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Teradyne, Inc.$38.80($.30)(.77%)

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 Teradyne Reports Strong Revenue and Earnings Growth in Second Quarter and First Half 2017
   Wednesday, July 26, 2017 5:02:01 PM ET

--First half 2017 revenue up 20% from first half 2016

--Semiconductor Test revenue increased 36% from Q2’16; 1H’17 up 22% from 1H’16

--Universal Robots (UR) revenue increased 57% from Q2’16; 1H’17 up 81% from 1H’16

Teradyne, Inc. (TER ):

                    Q2’17       Q2’16       Q1’17       1H’17        1H’16
                                                                             --------------------------------                                                                --------------------------------                                                                --------------------------------                                                                --------------------------------                                                                -------------------------------
Orders (mil)                                                                               $462                                                                                            $471                                                                                            $595                                                                                           $1,056                                                                                           $860
Revenue (mil)                                                                              $697                                                                                            $532                                                                                            $457                                                                                           $1,154                                                                                           $963
GAAP EPS                                                                                   $0.87                                                                                          $(1.10)                                                                                          $0.42                                                                                           $1.29                                                                                          $(0.85)
Non-GAAP EPS                                                                               $0.90                                                                                           $0.55                                                                                           $0.44                                                                                           $1.34                                                                                           $0.86


Teradyne, Inc. (TER ) reported revenue of $697 million for the second quarter of 2017 of which $593 million was in Semiconductor Test, $39 million in Industrial Automation (UR), $37 million in System Test, and $28 million in Wireless Test. GAAP net income for the second quarter was $175.0 million or $0.87 per share. On a non-GAAP basis, Teradyne’s net income in the second quarter was $181.5 million, or $0.90 per diluted share, which excluded acquired intangible assets amortization, non-cash convertible debt interest, pension actuarial gains, restructuring and other charges, and included the related tax impact on non-GAAP adjustments.

Orders in the second quarter of 2017 were $462 million of which $369 million were in Semiconductor Test, $33 million in Industrial Automation (UR), $30 million in Wireless Test, and $29 million in System Test.

"Continued strong performance in our Semiconductor Test Business and Universal Robots drove our second quarter sales up 31% and EPS up 64% compared to last year’s second quarter," said CEO and President Mark Jagiela. "Semiconductor Test shipments grew 36% year on year reflecting continued strength in mobile and microcontroller test and increasing demand in memory and analog test. Universal Robots shipments increased 57% from Q2’16 and sales continue to broaden with our expanding distribution reach and growing customer awareness of the powerful economic benefits of UR’s collaborative robots."

"Looking ahead to the 2nd half of 2017, we expect the normal seasonal pattern of slowing mobile device test shipments in Semiconductor Test and continued 50% plus growth at Universal Robots."

Guidance for the third quarter of 2017 is revenue of $455 million to $485 million, with GAAP net income of $0.35 to $0.42 per diluted share and non-GAAP net income of $0.39 to $0.46 per diluted share. Non-GAAP guidance excludes acquired intangible assets amortization, non-cash convertible debt interest, and includes the related tax impact on non-GAAP adjustments.

Webcast A conference call to discuss the second quarter results, along with management’s business outlook, will follow at 10 a.m. ET, Thursday, 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 10 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 acquired intangible assets amortization, non-cash convertible debt interest, pension actuarial gains and losses, discrete income tax adjustments, goodwill impairment, acquired intangible assets impairment, and restructuring and other. 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 and 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 pension actuarial gains and losses. GAAP requires that these items 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. 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 "Investors" and then selecting 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 (TER ) is a leading supplier of automation equipment for test and industrial applications. Teradyne Automatic Test Equipment (ATE) is used to test semiconductors, wireless products, data storage and complex electronic systems, which serve consumer, communications, industrial and government customers. Our Industrial Automation products include Collaborative Robots used by global manufacturing and light industrial customers to improve quality and increase manufacturing efficiency. In 2016, Teradyne had revenue of $1.75 billion and currently employs approximately 4,400 people worldwide. For more information, visit www.teradyne.com. Teradyne(R) 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, results of operations, market conditions, earnings per share, the payment of a quarterly dividend, the repurchase of Teradyne common stock pursuant to a share repurchase program, use of proceeds and potential dilution from the senior convertible notes offering and potential borrowings under a senior secured credit facility. Such statements are based on the current assumptions and expectations of Teradyne’s management and are neither promises nor guarantees of future performance, events, earnings per share, use of cash, payment of dividends, repurchases of common stock, payment of the senior convertible notes or availability of, or borrowing under, the credit facility. There can be no assurance that management’s estimates of Teradyne’s future results or other forward-looking statements will be achieved. Additionally, the current dividend and share repurchase programs may be modified, suspended or discontinued at any time. Important factors that could cause actual results, earnings per share, use of cash, dividend payments, repurchases of common stock, payment of the senior convertible notes or borrowings under the credit facility 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 Universal Robots’ business; increased research and development spending; deterioration of Teradyne’s financial condition; the consummation and success of any mergers or acquisitions; 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, the repurchase of common stock or borrowing under the credit facility is not in the company’s best interests; and other events, factors and risks disclosed in filings with the SEC, including, but not limited to, the "Risk Factors" section of Teradyne’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016 and the Quarterly Report on Form 10-Q for the period ended April 2, 2017. 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 2017                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                          
----------------------------------------- -------------------- ---------------------------------------------- --------------------------------- -------------------- -------------------- -------------------- ---------------------------------------------------------------------- -------------------- -------------------- ----------------------------------------------------------------------------------- -------------------- -------------------- ----------------------------------------------------------------------------------- -------------------- -------------------- -------------------- ------------------------------------------------------------------------ -------------------- -------------------- ---------------------------------------------------
CONDENSED CONSOLIDATED OPERATING STATEMENTS                                                                                                                                                                                                                                                                                                
 (In thousands, except per share amounts)                                                                                                                                                                                                                                                                             
----------------------------------------------------------------------------------------------------------------------------------------------- -------------------- -------------------- -------------------- ---------------------------------------------------------------------- -------------------- -------------------- ----------------------------------------------------------------------------------- -------------------- -------------------- ----------------------------------------------------------------------------------- -------------------- -------------------- -------------------- ------------------------------------------------------------------------ -------------------- -------------------- ---------------------------------------------------
                                                                                                                                                     
