• Revenue of $520 million in Q4’18, organic growth of 5% from Q4’17
  • Record full year memory and analog test shipments
  • Record 60% quarterly and 58% full year gross margin
  • Expect to repurchase $500 million in shares in 2019
  • Quarterly dividend of $0.09 declared
 Q4'18Q4'17Q3'18FY 2018FY 2017 
Revenue (mil)$520 $479$567 $2,101$2,137 
GAAP EPS$0.79($0.54)$0.63 $2.35$1.28 
Non-GAAP EPS$0.63$0.46$0.71 $2.37$2.34 

NORTH READING, Mass., Jan. 23, 2019 (GLOBE NEWSWIRE) -- Teradyne, Inc. (NASDAQ: TER) reported revenue of $520 million for the fourth quarter of 2018 of which $342 million was in Semiconductor Test, $84 million in Industrial Automation (IA), $54 million in System Test and $40 million in Wireless Test. GAAP net income for the fourth quarter was $143.8 million or $0.79 per share. On a non-GAAP basis, Teradyne’s net income in the fourth quarter was $113.0 million, or $0.63 per diluted share, which excluded restructuring and other charges, acquired intangible asset amortization, pension actuarial gains, non-cash convertible debt interest, discrete income tax adjustments, and included the related tax impact on non-GAAP adjustments.

“We finished 2018 with strong fourth quarter sales above the high end of our guidance driven by upside demand in our Semiconductor and Wireless test businesses,” said CEO and President Mark Jagiela. “For the full year, our Semiconductor Test group delivered record memory and analog revenues, which lessened the impact of lower mobility test shipments. Gross margin for the year was at a record level due mainly to continued Universal Robots manufacturing cost reductions and a favorable product mix overall. In IA, Universal Robots’ full year growth of 38%, while strong, was below our target due mainly to slowing demand in China and the automotive sector. MiR sales for the year more than doubled on a pro-forma basis.”

As part of the $1.5 billion authorization established in January 2018, Teradyne purchased $823 million of its common shares in 2018 and expects to repurchase $500 million of its common shares in 2019.

Teradyne’s Board of Directors declared a quarterly cash dividend of $0.09 per share, payable on March 22, 2019 to shareholders of record as of the close of business on February 22, 2019. 

Guidance for the first quarter of 2019 is revenue of $460 million to $490 million, with GAAP net income of $0.31 to $0.39 per diluted share and non-GAAP net income of $0.39 to $0.47 per diluted share. Non-GAAP guidance excludes acquired intangible asset amortization, non-cash convertible debt interest and includes the related tax impact on non-GAAP adjustments.

Webcast
A conference call to discuss the fourth quarter results, along with management's business outlook, will follow at 10:00 a.m. ET, Thursday, January 24. Interested investors should access the webcast at investors.teradyne.com/events-presentations at least five minutes before the call begins. Presentation materials will be available starting at 10:00 a.m. ET. A replay will be available on the Teradyne website at 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, fair value inventory step-up related to Mobile Industrial Robots, and restructuring and other, and includes the related tax impact on non-GAAP adjustments. 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 as a percentage of revenue, 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 fair value inventory step-up related to Mobile Industrial Robots. GAAP requires that this item 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. Non-GAAP diluted shares include the impact of Teradyne’s call option on its shares. 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 (NASDAQ: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, autonomous mobile robots and sensing and simulation software, used by global manufacturing and industrial customers to improve quality and increase manufacturing efficiency. In 2018, Teradyne had revenue of $2.1 billion and currently employs approximately 4,900 people worldwide. For more information, visit teradyne.com. Teradyne® 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, potential borrowings under a senior secured credit facility, and the impact of the U.S. tax reform, export and tariff laws. 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, availability of, or borrowing under, the credit facility, or the impact of the U.S. tax reform, export and tariff laws. 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 the Industrial Automation 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; additional U.S. tax regulations or IRS guidance; the impact of any tariffs or export controls imposed in the U.S. or China; 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, 2017 and the Quarterly Report on Form 10-Q for the period ended September 30, 2018. 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 FOURTH FISCAL QUARTER OF 2018           
               
CONDENSED  CONSOLIDATED  STATEMENTS OF OPERATIONS
 (In thousands, except per share amounts)         
               
     Quarter Ended Twelve Months Ended 
     December 31,
2018
 September 30,
2018
 December 31,
2017 (1)
 December 31,
2018
 December 31,
2017 (1)
 
               
Net revenues $  519,558  $  566,848  $  479,415  $  2,100,802  $  2,136,606  
               
 Cost of revenues (exclusive of acquired intangible assets amortization shown separately below) (2)    210,022     233,155     208,485     880,408     915,153  
               
