Teradyne(TER) - 2024 Q4 - Annual Results

Financial Performance - Q4 2024 revenue reached $753 million, a 12% increase from Q4 2023's $671 million, driven by strong demand in AI-related sectors[5] - GAAP net income for Q4 2024 was $146.3 million, or $0.90 per diluted share, compared to $145.6 million, or $0.89 per diluted share in Q3 2024[1] - Non-GAAP net income for Q4 2024 was $155.0 million, or $0.95 per diluted share, up from $0.79 per diluted share in Q4 2023[1] - Total revenue for FY 2024 was $2.82 billion, up from $2.68 billion in FY 2023[1] - For the quarter ended December 31, 2024, net income was $146.253 million, an increase from $117.054 million in the same quarter of 2023, representing a growth of 25.0%[15] - For the twelve months ended December 31, 2024, net revenues increased to $2,819.9 million, up from $2,676.3 million in 2023, representing a growth of 5.4%[19] - Net income on a GAAP basis for 2024 was $542.4 million, representing 19.2% of net revenues, with diluted earnings per share of $3.32, up from $448.8 million and $2.73 in 2023[19] - Non-GAAP net income for 2024 was $525.1 million, or 18.6% of net revenues, with diluted earnings per share of $3.22, compared to $479.6 million and $3.11 in 2023[19] Revenue Segments - Semiconductor Test segment generated $561 million in revenue, with Integrated Systems Test contributing $19 million in Q4 2024[1][3] - Gross profit (non-GAAP) for the quarter was $447.3 million, representing 59.4% of net revenues, compared to 59.7% in the previous quarter and 56.6% in the same quarter last year[16] - Income from operations (non-GAAP) was $163.2 million, or 21.7% of net revenues, down from 22.4% in the previous quarter but up from 20.1% in the same quarter last year[16] Guidance and Projections - Guidance for Q1 2025 anticipates revenue between $660 million and $700 million, with GAAP net income per diluted share projected between $0.48 and $0.59[2] - Year-over-year revenue acceleration is expected in 2025, with continued investment in AI compute and memory sectors[2] - First quarter 2025 revenue guidance is projected between $660 million and $700 million, with GAAP net income per diluted share expected to be between $0.48 and $0.59[22] - Non-GAAP net income per diluted share for the first quarter 2025 is projected to be between $0.58 and $0.68[22] Expenses and Liabilities - Operating expenses for Q4 2024 totaled $293.7 million, compared to $284.4 million in Q3 2024[11] - The company incurred restructuring and other expenses totaling $4.554 million for the quarter ended December 31, 2024, compared to $4.578 million in the previous quarter[12] - Total liabilities decreased to $889.420 million from $960.927 million, a reduction of 7.4% year-over-year[14] - Restructuring and other expenses totaled $15.6 million in 2024, down from $21.3 million in 2023[20] Cash Flow and Assets - Cash dividend declared per common share for Q4 2024 was $0.12, consistent with Q4 2023[11] - Cash and cash equivalents at the end of the period were $553.354 million, down from $757.571 million at the end of 2023, a decrease of 27.0%[15] - The company reported total assets of $3.709 billion as of December 31, 2024, compared to $3.487 billion in 2023, indicating an increase of 6.4%[14] - Operating cash flow for the twelve months ended December 31, 2024, was $672.176 million, up from $585.231 million in 2023, an increase of 14.9%[15] Legal and Other Charges - Legal settlement charges for the quarter included $3.6 million related to a judgment against the company for patent infringement[17] - The company reported a loss on foreign exchange options of $7.5 million, which accounted for -1.1% of net income[18] - The company reported a legal settlement charge of $3.6 million in 2024, which accounted for 0.1% of net revenues[19] Stock and Share Transactions - The company repurchased common stock amounting to $143.521 million during the quarter ended December 31, 2024[15] - The diluted shares included 0.5 million shares from the convertible note hedge transaction for the quarter ended September 29, 2024[13] - Non-GAAP weighted average diluted common shares included 0.5 million shares from the convertible note hedge transaction for the quarter ended September 29, 2024[18]