Teradyne, Inc. (TER) has reported a 70.49 percent jump in profit for the quarter ended Apr. 02, 2017. The company has earned $85.22 million, or $0.42 a share in the quarter, compared with $49.99 million, or $0.24 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $88.70 million, or $0.44 a share compared with $64.40 million or $0.31 a share, a year ago.

Revenue during the quarter grew 6.01 percent to $456.91 million from $430.99 million in the previous year period. Gross margin for the quarter expanded 454 basis points over the previous year period to 57.98 percent. Total expenses were 79.56 percent of quarterly revenues, down from 86.98 percent for the same period last year. This has led to an improvement of 742 basis points in operating margin to 20.44 percent.

Operating income for the quarter was $93.38 million, compared with $56.11 million in the previous year period.

However, the adjusted operating income for the quarter stood at $103.90 million compared to $76.50 million in the prior year period. At the same time, adjusted operating margin improved 499 basis points in the quarter to 22.74 percent from 17.75 percent in the last year period.

"We're off to a great start in 2017 with year over year quarterly orders up 53%, revenue up 6%, and non-GAAP EPS up 42% to $0.44," said chief executive officer and president Mark Jagiela. "Semiconductor Test year over year quarterly orders were up 56% on broad strength in mobile, automotive, industrial analog, and Flash memory end market demand. Universal Robots' (UR) year over year quarterly sales were up 117% powered by an expanding range of customers embracing the power of UR's collaborative robots to reduce production costs and improve product quality. "With our large backlog and strong first quarter orders, our Q2 revenue is expected to increase 28% year on year at the mid-point of our Q2 guidance. While we expect the familiar seasonality in the second half, we're on track for another year of revenue and operating profit growth."

For the second-quarter 2017, Teradyne, Inc. expects revenue to be in the range of $660 million to $700 million. The comapny expects adjusted revenue to be in the range of $660 million to $700 million. It projects diluted earnings per share to be in the range of $0.77 to $0.86. On an adjusted basis, the company projects diluted earnings per share to be in the range of $0.81 to $0.90.

Cash flow from investing activities was $126.39 million for the quarter, up 78.73 percent or $55.68 million, when compared with the last year period.

The company has spent $50.01 million cash to carry out financing activities during the quarter as against cash outgo of $51.78 million in the last year period.

Cash and cash equivalents stood at $324.75 million as on Apr. 02, 2017, up 1.69 percent or $5.39 million from $319.36 million on Apr. 03, 2016.

Working capital increases sharply

Teradyne, Inc. has recorded an increase in the working capital over the last year. It stood at $1,461.10 million as at Apr. 02, 2017, up 62.67 percent or $562.90 million from $898.20 million on Apr. 03, 2016. Current ratio was at 4.72 as on Apr. 02, 2017, up from 3.61 on Apr. 03, 2016.

Cash conversion cycle (CCC) has decreased to 50 days for the quarter from 83 days for the last year period. Days sales outstanding went up to 53 days for the quarter compared with 51 days for the same period last year.

Days inventory outstanding has decreased to 49 days for the quarter compared with 74 days for the previous year period. At the same time, days payable outstanding went up to 51 days for the quarter from 41 for the same period last year.