Teradyne Reports Strong Q3 and 9-Month Fiscal 2024 Performance with Revenue Growth and Improved Net Income

Teradyne, Inc. reported a solid performance for the third quarter and the first nine months of fiscal 2024, with total revenues reaching $737.3 million for the three months ended September 29, 2024, up from $703.7 million in the same period of 2023. For the nine months, revenues increased to $2.067 billion from $2.006 billion year-over-year. The growth was primarily driven by a 9% increase in Semiconductor Test revenues, attributed to higher sales in computing and memory applications, despite a decline in System Test and Wireless Test revenues.

Gross profit for the third quarter rose to $436.5 million, compared to $398.3 million in the prior year, reflecting a gross profit margin increase of 2.6 percentage points. This improvement was partially offset by a $3.6 million legal settlement charge in the Robotics segment. For the nine-month period, gross profit also increased to $1.202 billion from $1.157 billion, with a slight increase in gross profit margin.

Net income for the third quarter was $145.6 million, up from $128.1 million in the same quarter of 2023, while net income for the nine months increased to $396.1 million from $331.7 million. The effective tax rate for the third quarter was 7.8%, down from 11.2% in the previous year, contributing to the improved net income figures.

On the balance sheet, total assets as of September 29, 2024, were $3.770 billion, an increase from $3.487 billion at the end of 2023. Total current assets decreased to $1.839 billion from $2.162 billion, while total current liabilities also fell to $594.9 million from $659.9 million. Shareholders' equity rose significantly to $2.903 billion from $2.526 billion.

Strategically, Teradyne made notable moves, including the sale of its Device Interface Solutions business to Technoprobe for $85 million, resulting in a pre-tax gain of $57.5 million. Additionally, Teradyne invested $524.1 million to acquire a 10% stake in Technoprobe, which included a board seat. The company also reported restructuring charges of $1.3 million in the third quarter related to headcount reductions in Robotics, compared to $4.7 million in the same period of the previous year.

Cash and cash equivalents decreased to $510.0 million from $757.6 million at the end of 2023, reflecting significant cash outflows for investments and capital expenditures. Teradyne's cash flow from operating activities for the nine months was $389.6 million, up from $336.5 million in the prior year, indicating strong operational performance despite the cash decrease.