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Teradyne Reports Second Quarter 2022 Results

·17 minuto per la lettura
Teradyne, Inc.
Teradyne, Inc.
  • Revenue and earnings above the mid-point of Q2 guidance

  • System Test, Wireless Test and Industrial Automation revenues grew compared with Q2’21 while Semiconductor Test declined consistent with guidance

  • Automotive and memory test demand strong while mobility and compute related demand softening

  • Industrial Automation growth slowing

 

Q2'22

Q2'21

Q1'22

Revenue (mil)

$841

 

$1,086

 

$755

 

GAAP EPS

$1.16

 

$1.76

 

$0.92

 

Non-GAAP EPS

$1.21

 

$1.91

 

$0.98

 

Gross Margin

60.2%

 

59.6%

 

60.2%

 

NORTH READING, Mass., July 26, 2022 (GLOBE NEWSWIRE) -- Teradyne, Inc. (NASDAQ: TER) reported revenue of $841 million for the second quarter of 2022 of which $541 million was in Semiconductor Test, $135 million in System Test, $64 million in Wireless Test and $101 million in Industrial Automation (IA). GAAP net income for the second quarter was $197.8 million or $1.16 per diluted share. On a non-GAAP basis, Teradyne’s net income in the second quarter was $204.0 million, or $1.21 per diluted share, which excluded acquired intangible asset amortization, restructuring and other charges, and included the related tax impact on non-GAAP adjustments.

“We delivered sales and earnings above the mid-point of our second quarter guidance on strong test group shipments despite supply shortages and slowing industrial automation growth,” said Teradyne CEO Mark Jagiela. “As we enter Q3, we’re lowering our shipment plan to align with reduced mobility related test demand, slower industrial automation growth, and continued supply shortages.”

Guidance for the third quarter of 2022 is revenue of $760 million to $840 million, with GAAP net income of $0.86 to $1.12 per diluted share and non-GAAP net income of $0.90 to $1.16 per diluted share. Non-GAAP guidance excludes acquired intangible asset amortization.

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 27. 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, restructuring and other, pension actuarial gains and losses, losses on convertible debt conversions, non-cash convertible debt interest, discrete income tax adjustments, 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 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.

About Teradyne
Teradyne (NASDAQ:TER) brings high-quality innovations such as smart devices, life-saving medical equipment and data storage systems to market, faster. Its advanced test solutions for semiconductors, electronic systems, wireless devices and more ensure that products perform as they were designed. Its Industrial Automation offerings include collaborative and mobile robots that help manufacturers of all sizes improve productivity and lower costs. In 2021, Teradyne had revenue of $3.7 billion and today employs over 6,300 people worldwide. For more information, visit teradyne.com. Teradyne® is a registered trademark of Teradyne, Inc. in the U.S. and other countries.

Safe Harbor Statement
This release contains forward-looking statements regarding Teradyne’s future business prospects, the impact of the global pandemic of the novel strain of the coronavirus (COVID-19), results of operations, market conditions, earnings per share, the impact of supply chain conditions on the business, customer sales expectations, the payment of a quarterly dividend, the repurchase of Teradyne common stock pursuant to a share repurchase program, sanctions against Russia and Russian companies, and the impact of U.S. and Chinese export and tariff laws. Such statements are based on the current assumptions and expectations of Teradyne’s management and are neither promises nor guarantees of future performance, events, customer sales, supply chain conditions or improvements, earnings per share, use of cash, payment of dividends, repurchases of common stock, payment of the senior convertible notes, the impact of the COVID-19 pandemic, sanctions against Russia and Russian companies, the impact of any tariffs or export controls imposed in the U.S. or China; compliance with trade protection measures or export restrictions; the impact of U.S. Department of Commerce or other government agency regulations relating to Huawei, HiSilicon and other customers or potential customers; or the impact of U.S. Department Commerce export control regulations for certain U.S. products and technology sold to military end users or for military end-use in China, Russia and Venezuela. There can be no assurance that management’s estimates of Teradyne’s future results or other forward-looking statements will be achieved. Specifically, Teradyne’s 2024 earnings model is aspirational and includes many assumptions. There can be no assurance that these assumptions will be accurate or that model results will be achieved. As set forth below, there are many factors that could cause our 2024 earnings model and actual results to differ materially from those presently expected. Additionally, the current dividend and share repurchase programs may be modified, suspended or discontinued at any time.

