QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or Other Jurisdiction of Incorporation or Organization) |
(I.R.S. Employer Identification No.) | |
(Address of Principal Executive Offices) |
(Zip Code) | |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
| ☒ | Accelerated filer | ☐ | ||||
| Non-accelerated filer | ☐ | Emerging growth company | ||||
| Smaller reporting company | ||||||
Item 1: |
Financial Statements |
July 4, 2021 |
December 31, 2020 |
|||||||
(in thousands, except per share amount) |
||||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | $ | ||||||
Marketable securities |
||||||||
Accounts receivable, less allowance for credit losses of $ |
||||||||
Inventories, net |
||||||||
Prepayments and other current assets |
||||||||
Total current assets |
||||||||
Property, plant and equipment, net |
||||||||
Operating lease right-of-use assets, net |
||||||||
Marketable securities |
||||||||
Deferred tax assets |
||||||||
Retirement plans assets |
||||||||
Other assets |
||||||||
Acquired intangible assets, net |
||||||||
Goodwill |
||||||||
Total assets |
$ | $ | ||||||
LIABILITIES |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | $ | ||||||
Accrued employees’ compensation and withholdings |
||||||||
Deferred revenue and customer advances |
||||||||
Other accrued liabilities |
||||||||
Operating lease liabilities |
||||||||
Income taxes payable |
||||||||
Current debt |
||||||||
Total current liabilities |
||||||||
Retirement plans liabilities |
||||||||
Long-term deferred revenue and customer advances |
||||||||
Long-term contingent consideration |
||||||||
Long-term other accrued liabilities |
||||||||
Deferred tax liabilities |
||||||||
Long-term operating lease liabilities |
||||||||
Long-term incomes taxes payable |
||||||||
Debt |
||||||||
Total liabilities |
||||||||
Commitments and contingencies |
||||||||
Mezzanine equity: |
||||||||
Convertible common shares |
||||||||
SHAREHOLDERS’ EQUITY |
||||||||
Common stock, $ |
||||||||
Additional paid-in capital |
||||||||
Accumulated other comprehensive income |
||||||||
Retained earnings |
||||||||
Total shareholders’ equity |
||||||||
Total liabilities, convertible common shares and shareholders’ equity |
$ | $ | ||||||
For the Three Months Ended |
For the Six Months Ended |
|||||||||||||||
July 4, 2021 |
June 28, 2020 |
July 4, 2021 |
June 28, 2020 |
|||||||||||||
(in thousands, except per share amount) |
||||||||||||||||
| Revenues: |
||||||||||||||||
| Products |
$ | $ | $ | $ | ||||||||||||
| Services |
||||||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Total revenues |
||||||||||||||||
| Cost of revenues: |
||||||||||||||||
| Cost of products |
||||||||||||||||
| Cost of services |
||||||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) |
||||||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Gross profit |
||||||||||||||||
| Operating expenses: |
||||||||||||||||
| Selling and administrative |
||||||||||||||||
| Engineering and development |
||||||||||||||||
| Acquired intangible assets amortization |
||||||||||||||||
| Restructuring and other |
( |
) | ||||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Total operating expenses |
||||||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Income from operations |
||||||||||||||||
| Non-operating (income) expense: |
||||||||||||||||
| Interest income |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
| Interest expense |
||||||||||||||||
| Other (income) expense, net |
( |
) | ( |
) | ||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Income before income taxes |
||||||||||||||||
| Income tax provision |
||||||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Net income |
$ | $ | $ | $ | ||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Net income per common share: |
||||||||||||||||
| Basic |
$ | $ | $ | $ | ||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Diluted |
$ | $ | $ | $ | ||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Weighted average common shares—basic |
||||||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Weighted average common shares—diluted |
||||||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Cash dividend declared per common share |
$ | $ | $ | $ | ||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
For the Three Months Ended |
For the Six Months Ended |
|||||||||||||||
July 4, 2021 |
June 28, 2020 |
July 4, 2021 |
June 28, 2020 |
|||||||||||||
(in thousands) |
||||||||||||||||
Net income |
$ | $ | $ | $ | ||||||||||||
Other comprehensive income, net of tax: |
||||||||||||||||
Foreign currency translation adjustment, net of tax of $ |
( |
) | ||||||||||||||
Available-for-sale marketable securities: |
||||||||||||||||
Unrealized gains (losses) on marketable securities arising during period, net of tax of $ |
( |
) | ||||||||||||||
Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $ |
( |
) | ( |
) | ( |
) | ||||||||||
| ( |
) | |||||||||||||||
Defined benefit post-retirement plan: |
||||||||||||||||
Amortization of prior service credit, net of tax of $ |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Other comprehensive income (loss) |
( |
) | ||||||||||||||
Comprehensive income |
$ | $ | $ | $ | ||||||||||||
Shareholders’ Equity |
||||||||||||||||||||||||||||
Convertible Common Shares Value |
Common Stock Shares |
Common Stock Par Value |
Additional Paid-in Capital |
Accumulated Other Comprehensive Income (Loss) |
Retained Earnings (Accumulated Deficit) |
Total Shareholders’ Equity |
||||||||||||||||||||||
(in thousands) |
||||||||||||||||||||||||||||
| Three Months Ended July 4, 2021 |
||||||||||||||||||||||||||||
| Balance, April 4, 2021 |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||||||
| Net issuance of common stock under stock-based plans |
||||||||||||||||||||||||||||
| Stock-based compensation expense |
||||||||||||||||||||||||||||
| Repurchase of common stock |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||
| Cash dividends ($ |
( |
) | ( |
) | ||||||||||||||||||||||||
| Settlements of convertible notes |
||||||||||||||||||||||||||||
| Exercise of convertible notes hedge call options |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||
