Teradyne(US:TER)2025-10-29 11:00Financial Performance - Revenue for Q3 2025 was $769 million, up 4% from $737 million in Q3 2024[1] - GAAP net income for Q3 2025 was $119.6 million, or $0.75 per diluted share, compared to $0.89 per diluted share in Q3 2024[1] - Non-GAAP net income for Q3 2025 was $135.9 million, or $0.85 per diluted share, down from $0.90 per diluted share in Q3 2024[1] - Total net income for the nine months ended September 28, 2025, was $296.8 million, compared to $396.1 million for the same period in 2024[10] - For the nine months ended September 28, 2025, net revenues were $2,106.7 million, a slight increase from $2,067.0 million in the same period of 2024[19] - Net income (GAAP) for the nine months ended September 28, 2025, was $296.8 million, or $1.86 per diluted share, down from $396.1 million or $2.51 per diluted share in 2024[19] - Non-GAAP net income for the same period was $349.1 million, or $2.18 per diluted share, compared to $370.1 million or $2.34 per diluted share in 2024[19] Revenue Guidance - Q4 2025 revenue is expected to be between $920 million and $1,000 million, representing a sequential increase of 25%[2] - Fourth quarter 2025 revenue guidance is between $920 million and $1,000 million, with GAAP net income per diluted share expected to be between $1.12 and $1.39[22] - Non-GAAP net income per diluted share for the fourth quarter 2025 is projected to be between $1.20 and $1.46[22] Segment Performance - Semiconductor Test contributed $606 million to Q3 2025 revenue, driven by strong demand for AI-related applications[2] - The company anticipates robust AI-related test demand across compute, networking, and memory segments in Q4 2025[4] Cash and Assets - Total current assets as of September 28, 2025, were $1.750 billion, a slight decrease from $1.816 billion as of December 31, 2024[13] - Cash and cash equivalents decreased to $272.700 million as of September 28, 2025, from $553.354 million at the end of 2024, indicating a decline of 50.8%[13] - Total liabilities increased to $1.246 billion as of September 28, 2025, from $889.420 million at the end of 2024, reflecting a significant rise of 40.3%[13] - The company’s inventories increased to $366.752 million as of September 28, 2025, from $298.492 million at the end of 2024, representing a growth of 22.8%[13] Operating Performance - The company reported a net cash provided by operating activities of $392.776 million for the nine months ended September 28, 2025, compared to $389.619 million for the same period in 2024, showing a slight increase of 0.3%[14] - Gross profit (GAAP) was $449.3 million, or 58.4% of net revenues, compared to $373.0 million (57.2%) in the previous quarter[15] - Non-GAAP income from operations was $156.9 million, or 20.4% of net revenues, up from $98.2 million (15.1%) in the previous quarter[15] - Restructuring and other expenses totaled $6.6 million, significantly higher than $2.4 million in the previous quarter, primarily due to employee severance costs[17] - Restructuring and other expenses totaled $23.4 million for the nine months ended September 28, 2025, significantly higher than $11.0 million in 2024, primarily due to employee severance related to Robotics restructuring[20] Legal and Other Expenses - The company incurred legal settlement charges related to patent infringement, impacting the financial results for the quarter[16] - The company incurred acquisition and divestiture-related expenses of $2.043 million for the nine months ended September 28, 2025, compared to $2.214 million in the same period of 2024[11] - The company reported a pension settlement loss of $800,000 for the nine months ended September 28, 2025[12] Business Operations - Teradyne's advanced robotics business includes collaborative and mobile robots supporting manufacturing and warehouse operations[6] - The company is implementing a planned ERP system, which has incurred related expenses in the selling and administrative costs[17] - The company is implementing a planned ERP system, which has incurred related selling and administrative expenses[21] Shareholder Information - The average diluted common shares outstanding were 159.1 million for the quarter, compared to 160.0 million in the previous quarter[15] - GAAP net income for the quarter was $119.6 million, with diluted earnings per share of $0.75, compared to $78.4 million and $0.49 per share in the previous quarter[15] - Non-GAAP net income was $135.9 million, or $0.86 per diluted share, compared to $91.6 million ($0.57) in the previous quarter[15] - The gross profit margin decreased slightly from 59.2% in the same quarter last year to 58.4% in the current quarter[15]