                                                                                                                                                                                                                                                                                                                                                                Quarter Ended                                                                                                                                                                                                                                                                                                               Six Months Ended
                                                                                                                                                                                                               ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                                                                    ----------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                  July 2, 2017                                                                                                           April 2, 2017                                                                                                                 July 3, 2016                                                                                                                                  July 2, 2017                                                                                                      July 3, 2016
                                                                                                                                                                                                               --------------------------------------------------                                                               ---------------------------------------------------------------                                                               ---------------------------------------------------------------                                                                                    ----------------------------------------------------                                                               ---------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
Net revenues                                                                                                                                                                                                                      $ 696,901                                                                                                        $              456,913                                                                                                        $              531,792                                                                                                                             $ 1,153,814                                                                                                        $  962,787
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
                     Cost of revenues (exclusive of acquired intangible assets                                                                                                                                   305,682                                                                                 191,980                                                                                 248,922                                                                                           497,662                                                                     449,584  
                     amortization shown separately below) (1) (2)
                                                                                                                                                                                                               -------------------- ------- --------------------                                                                -------------------- -------------------- --------------------                                                                -------------------- -------------------- --------------------                                                                                     -------------------- --------- --------------------                                                                -------------------- -------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
Gross profit                                                                                                                                                                                                                        391,219                                                                                                                       264,933                                                                                                                       282,870                                                                                                                                 656,152                                                                                                           513,203
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
Operating expenses:
                     Engineering and development (1)                                                                                                                                                                                 81,728                                                                                                                        76,182                                                                                                                        76,109                                                                                                                                 157,910                                                                                                           149,573
                     Selling and administrative (1)                                                                                                                                                                                  89,131                                                                                                                        84,906                                                                                                                        81,425                                                                                                                                 174,037                                                                                                           160,599
                     Acquired intangible assets amortization                                                                                                                                                                          8,166                                                                                                                         7,952                                                                                                                        16,244                                                                                                                                  16,118                                                                                                            36,238
                     Restructuring and other (3)                                                                                                                                                                                      2,288                                                                                                                         2,511                                                                                                                         2,608                                                                                                                                   4,799                                                                                                             4,195
                     Goodwill impairment (4)                                                                                                                                                                                              -                                                                                                                             -                                                                                                                       254,946                                                                                                                                       -                                                                                                           254,946
                     Acquired intangible assets impairment (4)                                                                                                                                                         -                                                                                       -                                                                                  83,339                                                                                                 -                                                                      83,339  
                                                                                                                                                                                                               -------------------- ------- --------------------                                                                -------------------- -------------------- --------------------                                                                -------------------- -------------------- --------------------                                                                                     -------------------- --------- --------------------                                                                -------------------- -------- --------------------
                                                               Operating expenses                                                                                                                                                   181,313                                                                                                                       171,551                                                                                                                       514,671                                                                                                                                 352,864                                                                                                           688,890
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
Income (loss) from operations                                                                                                                                                                                                       209,906                                                                                                                        93,382                                                                                                                      (231,801 )                                                                                                                               303,288                                                                                                          (175,687 )
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
                     Interest and other (5)                                                                                                                                                                       (3,029 )                                                                                                   (1,366 )                                                                                                      984                                                                                            (4,395 )                                                                                        2,062  
                                                                                                                                                                                                               -------------------- ------- --------------------                                                                -------------------- -------------------- --------------------                                                                -------------------- -------------------- --------------------                                                                                     -------------------- --------- --------------------                                                                -------------------- -------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
Income (loss) before income taxes                                                                                                                                                                                                   206,877                                                                                                                        92,016                                                                                                                      (230,817 )                                                                                                                               298,893                                                                                                          (173,625 )
                     Income tax provision (benefit)                                                                                                                                                               31,901                                                                                   6,795                                                                                  (7,271 )                                                                                                             38,696                                                                         (65 )
                                                                                                                                                                                                               -------------------- ------- --------------------                                                                -------------------- -------------------- --------------------                                                                -------------------- -------------------- --------------------                                                                                     -------------------- --------- --------------------                                                                -------------------- -------- --------------------
Net income (loss)                                                                                                                                                                                                                 $ 174,976                                                                                     $               85,221                                                                                     $             (223,546 )                                                                                                                           $   260,197                                                                                     $ (173,560 )
                                                                                                                                                                                                               ==================== ======= ====================                                                                ==================== ==================== ====================                                                                ==================== ==================== ====================                                                                                     ==================== ========= ====================                                                                ==================== ======== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
Net income (loss) per common share:
--------------------------------------------------------------------------------------------------------
Basic                                                                                                                                                                                                                             $    0.88                                                                                     $                 0.43                                                                                     $                (1.10 )                                                                                                                           $      1.30                                                                                     $    (0.85 )
                                                                                                                                                                                                               ==================== ======= ====================                                                                ==================== ==================== ====================                                                                ==================== ==================== ====================                                                                                     ==================== ========= ====================                                                                ==================== ======== ====================
Diluted                                                                                                                                                                                                                           $    0.87                                                                                     $                 0.42                                                                                     $                (1.10 )                                                                                                                           $      1.29                                                                                     $    (0.85 )
                                                                                                                                                                                                               ==================== ======= ====================                                                                ==================== ==================== ====================                                                                ==================== ==================== ====================                                                                                     ==================== ========= ====================                                                                ==================== ======== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
Weighted average common shares - basic                                                                                                                                                                           198,774                                                                                 200,005                                                                                 203,018                                                                                           199,390                                                                     203,645  
                                                                                                                                                                                                               ==================== ======= ====================                                                                ==================== ==================== ====================                                                                ==================== ==================== ====================                                                                                     ==================== ========= ====================                                                                ==================== ======== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
Weighted average common shares - diluted (6)                                                                                                                                                                     201,529                                                                                 201,936                                                                                 203,018                                                                                           201,732                                                                     203,645  
                                                                                                                                                                                                               ==================== ======= ====================                                                                ==================== ==================== ====================                                                                ==================== ==================== ====================                                                                                     ==================== ========= ====================                                                                ==================== ======== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
Cash dividend declared per common share                                                                                                                                                                                           $    0.07                                                                                     $                 0.07                                                                                     $                 0.06                                                                                                          $      0.14                                                                                     $     0.12  
                                                                                                                                                                                                               ==================== ======= ====================                                                                ==================== ==================== ====================                                                                ==================== ==================== ====================                                                                                     ==================== ========= ====================                                                                ==================== ======== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
Net orders                                                                                                                                                                                                                        $ 461,606                                                                                     $              594,733                                                                                     $              470,983                                                                                                          $ 1,056,339                                                                                     $  860,400  
                                                                                                                                                                                                               ==================== ======= ====================                                                                ==================== ==================== ====================                                                                ==================== ==================== ====================                                                                                     ==================== ========= ====================                                                                ==================== ======== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
     (1 )            Pension actuarial gains included in our operating results were as                                                                                                                                                                                                                                                                          Quarter Ended                                                                                                                                                                                                                                                                                                               Six Months Ended
                     follows:
                                                                                                                                                                                                               ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                                                                                   -------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                  July 2, 2017                                                                                                           April 2, 2017                                                                                                                 July 3, 2016                                                                                                                                  July 2, 2017                                                                                                      July 3, 2016
                                                                                                                                                                                                               --------------------------------------------------                                                               ---------------------------------------------------------------                                                               ---------------------------------------------------------------                                                                                    ----------------------------------------------------                                                               ---------------------------------------------------
                                                               Cost of revenues                                                                                                                                                   $    (664 )                                                                                                      $                    -                                                                                                        $                 (221 )                                                                                                                           $      (664 )                                                                                                      $     (614 )
                                                               Engineering and development                                                                                                                                             (746 )                                                                                                                           -                                                                                                                          (221 )                                                                                                                                  (746 )                                                                                                            (615 )
                                                               Selling and administrative                                                                                                                         (1,094 )                                                                                                        -                                                                                    (227 )                                                                                                             (1,094 )                                                                                         (633 )
                                                                                                                                                                                                               -------------------- ------- --------------------                                                                -------------------- -------------------- --------------------                                                                -------------------- -------------------- --------------------                                                                                     -------------------- --------- --------------------                                                                -------------------- -------- --------------------
                                                                                                                                                                                                                                  $  (2,504 )                                                                                                      $                    -                                                                                     $                 (669 )                                                                                                                           $    (2,504 )                                                                                                      $   (1,862 )
                                                                                                                                                                                                               ==================== ======= ====================                                                                ==================== ==================== ====================                                                                ==================== ==================== ====================                                                                                     ==================== ========= ====================                                                                ==================== ======== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
     (2 )            Cost of revenues includes:                                                                                                                                                                                                                                                                                                                 Quarter Ended                                                                                                                                                                                                                                                                                                               Six Months Ended
                                                                                                                                                                                                               ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                                                                    ----------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                  July 2, 2017                                                                                                           April 2, 2017                                                                                                                 July 3, 2016                                                                                                                                  July 2, 2017                                                                                                      July 3, 2016
                                                                                                                                                                                                               --------------------------------------------------                                                               ---------------------------------------------------------------                                                               ---------------------------------------------------------------                                                                                    ----------------------------------------------------                                                               ---------------------------------------------------
                                                               Provision for excess and obsolete inventory                                                                                                                        $   2,569                                                                                                        $                2,726                                                                                                        $                7,742                                                                                                                             $     5,295                                                                                                        $   12,115
                                                               Sale of previously written down inventory                                                                                                          (2,149 )                                                                                                   (1,134 )                                                                                                   (5,151 )                                                                                                             (3,283 )                                                                                       (6,319 )
                                                                                                                                                                                                               -------------------- ------- --------------------                                                                -------------------- -------------------- --------------------                                                                -------------------- -------------------- --------------------                                                                                     -------------------- --------- --------------------                                                                -------------------- -------- --------------------
                                                                                                                                                                                                                                  $     420                                                                                     $                1,592                                                                                     $                2,591                                                                                                          $     2,012                                                                                     $    5,796  
                                                                                                                                                                                                               ==================== ======= ====================                                                                ==================== ==================== ====================                                                                ==================== ==================== ====================                                                                                     ==================== ========= ====================                                                                ==================== ======== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
     (3 )            Restructuring and other consists of:                                                                                                                                                                                                                                                                                                       Quarter Ended                                                                                                                                                                                                                                                                                                               Six Months Ended
                                                                                                                                                                                                               ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                                                                    ----------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                  July 2, 2017                                                                                                           April 2, 2017                                                                                                                 July 3, 2016                                                                                                                                  July 2, 2017                                                                                                      July 3, 2016
                                                                                                                                                                                                               --------------------------------------------------                                                               ---------------------------------------------------------------                                                               ---------------------------------------------------------------                                                                                    ----------------------------------------------------                                                               ---------------------------------------------------
                                                               Contingent consideration fair value adjustment                                                                                                                     $   1,499                                                                                                        $                  634                                                                                                        $                1,305                                                                                                                             $     2,133                                                                                                        $    2,478
                                                               Employee severance                                                                                                                                                       789                                                                                                                           583                                                                                                                         1,303                                                                                                                                   1,372                                                                                                             1,717
                                                               Facility related                                                                                                                                                           -                                                                                                                         1,294                                                                                                                             -                                                                                                                                   1,294                                                                                                                 -
                                                               Impairment of fixed assets and expenses related to Japan earthquake                                                                                                        -                                                                                                                             -                                                                                                                         5,051                                                                                                                                       -                                                                                                             5,051
                                                               Property insurance recovery                                                                                                                             -                                                                                       -                                                                                  (5,051 )                                                                                                                  -                                                                      (5,051 )
                                                                                                                                                                                                               -------------------- ------- --------------------                                                                -------------------- -------------------- --------------------                                                                -------------------- -------------------- --------------------                                                                                     -------------------- --------- --------------------                                                                -------------------- -------- --------------------
                                                                                                                                                                                                                                  $   2,288                                                                                     $                2,511                                                                                     $                2,608                                                                                                          $     4,799                                                                                     $    4,195  
                                                                                                                                                                                                               ==================== ======= ====================                                                                ==================== ==================== ====================                                                                ==================== ==================== ====================                                                                                     ==================== ========= ====================                                                                ==================== ======== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
     (4 )            Goodwill and acquired intangible assets impairment related to
                     Teradyne’s Wireless Test business segment.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
     (5 )            Interest and other includes:                                                                                                                                                                                                                                                                                                               Quarter Ended                                                                                                                                                                                                                                                                                                               Six Months Ended
                                                                                                                                                                                                               ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                                                                    ----------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                  July 2, 2017                                                                                                           April 2, 2017                                                                                                                 July 3, 2016                                                                                                                                  July 2, 2017                                                                                                      July 3, 2016
                                                                                                                                                                                                               --------------------------------------------------                                                               ---------------------------------------------------------------                                                               ---------------------------------------------------------------                                                                                    ----------------------------------------------------                                                               ---------------------------------------------------
                                                               Non-cash convertible debt interest expense                                                                                                                         $   3,088                                                                                                        $                3,050                                                                                                        $                    -                                                                                                                             $     6,138                                                                                                        $        -
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
       (6 )          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 quarter ended July 2, 2017 and for the six months ended
                     July 2, 2017, 0.7 million and 0.3 million shares, respectively,
                     have been included in diluted shares.
                      