| Convertible common shares |
( |
) | ( |
) | ||||||||||||||||||||||||
| Net income |
||||||||||||||||||||||||||||
| Other comprehensive income |
||||||||||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Balance, July 4, 2021 |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Three Months Ended June 28, 2020 |
||||||||||||||||||||||||||||
| Balance, March 29, 2020 |
$ | — | $ | $ | $ | ( |
) | $ | ( |
) | $ | |||||||||||||||||
| Net issuance of common stock under stock-based plans |
( |
) | ( |
) | ||||||||||||||||||||||||
| Stock-based compensation expense |
||||||||||||||||||||||||||||
| Repurchase of common stock |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||
| Cash dividends ($ |
( |
) | ( |
) | ||||||||||||||||||||||||
| Net income |
||||||||||||||||||||||||||||
| Other comprehensive income |
||||||||||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Balance, June 28, 2020 |
$ | — | $ | $ | $ | ( |
) | $ | $ | |||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Six Months Ended July 4, 2021 |
||||||||||||||||||||||||||||
| Balance, December 31, 2020 |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||||||
| Net issuance of common stock under stock-based plans |
||||||||||||||||||||||||||||
| Stock-based compensation expense |
||||||||||||||||||||||||||||
| Repurchase of common stock |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||
| Cash dividends ($ |
( |
) | ( |
) | ||||||||||||||||||||||||
| Settlements of convertible notes |
||||||||||||||||||||||||||||
| Exercise of convertible notes hedge call options |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||
| Convertible common shares |
( |
) | ( |
) | ||||||||||||||||||||||||
| Net income |
||||||||||||||||||||||||||||
| Other comprehensive loss |
( |
) | ( |
) | ||||||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Balance, July 4, 2021 |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Six Months Ended June 28, 2020 |
||||||||||||||||||||||||||||
| Balance, December 31, 2019 |
$ | — | $ | $ | $ | ( |
) | $ | ( |
) | $ | |||||||||||||||||
| Net issuance of common stock under stock-based plans |
( |
) | ( |
) | ||||||||||||||||||||||||
| Stock-based compensation expense |
||||||||||||||||||||||||||||
| Repurchase of common stock |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||
| Cash dividends ($ |
( |
) | ( |
) | ||||||||||||||||||||||||
| Net income |
||||||||||||||||||||||||||||
| Other comprehensive income |
||||||||||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Balance, June 28, 2020 |
$ | — | $ | $ | $ | ( |
) | $ | $ | |||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
For the Six Months Ended |
||||||||
July 4, 2021 |
June 28, 2020 |
|||||||
(in thousands) |
||||||||
Cash flows from operating activities: |
||||||||
Net income |
$ | $ | ||||||
Adjustments to reconcile net income from operations to net cash provided by operating activities: |
||||||||
Depreciation |
||||||||
Stock-based compensation |
||||||||
Amortization |
||||||||
Loss on convertible debt conversion |
— | |||||||
Provision for excess and obsolete inventory |
||||||||
Contingent consideration adjustment |
( |
) | ||||||
Gains on investments |
( |
) | ( |
) | ||||
Deferred taxes |
( |
) | ( |
) | ||||
Retirement plans actuarial gains |
( |
) | ( |
) | ||||
Other |
||||||||
Changes in operating assets and liabilities, net of business acquired: |
||||||||
Accounts receivable |
( |
) | ( |
) | ||||
Inventories |
( |
) | ||||||
Prepayments and other assets |
( |
) | ( |
) | ||||
Accounts payable and other liabilities |
||||||||
Deferred revenue and customer advances |
||||||||
Retirement plans contributions |
( |
) | ( |
) | ||||
Income taxes |
( |
) | ||||||
Net cash provided by operating activities |
||||||||
Cash flows from investing activities: |
||||||||
Purchases of property, plant and equipment |
( |
) | ( |
) | ||||
Purchases of marketable securities |
( |
) | ( |
) | ||||
Proceeds from maturities of marketable securities |
||||||||
Proceeds from sales of marketable securities |
||||||||
Purchase of investment and acquisition of business |
( |
) | ||||||
Proceeds from life insurance |
— | |||||||
Net cash provided by (used for) investing activities |
( |
) | ||||||
Cash flows from financing activities: |
||||||||
Issuance of common stock under stock purchase and stock option plans |
||||||||
Repurchase of common stock |
( |
) | ( |
) | ||||
Payments of convertible debt principal |
( |
) | — | |||||
Dividend payments |
( |
) | ( |
) | ||||
Payments related to net settlement of employee stock compensation awards |
( |
) | ( |
) | ||||
Payments of contingent consideration |
— | ( |
) | |||||
Net cash used for financing activities |
( |
) | ( |
) | ||||
Effects of exchange rate changes on cash and cash equivalents |
( |
) | ( |
) | ||||
Increase (decrease) in cash and cash equivalents |
( |
) | ||||||
Cash and cash equivalents at beginning of period |
||||||||
Cash and cash equivalents at end of period |
$ | $ | ||||||
Non-cash investing activities: |
||||||||
Capital expenditures incurred but not yet paid: |
$ | $ | ||||||
| • | semiconductor test (“Semiconductor Test”) systems; |
| • | storage and system level test (“Storage Test”) systems, defense/aerospace (“Defense/Aerospace”) test instrumentation and systems, and circuit-board test and inspection (“Production Board Test”) systems (collectively these products represent “System Test”); |
| • | wireless test (“Wireless Test”) systems; and |
| • | industrial automation (“Industrial Automation”) products. |
Semiconductor Test |
Industrial Automation |
|||||||||||||||||||||||||||||||||||
System on- a-Chip |
Memory |
System Test |
Universal Robots |
Mobile Industrial Robots |
AutoGuide |
Wireless Test |
Corporate and Other |
Total |
||||||||||||||||||||||||||||
(in thousands) |
||||||||||||||||||||||||||||||||||||
| For the Three Months Ended July 4, 2021 (1) |
||||||||||||||||||||||||||||||||||||
| Timing of Revenue Recognition |
||||||||||||||||||||||||||||||||||||
| Point in Time |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
( |
) |
$ |
|||||||||||||||||||||||||
| Over Time |
— |