Following Russia’s invasion of Ukraine in February 2022, the U.S. and other countries imposed significant sanctions against the Russian government and many Russian companies and individuals. Although Teradyne does not have significant operations in Russia, the sanctions could impact Teradyne’s business in other countries and could have a negative impact on the Company’s supply chain, either of which could adversely affect Teradyne’s business and financial results.

COVID-19 has resulted in authorities implementing numerous measures to try to contain the virus, such as travel bans and restrictions, quarantines, government vaccination mandates and other government regulations. These measures have impacted and may further impact Teradyne’s workforce and operations, the operations of its customers, and those of its contract manufacturers and suppliers. As Teradyne implements measures to comply with additional regulations, the Company may experience increased compliance costs, increased risk of non-compliance and increased risk of employee attrition.

The COVID-19 pandemic has adversely impacted the Company’s results of operations, including increased costs company-wide and constraints within the Company’s supply chain. The Company cannot accurately estimate the amount of the impact on Teradyne’s 2022 financial results and to its future financial results. The COVID-19 outbreak has significantly increased economic and demand uncertainty in Teradyne’s markets. This uncertainty resulted in a significant decrease in demand for certain Teradyne products and could continue to impact demand for an uncertain period of time. The spread of COVID-19 has caused Teradyne to modify its business practices (including employee travel, employees working remotely, and cancellation of in person participation in meetings, events and conferences) and the Company may take further actions as may be required by government authorities or that it determines are in the best interests of its employees, customers, contract manufacturers and suppliers. There is uncertainty that such measures will be sufficient to mitigate the risks posed by the virus, and Teradyne’s ability to perform critical functions could be impacted. The degree to which COVID-19 continues to impact Teradyne’s results will depend on future developments, which are highly uncertain and cannot be predicted, including, but not limited to, the duration and continued spread of the virus, its severity, the actions to contain the virus or the availability and impact of vaccines in countries where the Company does business, and how quickly and to what extent normal economic and operating conditions can resume.

Important factors that could cause actual results, the 2024 earnings model, earnings per share, use of cash, dividend payments, repurchases of common stock, or payment of the senior convertible notes to differ materially from those presently expected include: conditions affecting the markets in which Teradyne operates; decreased or delayed product demand from one or more significant customers; development, delivery and acceptance of new products; the ability to grow the Industrial Automation business; increased research and development spending; deterioration of Teradyne’s financial condition; the continued impact of the COVID-19 pandemic and related government responses on the market and demand for Teradyne’s products, on its contract manufacturers and supply chain, and on its workforce; the impact of the global semiconductor supply shortage on our supply chain and contract manufacturers; the consummation and success of any mergers or acquisitions; demand for products by the Company’s largest customers; unexpected cash needs; insufficient cash flow to make required payments and pay the principal amount on the senior convertible notes; the business judgment of the board of directors that a declaration of a dividend or the repurchase of common stock is not in the Company’s best interests; additional U.S. tax regulations or IRS guidance; the impact of any tariffs or export controls imposed in the U.S. or China; compliance with trade protection measures or export restrictions; the impact of U.S. Department of Commerce or other government agency regulations relating to Huawei, HiSilicon and other customers or potential customers; the impact of U.S. Department Commerce export control regulations for certain U.S. products and technology sold to military end users or for military end-use in China, Russia and Venezuela; sanctions imposed against the Russian government and certain Russian companies and individuals by the U.S., and other countries; and other events, factors and risks disclosed in filings with the SEC, including, but not limited to, the “Risk Factors” sections of Teradyne’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021 and Quarterly Report on Form 10-Q for the fiscal quarter ended April, 3, 2022. The forward-looking statements provided by Teradyne in this press release represent management’s views as of the date of this release. Teradyne anticipates that subsequent events and developments may cause management’s views to change. However, while Teradyne may elect to update these forward-looking statements at some point in the future, Teradyne specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Teradyne’s views as of any date subsequent to the date of this release.