 
CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                          
                                                                                                                                                           July 2, 2017                                                                                 December 31, 2016
                                                                                                                                                 --------------------------------                                                               --------------------------------
                                                                                                                                                                                                                                                 
Assets
                     Cash and cash equivalents                                                                                                                      $    598,349                                                                                   $    307,884
                     Marketable securities                                                                                                                               809,338                                                                                        871,024
                     Accounts receivable, net                                                                                                                            405,946                                                                                        192,444
                     Inventories, net                                                                                                                                    153,645                                                                                        135,958
                     Prepayments                                                                                                                                         105,960                                                                                        108,454
                     Other current assets                                                                                                               6,787                                                                       8,039
                                                                                                                                                 -------------------- ----------                                                                -------------------- ----------
                                       Total current assets                                                                                                            2,080,025                                                                                      1,623,803
                                                                                                                                                                                                                                                 
                     Property, plant and equipment, net                                                                                                                  258,017                                                                                        253,821
                     Marketable securities                                                                                                                               212,501                                                                                        433,843
                     Deferred tax assets                                                                                                                                 125,204                                                                                        107,405
                     Other assets                                                                                                                                         12,429                                                                                         12,165
                     Retirement plans assets                                                                                                                               9,231                                                                                          7,712
                     Acquired intangible assets, net                                                                                                                      90,603                                                                                        100,401
                     Goodwill                                                                                                                         242,215                                                                     223,343
                                                                                                                                                 -------------------- ----------                                                                -------------------- ----------
                                       Total assets                                                                                                                 $  3,030,225                                                                                   $  2,762,493
                                                                                                                                                 ==================== ==========                                                                ==================== ==========
                                                                                                                                                                                                                                                 
Liabilities
                     Accounts payable                                                                                                                               $    103,454                                                                                   $     95,362
                     Accrued employees’ compensation and withholdings                                                                                                    122,246                                                                                        109,944
                     Deferred revenue and customer advances                                                                                                               81,087                                                                                         84,478
                     Other accrued liabilities                                                                                                                            66,176                                                                                         51,382
                     Contingent consideration                                                                                                                             22,432                                                                                          1,050
                     Accrued income taxes                                                                                                              43,812                                                                      30,480
                                                                                                                                                 -------------------- ----------                                                                -------------------- ----------
                                       Total current liabilities                                                                                                         439,207                                                                                        372,696
                                                                                                                                                                                                                                                 
                     Retirement plans liabilities                                                                                                                        111,688                                                                                        106,938
                     Long-term deferred revenue and customer advances                                                                                                     32,679                                                                                         23,463
                     Deferred tax liabilities                                                                                                                             10,714                                                                                         12,144
                     Long-term other accrued liabilities                                                                                                                  11,061                                                                                         28,642
                     Long-term contingent consideration                                                                                                                   16,983                                                                                         37,282
                     Long-term debt                                                                                                                   359,245                                                                     352,669
                                                                                                                                                 -------------------- ----------                                                                -------------------- ----------
                                       Total liabilities                                                                                                                 981,577                                                                                        933,834
                                                                                                                                                                                                                                                 
Shareholders’ equity                                                                                                                                                   2,048,648                                                                                      1,828,659
                                                                                                                                                                                                                              
                                                                                                                                                 --------------------------------                                                               --------------------------------
                                       Total liabilities and shareholders’ equity                                                                                   $  3,030,225                                                                                   $  2,762,493
                                                                                                                                                 ==================== ==========                                                                ==================== ==========
                                                                                                                   