|||||||||||||||||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Total |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
( |
) |
$ |
|||||||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Geographical Market |
||||||||||||||||||||||||||||||||||||
| Asia Pacific |
$ |
$ |
$ |
$ |
$ |
$ |
— |
$ |
$ |
— |
$ |
|||||||||||||||||||||||||
| Americas |
( |
) |
||||||||||||||||||||||||||||||||||
| Europe, Middle East and Africa |
— |
— |
||||||||||||||||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Total |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
( |
) |
$ |
|||||||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| For the Three Months Ended June 28, 2020 (1) |
||||||||||||||||||||||||||||||||||||
| Timing of Revenue Recognition |
||||||||||||||||||||||||||||||||||||
| Point in Time |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
( |
) |
$ |
|||||||||||||||||||||||||
| Over Time |
— |
|||||||||||||||||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Total |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
( |
) |
$ |
|||||||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Geographical Market |
||||||||||||||||||||||||||||||||||||
| Asia Pacific |
$ |
$ |
$ |
$ |
$ |
$ |
— |
$ |
$ |
— |
$ |
|||||||||||||||||||||||||
| Americas |
( |
) |
||||||||||||||||||||||||||||||||||
| Europe, Middle East and Africa |
— |
— |
||||||||||||||||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Total |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
( |
) |
$ |
|||||||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| For the Six Months Ended July 4, 2021 (2) |
||||||||||||||||||||||||||||||||||||
| Timing of Revenue Recognition |
||||||||||||||||||||||||||||||||||||
| Point in Time |
$ |
$ |
$ |
$ |
$ |
$ |
( |
) |
$ |
$ |
( |
) |
$ |
|||||||||||||||||||||||
| Over Time |
— |
|||||||||||||||||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Total |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
( |
) |
$ |
|||||||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Geographical Market |
||||||||||||||||||||||||||||||||||||
| Asia Pacific |
$ |
$ |
$ |
$ |
$ |
$ |
— |
$ |
$ |
— |
$ |
|||||||||||||||||||||||||
| Americas |
( |
) |
||||||||||||||||||||||||||||||||||
| Europe, Middle East and Africa |
— |
— |
||||||||||||||||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Total |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
( |
) |
$ |
|||||||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| For the Six Months Ended June 28, 2020 (2) |
||||||||||||||||||||||||||||||||||||
| Timing of Revenue Recognition |
||||||||||||||||||||||||||||||||||||
| Point in Time |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
( |
) |
$ |
|||||||||||||||||||||||||
| Over Time |
— |
|||||||||||||||||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Total |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
( |
) |
$ |
|||||||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Geographical Market |
||||||||||||||||||||||||||||||||||||
| Asia Pacific |
$ |
$ |
$ |
$ |
$ |
$ |
— |
$ |
$ |
— |
$ |
|||||||||||||||||||||||||
| Americas |
( |
) |
||||||||||||||||||||||||||||||||||
| Europe, Middle East and Africa |
— |
— |
||||||||||||||||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Total |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
( |
) |
$ |
|||||||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| (1) | Includes $ “Revenue from Contracts with Customers.” |
| (2) | Includes $ Revenue from Contracts with Customers |
July 4, 2021 |
December 31, 2020 |
|||||||
(in thousands) |
||||||||
| Raw material |
$ | $ | ||||||
| Work-in-process |
||||||||
| Finished goods |
||||||||
| |
|
|
|
|||||
| $ | $ | |||||||
| |
|
|
|
|||||
July 4, 2021 |
||||||||||||||||
Quoted Prices in Active Markets for Identical Instruments (Level 1) |
Significant Other Observable Inputs (Level 2) |
Significant Unobservable Inputs (Level 3) |
Total |
|||||||||||||
(in thousands) |
||||||||||||||||
| Assets |
||||||||||||||||
| Cash |
$ | $ | — | $ | — | $ | ||||||||||
| Cash equivalents |
— | |||||||||||||||
| Available-for-sale securities: |
||||||||||||||||
| Commercial paper |
— | — | ||||||||||||||
| U.S. Treasury securities |
— | — | ||||||||||||||
| Corporate debt securities |
— | — | ||||||||||||||
| Debt mutual funds |
— | — | ||||||||||||||
| U.S. government agency securities |
— | — | ||||||||||||||
| Certificates of deposit and time deposits |
— | — | ||||||||||||||
| Non-U.S. government securities |
— | — | ||||||||||||||
| Equity securities: |
||||||||||||||||
| Mutual funds |
— | — | ||||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| $ | $ | $ | — | $ | ||||||||||||
| Derivative assets |
— | — | ||||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Total |
$ | $ | $ | — | $ | |||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Liabilities |
||||||||||||||||
| Derivative liabilities |
— | — | ||||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Total |
$ | — | $ | $ | — | $ | ||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Reported as follows: | ||||||||||||||||
(Level 1) |
(Level 2) |
(Level 3) |
Total |
|||||||||||||
(in thousands) |
||||||||||||||||
| Assets |
||||||||||||||||
| Cash and cash equivalents |
$ | $ | $ | — | $ | |||||||||||
| Marketable securities |
— | — | ||||||||||||||
| Long-term marketable securities |
— | |||||||||||||||
| Prepayments and other current assets |
— | — | ||||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Total |
$ | $ | $ | — | $ | |||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Liabilities |
||||||||||||||||
| Other current liabilities |
$ | — | $ | $ | — | $ | ||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Total |
$ | — | $ | $ | — | $ | ||||||||||
| |
|
|
|
|
|
|
|
|||||||||
December 31, 2020 |
||||||||||||||||
Quoted Prices in Active Markets for Identical Instruments (Level 1) |
Significant Other Observable Inputs (Level 2) |
Significant Unobservable Inputs (Level 3) |
Total |
|||||||||||||
(in thousands) |
||||||||||||||||
| Assets |
||||||||||||||||
| Cash |
$ | $ | — | $ | — | $ | ||||||||||
| Cash equivalents |
— | |||||||||||||||
| Available-for-sale securities: |
— | |||||||||||||||
