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TERADYNE Teradyne Reports Third Quarter 2021 Results October 26 , 2021 • Revenue of $ 951 million in Q3'21 grew 16 % from Q3'20 and 63 % from Q3'19 • GAAP Gross Margin 60 % in Q3'21 , up from 56 % in Q3'20 and 59 % in Q3'19 • Q3'21 GAAP earnings per share grew 17 % from Q3'20 and 88 % from Q3'19 • Q3'21 non - GAAP earnings per share grew 35 % from Q3'20 and 106 % from Q3'19 • Test revenue grew 14 % from Q3'20 and 67 % from Q3'19 on Semiconductor Test and Wireless Test strength • Industrial Automation revenue grew 32 % from Q3'20 and 32 % from Q3'19 on global demand growth at Universal Robots • Q4'21 Revenue guidance at mid - point represents 13 % growth from Q4'20 and 31 % from Q4'19 Revenue ( mil ) GAAP EPS Non - GAAP EPS Q3'21 $ 951 $ 1.41 $ 1.59 Q3'20 $ 819 $ 1.21 $ 1.18 Q2'21 $ 1,086 $ 1.76 $ 1.91 Q1 - Q3'21 $ 2,818 $ 4.26 $ 4.61 Q1 - Q3'20 $ 2,363 $ 3.23 $ 3.52 NORTH READING , Mass . , Oct. 26 , 2021 ( GLOBE NEWSWIRE ) -- Teradyne , Inc. ( NASDAQ : TER ) reported revenue of $ 951 million for the third quarter of 2021 of which $ 688 million was in Semiconductor Test , $ 103 million in System Test , $ 69 million in Wireless Test and $ 91 million in Industrial Automation ( IA ) . GAAP net income for the third quarter was $ 256.7 million or $ 1.41 per diluted share . On a non - GAAP basis , Teradyne's net income in the third quarter was $ 278.6 million , or $ 1.59 per diluted share , which excluded losses on convertible debt conversions , acquired intangible asset amortization , restructuring and other charges , non - cash convertible debt interest , discrete tax adjustments and included the related tax impact on non - GAAP adjustments . " Demand for both our Test and Industrial Automation products remained strong in Q3 and we delivered our eighth consecutive quarter of double - digit , year on year revenue and profit growth , " said Teradyne CEO and President Mark Jagiela . " Higher than expected test shipments balanced lower than planned shipments from our Industrial Automation businesses as we encountered supply constraints in those product lines in the quarter . " " Q4'21 sales are expected to increase over 10 % from Q4 2020's record level on growing demand in Industrial / Automotive Test , Storage Test , and Industrial Automation . Full year company sales , GAAP EPS and non - GAAP EPS are expected to grow 18 % , 28 % and 27 % , respectively , at the mid - point of our guidance . " Guidance for the fourth quarter of 2021 is revenue of $ 820 million to $ 900 million , with GAAP net income of $ 1.08 to $ 1.33 per diluted share and non - GAAP net income of $ 1.14 to $ 1.40 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 third quarter results , along with management's business outlook , is scheduled at 8:30 a.m. ET , Wednesday , October 27. Interested investors should access the webcast at www.teradyne.com/investors , scroll to the Events section and click View All 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 losses on convertible debt conversions , acquired intangible assets amortization , non - cash convertible debt interest , 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