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)                                                                                                                                                                                                                                      
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                               Quarter Ended                                                                                                                                                                                      Six Months Ended
                                                                                                                                                                             ------------------------------------------------------------------------------------------------------------------------------------------------                                                               ----------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                July 2, 2017                                                                                 July 3, 2016                                                                                                      July 2, 2017                                                             July 3, 2016
                                                                                                                                                                             ---------------------------------------------------                                          ---------------------------------------------------                                                               ---------------------------------------------------                      ---------------------------------------------------
Cash flows from operating activities:
                     Net income (loss)                                                                                                                                                          $  174,976                                                                                   $ (223,546 )                                                                                                      $  260,197                                                               $ (173,560 )
                     Adjustments to reconcile net income (loss) to net cash provided by
                     operating activities:
                                              Depreciation                                                                                                                                          16,331                                                                                       15,976                                                                                                            32,474                                                                   32,168
                                              Amortization                                                                                                                                          11,342                                                                                       16,710                                                                                                            22,412                                                                   37,180
                                              Stock-based compensation                                                                                                                               8,367                                                                                        7,532                                                                                                            17,312                                                                   15,457
                                              Provision for excess and obsolete inventory                                                                                                            2,569                                                                                        7,742                                                                                                             5,295                                                                   12,115
                                              Contingent consideration adjustment                                                                                                                    1,499                                                                                        1,305                                                                                                             2,133                                                                    2,478
                                              Goodwill impairment                                                                                                                                        -                                                                                      254,946                                                                                                                 -                                                                  254,946
                                                                                                                                                                                                         -                                                                                       83,339                                                                                                                 -                                                                   83,339
                                              Acquired intangible assets impairment
                                              Impairment of fixed assets                                                                                                                                 -                                                                                        4,179                                                                                                                 -                                                                    4,179
                                              Property insurance recovery                                                                                                                                -                                                                                       (5,051 )                                                                                                               -                                                                   (5,051 )
                                              Deferred taxes                                                                                                                                           (86 )                                                                                    (15,962 )                                                                                                          (3,563 )                                                                (21,458 )
                                              Retirement plans actuarial gains                                                                                                                      (2,504 )                                                                                       (669 )                                                                                                          (2,504 )                                                                 (1,862 )
                                              Other                                                                                                                                                  1,151                                                                                           92                                                                                                             1,153                                                                      576
                                              Changes in operating assets and liabilities:
                                                                       Accounts receivable                                                                                                         (90,397 )                                                                                    (95,678 )                                                                                                        (214,189 )                                                               (138,230 )
                                                                       Inventories                                                                                                                  54,003                                                                                       30,924                                                                                                            (8,149 )                                                                 30,222
                                                                       Prepayments and other assets                                                                                                  3,321                                                                                      (12,509 )                                                                                                           4,425                                                                  (13,657 )
                                                                       Accounts payable and accrued expenses                                                                                        22,002                                                                                       34,745                                                                                                            14,449                                                                   (6,040 )
                                                                       Deferred revenue and customer advances                                                                                        8,645                                                                                       77,777                                                                                                             5,312                                                                  106,072
                                                                       Retirement plans contributions                                                                                               (1,036 )                                                                                     (1,048 )                                                                                                          (1,983 )                                                                 (2,298 )
                                                                                                                                                                                 20,130                                                     58                                                                      34,418                                  6  
                                                                       Income taxes
                                                                                                                                                                             -------------------- -------- --------------------                                           -------------------- -------- --------------------                                                                -------------------- -------- --------------------                       -------------------- -------- --------------------
Net cash provided by operating activities                                                                                                                                                          230,313                                                                                      180,862                                                                                                           169,192                                                                  216,582
                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
Cash flows from investing activities:
                       Purchases of property, plant and equipment                                                                                                                                  (23,901 )                                                                                    (26,259 )                                                                                                         (45,967 )                                                                (46,593 )
                       Purchases of available-for-sale marketable securities                                                                                                                      (181,502 )                                                                                   (215,533 )                                                                                                        (334,819 )                                                               (437,311 )
                       Proceeds from maturities of available-for-sale marketable securities                                                                                                        219,423                                                                                       54,566                                                                                                           307,607                                                                  128,024
                       Proceeds from sales of available-for-sale marketable securities                                                                                                              99,661                                                                                       95,428                                                                                                           313,254                                                                  334,798
                       Proceeds from property insurance                                                                                                                               -                                                  5,051                                                                           -                              5,051  
                                                                                                                                                                             -------------------- -------- --------------------                                           -------------------- -------- --------------------                                                                -------------------- -------- --------------------                       -------------------- -------- --------------------
Net cash provided by (used for) investing activities                                                                                                                                               113,681                                                                                      (86,747 )                                                                                                         240,075                                                                  (16,031 )
                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
Cash flows from financing activities:
                       Issuance of common stock under stock option and stock purchase plans                                                                                                            131                                                                                        8,756                                                                                                            15,215                                                                   17,896
                       Repurchase of common stock                                                                                                                                                  (56,598 )                                                                                    (28,782 )                                                                                                         (94,328 )                                                                (56,783 )
                       Dividend payments                                                                                                                                                           (13,904 )                                                                                    (12,172 )                                                                                                         (27,925 )                                                                (24,425 )
                       Payments related to net settlement of employee stock compensation                                                                                                              (149 )                                                                                       (180 )                                                                                                         (12,438 )                                                                 (9,152 )
                       awards
                       Payments of contingent consideration                                                                                                                           -                                                      -                                                                      (1,050 )                                             (11,697 )
                                                                                                                                                                             -------------------- -------- --------------------                                           -------------------- -------- --------------------                                                                -------------------- -------- --------------------                       -------------------- -------- --------------------
Net cash used for financing activities                                                                                                                                                             (70,520 )                                                                                    (32,378 )                                                                                                        (120,526 )                                                                (84,161 )
                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
Effects of exchange rate changes on cash and cash equivalents                                                                                                                                          129                                                                                            -                                                                                                             1,724                                                                        -
                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
Increase in cash and cash equivalents                                                                                                                                                              273,603                                                                                       61,737                                                                                                           290,465                                                                  116,390
Cash and cash equivalents at beginning of period                                                                                                                                324,746                                                319,358                                                                     307,884                            264,705  
                                                                                                                                                                             -------------------- -------- --------------------                                           -------------------- -------- --------------------                                                                -------------------- -------- --------------------                       -------------------- -------- --------------------
Cash and cash equivalents at end of period                                                                                                                                                      $  598,349                                                                $  381,095                                                                                     $  598,349                                            $  381,095  
                                                                                                                                                                             ==================== ======== ====================                                           ==================== ======== ====================                                                                ==================== ======== ====================                       ==================== ======== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
GAAP to Non-GAAP Earnings Reconciliation
(In millions, except per share amounts)
                                                                                                                                                                                                                                                                                                                                                Quarter Ended
                                                                                                                                                 ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                       July 2,                                                                                  % of Net                                                                                                                                                                                                                                                                                                                                      April 2,                                                                        % of Net                                                                                                                                                                                                                                                                                                                            July 3,                                                                % of Net
                                                                                                                                                                        2017                                                                                    Revenues                                                                                                                                                                                                                                                                                                                                        2017                                                                          Revenues                                                                                                                                                                                                                                                                                                                             2016                                                                  Revenues
                                                                                                                                                 -----------------------------------------------                                             --------------------------------------------                                                                                                                                                                                                                                                                                                 ----------------------------------------------                                             -------------------------                                                                                                                                                                                                                                                                                               ----------------------------------------------                                             ---------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
Net revenues                                                                                                                                                        $   696.9                                                                                                                                                                                                                                                                                                                                                                                                                                $  456.9                                                                                                                                                                                                                                                                                                                                                                                                           $  531.8
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
Gross profit - GAAP                                                                                                                                                 $   391.2                                                                                     56.1 %                                                                                                                                                                                                                                                                                                                                     $  264.9                                                                 58.0 %                                                                                                                                                                                                                                                                                                                                    $  282.9                                                                 53.2 %