| U.S. Treasury securities |
— | — | ||||||||||||||
| Commercial paper |
— | — | ||||||||||||||
| Corporate debt securities |
— | — | ||||||||||||||
| Debt mutual funds |
— | — | ||||||||||||||
| U.S. government agency securities |
— | — | ||||||||||||||
| Certificates of deposit and time deposits |
— | — | ||||||||||||||
| Non-U.S. government securities |
— | — | ||||||||||||||
| Equity securities: |
||||||||||||||||
| Equity mutual funds |
— | — | ||||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| $ | $ | $ | — | $ | ||||||||||||
| Derivative assets |
— | — | ||||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Total |
$ | $ | $ | — | $ | |||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Liabilities |
||||||||||||||||
| Contingent consideration |
$ | — | $ | — | $ | $ | ||||||||||
| Derivative liabilities |
— | — | ||||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Total |
$ | — | $ | $ | $ | |||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Reported as follows: |
||||||||||||||||
(Level 1) |
(Level 2) |
(Level 3) |
Total |
|||||||||||||
(in thousands) |
||||||||||||||||
| Assets |
||||||||||||||||
| Cash and cash equivalents |
$ | $ | $ | — | $ | |||||||||||
| Marketable securities |
— | — | ||||||||||||||
| Long-term marketable securities |
— | |||||||||||||||
| Prepayments and other current assets |
— | — | ||||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Total |
$ | $ | $ | — | $ | |||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Liabilities |
||||||||||||||||
| Other accrued liabilities |
$ | — | $ | $ | — | $ | ||||||||||
| Long-term contingent consideration |
— | — | ||||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Total |
$ | — | $ | $ | $ | |||||||||||
| |
|
|
|
|
|
|
|
|||||||||
For the Three Months Ended |
For the Six Months Ended |
|||||||||||||||
July 4, 2021 |
June 28, 2020 |
July 4, 2021 |
June 28, 2020 |
|||||||||||||
(in thousands) |
||||||||||||||||
| Balance at beginning of period |
$ | $ | $ | $ | ||||||||||||
| Fair value adjustment (a)(b) |
( |
) | ||||||||||||||
| Foreign currency impact |
( |
) | ||||||||||||||
| Payments (c) |
( |
) | ||||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Balance at end of period |
$ | $ | $ | $ | ||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| (a) | In the six months ended July 4, 2021, the fair value of contingent consideration for the earn-outs in connection with the acquisition of AutoGuide was reduced to zero, which resulted in a benefit of $ (see Note R: “Commitments and Contingencies”). |
| (b) | In the three and six months ended June 28, 2020, the fair value of contingent consideration for the earn-outs in connection with the acquisition of Mobile Industrial Robots (“MiR”) decreased by $ |
| (c) | In the six months ended June 28, 2020, Teradyne paid $ |
July 4, 2021 |
December 31, 2020 |
|||||||||||||||
Carrying Value |
Fair Value |
Carrying Value |
Fair Value |
|||||||||||||
(in thousands) |
||||||||||||||||
| Assets |
||||||||||||||||
| Cash and cash equivalents |
$ | $ | $ | $ | ||||||||||||
| Marketable securities |
||||||||||||||||
| Derivative assets |
||||||||||||||||
| Liabilities |
||||||||||||||||
| Contingent consideration |
— | — | ||||||||||||||
| Derivative liabilities |
||||||||||||||||
| Convertible debt (1) |
||||||||||||||||
| (1) | The carrying value represents the bifurcated debt component only, while the level 2 fair value is based on quoted market prices for the convertible note, which includes the equity conversion features. |
July 4, 2021 |
||||||||||||||||||||
Available-for-Sale |
||||||||||||||||||||
Cost |
Unrealized Gain |
Unrealized (Loss) |
Fair Market Value |
Fair Market Value of Investments with Unrealized Losses |
||||||||||||||||
(in thousands) |
||||||||||||||||||||
Commercial paper |
$ | $ | $ | ( |
) | $ | $ | |||||||||||||
U.S. Treasury securities |
( |
) | ||||||||||||||||||
Corporate debt securities |
( |
) | ||||||||||||||||||
Debt mutual funds |
— | — | ||||||||||||||||||
U.S. government agency securities |
( |
) | ||||||||||||||||||
Certificates of deposit and time deposits |
— | — | ||||||||||||||||||
Non-U.S. government securities |
— | — | — | |||||||||||||||||
| $ | $ | $ | ( |
) | $ | $ | ||||||||||||||
Cost |
Unrealized Gain |
Unrealized (Loss) |
Fair Market Value |
Fair Market Value of Investments with Unrealized Losses |
||||||||||||||||
(in thousands) |
||||||||||||||||||||
Marketable securities |
$ | $ | $ | ( |
) | $ | $ | |||||||||||||
Long-term marketable securities |
( |
) | ||||||||||||||||||
| $ | $ | $ | ( |
) | $ | $ | ||||||||||||||
December 31, 2020 |
||||||||||||||||||||
Available-for-Sale |
||||||||||||||||||||
Cost |
Unrealized Gain |
Unrealized (Loss) |
Fair Market Value |
Fair Market Value of Investments with Unrealized Losses |
||||||||||||||||
(in thousands) |
||||||||||||||||||||
U.S. Treasury securities |
$ | $ | $ | ( |
) | $ | $ | |||||||||||||
Commercial paper |
( |
) | ||||||||||||||||||
Corporate debt securities |
( |
) | ||||||||||||||||||
Debt mutual funds |
— | — | ||||||||||||||||||
U.S. government agency securities |
( |
) | ||||||||||||||||||
Certificates of deposit and time deposits |
— | — | — | |||||||||||||||||
Non-U.S. government securities |
— | — | — | |||||||||||||||||
| $ | $ | $ | ( |
) | $ | $ | ||||||||||||||
Cost |
Unrealized Gain |
Unrealized (Loss) |
Fair Market Value |
Fair Market Value of Investments with Unrealized Losses |
||||||||||||||||
(in thousands) |
||||||||||||||||||||
Marketable securities |
$ | $ | $ | ( |
) | $ | $ | |||||||||||||
Long-term marketable securities |
( |
) | ||||||||||||||||||
| $ | $ | $ | ( |
) | $ | $ | ||||||||||||||
July 4, 2021 |
||||||||
Cost |
Fair Market Value |
|||||||
(in thousands) |
||||||||
Due within one year |
$ | $ | ||||||
Due after 1 year through 5 years |
||||||||
Due after 5 years through 10 years |
||||||||
Due after 10 years |
||||||||
Total |
$ | $ | ||||||
Balance Sheet Location |
July 4, 2021 |
December 31, 2020 |
||||||||||
(in thousands) |
||||||||||||
Derivatives not designated as hedging instruments: |
||||||||||||
Foreign exchange contracts |
Prepayments | $ | $ | |||||||||
Foreign exchange contracts |
