Teradyne(US:TER)2024-02-21 16:00Financial Performance - Total revenues for 2023 were $2,676,298, a decrease of 15.1% compared to $3,155,045 in 2022[290]. - Net income for 2023 was $448,752, down 37.3% from $715,501 in 2022[290]. - Gross profit for 2023 was $1,536,748, representing a gross margin of approximately 57.4%[290]. - The company reported a basic net income per share of $2.91 for 2023, down from $4.52 in 2022[290]. - Net income for the year ended December 31, 2023, was $706,514,000, a decrease of 6.5% compared to $715,501,000 in 2022[300]. - Cash dividends paid in 2023 were $67,878,000, slightly lower than $69,711,000 in 2022[300]. - The company repurchased common stock worth $397,241,000 in 2023, compared to $752,082,000 in 2022, indicating a significant reduction in buyback activity[300]. - Cash flows from operating activities for 2023 were $585,231,000, an increase from $577,923,000 in 2022[300]. Assets and Liabilities - Total current assets decreased to $2,162,035 in 2023 from $2,257,915 in 2022, a decline of 4.2%[290]. - Total liabilities decreased to $960,927 in 2023 from $1,049,958 in 2022, a reduction of 8.5%[290]. - Cash and cash equivalents decreased to $757,571 in 2023 from $854,773 in 2022, a decline of 11.4%[290]. - Total shareholders' equity increased to $2,525,897 in 2023 from $2,451,294 in 2022, an increase of 3.0%[290]. - As of December 31, 2023, Teradyne's total deferred revenue and customer advances amounted to $137.1 million, a decrease of 29.1% from $193.4 million in 2022[313]. - The balance of maintenance, service, and training deferred revenue was $66.5 million in 2023, down from $78.1 million in 2022, reflecting a decline of 15%[313]. - The balance of extended warranty deferred revenue decreased to $34.9 million in 2023 from $56.2 million in 2022, a decline of 37.9%[314]. - Inventories, net as of December 31, 2023, totaled $309.9 million, a decrease from $325.0 million in 2022[357]. Shareholder Activities - The company repurchased a total of 549,000 shares during the period from October 2, 2023, to December 31, 2023, at an average price of $93.70 per share[171]. - The maximum number of shares that may yet be purchased under the plans or programs is approximately 1,599,497 shares, with a total dollar value of $1,599,497,000[171]. Revenue Recognition and Accounting Policies - Teradyne's hardware revenue is typically recognized at a point in time upon transfer of control to the customer, aligning with the company's revenue recognition policy[310]. - Teradyne recognizes revenue for extended warranties on a straight-line basis over the contract period, with related costs expensed as incurred[314]. - For the year ended December 31, 2023, Teradyne's revenue from point-in-time recognition was $2,259.3 million, while revenue recognized over time was $416.9 million[352]. Foreign Currency and Hedging - The company utilizes foreign currency forward contracts to hedge against exchange rate fluctuations, with maturities of approximately one month[263]. - 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, 2023[266]. - Teradyne's foreign currency forward contracts are used to hedge risks associated with foreign currency exchange rate fluctuations, with maturities of less than six months[377]. - The company evaluates cash flow hedges for effectiveness quarterly, ensuring that the critical terms match method remains appropriate[377]. Pension and Employee Benefits - The accumulated benefit obligation for U.S. defined benefit pension plans was $142.2 million, an increase from $140.6 million in 2022[435]. - The funded status of the U.S. pension plans was a deficit of $31.570 million as of December 31, 2023, compared to a deficit of $32.054 million in 2022[435]. - The net periodic pension cost for 2023 was $2.566 million for U.S. plans and $4.198 million for foreign plans, compared to a net income of $7.623 million in 2022[437]. - The total net periodic postretirement benefit cost for 2023 was $2,992 thousand, a significant increase from a cost of $(923) thousand in 2022[452]. Acquisitions and Divestitures - The company entered into a call option to buy 481.0 million Euros in connection with the acquisition of a 10% investment in Technoprobe S.p.A, expiring on April 26, 2024[265]. - Teradyne entered into an agreement to sell its Device Interface Solutions business for $85.0 million in cash, with the transaction expected to close in the first half of 2024[355]. - The company has recorded a total of $3.1 million in acquisition and divestiture expenses related to the Technoprobe transaction in 2023[428]. Goodwill and Intangible Assets - The goodwill balance as of December 31, 2023, was $1,178,218 thousand, with no impairment identified during the annual test[410]. - Teradyne's total intangible assets included developed technology valued at $267.7 million, customer relationships at $52.1 million, and tradenames and trademarks at $59.0 million as of December 31, 2023[412]. - Total intangible assets as of December 31, 2023, amounted to $378.8 million, a decrease from $388.1 million in 2022, reflecting a net carrying amount reduction of approximately 2%[412]. Other Comprehensive Income and Loss - The total accumulated other comprehensive loss as of December 31, 2023, was $26,978 thousand, reflecting significant losses in foreign currency translation and cash flow hedges[404]. - The total recognized in other comprehensive income (loss) for 2023 was $(1,714) thousand, slightly improved from $(1,720) thousand in 2022[451].