              Pension mark-to-market adjustment (1)                                                                                                   (0.7 )                                                                -0.1 %                                                                                                                                                                                                                                                                                                                         -                                                 -                                                                                                                                                                                                                                                                                                    (0.2 )                                                                0.0 %
                                                                                                                                                 -------------------- ------- --------------------                                           -------------------- ---- --------------------                                                                                                                                                                                                                                                                                               -------------------- ------ --------------------                                           ----- --------------------                                                                                                                                                                                                                                                                                              -------------------- ------ --------------------                                           ----- ----
Gross profit - non-GAAP                                                                                                                                             $   390.5                                                                                     56.0 %                                                                                                                                                                                                                                                                                                                                     $  264.9                                                                 58.0 %                                                                                                                                                                                                                                                                                                                                    $  282.7                                                                 53.2 %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
Income (loss) from operations - GAAP                                                                                                                                $   209.9                                                                                     30.1 %                                                                                                                                                                                                                                                                                                                                     $   93.4                                                                 20.4 %                                                                                                                                                                                                                                                                                                                                    $ (231.8 )                                                              -43.6 %
              Acquired intangible assets amortization                                                                                                                     8.2                                                                                      1.2 %                                                                                                                                                                                                                                                                                                                                          8.0                                                                  1.8 %                                                                                                                                                                                                                                                                                                                                        16.2                                                                  3.0 %
              Restructuring and other (2)                                                                                                                                 2.3                                                                                      0.3 %                                                                                                                                                                                                                                                                                                                                          2.5                                                                  0.5 %                                                                                                                                                                                                                                                                                                                                         2.6                                                                  0.5 %
              Pension mark-to-market adjustment (1)                                                                                                                      (2.5 )                                                                                   -0.4 %                                                                                                                                                                                                                                                                                                                                            -                                                                    -                                                                                                                                                                                                                                                                                                                                          (0.7 )                                                               -0.1 %
              Goodwill impairment (3)                                                                                                                                       -                                                                                        -                                                                                                                                                                                                                                                                                                                                              -                                                                    -                                                                                                                                                                                                                                                                                                                                         254.9                                                                 47.9 %
              Acquired intangible assets impairment (3)                                                                                                  -                                                  -                                                                                                                                                                                                                                                                                                        -                                                 -                                                                                                                                                                                                                                                                                                    83.3                                              15.7 %
                                                                                                                                                 -------------------- ------- --------------------                                           -------------------- ---- --------------------                                                                                                                                                                                                                                                                                               -------------------- ------ --------------------                                           ----- --------------------                                                                                                                                                                                                                                                                                              -------------------- ------ --------------------                                           ----- ----
Income from operations - non-GAAP                                                                                                                                   $   217.9                                               31.3 %                                                                                                                                                                                                                                                                                                                                     $  103.9                                              22.7 %                                                                                                                                                                                                                                                                                                                                    $  124.5                                              23.4 %
                                                                                                                                                 ==================== ======= ====================                                           ==================== ==== ====================                                                                                                                                                                                                                                                                                               ==================== ====== ====================                                           ===== ====================                                                                                                                                                                                                                                                                                              ==================== ====== ====================                                           ===== ====
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                                                                                                                                       Net Income                                                                                                                                                                                                                                                                                                                                                                                                         Net Income                                                                                                                                                                                                                                                                                                                                                                                      Net (Loss) Income
                                                                                                                                                                                                                                                                                                                                                                                                    per Common Share                                                                                                                                                                                                                                                                                                                                                                                                   per Common Share                                                                                                                                                                                                                                                                                                                                                                                   per Common Share
                                                                                                                                                                                                                                                                                                                                       ----------------------------------------------------------------------------------------------------------------------------------                                                                                                                                                                                                                                                                                 ----------------------------------------------------------------------------------------------------------------------------------                                                                                                                                                                                                                                                                 -----------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                       July 2,                                                                                  % of Net                                                                                     Basic                                                                                    Diluted                                                                                                                                                 April 2,                                                                        % of Net                                                                          Basic                                                                                    Diluted                                                                                                                                                  July 3,                                                                % of Net                                                                  Basic                                                                                    Diluted
                                                                                                                                                                        2017                                                                                    Revenues                                                                                                                                                                                                                                                                                                                                        2017                                                                          Revenues                                                                                                                                                                                                                                                                                                                             2016                                                                  Revenues
                                                                                                                                                 -----------------------------------------------                                             --------------------------------------------                                              ---------------------------------------------                                             ---------------------------------------------                                                                                                            ----------------------------------------------                                             -------------------------                                            ---------------------------------------------                                             ---------------------------------------------                                                                                                            ----------------------------------------------                                             ---------                                            ---------------------------------------------                                             ----------------------------------------------
Net income (loss) - GAAP                                                                                                                                            $   175.0                                                                                     25.1 %                                                                                  $  0.88                                                                                   $  0.87                                                                                                                                                  $   85.2                                                                 18.6 %                                                                                 $  0.43                                                                                   $  0.42                                                                                                                                                  $ (223.5 )                                                              -42.0 %                                                                 $ (1.10 )                                                                                 $  (1.10 )
              Acquired intangible assets amortization                                                                                                                     8.2                                                                                      1.2 %                                                                                     0.04                                                                                      0.04                                                                                                                                                       8.0                                                                  1.8 %                                                                                    0.04                                                                                      0.04                                                                                                                                                      16.2                                                                  3.0 %                                                                    0.08                                                                                       0.08
              Interest and other (4)                                                                                                                                      3.1                                                                                      0.4 %                                                                                     0.02                                                                                      0.02                                                                                                                                                       3.1                                                                  0.7 %                                                                                    0.02                                                                                      0.02                                                                                                                                                         -                                                                    -                                                                         -                                                                                          -
              Restructuring and other (2)                                                                                                                                 2.3                                                                                      0.3 %                                                                                     0.01                                                                                      0.01                                                                                                                                                       2.5                                                                  0.5 %                                                                                    0.01                                                                                      0.01                                                                                                                                                       2.6                                                                  0.5 %                                                                    0.01                                                                                       0.01
              Pension mark-to-market adjustment (1)                                                                                                                      (2.5 )                                                                                   -0.4 %                                                                                    (0.01 )                                                                                   (0.01 )                                                                                                                                                       -                                                                    -                                                                                         -                                                                                         -                                                                                                                                                      (0.7 )                                                               -0.1 %                                                                   (0.00 )                                                                                    (0.00 )
              Goodwill impairment (3)                                                                                                                                       -                                                                                        -                                                                                          -                                                                                         -                                                                                                                                                         -                                                                    -                                                                                         -                                                                                         -                                                                                                                                                     254.9                                                                 47.9 %                                                                    1.26                                                                                       1.24
              Acquired intangible assets impairment (3)                                                                                                                     -                                                                                        -                                                                                          -                                                                                         -                                                                                                                                                         -                                                                    -                                                                                         -                                                                                         -                                                                                                                                                      83.3                                                                 15.7 %                                                                    0.41                                                                                       0.41