TERADYNE, INC. REPORT FOR SECOND FISCAL QUARTER OF 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended

 

Six Months Ended

 

 

 

 

 

July 3,
2022

 

April 3,
2022

 

July 4,
2021

 

July 3,
2022

 

July 4,
2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenues

 

$

840,766

 

 

$

755,370

 

 

$

1,085,728

 

 

$

1,596,136

 

 

$

1,867,334

 

 

Cost of revenues (exclusive of acquired intangible assets amortization shown separately below) (1)

 

 

334,377

 

 

 

300,437

 

 

 

438,739

 

 

 

634,814

 

 

 

758,727

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

506,389

 

 

 

454,933

 

 

 

646,989

 

 

 

961,322

 

 

 

1,108,607

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

Selling and administrative

 

 

139,533

 

 

 

140,185

 

 

 

140,187

 

 

 

279,718

 

 

 

269,984

 

 

Engineering and development

 

 

111,951

 

 

 

108,116

 

 

 

110,021

 

 

 

220,067

 

 

 

210,423

 

 

Acquired intangible assets amortization

 

 

4,871

 

 

 

5,063

 

 

 

5,402

 

 

 

9,934

 

 

 

10,938

 

 

Restructuring and other (2)

 

 

2,044

 

 

 

15,714

 

 

 

2,507

 

 

 

17,758

 

 

 

(4,623

)

 

 

 

Operating expenses

 

 

258,399

 

 

 

269,078

 

 

 

258,117

 

 

 

527,477

 

 

 

486,722

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

 

247,990

 

 

 

185,855

 

 

 

388,872

 

 

 

433,845

 

 

 

621,885

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and other expense (3)

 

 

9,398

 

 

 

5,496

 

 

 

4,846

 

 

 

14,894

 

 

 

13,866

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

238,592

 

 

 

180,359

 

 

 

384,026

 

 

 

418,951

 

 

 

608,019

 

 

Income tax provision

 

 

40,805

 

 

 

18,431

 

 

 

55,707

 

 

 

59,236

 

 

 

74,188

 

Net income

 

$

197,787

 

 

$

161,928

 

 

$

328,319

 

 

$

359,715

 

 

$

533,831

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share:

 

 

 

 

 

 

 

 

 

 

Basic

 

$

1.24

 

 

$

1.00

 

 

$

1.98

 

 

$

2.24

 

 

$

3.21

 

Diluted

 

$

1.16

 

 

$

0.92

 

 

$

1.76

 

 

$

2.07

 

 

$

2.85

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares - basic

 

 

159,563

 

 

 

162,048

 

 

 

165,995

 

 

 

160,805

 

 

 

166,243

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares - diluted (4)

 

 

171,159

 

 

 

175,575

 

 

 

186,750

 

 

 

173,367

 

 

 

187,245

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash dividend declared per common share

 

$

0.11

 

 

$

0.11

 

 

$

0.10

 

 

$

0.22

 

 

$

0.20

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1

)

Cost of revenues includes:

 

Quarter Ended

 

Six Months Ended

 

 

 

 

 

July 3,
2022

 

April 3,
2022

 

July 4,
2021

 

July 3,
2022

 

July 4,
2021

 

 

 

Provision for excess and obsolete inventory

 

$

5,105

 

 

$

1,590

 

 

$

798

 

 

$

6,695

 

 

$

3,625

 

 

 

 

Sale of previously written down inventory

 

 

(449

)

 

 

(262

)

 

 

(428

)

 

 

(711

)

