QUOTE AND NEWS
SeekingAlpha  6 hrs ago  Comment 
Teradyne (NYSE:TER) Q2 2014 Earnings Call July 24, 2014 10:00 am ET Executives Andrew J. Blanchard - Vice President of Corporate Relations Mark E. Jagiela - Chief Executive Officer, President, Director and President of Semiconductor...
newratings.com  Jul 24  Comment 
WASHINGTON (dpa-AFX) - Automated test-equipment maker Teradyne, Inc. (TER) reported Wednesday a profit for the second quarter that increased from last year, reflecting improved operating margins and double-digit revenue growth. Both adjusted...
newratings.com  Jul 23  Comment 
WASHINGTON (dpa-AFX) - Teradyne Inc. (TER) Wednesday reported second-quarter net income of $101.2 million or $0.47 per share, up from $66.6 million or $0.28 per share last year. Adjusted earnings for the quarter rose to $0.54 per share from $0.43...
SeekingAlpha  Jul 23  Comment 
The following audio is from a conference call that will begin on July 23, 2014 at 10:00 AM ET. The audio will stream live while the call is active, and can be replayed upon its completion. Listen now Complete Story »
Market Intelligence Center  Jul 22  Comment 
For a hedged play on Teradyne Inc. (TER) MarketIntelligenceCenter.com’s patented trade-picking algorithms selected a Jan. '15 $19.00 covered call for a net debit in the $17.85 area. That is also the break-even stock price for the covered call....
DailyFinance  Jul 16  Comment 
Teradyne, Inc. (NYSE:TER) announced the election of Mercedes Johnson to its Board of Directors. Ms. Johnson was also appointed to the Board’s Audit Committee. Ms. Johnson has more than 25 years of financial...
DailyFinance  Jul 14  Comment 
Teradyne, Inc. (NYSE: TER) announced that United Test and Assembly Center, Ltd. (UTAC) selected the J750Ex-HD and placed a multi-system order to support its customers’ production ramps of consumer digital devices. ...
DailyFinance  Jul 11  Comment 
Teradyne, Inc. (NYSE: TER) will release financial results for the second quarter of 2014 on Wednesday, July 23 at 5:00 p.m. Eastern Daylight Time (EDT) or later. A conference call to discuss the second quarter 2014...
DailyFinance  Jul 2  Comment 
Teradyne, Inc. (NYSE: TER) announces the release of the Oasis toolset, designed to address the unique test challenges posed by complex semiconductor devices, including applications processors, digital baseband...
DailyFinance  Jul 1  Comment 
Teradyne, Inc. (NYSE: TER) announces the release of three enhancements to the UltraFLEX platform to meet the emerging needs of the latest generation application and baseband processors for mobile devices. New versions of ...




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Teradyne (NYSE: TER)

Company Overview

Business and Financial Metrics

TER Net Revenue, Gross Margin, and Net Income
TER Net Revenue, Gross Margin, and Net Income[1]
TER Net Revenue by Region
TER Net Revenue by Region[2]

Teradyne has consistently invested in engineering and development over the past three years, spending 20.7%, 14.9%, and 18.6% of total revenue in 2005, 2006, and 2007 respectively.[3]

Engineering and Development Expenses (Million USD / % of Total Revenue)[4] 2005 2006 2007
Engineering and Development $216.4 / 20.7% $202.4 / 14.9% $204.3 / 18.6%

Teradyne's customers have the ability to cancel orders suddenly, subject to possible cancellation penalties. The company has faced many cancelled orders due to the highly unpredictable end markets in the semiconductor industry. Accurately predicting cancellations and minimizing backlog presents a challenge for Teradyne, which has reported significant backlog in 2005, 2006 and 2007.[5] Test equipment that is backlogged instead of sold still contributes to production costs, but does not generate any revenue, thus lowering net income.

