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TERADYNE Teradyne Reports Second Quarter 2021 Results July 27 , 2021 • Revenue of $ 1,086 million in Q2'21 grew 29 % from Q2'20 and 92 % from Q2'19 • GAAP Gross Margin 59.6 % in Q2'21 , up from 56.2 % in Q2'20 and 57.4 % in Q2'19 • Q2'21 GAAP earnings per share grew 68 % from Q2'20 and 220 % from Q2'19 • Q2'21 non - GAAP earnings per share grew 44 % from Q2'20 and 189 % from Q2'19 • Test revenue grew 27 % from Q2'20 and 103 % from Q2'19 on Semiconductor Test strength • Industrial Automation revenue grew 57 % from Q2'20 and 23 % from Q2'19 on global demand growth at Universal Robots • Q3'21 Revenue guidance at mid - point represents 12 % growth from Q3'20 and 58 % from Q3'19 Revenue ( mil ) GAAP EPS Non - GAAP EPS Q2'21 $ 1,086 $ 1.76 $ 1.91 Q2'20 $ 839 $ 1.05 $ 1.33 Q1'21 $ 782 $ 1.09 $ 1.11 1H'21 $ 1,867 $ 2.85 $ 3.02 1H'20 $ 1,543 $ 2.02 $ 2.34 NORTH READING , Mass . , July 27 , 2021 ( GLOBE NEWSWIRE ) -- Teradyne , Inc. ( NASDAQ : TER ) reported revenue of $ 1,086 million for the second quarter of 2021 of which $ 834 million was in Semiconductor Test , $ 105 million in System Test , $ 55 million in Wireless Test and $ 92 million in Industrial Automation ( IA ) . GAAP net income for the second quarter was $ 328.3 million or $ 1.76 per diluted share . On a non - GAAP basis , Teradyne's net income in the second quarter was $ 337.5 million , or $ 1.91 per diluted share , which excluded acquired intangible asset amortization , restructuring and other charges , non - cash convertible debt interest , and included the related tax impact on non - GAAP adjustments . ' Test demand across all of our end markets remained high in the second quarter and the strong recovery in our Industrial Automation business broadened geographically , " said Teradyne CEO and President Mark Jagiela . " System on a chip ( SOC ) test shipments were exceptionally strong in the quarter growing nearly 30 % from last year's record level . In Industrial Automation , Universal Robots delivered growth in North America , Europe and China compared with both 2020 and 2019 as the improving global economy and expanding range of automation solutions we offer powered our highest quarterly group revenue on record . " As we look ahead , our Q3 outlook reflects continued strong demand from both our Test and Industrial Automation end markets and , at the mid - point of our guidance , puts us on track to grow sales 12 % and GAAP and non - GAAP earnings per share 7 % and 20 % , respectively , from our Q3'20 levels . " Guidance for the third quarter of 2021 is revenue of $ 880 million to $ 960 million , with GAAP net income of $ 1.17 to $ 1.41 per diluted share and non - GAAP net income of $ 1.29 to $ 1.55 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 second quarter results , along with management's business outlook , will follow at 8:30 a.m. ET , Wednesday , July 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 https://investors.teradyne.com/events presentations . 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 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 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