SUPPLEMENTARY INFORMATION

(Unaudited)

The following sets forth certain unaudited consolidated quarterly statements of operations data for each of Teradyne’s last eight quarters. In management’s opinion, this quarterly information reflects all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement for the periods presented. Such quarterly results are not necessarily indicative of future results of operations and should be read in conjunction with the audited consolidated financial statements of Teradyne and the notes thereto included elsewhere herein.


	2013
	1st Quarter			2nd Quarter		3rd Quarter		4th Quarter
								(1)(2)
	(in thousands, except per share amounts)
Net revenues:
Products	$	214,300		$	363,087	$	365,825	$	211,710
Services		66,067			65,802		67,551		73,591

Total net revenues		280,367			428,889		433,376		285,301
Cost of revenues:
Cost of products		96,793			158,411		150,365		93,461
Cost of services		30,157			29,245		28,717		31,983

Total cost of revenues		126,950			187,656		179,082		125,444

Gross profit		153,417			241,233		254,294		159,857

Operating expenses:
Engineering and development		62,751			67,773		68,918		64,613
Selling and administrative		67,890			69,230		72,917		69,523
Acquired intangible assets amortization		18,036			18,063		18,064		18,284
Restructuring and other		332			259		889		600

Total operating expenses		149,009			155,325		160,788		153,020

Income from operations		4,408			85,908		93,506		6,837
Interest income		1,072			903		948		1,206
Interest expense and other		6,906			6,454		6,902		(27,396	)

(Loss) income from continuing operations before income taxes		(1,426	)		80,357		87,552		35,439
(Benefit) provision for income taxes		(8,015	)		13,801		18,093		13,096

Net income	$	6,589		$	66,556	$	69,459	$	22,343

Net income per common share—basic	$	0.03		$	0.35	$	0.36	$	0.12

Net income per common share—diluted	$	0.03		$	0.28	$	0.29	$	0.09

(1)	Interest expense and other includes a $34.2 million gain from the sale of an equity investment.

(2)	In the fourth quarter ended December 31, 2013, pension and post retirement net actuarial gains increased gross profit and net income by $2.7 million and $9.1 million, respectively. See Note B: “Accounting Policies” for a discussion of our accounting policy.


	2012
	1st Quarter			2nd Quarter			3rd Quarter		4th Quarter
	(1)			(2)					(3)(4)
	(in thousands, except per share amounts)
Net revenues:
Products	$	330,891		$	480,578		$	393,037	$	179,063
Services		65,777			67,706			70,357		69,341

Total net revenues		396,668			548,284			463,394		248,404
Cost of revenues:
Cost of products		174,001			206,498			169,782		92,599
Cost of services		31,741			32,280			33,412		30,400

Total cost of revenues		205,742			238,778			203,194		122,999

Gross profit		190,926			309,506			260,200		125,405

Operating expenses:
Engineering and development		61,279			67,834			63,946		62,807
Selling and administrative		66,633			72,064			69,030		69,289
Acquired intangible assets amortization		18,429			18,429			18,429		18,221
Restructuring and other		(1,825	)		(6,262	)		683		(317	)

Total operating expenses		144,516			152,065			152,088		150,000

Income (loss) from operations		46,410			157,441			108,112		(24,595	)
Interest income		893			874			1,067		1,256
Interest expense and other		6,059			6,323			6,154		6,946

Income (loss) from continuing operations before income taxes		41,244			151,992			103,025		(30,285	)
Provision (benefit) for income taxes		7,680			40,605			14,384		(13,742	)

Net income (loss)	$	33,564		$	111,387		$	88,641	$	(16,543	)

Net income (loss) per common share—basic	$	0.18		$	0.60		$	0.47	$	(0.09	)

Net income (loss) per common share—diluted	$	0.15		$	0.49		$	0.39	$	(0.09	)

(1)	Restructuring and other includes a ($1.8) million fair value adjustment to decrease the LitePoint acquisition contingent consideration.

(2)	Restructuring and other includes $0.3 million of severance charges related to headcount reductions of 10 people in Semiconductor Test and ($6.5) million fair value adjustment to decrease the LitePoint acquisition contingent consideration.

(3)	In the fourth quarter ended December 31, 2012, we corrected prior period income tax provision (benefit) errors that resulted in a $0.2 million income tax provision. These errors were not individually or in aggregate material to the fourth quarter of 2012 or any prior period.

(4)	In the fourth quarter ended December 31, 2012, pension and postretirement actuarial losses decreased gross profit and net income by $8.1 million and $18.3 million, respectively. See Note B: “Accounting Policies” for a discussion of our accounting policy.