.0%

44.5% to 40.5%

13.50%

Free Cash Flow

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

Q1'24

Q4'24

Q1'25

323

370

521

370

444

684

966

415

426

474

(37)

225

Robotics

Q1 2025 Operating Loss

-$22M

FY2025 Operating Profit at $365M Revenue

Life to date: Operating Profit

$47M

GAAP to Non-GAAP Earnings Reconciliation

(In millions, except per share amounts)

Quarter Ended

March 30,

% of Net

December 31, % of Net

March 31,

% of Net

2025

Revenues

2024 Revenues

2024

Revenues

Net revenues

$ 685.7

$ 752.9

$ 599.8

Gross profit GAAP

415.3

60.6%

447.3 59.4%

339.3

56.6%

Inventory step-up

0.2

0.0%

- -

Gross profit non-GAAP

415.5

60.6%

447.3 59.4%

339.3

56.6%

Income from operations - GAAP

120.8

17.6%

153.6 20.4%

77.8

13.0%

Restructuring and other (1)

14.5

2.1%

4.6 0.6%

4.4

0.7%

Acquired intangible assets amortization

4.6

0.7%

4.7 0.6%

4.7

0.8%

ERP related expenses (2)

0.7

0.1%

- -

Inventory step-up

0.2

0.0%

- -

Loss (gain) on sale of business

0.4 0.1%

Equity modification charge (4)

- -

1.7

0.3%

Income from operations - non-GAAP

$ 140.8

20.5%

$ 163.3 21.7%

$ 88.6

14.8%

Net Income

March 30,

% of Net

December 31, % of Net

March 31,

% of Net

2025

Revenues

Basic Diluted

2024 Revenues

Basic Diluted

2024

Revenues

Basic Diluted

Net income - GAAP

$ 98.9

14.4%

$ 0.61

$ 146.3

19.4%

0.90

$ 0.90

$ 64.2

10.7%

$0.42

$ 0.40

Restructuring and other (1)

14.5

2.1%

0.09

4.6

0.6%

0.03

4.4

0.7%

0.03

Amortization of equity method investment

7.4

1.1%

0.05

8.0

1.1%

0.05

Acquired intangible assets amortization

4.6

0.7%

0.03

4.7

0.6%

0.03

4.7

0.8%

0.03

ERP related expenses (2)

0.7

0.1%

0.00

Inventory step-up

0.2

0.0%

0.00

Loss (gain) on sale of business

0.4

0.1%

0.00

Equity modification charge (3)

1.7

0.3%

0.01

Pension mark-to-market adjustment (4)

(1.8)

-0.2%

(0.01)

Exclude discrete tax adjustments

0.9

0.1%

0.01

(8.0)

-1.1%

(0.05)

(2.2)

-0.4%

(0.01)

Non-GAAP tax adjustments

(5.1)-0.7%

(0.03) (0.03)

0.9 0.1% 0.01 0.01 (4.2)-0.7%(0.03) (0.03)

Net income - non-GAAP

$ 121.5 17.7%

$ 0.75 $ 0.75

$ 155.0 20.6%$ 0.95 $ 0.95 $ 82.5 13.8%$0.54 $ 0.51

GAAP and non-GAAP weighted average common

shares - basic

161.5

162.5

153.0

GAAP and non-GAAP weighted average common

shares - diluted (5)

162.0

163.2

162.3

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

GAAP and non-GAAP second quarter revenue guidance:

$610 million t

o80 million

GAAP net income per diluted share

$ 0.35

$ 0.58

Exclude equity method investment amortization

0.05

Exclude acquired intangible assets amortization

0.02

Non-GAAP tax adjustments

(0.01)

Non-GAAP net income per diluted share

$ 0.41

$ 0.64

($ in millions except per share amounts)

Q1'24 Q4'24 Q1'25

Q2'25 Low Guidance Q2'25 High Guidance

$'s

% of sales

$'s

sales

$'s

% of sales

$'s % of sales

$'s

% of sales

GAAP Operating Expenses

$262

44.0%

$294

39.0%

$295

43.0%

$275 45.1%

$279 41.0%

Intangible Asset Amortization

($5)

-1.0%

($5)

-0.7%

($5)

-0.7%

($3) -0.5%

($3) -0.4%

Restructuring and Other

($4)

-1.0%

($5)

-0.7%

($15)

-2.1%

ERP Related Expenses

($1)

-0.1%

($1) -0.1%

Equity Modification Charge

($2)

0.0%

Loss (gain) on the sale of business

Non GAAP Operating Expenses

$251 41.8%

$284 37.8%

$275 40.1%

$271 44.5% $275 40.5%

Q1'24

Q4'24

Q1'25

$'s

GAAP Income Tax

11.9%

3.5%

$15

12.2%

Exclude discrete tax adjustments

3.1%

5.2%

($1)

-0.8%

Tax effect of non-GAAP adjustments

5.8%

($1)

-0.6%

4.3%

Effect of Higher Non-GAAP PBT

-5.3%

-0.5%

-2.2%

Non GAAP Income Tax

$15 15.5%

$13 7.7%

$19 13.5%

Q2'25 Guidance:

Low End

High End

GAAP Operating Profit as % of Sales

11.5%

16.5%

Acquired intangible asset amortization

0.5%

Restructuring and Other

0.0%

Non-GAAP Operating Profit as % of Sales

12.0%

17.0%

FY 2025 GAAP estimated tax rate

13.5%

Adjustment for Non GAAP items

0.00%

FY 2025 Non GAAP estimated tax rate

13.5%

FY 2028 Low

FY 2028 Mid

FY 2028 High

2028 Estimated GAAP Diluted EPS

$ 6.81

$ 8.06

$ 9.31

Add Back Intangible Asset Amortization

$ 0.19

2028 Estimated Non-GAAP Diluted EPS

$ 7.00

$ 8.25

$ 9.50

Q1 2025 Robotics Non- GAAP operating Loss

GAAP Operating loss

(37.2)

Add back restructuring costs

10.7

Add back amortization

4.3

Non GAAP Operating loss

(22.2)

Robotics 2025 Breakeven at $365M Revenue

FY 2025E

GAAP PBIT

-4%

Add back restructuring costs

Add back amortization

Non GAAP PBIT

Robotics Non- GAAP Life to date

GAAP Operating loss

(231)

Add back amortization

233

Add back restructuring costs

Non GAAP Operating loss

Disclaimer

Teradyne Inc. published this content on April 29, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 29, 2025 at 13:02 UTC.