Other current liabilities | ( |
) | ( |
) | |||||||
Total derivatives |
$ | ( |
) | $ | ( |
) | ||||||
Location of Losses (Gains) Recognized in Statement of Operations |
For the Three Months Ended |
For the Six Months Ended |
||||||||||||||||||
July 4, 2021 |
June 28, 2020 |
July 4, 2021 |
June 28, 2020 |
|||||||||||||||||
(in thousands) |
||||||||||||||||||||
Derivatives not designated as hedging instruments: |
||||||||||||||||||||
Foreign exchange contracts |
Other (income) expense, net | $ | $ | $ | $ | |||||||||||||||
| (1) | The table does not reflect the corresponding gains and losses from the remeasurement of the monetary assets and liabilities denominated in foreign currencies. |
| (2) | For the three and six months ended July 4, 2021, net gains from the remeasurement of monetary assets and liabilities denominated in foreign currencies were $ |
| (3) | For the three months ended June 28, 2020, net losses from the remeasurement of monetary assets and liabilities denominated in foreign currencies were $ |
July 4, 2021 |
December 31, 2020 |
|||||||
(in thousands) |
||||||||
| Debt principal |
$ | $ | ||||||
| Unamortized discount |
||||||||
| |
|
|
|
|||||
| Net carrying amount of convertible debt |
$ | $ | ||||||
| |
|
|
|
|||||
July 4, 2021 |
December 31, 2020 |
|||||||
(in thousands) |
||||||||
| Current debt |
$ | $ | ||||||
| Long-term debt |
||||||||
| |
|
|
|
|||||
| Net carrying amount of convertible debt |
$ | $ | ||||||
| |
|
|
|
|||||
For the Three Months Ended |
For the Six Months Ended |
|||||||||||||||
July 4, 2021 |
June 28, 2020 |
July 4, 2021 |
June 28, 2020 |
|||||||||||||
(in thousands) |
||||||||||||||||
| Contractual interest expense on the coupon |
$ | $ | $ | $ | ||||||||||||
| Amortization of the discount component and debt issue fees recognized as interest expense |
||||||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Total interest expense on the convertible debt |
$ | $ | $ | $ | ||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
July 4, 2021 |
December 31, 2020 |
|||||||
(in thousands) |
||||||||
| Contract manufacturer and supplier prepayments |
$ | $ | ||||||
| Prepaid maintenance and other services |
||||||||
| Prepaid taxes |
||||||||
| Other prepayments |
||||||||
| |
|
|
|
|||||
| Total prepayments |
$ | $ | ||||||
| |
|
|
|
|||||
July 4, 2021 |
December 31, 2020 |
|||||||
(in thousands) |
||||||||
| Maintenance, service and training |
$ | $ | ||||||
| Extended warranty |
||||||||
| Customer advances, undelivered elements and other |
||||||||
| |
|
|
|
|||||
| Total deferred revenue and customer advances |
$ | $ | ||||||
| |
|
|
|
|||||
For the Three Months Ended |
For the Six Months Ended |
|||||||||||||||
July 4, 2021 |
June 28, 2020 |
July 4, 2021 |
June 28, 2020 |
|||||||||||||
(in thousands) |
||||||||||||||||
| Balance at beginning of period |
$ | $ | $ | $ | ||||||||||||
| Accruals for warranties issued during the period |
||||||||||||||||
| Accruals related to pre-existing warranties |
( |
) | ( |
) | ||||||||||||
| Settlements made during the period |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Balance at end of period |
$ | $ | $ | $ | ||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
For the Three Months Ended |
For the Six Months Ended |
|||||||||||||||
July 4, 2021 |
June 28, 2020 |
July 4, 2021 |
June 28, 2020 |
|||||||||||||
(in thousands) |
||||||||||||||||
| Balance at beginning of period |
$ | $ | $ | $ | ||||||||||||
| Deferral of new extended warranty revenue |
||||||||||||||||
| Recognition of extended warranty deferred revenue |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Balance at end of period |
$ | $ | $ | $ | ||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
For the Six Months Ended | ||||
July 4, 2021 |
June 28, 2020 | |||
| Risk-free interest rate |
||||
| Teradyne volatility-historical |
||||
| NYSE Composite Index volatility-historical |
||||
| Dividend yield |
||||
For the Six Months Ended | ||||
July 4, 2021 |
June 28, 2020 | |||
| Expected life (years) |
||||
| Risk-free interest rate |
||||
| Volatility-historical |
||||
| Dividend yield |
||||
Foreign Currency Translation Adjustment |
Unrealized Gains (Losses) on Marketable Securities |
Retirement Plans Prior Service Credit |
Total |
|||||||||||||
(in thousands) |
||||||||||||||||
| Six Months Ended July 4, 2021 |
||||||||||||||||
| Balance at December 31, 2020, net of tax of $ |
$ | $ | $ | $ | ||||||||||||
| Other comprehensive loss before reclassifications, net of tax of $ |
( |
) | ( |
) | ( |
) | ||||||||||
| Amounts reclassified from accumulated other comprehensive income, net of tax of $ |
( |
) | ( |
) | ( |
) | ||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Net current period other comprehensive loss, net of tax of $ |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Balance at July 4, 2021, net of tax of $ |
$ | $ | $ | $ | ||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Six Months Ended June 28, 2020 |
||||||||||||||||
| Balance at December 31, 2019, net of tax of $ |
$ | ( |
) | $ | $ | $ | ( |
) | ||||||||
| Other comprehensive income before reclassifications, net of tax of $ |
||||||||||||||||
| Amounts reclassified from accumulated other comprehensive income, net of tax of $ |
( |
) | ( |
) | ( |
) | ||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Net current period other comprehensive income (loss), net of tax of $ |
( |
) | ||||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Balance at June 28, 2020, net of tax of $ |
$ | ( |
) | $ | $ | $ | ( |
) | ||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Details about Accumulated Other Comprehensive Income (Loss) Components |
For the Three Months Ended |
For the Six Months Ended |
Affected Line Item in the Statements of Operations |
|||||||||||||||||
July 4, 2021 |
June 28, 2020 |
July 4, 2021 |
June 28, 2020 |
|||||||||||||||||
(in thousands) |
||||||||||||||||||||
| Available-for-sale marketable securities: |
||||||||||||||||||||
| Unrealized (losses) gains, net of tax of $( |
$ | ( |
) | $ | $ | $ | Other (income) expense, net |
| ||||||||||||
| Defined benefit post-retirement plan: |
||||||||||||||||||||