Teradyne Backlog by Segment (Million USD / % of Total Segment Bookings)[6] 2005 2006 2007
Semiconductor Test $289.7 / 32.9% $212.4 / 21.0% $236.2 / 26.3%
Systems Test Group $117.1 / 44.9% $120.2 / 44.4% $102.5 / 49.2%

Teradyne does business around the world, with 77% of 2007 net revenue coming from outside the United States.[7]

Net Revenue by Region (Million USD / % of Total Revenue)[8] 2005 2006 2007
United States $229.9 / 22% $311.9 / 23% $253.5 / 23%
South East Asia $250.8 / 24% $325.5 / 24% $242.5 / 22%
Europe $156.8 / 15% $189.9 / 14% $132.3 / 12%
Taiwan $135.9 / 13% $189.9 / 14% $143.3 / 13%
Japan $94.1 / 9% $162.7 / 12% $132.3 / 12%
Singapore $146.3 / 14% $149.2 / 11% $165.3 / 15%
Other International $31.4 / 3% $27.1 / 2% $33.1 / 3%

Business Segments

TER Net Revenue by Business Segment
TER Net Revenue by Business Segment[9]
  • Semiconductor Test (80% of Net Revenue) - Teradyne's core semiconductor test segment provides automatic test equipment used by semiconductor manufacturers to improve product quality, reduce time to market, increase production yields, and evaluate product performance.[10] The FLEX Test Platform performs multi-site tests, or tests of many devices and functions in parallel.[11] Semiconductor manufacturers use the multi-site capabilities of the FLEX Platform to improve "Cost of Test" economics, using one test to evaluate all of the necessary capabilities of their specific semiconductor technology.[12] The FLEX Test Platform also has an open architecture, so customizations can be made easily.[13] The FLEX Platform's versatility appeals to manufacturers of semiconductors that have very specific criteria, such as semiconductors in communications and automotive devices. The J750 test system is designed to test large quantities of the basic semiconductors, such as microcontrollers, that are central to most consumer electronics products.[14] Nextest Systems' (NYSE: NEXT), acquired in January 2008, core technology of flash memory semiconductor tests will also be incorporated into this segment.[15]
  • Systems Test Group (20% of Net Revenue) - Teradyne's systems test group consists of three business units: Military/Aerospace Test, Commercial Board Test, and Diagnostic Solutions.[16] Teradyne makes equipment used both to test new electronics systems, such as tactical air to missle systems, as well as upgrades of existing systems in military and commercial aircraft.[17] The Commercial Board Test business unit consists of products that test and inspect the complex circuit boards used in cell phones, computers, servers, automobiles and avionics systems.[18] Increasing complexity of these boards leaves them more vulnerable to assembly error, so advanced testing and inspection hardware and software is necessary to ensure product quality. The Diagnostic Solutions business unit consists of equipment used to diagnose problems in automotive electronic systems, such as navigation and climate control systems.[19]
Net Revenue by Segment (Million USD / % of Total Net Revenue)[20] 2005 2006 2007
Semiconductor Test $814.2 / 77.9% $1088.9 / 80.3% $876.5 / 79.5%
Systems Test Group $230.9 / 22.1% $267.3 / 19.7% $225.8 / 20.5%

Key Trends and Forces

Competition



References

  1. TER 2007 10-k pg. 18  
  2. TER 2007 10-k pg. 24  
  3. TER 2007 10-k pg. 26  
  4. TER 2007 10-k pg. 26  
  5. TER 2007 10-k pg. 23  
  6. TER 2007 10-k pg. 23  
  7. TER 2007 10-k pg. 24  
  8. TER 2007 10-k pg. 24  
  9. TER 2007 10-k pg. 24  
  10. TER 2007 10-k pg. 3  
  11. TER 2007 10-k pg. 4  
  12. TER 2007 10-k pg. 4  
  13. TER 2007 10-k pg. 4  
  14. TER 2007 10-k pg. 4  
  15. TER 2007 10-k pg. 2  
  16. TER 2007 10-k pg. 5  
  17. TER 2007 10-k pg. 5  
  18. TER 2007 10-k pg. 5  
  19. TER 2007 10-k pg. 6  
  20. TER 2007 10-k pg. 23  
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