Gross profit    309,536     333,693     270,930     1,220,394     1,221,453  
               
Operating expenses:           
 Selling and administrative    100,552     100,199     87,880     390,669     348,913  
 Engineering and development    74,706     77,049     72,070     301,505     307,305  
 Acquired intangible assets amortization    10,559     11,142     7,384     39,191     30,530  
 Restructuring and other (3)    11,446     1,710     8,970     15,232     9,362  
   Operating expenses    197,263     190,100     176,304     746,597     696,110  
               
Income from operations    112,273     143,593     94,626     473,797     525,343  
               
 Interest and other expense (income) (4)    1,144     2,749     (3,458)    5,996     931  
               
Income before income taxes     111,129     140,844     98,084     467,801     524,412  
 Income tax (benefit) provision (5)    (32,662)    20,863     204,007     16,022     266,720  
Net income (loss) $  143,791  $  119,981  $  (105,923) $  451,779  $  257,692  
               
Net income (loss) per common share:           
Basic   $  0.80  $  0.65  $  (0.54) $  2.41  $  1.30  
Diluted   $  0.79  $  0.63  $  (0.54) $  2.35  $  1.28  
               
Weighted average common shares - basic    178,958     185,744     196,010     187,672     198,069  
               
Weighted average common shares - diluted (6)    181,520     190,505     196,010     192,605     201,641  
               
               
Cash dividend declared per common share $  0.09  $  0.09  $  0.07  $  0.36  $  0.28  
               
               
(1)Certain prior period amounts were reclassified to conform with the first quarter 2018 adoption of new accounting guidance for the presentation of pension and post retirement costs.  
               
(2)Cost of revenues includes: Quarter Ended Twelve Months Ended 
     December 31,
2018
 September 30,
2018
 December 31,
2017
 December 31,
2018
 December 31,
2017
 
   Provision for excess and obsolete inventory $  1,720  $  3,347  $  1,690  $  11,242  $  8,844  
   Sale of previously written down inventory    (1,501)    (1,013)    (1,048)    (6,679)    (7,451) 
     $  219  $  2,334  $  642  $  4,563  $  1,393  
               
(3)Restructuring and other consists of: Quarter Ended Twelve Months Ended 
     December 31,
2018
 September 30,
2018
 December 31,
2017
 December 31,
2018
 December 31,
2017
 
   Contingent consideration fair value adjustment $  10,223  $  (768) $  5,973  $  987  $  7,820  
   Employee severance     768     1,667     1,801     8,714     3,754  
   Acquisition related expenses and compensation    455     811     -     4,584     -  
   Impairment of fixed assets    -     -     1,124     -     1,124  
   Other    -     -     72     947     973  
   Property insurance recovery, net    -     -     -     -     (4,309) 
     $  11,446  $  1,710  $  8,970  $  15,232  $  9,362  
               
               
(4)Interest and other (income) expense, includes: Quarter Ended Twelve Months Ended 
     December 31,
2018
 September 30,
2018
 December 31,
2017
 December 31,
2018
 December 31,
2017
 
   Non-cash convertible debt interest $  3,327  $  3,286  $  3,166  $  13,064  $  12,431  
   Pension actuarial (gain) loss    (3,512)    267     (3,786)    (3,316)    (6,624) 
     $  (185) $  3,553  $  (620) $  9,748  $  5,807  
               
               
(5)For the quarter and twelve months ended December 31, 2018 income tax (benefit) provision includes a $52 million tax benefit related to the finalization of our U.S. toll tax liability. For the quarter and twelve months ended December 31, 2017, income tax provision included an expense of $186 million related to the estimated impact of the U.S. Tax Reform Act. 
               
(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 quarters ended December 31, 2018, September 30, 2018 and December 31, 2017, 0.9 million, 3.0 million and 3.3 million shares, respectively, have been included in diluted shares. For the twelve months ended December 31, 2018 and December 31, 2017, 2.7 million and 1.3 million shares, respectively, have been included in diluted shares.  For the twelve months ended December 31, 2018 and December 31, 2017, diluted shares also included 0.5 million shares and 0.1 million shares, respectively,  from the convertible note hedge transaction.  
               