| Amortization of prior service credit, net of tax of $ |
(a) | |||||||||||||||||||
| |
|
|
|
|
|
|
|
|||||||||||||
| Total reclassifications, net of tax of $( |
$ | ( |
) | $ | $ | $ | Net income | |||||||||||||
| |
|
|
|
|
|
|
|
|||||||||||||
Industrial Automation |
System Test |
Wireless Test |
Semiconductor Test |
Total |
||||||||||||||||
(in thousands) |
||||||||||||||||||||
| Balance at December 31, 2020 |
||||||||||||||||||||
| Goodwill |
$ | $ | $ | $ | $ | |||||||||||||||
| Accumulated impairment losses |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
| |
|
|
|
|
|
|
|
|
|
|||||||||||
| Foreign currency translation adjustment |
( |
) | ( |
) | ( |
) | ||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|||||||||||
| Balance at July 4, 2021 |
||||||||||||||||||||
| Goodwill |
||||||||||||||||||||
| Accumulated impairment losses |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
| |
|
|
|
|
|
|
|
|
|
|||||||||||
| $ | $ | $ | $ | $ | ||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|||||||||||
Gross Carrying Amount |
Accumulated Amortization |
Foreign Currency Translation Adjustment |
Net Carrying Amount |
|||||||||||||
| Balance at July 4, 2021 |
(in thousands) |
|||||||||||||||
| Developed technology |
$ | $ | ( |
) | $ | ( |
) | $ | ||||||||
| Customer relationships |
( |
) | ||||||||||||||
| Tradenames and trademarks |
( |
) | ||||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Total intangible assets |
$ | $ | ( |
) | $ | ( |
) | $ | ||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Balance at December 31, 2020 |
||||||||||||||||
| Developed technology |
$ | $ | ( |
) | $ | ( |
) | $ | ||||||||
| Customer relationships |
( |
) | ||||||||||||||
| Tradenames and trademarks |
( |
) | ||||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Total intangible assets |
$ | $ | ( |
) | $ | ( |
) | $ | ||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Year |
Amortization Expense |
|||
(in thousands) |
||||
| 2021(remainder) |
$ | |||
| 2022 |
||||
| 2023 |
||||
| 2024 |
||||
| 2025 |
||||
| Thereafter |
||||
For the Three Months Ended |
For the Six Months Ended |
|||||||||||||||
July 4, 2021 |
June 28, 2020 |
July 4, 2021 |
June 28, 2020 |
|||||||||||||
(in thousands, except per share amounts) |
||||||||||||||||
| Net income for basic and diluted net income per share |
$ | $ | $ | $ | ||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Weighted average common shares-basic |
||||||||||||||||
| Effect of dilutive potential common shares: |
||||||||||||||||
| Incremental shares from assumed conversion of convertible notes (1) |
||||||||||||||||
| Convertible note hedge warrant shares (2) |
||||||||||||||||
| Restricted stock units |
||||||||||||||||
| Stock options |
||||||||||||||||
| Employee stock purchase plan |
||||||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Dilutive potential common shares |
||||||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Weighted average common shares-diluted |
||||||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Net income per common share-basic |
$ | $ | $ | $ | ||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Net income per common share-diluted |
$ | $ | $ | $ | ||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| (1) | Incremental shares from assumed conversion of the convertible notes were calculated using the difference between the average Teradyne stock price for the period and the conversion price of $ |
| (2) | Convertible notes hedge warrant shares were calculated using the difference between the average Teradyne stock price for the period and the warrant price of $ |
For the Three Months Ended |
||||||||||||||||
July 4, 2021 |
June 28, 2020 |
|||||||||||||||
United States |
Foreign |
United States |
Foreign |
|||||||||||||
(in thousands) |
||||||||||||||||
Service cost |
$ | $ | $ | $ | ||||||||||||
Interest cost |
||||||||||||||||
Expected return on plan assets |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Net actuarial (gain) loss |
( |
) | — | — | ||||||||||||
Total net periodic pension cost |
$ | $ | $ | $ | ||||||||||||
For the Six Months Ended |
||||||||||||||||
July 4, 2021 |
June 28, 2020 |
|||||||||||||||
UnitedStates |
Foreign |
UnitedStates |
Foreign |
|||||||||||||
(in thousands) |
||||||||||||||||
Service cost |
$ | $ | $ | $ | ||||||||||||
Interest cost |
||||||||||||||||
Expected return on plan assets |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Net actuarial (gain) loss |
( |
) | — | — | ||||||||||||
Total net periodic pension cost |
$ | $ | $ | $ | ||||||||||||
For the Three Months Ended |
For the Six Months Ended |
|||||||||||||||
July 4, 2021 |
June 28, 2020 |
July 4, 2021 |
June 28, 2020 |
|||||||||||||
(in thousands) |
||||||||||||||||
Service cost |
$ | $ | $ | $ | ||||||||||||
Interest cost |
||||||||||||||||
Amortization of prior service credit |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Net actuarial gain |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Total net periodic postretirement benefit credit |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||
For the Three Months Ended |
For the Six Months Ended |
|||||||||||||||
July 4, 2021 |
June 28, 2020 |
July 4, 2021 |
June 28, 2020 |
|||||||||||||
U.S. statutory federal tax rate |
% | % | % | % | ||||||||||||
Foreign taxes |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
International provisions of the U.S. Tax Cuts and Jobs Act of 2017 |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Tax credits |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Discrete benefit related to equity compensation |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Other, net |
||||||||||||||||
Effective tax rate |
% | % | % | % | ||||||||||||
Semiconductor Test |
System Test |
Industrial Automation |
Wireless Test |
Corporate and Other |
Consolidated |
|||||||||||||||||||
(in thousands) |
||||||||||||||||||||||||
| Three Months Ended July 4, 2021 |
||||||||||||||||||||||||
| Revenues |
$ | $ | $ | $ | $ | ( |
) | $ | ||||||||||||||||
| Income (loss) before income taxes (1)(2) |
( |
) | ||||||||||||||||||||||
| Total assets (3) |
||||||||||||||||||||||||
| Three Months Ended June 28, 2020 |
