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TERADYNE Teradyne Reports First Quarter 2021 Results April 27 , 2021 • Revenue of $ 782 million in Q1'21 , growth of 11 % from Q1'20 • Test revenue grew 9 % from Q1'20 • Industrial Automation revenue grew 33 % from Q1'20 • Q2'21 revenue guidance at mid - point represents 25 % growth from Q2'20 Revenue ( mil ) GAAP EPS Non - GAAP EPS Q1'21 Q1'20 Q4'20 $ 782 $ 704 $ 759 $ 1.09 $ 0.97 $ 1.05 $ 1.11 $ 1.00 $ 1.10 NORTH READING , Mass . , April 27 , 2021 ( GLOBE NEWSWIRE ) -- Teradyne , Inc. ( NASDAQ : TER ) reported revenue of $ 782 million for the first quarter of 2021 of which $ 528 million was in Semiconductor Test , $ 133 million in System Test , $ 41 million in Wireless Test and $ 80 million in Industrial Automation ( IA ) . GAAP net income for the first quarter was $ 205.5 million or $ 1.09 per diluted share . On a non - GAAP basis , Teradyne's net income in the first quarter was $ 196.2 million , or $ 1.11 per diluted share , which excluded acquired intangible asset amortization , restructuring and other charges , losses on convertible debt conversions , non - cash convertible debt interest , discrete tax items and included the related tax impact on non - GAAP adjustments . " Coming off a strong 2020 , we continued to grow both our Test and Industrial Automation businesses resulting in first quarter revenue growth of 11 % compared to one year ago , " said Teradyne President and CEO Mark Jagiela . " Test demand for automotive , industrial , memory , and mobility remain strong and growing . The Industrial Automation recovery is in full swing with 33 % growth compared to Q1 2020 . " Looking ahead , test demand at this point in the year is stronger than expected fueled by both continued device complexity increases and unit growth . Both the SOC and Memory test markets will likely exceed the top end of our market forecast resulting in higher sales and profits as reflected in our Q2 guidance . Additionally , increasing forecasts for wafer fabrication equipment investments are a strong indicator for test growth in the years to come . In Industrial Automation , we remain on track for more than 30 % revenue growth in 2021 as demand continues to strengthen . " Guidance for the second quarter of 2021 is revenue of $ 1,010 million to $ 1,090 million , with GAAP net income of $ 1.48 to $ 1.68 per diluted share and non - GAAP net income of $ 1.62 to $ 1.83 per diluted share . Non - GAAP guidance excludes acquired intangible asset amortization , non - cash convertible debt interest and includes the related tax impact on non - GAAP adjustments . Webcast A conference call to discuss the first quarter results , along with management's business outlook , will follow at 8:30 a.m. ET , Wednesday , April 28 . Interested investors should access the webcast at www.teradyne.com and click on " Investors " at least five minutes before the call begins . Presentation materials will be available starting at 8:30 a.m. ET . A replay will be available on the Teradyne website at www.teradyne.com/investors . Non - GAAP Results In addition to disclosing results that are determined in accordance with GAAP , Teradyne also discloses non - GAAP results of operations that exclude certain income items and charges . These results are provided as a complement to results provided in accordance with GAAP . Non - GAAP income from operations and non - GAAP net income exclude acquired intangible assets amortization , non - cash convertible debt interest , losses on convertible debt conversions , pension actuarial gains and losses , discrete income tax adjustments , fair value inventory step - up , and restructuring and other , and includes the related tax impact on non - GAAP adjustments . GAAP requires that these items be included in determining income from operations and net income . Non - GAAP income from operations , non - GAAP net income , non - GAAP income from operations as a percentage of revenue , non - GAAP net income as a percentage of revenue , and non - GAAP net income per share are non - GAAP performance measures presented to provide meaningful supplemental information regarding Teradyne's baseline performance before gains , losses or other charges that may not be indicative of Teradyne's current core business or future outlook . These non - GAAP performance measures are used to make operational decisions , to determine employee compensation , to forecast future operational results , and for comparison with Teradyne's business plan , historical operating results and the operating results of Teradyne's competitors . Non - GAAP gross margin excludes fair value inventory step - up . GAAP requires that this item be included in determining gross margin . Non - GAAP gross margin dollar amount and percentage are non - GAAP performance measures that management believes provide useful supplemental information for management and the investor . Management uses non - GAAP gross margin as a performance measure for Teradyne's current core business and future outlook and for comparison with Teradyne's business plan , historical gross margin results and the gross margin results of Teradyne's competitors . Non - GAAP diluted shares include the impact of Teradyne's call option on its shares . Management believes each of these non - GAAP performance measures provides useful supplemental information for investors , allowing greater transparency to the information used by management in its operational decision making and in the review of Teradyne's financial and operational performance , as well as facilitating meaningful comparisons of Teradyne's results in the current period compared with those in prior and future periods . A reconciliation of each available GAAP to non - GAAP financial measure discussed in this press release is contained in the attached exhibits and on the Teradyne website at www.teradyne.com by clicking on " Investor Relations " and then selecting " Financials " and the " GAAP to Non - GAAP Reconciliation " link . The non - GAAP performance measures discussed in this press release may not be comparable to similarly titled measures used by other companies . The presentation of non - GAAP measures is not meant to be considered in isolation , as a substitute for , or superior to , financial measures or information provided in accordance with GAAP .