Name: Teradyne Inc. (NASDAQ:TER) | Income Statement
Creator: Stock Analysis on Net

Income Statement

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

Download chart

Teradyne Inc., consolidated income statement

US$ in thousands

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Products	2,096,286)	2,591,572)	3,196,575)	2,690,906)	1,887,674)
Services	580,012)	563,473)	506,306)	430,563)	407,291)
Revenues	2,676,298)	3,155,045)	3,702,881)	3,121,469)	2,294,965)
Cost of products	(882,892)	(1,042,555)	(1,300,106)	(1,157,476)	(782,047)
Cost of services	(256,658)	(245,339)	(196,119)	(178,252)	(173,089)
Cost of revenues, exclusive of acquired intangible assets amortization	(1,139,550)	(1,287,894)	(1,496,225)	(1,335,728)	(955,136)
Gross profit	1,536,748)	1,867,151)	2,206,656)	1,785,741)	1,339,829)
Selling and administrative	(577,315)	(558,103)	(547,559)	(464,769)	(437,084)
Engineering and development	(418,089)	(440,591)	(427,609)	(374,964)	(322,824)
Acquired intangible assets amortization	(18,999)	(19,333)	(21,456)	(30,803)	(40,147)
Restructuring and other	(21,277)	(17,185)	(9,312)	13,202)	13,880)
Operating expenses	(1,035,680)	(1,035,212)	(1,005,936)	(857,334)	(786,175)
Income from operations	501,068)	831,939)	1,200,720)	928,407)	553,654)
Interest income	27,348)	6,379)	2,627)	5,982)	24,785)
Interest expense	(3,806)	(3,719)	(17,820)	(24,182)	(23,145)
Other income (expense), net	962)	5,786)	(24,572)	(9,192)	(29,522)
Non-operating income (expenses)	24,504)	8,446)	(39,765)	(27,392)	(27,882)
Income before income taxes	525,572)	840,385)	1,160,955)	901,015)	525,772)
Income tax provision	(76,820)	(124,884)	(146,366)	(116,868)	(58,304)
Net income	448,752)	715,501)	1,014,589)	784,147)	467,468)

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

The financial trajectory between 2019 and 2023 is characterized by a period of rapid expansion peaking in 2021, followed by a notable contraction in both top-line revenue and bottom-line profitability. Total revenues grew from 2.29 billion US$ in 2019 to a high of 3.70 billion US$ in 2021, before declining to 2.68 billion US$ by the end of 2023.

Revenue Composition and Diversification: A clear divergence is observed between product and service revenue streams. Product revenues exhibit high volatility, increasing from 1.89 billion US$ in 2019 to a peak of 3.20 billion US$ in 2021, then retreating to 2.10 billion US$ in 2023. In contrast, service revenues demonstrate consistent, linear growth, rising from 407 million US$ in 2019 to 580 million US$ in 2023. This trend indicates a growing reliance on services to provide a stabilizing buffer against the cyclicality of product sales.
Gross Profitability and Margin Stability: Gross profit followed the general revenue trend, peaking at 2.21 billion US$ in 2021 and falling to 1.54 billion US$ in 2023. Despite the fluctuation in total volume, gross margins remained relatively resilient, maintaining a range between approximately 57% and 60% throughout the five-year period. This suggests that the cost of revenues has scaled proportionally with sales declines.
Operating Expense Analysis: Operating expenses show a lack of flexibility relative to revenue declines. Total operating expenses increased from 786 million US$ in 2019 to a peak of 1.04 billion US$ in 2022 and remained nearly flat at 1.04 billion US$ in 2023. Specifically, selling and administrative expenses rose steadily from 437 million US$ to 577 million US$ over the period. Because operating expenses did not contract in tandem with the post-2021 revenue decline, there was significant compression of the operating margin.
Operational and Net Income Trends: Income from operations peaked at 1.20 billion US$ in 2021 but experienced a sharp decline to 501 million US$ by 2023. This decline is more pronounced than the drop in revenue, reflecting the aforementioned rigid operating cost structure. Net income mirrored this pattern, rising from 467 million US$ in 2019 to a peak of 1.01 billion US$ in 2021, before falling back to 449 million US$ in 2023.
Non-Operating Financial Dynamics: A positive shift is noted in the company's non-operating profile. Interest expenses decreased substantially from a peak of 24 million US$ in 2020 to approximately 3.8 million US$ in 2023. Simultaneously, interest income saw a significant surge in 2023, reaching 27 million US$, contributing to a positive non-operating income of 24.5 million US$ in the final year of the analysis.

AI Ask an analyst for more

My previous chats

Add tokens

Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.

How can I help you?