||||||||||||||||||||||||
| Revenues |
$ | $ | $ | $ | $ | ( |
) | $ | ||||||||||||||||
| Income (loss) before income taxes (1)(2) |
( |
) | ( |
) | ||||||||||||||||||||
| Total assets (3) |
||||||||||||||||||||||||
| Six Months Ended July 4, 2021 |
||||||||||||||||||||||||
| Revenues |
$ | $ | $ | $ | $ | ( |
) | $ | ||||||||||||||||
| Income (loss) before income taxes (1)(2) |
( |
) | ||||||||||||||||||||||
| Total assets (3) |
||||||||||||||||||||||||
| Six Months Ended June 28, 2020 |
||||||||||||||||||||||||
| Revenues |
$ | $ | $ | $ | $ | ( |
) | $ | ||||||||||||||||
| Income (loss) before income taxes (1)(2) |
( |
) | ( |
) | ||||||||||||||||||||
| Total assets (3) |
||||||||||||||||||||||||
| (1) | Included in Corporate and Other are: contingent consideration adjustments, loss on convertible debt conversions, interest income, interest expense, net foreign exchange gains (losses), pension, intercompany eliminations and acquisition related: (a) charges; (b) legal fees; (c) compensation. |
| (2) | Included in income (loss) before taxes are charges and credits related to restructuring and other, loss on convertible debt conversions and inventory charges. |
| (3) | Total assets are attributable to each segment. Corporate assets consist of cash and cash equivalents, marketable securities and certain other assets. |
For the Three Months Ended |
For the Six Months Ended |
|||||||||||||||
July 4, 2021 |
June 28, 2020 |
July 4, 2021 |
June 28, 2020 |
|||||||||||||
(in thousands) |
||||||||||||||||
| Semiconductor Test: |
||||||||||||||||
| Cost of revenues - inventory charge |
$ | — | $ | $ | $ | |||||||||||
| Restructuring and other - c ontract termination settlement charge |
— | — | ||||||||||||||
| Industrial Automation: |
||||||||||||||||
| Restructuring and other - acquisition related expenses and compensation |
$ | — | $ | — | $ | $ | ||||||||||
| Cost of revenues - inventory charge |
— | — | — | |||||||||||||
| Wireless: |
||||||||||||||||
| Cost of revenues - inventory charge |
$ | — | $ | $ | $ | |||||||||||
| Corporate and Other: |
||||||||||||||||
| Restructuring and other - other |
$ | $ | $ | $ | ||||||||||||
| Other (income) expense, net - l oss on convertible debt conversion |
— | — | ||||||||||||||
| Restructuring and other - AutoGuide contingent consideration adjustment |
— | ( |
) | |||||||||||||
| Restructuring and other - acquisition related expenses and compensation |
— | ( |
) | |||||||||||||
| Restructuring and other - MiR contingent consideration adjustment |
— | ( |
) | — | ( |
) | ||||||||||
Item 2: |
Management’s Discussion and Analysis of Financial Condition and Results of Operations |
| • | semiconductor test (“Semiconductor Test”) systems; |
| • | storage and system level test (“Storage Test”) systems, defense/aerospace (“Defense/Aerospace”) test instrumentation and systems and circuit-board test and inspection (“Production Board Test”) systems (collectively these products represent “System Test”); |
| • | wireless test (“Wireless Test”) systems; and |
| • | industrial automation (“Industrial Automation”) products. |
For the Three Months Ended |
For the Six Months Ended |
|||||||||||||||
July 4, 2021 |
June 28, 2020 |
July 4, 2021 |
June 28, 2020 |
|||||||||||||
| Percentage of revenues: |
||||||||||||||||
| Revenues: |
||||||||||||||||
| Products |
88 | % | 88 | % | 86 | % | 87 | % | ||||||||
| Services |
12 | 12 | 14 | 13 | ||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Total revenues |
100 | 100 | 100 | 100 | ||||||||||||
| Cost of revenues: |
||||||||||||||||
| Cost of products |
36 | 38 | 35 | 38 | ||||||||||||
| Cost of services |
5 | 5 | 5 | 5 | ||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) |
40 | 44 | 41 | 43 | ||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Gross profit |
60 | 56 | 59 | 57 | ||||||||||||
| Operating expenses: |
||||||||||||||||
| Selling and administrative |
13 | 14 | 14 | 15 | ||||||||||||
| Engineering and development |
10 | 11 | 11 | 12 | ||||||||||||
| Acquired intangible assets amortization |
— | 1 | 1 | 1 | ||||||||||||
| Restructuring and other |
— | 3 | — | 1 | ||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Total operating expenses |
24 | 29 | 26 | 29 | ||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Income from operations |
36 | 27 | 33 | 28 | ||||||||||||
| Non-operating (income) expense: |
||||||||||||||||
| Interest income |
— | — | — | — | ||||||||||||
| Interest expense |
1 | 1 | 1 | 1 | ||||||||||||
| Other (income) expense, net |
— | — | — | — | ||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Income before income taxes |
35 | 26 | 33 | 27 | ||||||||||||
| Income tax provision |
5 | 3 | 4 | 3 | ||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Net income |
30 | % | 23 | % | 29 | % | 24 | % | ||||||||
| |
|
|
|
|
|
|
|
|||||||||
For the Three Months Ended |
||||||||||||
July 4, 2021 |
June 28, 2020 |
Dollar Change |
||||||||||
(in millions) |
||||||||||||
| Semiconductor Test |
$ | 834.0 | $ | 659.1 | $ | 174.9 | ||||||
| System Test |
104.8 | 71.8 | 33.0 | |||||||||
| Industrial Automation |
92.2 | 58.8 | 33.4 | |||||||||
| Wireless Test |
54.9 | 49.2 | 5.7 | |||||||||
| Corporate and Other |
(0.1 | ) | (0.3 | ) | 0.2 | |||||||
| |
|
|
|
|
|
|||||||
| $ | 1,085.7 | $ | 838.7 | $ | 247.0 | |||||||
| |
|
|
|
|
|
|||||||
For the Three Months Ended |
||||||||
July 4, 2021 |
June 28, 2020 |
|||||||
| Taiwan |
44 | % | 51 | % | ||||
| China |
15 | 14 | ||||||
| United States |
9 | 7 | ||||||
| Korea |
9 | 6 | ||||||
| Philippines |
6 | 2 | ||||||
| Europe |
5 | 6 | ||||||
| Japan |
5 | 7 | ||||||
| Thailand |
3 | 3 | ||||||
| Malaysia |
2 | 1 | ||||||
| Singapore |
1 | 2 | ||||||
| Rest of World |
1 | 1 | ||||||
| |
|
|
|
|||||
| 100 | % | 100 | % | |||||
| |
|
|
|
|||||
| (1) | Revenues attributable to a country are based on location of customer site. |
For the Three Months Ended |
||||||||||||
July 4, 2021 |
June 28, 2020 |
Dollar/ Point Change |
||||||||||
(in millions) |
||||||||||||
| Gross profit |
$ | 647.0 | $ | 471.5 | $ | 175.5 | ||||||
| Percent of total revenues |
59.6 | % | 56.2 | % | 3.4 | |||||||
For the Three Months Ended |
||||||||||||
July 4, 2021 |
June 28, 2020 |
