Stock Analysis on Net
Stock Analysis on Net

Teradyne Inc. (NASDAQ:TER)

$22.49

This company has been moved to the archive! The financial data has not been updated since May 3, 2024.

Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

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Teradyne Inc., consolidated income statement

US$ in thousands

Microsoft Excel
12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Products
Services
Revenues
Cost of products
Cost of services
Cost of revenues, exclusive of acquired intangible assets amortization
Gross profit
Selling and administrative
Engineering and development
Acquired intangible assets amortization
Restructuring and other
Operating expenses
Income from operations
Interest income
Interest expense
Other income (expense), net
Non-operating income (expenses)
Income before income taxes
Income tax provision
Net income

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Revenue Trends
The total revenues showed a rising trend from 2019 through 2021, increasing from approximately $2.29 billion to $3.70 billion. However, this upward trajectory reversed over the next two years, with revenues decreasing to about $3.16 billion in 2022 and further declining to $2.68 billion in 2023. Within revenue components, product sales peaked in 2021 and then experienced notable declines in 2022 and 2023. Conversely, service revenues exhibited a consistent, moderate growth throughout the entire period, rising from approximately $407 million in 2019 to $580 million in 2023.
Cost of Revenues and Gross Profit
Costs linked to products and services followed the revenue pattern, increasing significantly between 2019 and 2021 before decreasing in subsequent years. The cost of products remained the dominant contributor to total costs but exhibited a strong reduction post-2021. Gross profit peaked in 2021 at nearly $2.21 billion and then declined in the following years, aligning with the downturn in revenues and cost reductions. Nonetheless, gross margin efficiency appears to have been relatively maintained given the simultaneous reduction in total costs.
Operating Expenses
Operating expenses consistently increased from 2019 through 2022, rising from about $786 million to over $1 billion, with only a marginal decrease in 2023. Selling and administrative expenses showed a steady upward trend annually. Engineering and development costs increased until 2022 but saw a decrease in 2023. Amortization of acquired intangible assets declined gradually across the entire period. Notably, restructuring and other expenses fluctuated, initially positive in 2019 and 2020 but turned negative from 2021 onwards, indicating charges or losses impacting these years.
Profitability and Income Measures
Income from operations improved significantly between 2019 and 2021, peaking at over $1.2 billion, then declined sharply in the subsequent two years to approximately $500 million. This decline parallels the reduction in revenues and rising operating expenses. Interest income was relatively low and fluctuating until a marked increase in 2023. Interest expense trended downward over the period, reducing financial burden. Other net income/expense items varied, with negative impacts early in the period but turned positive by 2022 and 2023. Consequently, income before taxes mirrored the operating income trend, peaking in 2021 and dropping by over half by 2023.
Taxation and Net Income
The income tax provision increased markedly until 2021, then declined alongside pre-tax income. Net income followed a similar pattern to operating and pre-tax income, reaching its highest level in 2021 at over $1 billion and then falling substantially in the last two years, ending at approximately $449 million in 2023. This reflects the overall earnings volatility experienced by the company, with profitability being significantly impacted in recent years.
Summary of Financial Health
Overall, the financial data reveals a period of growth accelerating up to 2021, including revenue increases and rising profitability. However, the years following 2021 show a clear reversal of these trends with declining revenues, gross profit, operating income, and net income. Costs and operating expenses, while somewhat reduced in certain areas, remain elevated, which constrains profitability. Improvements in non-operating income and reductions in interest expense have limited negative impacts on the bottom line, though they have not fully offset the operational decline. The company appears to be facing challenges in maintaining growth and profitability post-2021, highlighting a need to focus on cost efficiency and revenue stabilization going forward.