 

 

(1,218

)

 

 

 

 

 

$

4,656

 

 

$

1,328

 

 

$

370

 

 

$

5,984

 

 

$

2,407

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2

)

Restructuring and other consists of:

 

Quarter Ended

 

Six Months Ended

 

 

 

 

 

July 3,
2022

 

April 3,
2022

 

July 4,
2021

 

July 3,
2022

 

July 4,
2021

 

 

 

Employee severance

 

$

383

 

 

$

551

 

 

$

436

 

 

$

934

 

 

$

624

 

 

 

 

Litigation settlement

 

 

-

 

 

 

14,700

 

 

 

-

 

 

 

14,700

 

 

 

-

 

 

 

 

Acquisition related expenses and compensation

 

 

-

 

 

 

(201

)

 

 

275

 

 

 

(201

)

 

 

38

 

 

 

 

Contingent consideration fair value adjustment

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(7,227

)

 

 

 

Other

 

 

1,661

 

 

 

664

 

 

 

1,796

 

 

 

2,325

 

 

 

1,942

 

 

 

 

 

 

$

2,044

 

 

$

15,714

 

 

$

2,507

 

 

$

17,758

 

 

$

(4,623

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3

)

Interest and other includes:

 

Quarter Ended

 

Six Months Ended

 

 

 

 

 

July 3,
2022

 

April 3,
2022

 

July 4,
2021

 

July 3,
2022

 

July 4,
2021

 

 

 

Non-cash convertible debt interest

 

$

-

 

 

$

-

 

 

$

3,277

 

 

$

-

 

 

$

6,858

 

 

 

 

Loss on convertible debt conversions

 

 

-

 

 

 

-

 

 

 

1,175

 

 

 

-

 

 

 

5,244

 

 

 

 

Pension actuarial gains

 

 

-

 

 

 

-

 

 

 

(627

)

 

 

-

 

 

 

(627

)

 

 

 

 

 

$

-

 

 

$

-

 

 

$

3,825

 

 

$

-

 

 

$

11,475

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4

)

Under GAAP, when calculating diluted earnings per share, convertible debt must be assumed to have converted if the effect on EPS would be dilutive. Diluted shares assume the conversion of the convertible debt as the effect would be dilutive. Accordingly, for the quarters ended July 3, 2022, April 3, 2022 and July 4, 2021, 1.9 million, 2.5 million and 9.6 million shares, respectively, have been included in diluted shares. For the six months ended July 3, 2022 and July 4, 2021, 2.2 million and 9.9 million shares, respectively, have been included in diluted shares. For the quarters ended July 3, 2022, April 3, 2022 and July 4, 2021, diluted shares also included 9.0 million, 10.0 million and 10.1 million shares, respectively, from the convertible note hedge transaction. For the six months ended July 3, 2022 and July 4, 2021, diluted shares included 9.5 million and 9.8 million shares, respectively, from the convertible note hedge transaction.

 

 

 

CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

July 3,
2022

 

December 31,
2021

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

572,023

 

 

$

1,122,199

 

 

 

 

 

 

 

 

Marketable securities

 

 

209,846

 

 

 

244,231

 

 

 

 

 

 

 

 

Accounts receivable, net

 

 

683,739

 

 

 

550,749

 

 

 

 

 

 

 

 

Inventories, net

 

 

295,625

 

 

 

243,330

 

 

 

 

 

 

 

 

Prepayments

 

 

498,093

 

 

 

406,266

 

 

 

 

 

 

 

 

Other current assets

 

 

11,109

 

 

 

9,452

 

 

 

 

 

 

 

 

 

 

Total current assets

 

 

2,270,435

 

 

 

2,576,227

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property, plant and equipment, net

 

 

411,263

 

 

 

387,240

 

 

 

 

 

 

 

 

Operating lease right-of-use assets, net

 

 

71,812

 

 

 

68,807

 

 

 

 

 

 

 

 

Marketable securities

 

 

111,999

 

