Teradyne(US:TER)2025-02-20 14:55Financial Performance - Total product revenue for the year ended December 31, 2024, was $2.3 billion, with a majority relating to certain product revenue[268]. - Total revenues for 2024 reached $2,819,880, an increase of 5.3% compared to $2,676,298 in 2023[276]. - Product revenues increased to $2,294,935 in 2024, up 9.5% from $2,096,286 in 2023[276]. - Net income for 2024 was $542,372, representing a 20.9% increase from $448,752 in 2023[276]. - Gross profit for 2024 was $1,648,927, a rise of 7.3% compared to $1,536,748 in 2023[276]. - Basic net income per share for 2024 was $3.41, up from $2.91 in 2023, marking a 17.2% increase[276]. - The company reported a gross margin of approximately 58.4% in 2024, compared to 57.4% in 2023[276]. Shareholder Activities - The company repurchased a total of 1,247 shares during the period from September 30, 2024, to December 31, 2024, at an average price of $115.95 per share[164]. - A new share repurchase program of $2.0 billion was approved in January 2023, replacing the previous program[166]. - Approximately 2,000 shares were withheld from employees for tax payments at an average price of $122.14[164]. - The excise tax incurred on share repurchases is included as part of the cost basis of shares repurchased[165]. Assets and Liabilities - Total assets increased to $3,708,714 in 2024, up from $3,486,824 in 2023, reflecting a growth of 6.4%[274]. - Total liabilities decreased to $889,420 in 2024, down 7.4% from $960,927 in 2023[274]. - Shareholders' equity rose to $2,819,294 in 2024, an increase of 11.6% from $2,525,897 in 2023[274]. Cash Flow and Investments - Cash flows from operating activities for 2023 were $672,176 thousand, compared to $585,231 thousand in 2022, reflecting a 14.9% increase[286]. - Investments in businesses amounted to $532,060 thousand in 2024, indicating a significant capital allocation strategy[286]. - The total cash and cash equivalents at the end of 2023 were $553,354 thousand, down from $757,571 thousand at the end of 2022[286]. Revenue Recognition and Deferred Revenue - Teradyne's total deferred revenue and customer advances increased to $148.215 million in 2024 from $137.086 million in 2023, representing an increase of approximately 8.3%[299]. - The company recognizes revenue from contracts with customers when control is transferred, following a five-step process as per ASC 606[292]. - Teradyne's unsatisfied performance obligations as of December 31, 2024, amounted to $1,162.2 million, with an expectation to recognize 88% of this in the next 12 months[344]. Foreign Currency and Hedging - The company has entered into foreign currency forward contracts to hedge against exchange rate fluctuations, with maturities of approximately one month[251]. - A sensitivity analysis indicated that a hypothetical 10% fluctuation in foreign exchange rates would not have a material effect on the company's consolidated financial position as of December 31, 2024[253]. - The change in fair value of outstanding foreign currency forward contracts resulted in a loss of $0.6 million at December 31, 2024, compared to a loss of $1.8 million at December 31, 2023[373]. Pension and Employee Benefits - The accumulated benefit obligation for U.S. defined benefit pension plans was $109.0 million in 2024, down from $142.2 million in 2023[429]. - The fair value of Teradyne's pension plans' assets totaled $83.4 million as of December 31, 2024, with $81.4 million related to the U.S. Plan[436]. - Teradyne's net periodic pension cost for 2024 was $773,000 for the U.S. Plan, compared to a cost of $2.566 million in 2023[431]. Goodwill and Intangible Assets - The total goodwill as of December 31, 2024, was $1.157933 billion, with no impairment recorded for the Robotics and Wireless Test reporting units during the annual goodwill impairment tests conducted in 2024 and 2023[404][402]. - Teradyne's aggregate intangible assets amortization expense for 2024 was $18.8 million, slightly down from $19.0 million in 2023[407]. - The carrying amount of developed technology intangible assets was $6.438 million as of December 31, 2024, after accounting for accumulated amortization and foreign currency translation adjustments[406]. Operational Efficiency - The company maintains effective internal control over financial reporting as of December 31, 2024, based on established criteria[259]. - Teradyne's engineering and development costs are primarily expensed as incurred, consisting mainly of salaries and contractor fees, reflecting the high technical nature of its products[326]. - The company plans to continue investing in new product development and market expansion strategies in the upcoming year[276].