Teradyne, Inc. (TER) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $66.34 million in the quarter, against a net loss of $0.64 million in the last year period. On the other hand, adjusted net income for the quarter stood at $64.60 million, or $0.32 a share compared with $26.10 million or $0.13 a share, a year ago.
Revenue during the quarter grew 19.33 percent to $379.99 million from $318.44 million in the previous year period. Gross margin for the quarter expanded 550 basis points over the previous year period to 57.63 percent. Operating margin for the quarter period stood at positive 15.57 percent as compared to a negative 3.06 percent for the previous year period.
Operating income for the quarter was $59.17 million, compared with an operating loss of $9.75 million in the previous year period.
However, the adjusted operating income for the quarter stood at $70.70 million compared to $33.20 million in the prior year period. At the same time, adjusted operating margin improved 818 basis points in the quarter to 18.61 percent from 10.43 percent in the last year period.
"We closed 2016 with record fourth quarter orders as tester demand for 2017 mobile device production pulled bookings into Q4, automotive device test demand remained strong, and Universal Robots delivered another quarter of record orders," said chief executive officer and president Mark Jagiela. "For the full year, we grew company revenue 7%, non-GAAP earnings per share 19%, and returned $195 million to shareholders through share repurchases and dividends. "As we look into 2017, we expect continued steady demand in our core test businesses and greater than 50% growth to continue at Universal Robots. On the capital return front, our proven operating model, strong balance sheet and positive long term outlook support our plan to repurchase a minimum of $200 million of Teradyne shares in 2017 and increase the dividend to $0.07 per quarter."
For the first-quarter 2017, Teradyne, Inc. forecasts revenue to be in the range of $420 million to $450 million. The company expects diluted earnings per share to be in the range of $0.28 to $0.34. On an adjusted basis, the company expects diluted earnings per share to be in the range of $0.33 to $0.40.
Operating cash flow improves
Teradyne, Inc. has generated cash of $445.18 million from operating activities during the year, up 7.83 percent or $32.34 million, when compared with the last year.
The company has spent $640.46 million cash to meet investing activities during the year as against cash outgo of $113.72 million in the last year.
Cash flow from financing activities was $237.84 million for the year as against cash outgo of $328.67 million in the last year period.
Cash and cash equivalents stood at $307.88 million as on Dec. 31, 2016, up 16.31 percent or $43.18 million from $264.70 million on Dec. 31, 2015.
Working capital increases sharply
Teradyne, Inc. has recorded an increase in the working capital over the last year. It stood at $1,251.11 million as at Dec. 31, 2016, up 41.03 percent or $364 million from $887.11 million on Dec. 31, 2015. Current ratio was at 4.36 as on Dec. 31, 2016, up from 3.38 on Dec. 31, 2015.
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