 

 

133,858

 

 

 

 

 

 

 

 

Deferred tax assets

 

 

126,639

 

 

 

102,428

 

 

 

 

 

 

 

 

Retirement plans assets

 

 

14,245

 

 

 

15,110

 

 

 

 

 

 

 

 

Other assets

 

 

26,942

 

 

 

24,096

 

 

 

 

 

 

 

 

Acquired intangible assets, net

 

 

62,509

 

 

 

75,635

 

 

 

 

 

 

 

 

Goodwill

 

 

397,733

 

 

 

426,024

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

3,493,577

 

 

$

3,809,425

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

$

175,606

 

 

$

153,133

 

 

 

 

 

 

 

 

Accrued employees' compensation and withholdings

 

 

190,506

 

 

 

253,667

 

 

 

 

 

 

 

 

Deferred revenue and customer advances

 

 

163,127

 

 

 

146,185

 

 

 

 

 

 

 

 

Other accrued liabilities

 

 

133,881

 

 

 

124,187

 

 

 

 

 

 

 

 

Operating lease liabilities

 

 

17,770

 

 

 

19,977

 

 

 

 

 

 

 

 

Income taxes payable

 

 

106,863

 

 

 

88,789

 

 

 

 

 

 

 

 

Current debt

 

 

9,632

 

 

 

19,182

 

 

 

 

 

 

 

 

 

 

Total current liabilities

 

 

797,385

 

 

 

805,120

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retirement plans liabilities

 

 

141,884

 

 

 

151,141

 

 

 

 

 

 

 

 

Long-term deferred revenue and customer advances

 

 

50,357

 

 

 

54,921

 

 

 

 

 

 

 

 

Long-term other accrued liabilities

 

 

15,530

 

 

 

15,497

 

 

 

 

 

 

 

 

Deferred tax liabilities

 

 

3,143

 

 

 

6,327

 

 

 

 

 

 

 

 

Long-term operating lease liabilities

 

 

62,751

 

 

 

56,178

 

 

 

 

 

 

 

 

Long-term income taxes payable

 

 

59,135

 

 

 

67,041

 

 

 

 

 

 

 

 

Debt

 

 

 

64,796

 

 

 

89,244

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

 

1,194,981

 

 

 

1,245,469

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mezzanine equity

 

 

-

 

 

 

1,512

 

 

 

 

 

 

 

Shareholders' equity

 

 

2,298,596

 

 

 

2,562,444

 

 

 

 

 

 

 

 

 

 

Total liabilities, convertible common shares and shareholders’ equity

 

$

3,493,577

 

 

$

3,809,425

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended

 

Six Months Ended

 

 

 

 

 

 

 

July 3,
2022

 

July 4,
2021

 

July 3,
2022

 

July 4,
2021

 

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

197,787

 

 

$

328,319

 

 

$

359,715

 

 

$

533,831

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation

 

 

21,957

 

 

 

21,938

 

 

 

44,460

 

 

 

45,848

 

 

 

 

 

Stock-based compensation

 

 

12,228

 

 

 

10,999

 

 

 

25,122

 

 

 

23,231

 

 

 

 

 

Amortization

 

 

4,862

 

 

 

9,521

 

 

 

10,095

 

 

 

19,343

 

 

 

 

 

Provision for excess and obsolete inventory

 

 

5,105

 

 

 

798

 

 

 

6,695

 

 

 

3,625

 

 

 

 

 

Deferred taxes

 

 

(34,885

)

 

 

257

 

 

 

(23,597

)

 

 

(800

)

 

 

 

 

Losses (gains) on investments

 

 

6,972

 

 

 

(2,159

)

 

 

8,973

 

 

 

(4,650

)

 

 

 

 

Retirement plans actuarial gains

 

 

-

 

 

 

(627

)

 

 

-

 

 

 

(627

)

 

 

 

 

Contingent consideration fair value adjustment

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(7,227

)

 

 

 

 