              Exclude discrete tax adjustments (5)                                                                                                                        0.5                                                                                      0.1 %                                                                                     0.00                                                                                      0.00                                                                                                                                                      (7.0 )                                                               -1.5 %                                                                                   (0.04 )                                                                                   (0.03 )                                                                                                                                                    25.1                                                                  4.7 %                                                                    0.12                                                                                       0.12
              Non-GAAP tax adjustments (6)                                                                                                            (5.1 )                                                                -0.7 %                                                                 (0.03 )                                                                (0.03 )                                                                                                                                 (3.1 )                                                               -0.7 %                                                                (0.02 )                                                                (0.02 )                                                                                                                                (45.5 )                                                               -8.6 %                                                (0.22 )                                                                 (0.22 )
                                                                                                                                                 -------------------- ------- --------------------                                           -------------------- ---- --------------------                                            -------------------- ----- --------------------                                           -------------------- ----- --------------------                                                                                                          -------------------- ------ --------------------                                           ----- --------------------                                           -------------------- ----- --------------------                                           -------------------- ----- --------------------                                                                                                          -------------------- ------ --------------------                                           ----- ----                                           -------------------- ----- --------------------                                           -------------------- ------ --------------------
Net income - non-GAAP                                                                                                                                               $   181.5                                               26.0 %                                                                                  $  0.91                                                                $  0.90                                                                                                                               $   88.7                                              19.4 %                                                                                 $  0.44                                                                $  0.44                                                                                                                               $  112.4                                              21.1 %                                                                 $  0.55                                                                $   0.55  
                                                                                                                                                 ==================== ======= ====================                                           ==================== ==== ====================                                            ==================== ===== ====================                                           ==================== ===== ====================                                                                                                          ==================== ====== ====================                                           ===== ====================                                           ==================== ===== ====================                                           ==================== ===== ====================                                                                                                          ==================== ====== ====================                                           ===== ====                                           ==================== ===== ====================                                           ==================== ====== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
GAAP and non-GAAP weighted average common shares - basic                                                                                                                198.8                                                                                                                                                                                                                                                                                                                                                                                                                                   200.0                                                                                                                                                                                                                                                                                                                                                                                                              203.0
GAAP weighted average common shares - diluted                                                                                                                           201.5                                                                                                                                                                                                                                                                                                                                                                                                                                   201.9                                                                                                                                                                                                                                                                                                                                                                                                              203.0
              Exclude dilutive shares from convertible note                                                                                                              (0.7 )                                                                                                                                                                                                                                                                                                                                                                                                                                     -                                                                                                                                                                                                                                                                                                                                                                                                                  -
              Include dilutive shares                                                                                                                    -                                                                                                                                                                                                                                                                                                                                                                                                 -                                                                                                                                                                                                                                                                                                                                                                          1.9  
                                                                                                                                                 -------------------- ------- --------------------                                                                                                                                                                                                                                                                                                                                                                                        -------------------- ------ --------------------                                                                                                                                                                                                                                                                                                                                                                   -------------------- ------ --------------------
Non-GAAP weighted average common shares - diluted                                                                                                    200.8                                                                                                                                                                                                                                                                                                                                                                                             201.9                                                                                                                                                                                                                                                                                                                                                                        204.9  
                                                                                                                                                 ==================== ======= ====================                                                                                                                                                                                                                                                                                                                                                                                        ==================== ====== ====================                                                                                                                                                                                                                                                                                                                                                                   ==================== ====== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
         (1 ) Actuarial gains recognized under GAAP in accordance with Teradyne’s
              mark-to-market pension accounting.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
         (2 ) Restructuring and other consists of:
                                                                                                                                                                                                                                                                                                                                                                                      Quarter Ended
                                                                                                                                                 ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                       July 2,                                                                                                                                                                                                                                                                                                                                                                                                                                April 2,                                                                                                                                                                                                                                                                                                                                                                                                            July 3,
                                                                                                                                                                        2017                                                                                                                                                                                                                                                                                                                                                                                                                                    2017                                                                                                                                                                                                                                                                                                                                                                                                               2016
                                                                                                                                                 -----------------------------------------------                                                                                                                                                                                                                                                                                                                                                                                          ----------------------------------------------                                                                                                                                                                                                                                                                                                                                                                     ----------------------------------------------
                                   Contingent consideration fair value adjustment                                                                                   $     1.5                                                                                                                                                                                                                                                                                                                                                                                                                                $    0.6                                                                                                                                                                                                                                                                                                                                                                                                           $    1.3
                                   Employee severance                                                                                                                     0.8                                                                                                                                                                                                                                                                                                                                                                                                                                     0.6                                                                                                                                                                                                                                                                                                                                                                                                                1.3
                                   Facility related                                                                                                                         -                                                                                                                                                                                                                                                                                                                                                                                                                                     1.3                                                                                                                                                                                                                                                                                                                                                                                                                  -
                                   Impairment of fixed assets and expenses related to Japan earthquake                                                                      -                                                                                                                                                                                                                                                                                                                                                                                                                                       -                                                                                                                                                                                                                                                                                                                                                                                                                5.1
                                   Property insurance recovery                                                                                           -                                                                                                                                                                                                                                                                                                                                                                                                 -                                                                                                                                                                                                                                                                                                                                                                         (5.1 )
                                                                                                                                                 -------------------- ------- --------------------                                                                                                                                                                                                                                                                                                                                                                                        -------------------- ------ --------------------                                                                                                                                                                                                                                                                                                                                                                   -------------------- ------ --------------------
                                                                                                                                                                    $     2.3                                                                                                                                                                                                                                                                                                                                                                                                             $    2.5                                                                                                                                                                                                                                                                                                                                                                                        $    2.6  
                                                                                                                                                 ==================== ======= ====================                                                                                                                                                                                                                                                                                                                                                                                        ==================== ====== ====================                                                                                                                                                                                                                                                                                                                                                                   ==================== ====== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
         (3 ) Goodwill and acquired intangible assets impairment related to
              Teradyne’s Wireless Test business segment.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
         (4 ) For the quarters ended July 2, 2017 and April 2, 2017, interest and
              other included non-cash convertible debt interest expense.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
         (5 ) For the quarters ended July 2, 2017, April 2, 2017 and July 3,
              2016 adjustment to exclude discrete income tax items. For the
              quarter ended July 3, 2016, adjustment to treat Wireless Test
              business segment goodwill and intangible assets impairments as
              discrete tax items.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
         (6 ) For periods after December 31, 2016, the non-GAAP annual effective
              tax rate is based on a with and without calculation with respect to
              non-GAAP reconciling items.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                                                                                                                      Six Months Ended
                                                                                                                                                 ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                       July 2,                                                               % of Net                                                                                                                                                                                                                                                                                                                                                          July 3,                                                               % of Net
                                                                                                                                                                        2017                                                                 Revenues                                                                                                                                                                                                                                                                                                                                                           2016                                                                 Revenues
                                                                                                                                                 -----------------------------------------------                                             --------------------------------------------                                                                                                                                                                                                                                                                                                 ----------------------------------------------                                             -------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