Dollar Change |
||||||||||
(in millions) |
||||||||||||
| Selling and administrative |
$ | 140.2 | $ | 113.3 | $ | 26.9 | ||||||
| Percent of total revenues |
12.9 | % | 13.5 | % | ||||||||
For the Three Months Ended |
||||||||||||
July 4, 2021 |
June 28, 2020 |
Dollar Change |
||||||||||
(in millions) |
||||||||||||
| Engineering and development |
$ | 110.0 | $ | 94.1 | $ | 15.9 | ||||||
| Percent of total revenues |
10.1 | % | 11.2 | % | ||||||||
For the Three Months Ended |
||||||||||||
July 4, 2021 |
June 28, 2020 |
Dollar Change |
||||||||||
(in millions) |
||||||||||||
| Interest income |
$ | (0.6 | ) | $ | (1.4 | ) | $ | 0.8 | ||||
| Interest expense |
5.6 | 6.0 | (0.4 | ) | ||||||||
| Other (income) expense, net |
(0.1 | ) | (4.0 | ) | 3.9 | |||||||
For the Three Months Ended |
||||||||||||
July 4, 2021 |
June 28, 2020 |
Dollar Change |
||||||||||
(in millions) |
||||||||||||
| Semiconductor Test |
$ | 337.3 | $ | 228.8 | $ | 108.5 | ||||||
| System Test |
34.0 | 19.2 | 14.8 | |||||||||
| Wireless Test |
21.5 | 14.5 | 7.0 | |||||||||
| Industrial Automation |
(9.8 | ) | (11.4 | ) | 1.6 | |||||||
| Corporate and Other (1) |
1.1 | (33.8 | ) | 34.9 | ||||||||
| |
|
|
|
|
|
|||||||
| $ | 384.0 | $ | 217.3 | $ | 166.7 | |||||||
| |
|
|
|
|
|
|||||||
| (1) | Included in Corporate and Other are: contingent consideration adjustments, loss on convertible debt conversions, interest income, interest expense, net foreign exchange gains (losses), pension, intercompany eliminations and acquisition related: (a) charges; (b) legal fees; (c) compensation. |
For the Six Months Ended |
||||||||||||
July 4, 2021 |
June 28, 2020 |
Dollar Change |
||||||||||
(in millions) |
||||||||||||
| Semiconductor Test |
$ | 1,362.0 | $ | 1,143.6 | $ | 218.4 | ||||||
| System Test |
237.7 | 187.9 | 49.8 | |||||||||
| Industrial Automation |
172.1 | 119.1 | 53.0 | |||||||||
| Wireless Test |
95.8 | 92.7 | 3.1 | |||||||||
| Corporate and Other |
(0.3 | ) | (0.3 | ) | — | |||||||
| |
|
|
|
|
|
|||||||
| $ | 1,867.3 | $ | 1,543.0 | $ | 324.3 | |||||||
| |
|
|
|
|
|
|||||||
For the Six Months Ended |
||||||||
July 4, 2021 |
June 28, 2020 |
|||||||
| Taiwan |
40 | % | 41 | % | ||||
| China |
17 | 15 | ||||||
| United States |
9 | 9 | ||||||
| Korea |
9 | 10 | ||||||
| Europe |
6 | 7 | ||||||
| Philippines |
5 | 2 | ||||||
| Thailand |
5 | 4 | ||||||
| Japan |
4 | 7 | ||||||
| Malaysia |
3 | 2 | ||||||
| Singapore |
2 | 2 | ||||||
| Rest of World |
— | 1 | ||||||
| |
|
|
|
|||||
| 100 | % | 100 | % | |||||
| |
|
|
|
|||||
| (1) | Revenues attributable to a country are based on location of customer site. |
For the Six Months Ended |
||||||||||||
July 4, 2021 |
June 28, 2020 |
Dollar/ Point Change |
||||||||||
(in millions) |
||||||||||||
| Gross profit |
$ | 1,108.6 | $ | 877.0 | $ | 231.6 | ||||||
| Percent of total revenues |
59.4 | % | 56.8 | % | 2.6 | |||||||
For the Six Months Ended |
||||||||||||
July 4, 2021 |
June 28, 2020 |
Dollar Change |
||||||||||
(in millions) |
||||||||||||
| Selling and administrative |
$ | 270.0 | $ | 224.6 | $ | 45.4 | ||||||
| Percent of total revenues |
14.5 | % | 14.6 | % | ||||||||
For the Six Months Ended |
||||||||||||
July 4, 2021 |
June 28, 2020 |
Dollar Change |
||||||||||
(in millions) |
||||||||||||
| Engineering and development |
$ | 210.4 | $ | 179.3 | $ | 31.1 | ||||||
| Percent of total revenues |
11.3 | % | 11.6 | % | ||||||||
For the Six Months Ended |
||||||||||||
July 4, 2021 |
June 28, 2020 |
Dollar Change |
||||||||||
(in millions) |
||||||||||||
| Interest income |
$ | (1.4 | ) | $ | (4.1 | ) | $ | 2.7 | ||||
| Interest expense |
11.6 | 11.6 | — | |||||||||
| Other (income) expense, net |
3.7 | 2.8 | 0.9 | |||||||||
For the Six Months Ended |
||||||||||||
July 4, 2021 |
June 28, 2020 |
Dollar Change |
||||||||||
(in millions) |
||||||||||||
| Semiconductor Test |
$ | 513.7 | $ | 382.6 | $ | 131.1 | ||||||
| System Test |
85.0 | 67.6 | 17.4 | |||||||||
| Wireless Test |
31.1 | 24.7 | 6.4 | |||||||||
| Industrial Automation |
(22.8 | ) | (26.7 | ) | 3.9 | |||||||
| Corporate and Other (1) |
1.1 | (33.8 | ) | 34.9 | ||||||||
| |
|
|
|
|
|
|||||||
| $ | 608.0 | $ | 414.4 | $ | 193.6 | |||||||
| |
|
|
|
|
|
|||||||
| (1) | Included in Corporate and Other are, contingent consideration adjustments, loss on convertible debt conversions, interest income, interest expense, net foreign exchange gains (losses), pension, intercompany eliminations, and acquisition related: (a) charges; (b) legal fees; (c) compensation. |
Item 3: |
Quantitative and Qualitative Disclosures about Market Risks |
| Hypothetical Change in Teradyne Stock Price |
Fair Value |
Estimated change in fair value |
Hypothetical percentage increase (decrease) in fair value |
|||||||||
| 10% Increase |
$ | 1,756,039 | $ | 160,127 | 10.0 | % | ||||||
| No Change |
1,595,912 | — | — | |||||||||
| 10% Decrease |
1,435,785 | (160,127 | ) | (10.0 | ) | |||||||
Item 4: |
Controls and Procedures |
Item 1: |
Legal Proceedings |
Item 1A: |
Risk Factors |
Item 2: |
Unregistered Sales of Equity Securities and Use of Proceeds |
| Period |
(a) Total Number of Shares (or Units) Purchased |
(b) Average Price Paid per Share (or Unit) |
(c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs |
(d) Maximum Number (or Approximate Dollar Value) of Shares (or Units) that may Yet Be Purchased Under the Plans or Programs |
||||||||||||||||||||
| April 5, 2021 - May 2, 2021 |
155 | $ | 129.70 | 154 | $ | 1,934,813 | ||||||||||||||||||
| May 3, 2021 – May 30, 2021 |
431 | $ | 123.16 | 424 | $ | 1,882,615 | ||||||||||||||||||
| May 31, 2021 – July 4, 2021 |
613 | $ | 129.49 | 612 | $ | 1,803,416 | ||||||||||||||||||
| |
|
|
|
|
|
|||||||||||||||||||
| 1,199 | (1 | ) | $ | 127.25 | (1 | ) | 1,190 | |||||||||||||||||
| |
|
|
|
|
|
|||||||||||||||||||
| (1) | Includes approximately nine thousand shares at an average price of $126.20 withheld from employees for the payment of taxes. |
Item 4: |
Mine Safety Disclosures |
Item 6: |
Exhibits |
TERADYNE, INC. |
| Registrant |
| / S / SANJAY MEHTA |
| Sanjay Mehta Vice President, Chief Financial Officer and Treasurer (Duly Authorized Officer and Principal Financial Officer) |
August 6, 2021 |