Loss on convertible debt conversions

 

 

-

 

 

 

1,175

 

 

 

-

 

 

 

5,244

 

 

 

 

 

Other

 

 

345

 

 

 

(1

)

 

 

522

 

 

 

199

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Changes in operating assets and liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(146,592

)

 

 

(285,186

)

 

 

(146,384

)

 

 

(372,698

)

 

 

 

 

 

Inventories

 

 

(37,202

)

 

 

56,320

 

 

 

(46,682

)

 

 

19,908

 

 

 

 

 

 

Prepayments and other assets

 

 

(25,597

)

 

 

(31,285

)

 

 

(99,902

)

 

 

(117,416

)

 

 

 

 

 

Accounts payable and other liabilities

 

 

85,922

 

 

 

97,361

 

 

 

(38,460

)

 

 

86,790

 

 

 

 

 

 

Deferred revenue and customer advances

 

 

7,416

 

 

 

7,237

 

 

 

14,163

 

 

 

15,189

 

 

 

 

 

 

Retirement plans contributions

 

 

(1,289

)

 

 

(814

)

 

 

(2,618

)

 

 

(2,739

)

 

 

 

 

 

Income taxes

 

 

18,426

 

 

 

(7,569

)

 

 

10,815

 

 

 

(2,628

)

 

 

Net cash provided by operating activities

 

 

115,455

 

 

 

206,284

 

 

 

122,917

 

 

 

244,423

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

Purchases of property, plant and equipment

 

 

(45,744

)

 

 

(34,707

)

 

 

(89,743

)

 

 

(73,957

)

 

 

 

Purchases of marketable securities

 

 

(81,904

)

 

 

(186,482

)

 

 

(247,881

)

 

 

(398,086

)

 

 

 

Proceeds from maturities of marketable securities

 

 

42,970

 

 

 

265,985

 

 

 

139,652

 

 

 

460,213

 

 

 

 

Proceeds from sales of marketable securities

 

 

113,061

 

 

 

54,819

 

 

 

143,642

 

 

 

116,112

 

 

 

 

Purchase of investment

 

 

-

 

 

 

(12,000

)

 

 

-

 

 

 

(12,000

)

 

 

Net cash provided by (used for) investing activities

 

 

28,383

 

 

 

87,615

 

 

 

(54,330

)

 

 

92,282

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

Issuance of common stock under stock purchase and stock option plans

 

 

61

 

 

 

15,437

 

 

 

16,536

 

 

 

32,581

 

 

 

 

Repurchase of common stock

 

 

(331,334

)

 

 

(151,396

)

 

 

(532,799

)

 

 

(196,584

)

 

 

 

Dividend payments

 

 

(17,547

)

 

 

(16,604

)

 

 

(35,442

)

 

 

(33,271

)

 

 

 

Payments of convertible debt principal

 

 

(21,598

)

 

 

(15,553

)

 

 

(42,292

)

 

 

(66,828

)

 

 

 

Payments related to net settlement of employee stock compensation awards

 

 

(1,732

)

 

 

(1,119

)

 

 

(32,780

)

 

 

(31,794

)

 

 

Net cash used for financing activities

 

 

(372,150

)

 

 

(169,235

)

 

 

(626,777

)

 

 

(295,896

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effects of exchange rate changes on cash and cash equivalents

 

 

5,732

 

 

 

(1,372

)

 

 

8,014

 

 

 

(489

)

 

 

Decrease (increase) in cash and cash equivalents

-

 

(222,580

)

 

 

123,292

 

 

 

(550,176

)

 

 

40,320

 

 

 

Cash and cash equivalents at beginning of period

 

 

794,603

 

 

 

831,149

 

 

 

1,122,199

 

 

 

914,121

 

 

 

Cash and cash equivalents at end of period

 

$

572,023

 

 

$

954,441

 

 

$

572,023

 

 

$

954,441

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


GAAP to Non-GAAP Earnings Reconciliation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In millions, except per share amounts)