Net Revenues                                                                                                                                                        $ 1,153.8                                                                                                                                                                                                                                                                                                                                                                                                                                $  962.8
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
Gross profit - GAAP                                                                                                                                                 $   656.1                                                                                     56.9 %                                                                                                                                                                                                                                                                                                                                     $  513.2                                                                 53.3 %
              Pension mark-to-market adjustment (1)                                                                                                   (0.7 )                                                                -0.1 %                                                                                                                                                                                                                                                                                                                      (0.6 )                                                               -0.1 %
                                                                                                                                                 -------------------- ------- --------------------                                           -------------------- ---- --------------------                                                                                                                                                                                                                                                                                               -------------------- ------ --------------------                                           ----- --------------------
Gross profit - non-GAAP                                                                                                                                             $   655.4                                                                                     56.8 %                                                                                                                                                                                                                                                                                                                                     $  512.6                                                                 53.2 %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
Income (loss) from operations - GAAP                                                                                                                                $   303.3                                                                                     26.3 %                                                                                                                                                                                                                                                                                                                                     $ (175.7 )                                                              -18.2 %
              Acquired intangible assets amortization                                                                                                                    16.1                                                                                      1.4 %                                                                                                                                                                                                                                                                                                                                         36.2                                                                  3.8 %
              Restructuring and other (2)                                                                                                                                 4.8                                                                                      0.4 %                                                                                                                                                                                                                                                                                                                                          4.2                                                                  0.4 %
              Pension mark-to-market adjustment (1)                                                                                                                      (2.5 )                                                                                   -0.2 %                                                                                                                                                                                                                                                                                                                                         (1.9 )                                                               -0.2 %
              Goodwill impairment (3)                                                                                                                                       -                                                                                        -                                                                                                                                                                                                                                                                                                                                          254.9                                                                 26.5 %
              Acquired intangible assets impairment (3)                                                                                                  -                                                  -                                                                                                                                                                                                                                                                                                     83.3                                               8.7 %
                                                                                                                                                 -------------------- ------- --------------------                                           -------------------- ---- --------------------                                                                                                                                                                                                                                                                                               -------------------- ------ --------------------                                           ----- --------------------
Income from operations - non-GAAP                                                                                                                                   $   321.7                                               27.9 %                                                                                                                                                                                                                                                                                                                                     $  201.0                                              20.9 %
                                                                                                                                                 ==================== ======= ====================                                           ==================== ==== ====================                                                                                                                                                                                                                                                                                               ==================== ====== ====================                                           ===== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                                                                                                                                       Net Income                                                                                                                                                                                                                                                                                                                                                                                                      Net (Loss) Income
                                                                                                                                                                                                                                                                                                                                                                                                    per Common Share                                                                                                                                                                                                                                                                                                                                                                                                   per Common Share
                                                                                                                                                                                                                                                                                                                                       ----------------------------------------------------------------------------------------------------------------------------------                                                                                                                                                                                                                                                                                 ----------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                       July 2,                                                               % of Net                                                                                                        Basic                                                                                    Diluted                                                                                                                                                  July 3,                                                               % of Net                                                                                   Basic                                                                                    Diluted
                                                                                                                                                                        2017                                                                 Revenues                                                                                                                                                                                                                                                                                                                                                           2016                                                                 Revenues
                                                                                                                                                 -----------------------------------------------                                             --------------------------------------------                                              ---------------------------------------------                                             ---------------------------------------------                                                                                                            ----------------------------------------------                                             -------------------------                                            ---------------------------------------------                                             ---------------------------------------------
Net income (loss) - GAAP                                                                                                                                            $   260.2                                                                                     22.6 %                                                                                  $  1.30                                                                                   $  1.29                                                                                                                                                  $ (173.6 )                                                              -18.0 %                                                                                 $ (0.85 )                                                                                 $ (0.85 )
              Acquired intangible assets amortization                                                                                                                    16.1                                                                                      1.4 %                                                                                     0.08                                                                                      0.08                                                                                                                                                      36.2                                                                  3.8 %                                                                                    0.18                                                                                      0.18
              Interest and other (4)                                                                                                                                      6.1                                                                                      0.5 %                                                                                     0.03                                                                                      0.03                                                                                                                                                         -                                                                    -                                                                                         -                                                                                         -
              Restructuring and other (2)                                                                                                                                 4.8                                                                                      0.4 %                                                                                     0.02                                                                                      0.02                                                                                                                                                       4.2                                                                  0.4 %                                                                                    0.02                                                                                      0.02
              Pension mark-to-market adjustment (1)                                                                                                                      (2.5 )                                                                                   -0.2 %                                                                                    (0.01 )                                                                                   (0.01 )                                                                                                                                                    (1.9 )                                                               -0.2 %                                                                                   (0.01 )                                                                                   (0.01 )
              Goodwill impairment (3)                                                                                                                                       -                                                                                        -                                                                                          -                                                                                         -                                                                                                                                                     254.9                                                                 26.5 %                                                                                    1.25                                                                                      1.24
              Acquired intangible assets impairment (3)                                                                                                                     -                                                                                        -                                                                                          -                                                                                         -                                                                                                                                                      83.3                                                                  8.7 %                                                                                    0.41                                                                                      0.41
              Exclude discrete tax adjustments (5)                                                                                                                       (6.5 )                                                                                   -0.6 %                                                                                    (0.03 )                                                                                   (0.03 )                                                                                                                                                    22.7                                                                  2.4 %                                                                                    0.11                                                                                      0.11
              Non-GAAP tax adjustments (6)                                                                                                            (8.2 )                                                                -0.7 %                                                                 (0.04 )                                                                (0.04 )                                                                                                                                (49.0 )                                                               -5.1 %                                                                (0.24 )                                                                (0.24 )
                                                                                                                                                 -------------------- ------- --------------------                                           -------------------- ---- --------------------                                            -------------------- ----- --------------------                                           -------------------- ----- --------------------                                                                                                          -------------------- ------ --------------------                                           ----- --------------------                                           -------------------- ----- --------------------                                           -------------------- ----- --------------------
Net income - non-GAAP                                                                                                                                               $   270.0                                               23.4 %                                                                                  $  1.35                                                                $  1.34                                                                                                                               $  176.8                                              18.4 %                                                                                 $  0.87                                                                $  0.86  
                                                                                                                                                 ==================== ======= ====================                                           ==================== ==== ====================                                            ==================== ===== ====================                                           ==================== ===== ====================                                                                                                          ==================== ====== ====================                                           ===== ====================                                           ==================== ===== ====================                                           ==================== ===== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
GAAP and non-GAAP weighted average common shares - basic                                                                                                                199.4                                                                                                                                                                                                                                                                                                                                                                                                                                   203.6
GAAP weighted average common shares - diluted                                                                                                                           201.7                                                                                                                                                                                                                                                                                                                                                                                                                                   203.6
              Exclude dilutive shares from convertible note                                                                                                              (0.3 )                                                                                                                                                                                                                                                                                                                                                                                                                                     -
              Include dilutive shares                                                                                                                    -                                                                                                                                                                                                                                                                                                                                                                                               1.7  
                                                                                                                                                 -------------------- ------- --------------------                                                                                                                                                                                                                                                                                                                                                                                        -------------------- ------ --------------------
Non-GAAP weighted average common shares - diluted                                                                                                    201.4                                                                                                                                                                                                                                                                                                                                                                                             205.3  
                                                                                                                                                 ==================== ======= ====================                                                                                                                                                                                                                                                                                                                                                                                        ==================== ====== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
         (1 ) Actuarial gains recognized under GAAP in accordance with Teradyne’s
              mark-to-market pension accounting.
                                                                                                                                                                                                                                                                                                                         
