Revenue

3 Months Ended

Mar. 31, 2024

Revenue from Contract with Customer [Abstract]

Revenue

D. REVENUE

Disaggregation of Revenue

The following table provides information about disaggregated revenue by timing of revenue recognition, primary geographical market, and major product lines.

		Semiconductor Test				System Test		Robotics				Wireless Test
		System on-a-Chip		Memory				Universal Robots		Mobile Industrial Robots				Total
	(in thousands)
For the Three Months Ended March 31, 2024 (1)
Timing of Revenue Recognition
Point in Time		$	229,592	$	102,436	$	58,073	$	65,893	$	19,290	$	20,914	$	496,198
Over Time			72,716		7,510		17,249		1,868		603		3,675		103,621
Total		$	302,308	$	109,946	$	75,322	$	67,761	$	19,893	$	24,589	$	599,819
Geographical Market
Asia Pacific		$	270,567	$	95,606	$	25,781	$	11,625	$	2,954	$	17,141	$	423,674
Americas			22,551		9,052		36,594		20,005		14,625		5,824		108,651
Europe, Middle East and Africa			9,190		5,288		12,947		36,131		2,314		1,624		67,494
Total		$	302,308	$	109,946	$	75,322	$	67,761	$	19,893	$	24,589	$	599,819
For the Three Months Ended April 2, 2023 (1)
Timing of Revenue Recognition
Point in Time		$	273,275	$	61,258	$	56,857	$	70,029	$	15,959	$	35,363	$	512,741
Over Time			73,559		6,917		17,774		2,008		1,218		3,312		104,788
Total		$	346,834	$	68,175	$	74,631	$	72,037	$	17,177	$	38,675	$	617,529
Geographical Market
Asia Pacific		$	283,259	$	63,695	$	39,590	$	13,217	$	1,502	$	23,231	$	424,494
Americas			41,568		2,944		28,980		20,447		11,806		12,846		118,591
Europe, Middle East and Africa			22,007		1,536		6,061		38,373		3,869		2,598		74,444
Total		$	346,834	$	68,175	$	74,631	$	72,037	$	17,177	$	38,675	$	617,529

(1)Includes $0.9 million and $1.3 million in the three months ended March 31, 2024 and in the three months ended April 2, 2023, respectively, for leases of Teradyne’s systems recognized outside Accounting Standards Codification (“ASC”) 606 “Revenue from Contracts with Customers.”

Contract Balances

During the three months ended March 31, 2024 and April 2, 2023, Teradyne recognized $28.2 million and $50.7 million, respectively, that was included within the deferred revenue and customer advances balances at the beginning of the period. This revenue primarily relates to undelivered hardware, extended warranties, training, application support, and post contract support. Each of these represents a distinct performance obligation. As of March 31, 2024, Teradyne had $1,075.2 million of unsatisfied performance obligations. Teradyne expects to recognize approximately 90% of the remaining performance obligations in the next 12 months and the remainder in 1-3 years.

Deferred revenue and customer advances consist of the following and are included in short and long-term deferred revenue and customer advances on the balance sheet:

	March 31, 2024		December 31, 2023
	(in thousands)
Maintenance, service and training	$	61,404	$	66,458
Customer advances, undelivered elements and other		39,189		35,731
Extended warranty		34,509		34,897
Total deferred revenue and customer advances	$	135,102	$	137,086

Accounts Receivable

During the three months ended March 31, 2024 and April 2, 2023, Teradyne sold certain trade accounts receivables on a non-recourse basis to third-party financial institutions pursuant to factoring agreements. During the three months ended March 31, 2024 and April 2, 2023, total trade accounts receivable sold under the factoring agreements were $23.4 million and $34.2 million, respectively. Factoring fees for the sales of receivables were recorded in interest expense and were not material. Teradyne accounted for these transactions as sales of receivables and presented cash proceeds as cash provided by operating activities in the consolidated statements of cash flows.