         (2 ) Restructuring and other consists of:
                                                                                                                                                                                        Six Months Ended
                                                                                                         ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                               July 2,                                                                                                                     July 3,
                                                                                                                                2017                                                                                                                        2016
                                                                                                         -----------------------------------------------                                                                              ----------------------------------------------
                                   Contingent consideration fair value adjustment                                           $     2.1                                                                                                                    $    2.5
                                   Employee severance                                                                             1.4                                                                                                                         1.7
                                   Facility related                                                                               1.3                                                                                                                           -
                                   Impairment of fixed assets and expenses related to Japan earthquake                              -                                                                                                                         5.1
                                   Property insurance recovery                                                   -                                                                                  (5.1 )
                                                                                                         -------------------- ------- --------------------                                                                            -------------------- ------ --------------------
                                                                                                                            $     4.8                                                                                                 $    4.2  
                                                                                                         ==================== ======= ====================                                                                            ==================== ====== ====================
                                                                                                                                                                                                                                                                                                                         
         (3 ) Goodwill and acquired intangible assets impairment related to
              Teradyne’s Wireless Test business segment.
                                                                                                                                                                                                                                                                                                                         
         (4 ) For the six months ended July 2, 2017, Interest and other included
              non-cash convertible debt interest expense.
                                                                                                                                                                                                                                                                                                                         
         (5 ) For the six months ended July 2, 2017 and July 3, 2016, adjustment
              to exclude discrete income tax items. For the six months ended
              July 3, 2016, adjustment to treat Wireless Test business segment
              goodwill and intangible assets impairments as discrete tax items.
                                                                                                                                                                                                                                                                                                                         
         (6 ) For periods after December 31, 2016, the non-GAAP annual effective
              tax rate is based on a with and without calculation with respect to
              non-GAAP reconciling items.
                                                                                                                                                                                                                                                                                                                         
GAAP to Non-GAAP Reconciliation of Third Quarter 2017 guidance:
                                                                                                                                                                                                                                                                                                                         
GAAP and non-GAAP third quarter revenue guidance:                                                                                                                    $455 million          to  $485 million
GAAP net income per diluted share                                                                                                                                               $  0.35                           $  0.42
              Exclude acquired intangible assets amortization                                                                                                                      0.04                              0.04
              Exclude non-cash convertible debt interest                                                                                                                           0.02                              0.02
              Non-GAAP tax adjustment                                                                                                                          (0.02 )        (0.02 )
                                                                                                                                                             -------------------- ----- -      -------------------- ----- -
Non-GAAP net income per diluted share                                                                                                                                           $  0.39                           $  0.46
                                                                                                                                                                                                                                                                                                                         

For press releases and other information of interest to investors, please visit Teradyne’s homepage at http://www.teradyne.com .

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20170726006252r1&sid=cmtx6&distro=nx&

View source version on businesswire.com: http://www.businesswire.com/news/home/20170726006252/en/

SOURCE: Teradyne, Inc.

Teradyne, Inc. 
Andy Blanchard, 978-370-2425 
Vice President of Corporate Relations


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