               
               
CONDENSED  CONSOLIDATED  BALANCE  SHEETS  (In thousands)           
               
     December 31,
2018
 December 31,
2017
       
               
Assets             
 Cash and cash equivalents $  926,752  $  429,843        
 Marketable securities    190,096     1,347,979        
 Accounts receivable, net    291,267     272,783        
 Inventories, net    153,541     107,525        
 Prepayments and other current assets    170,817     112,151        
                   
   Total current assets    1,732,473     2,270,281        
               
 Property, plant and equipment, net    279,821     268,447        
 Marketable securities    87,731     125,926        
 Deferred tax assets    70,858     84,026        
 Other assets    11,508     12,275        
 Retirement plans assets    16,883     17,491        
 Acquired intangible assets, net    125,482     79,088        
 Goodwill    381,850     252,011        
               
   Total assets $  2,706,606  $  3,109,545        
               
Liabilities            
 Accounts payable $  100,688  $  86,393        
 Accrued employees' compensation and withholdings    148,566     141,694        
 Deferred revenue and customer advances    78,427     83,614        
 Other accrued liabilities    78,272     59,083        
 Contingent consideration    34,865     24,497        
 Income taxes payable    36,185     59,055        
               
   Total current liabilities    477,003     454,336        
               
 Retirement plans liabilities    117,456     119,776        
 Long-term deferred revenue and customer advances    32,033     30,127        
 Deferred tax liabilities    20,662     6,720        
 Long-term other accrued liabilities    37,548     10,273        
 Long-term contingent consideration    35,678     20,605        
 Long-term income taxes payable    83,891     148,075        
 Long-term debt    379,981     365,987        
               
   Total liabilities    1,184,252     1,155,899        
               
Shareholders' equity    1,522,354     1,953,646        
               
   Total liabilities and shareholders' equity $  2,706,606  $  3,109,545        
             
             
             
CONDENSED  CONSOLIDATED  STATEMENTS OF CASH FLOWS (In thousands)          
              
     Quarter Ended Twelve Months Ended   
     December 31,
2018
 December 31,
2017
 December 31,
2018
 December 31,
2017
   
Cash flows from operating activities:            
 Net income (loss) $  143,791  $  (105,923) $  451,779  $  257,692    
 Adjustments to reconcile net income to net cash provided by operating activities:           
  Depreciation     17,485     16,879     67,415     66,122    
  Amortization     12,900     9,640     45,809     41,953    
  Stock-based compensation    8,250     8,477     33,577     34,097    
  Deferred taxes    3,898     37,784     28,340     37,105    
  Provision for excess and obsolete inventory     1,720     1,690     11,242     8,844    
  Contingent consideration fair value adjustment    10,223     5,973     987     7,820    
  Losses (gains) on investments    3,914     (953)    3,494     (878)   
  Retirement plan actuarial gains    (3,512)    (3,786)    (3,316)    (6,624)   
  Property insurance recovery, net    -     -     -     (4,309)   
  Other     144     891     1,083     1,585    
  Changes in operating assets and liabilities, net of businesses acquired:          
   Accounts receivable     59,869     (4,961)    (17,938)    (80,584)   
   Inventories     4,619     21,190     (29,498)    44,960    
   Prepayments and other assets     (29,683)    (5,108)    (58,402)    2,254    
   Accounts payable and accrued expenses     (2,431)    38,276     13,693     43,574    
   Deferred revenue and customer advances    3,556     (29,551)    13,379     4,984    
   Retirement plans contributions     (1,090)    (1,040)    (4,334)    (5,902)   
   Income taxes    (47,277)    157,994     (80,429)    173,802    
Net cash provided by operating activities    186,376     147,472     476,881     626,495    
               
Cash flows from investing activities:           
 Purchases of property, plant and equipment    (26,110)    (32,128)    (114,379)    (105,375)   
 Proceeds from government subsidy for property, plant and equipment    -     -     7,920     -    
 Purchases of marketable securities    (109,223)    (355,394)    (918,744)    (1,391,917)   
 Proceeds from sales of marketable securities    2,958     84,577     846,122     527,746    
 Proceeds from maturities of marketable securities    336,339     228,426     1,270,439     701,681    
 Proceeds from property insurance    -     -     -     5,064    
 Proceeds from life insurance    -     -     1,126     -    
 Acquisition of businesses, net of cash acquired    -     -     (169,474)    -    
Net cash provided by (used for) investing activities    203,964     (74,519)    923,010     (262,801)   
               
Cash flows from financing activities:            
 Issuance of common stock under stock purchase and stock option plans    14     31     20,973     24,493    
 Repurchase of common stock    (261,215)    (48,482)    (823,478)    (200,304)   
 Dividend payments    (16,002)    (13,717)    (67,322)    (55,447)   
 Payment related to net settlement of employee stock compensation awards    (182)    (297)    (20,023)    (12,881)   
 Payment of contingent consideration    -      -      (13,571)    (1,050)   
Net cash used for financing activities     (277,385)    (62,465)    (903,421)    (245,189)   
               
Effects of exchange rate changes on cash and cash equivalents    (222)    678     439     3,454    
               
Increase in cash and cash equivalents     112,733     11,166     496,909     121,959    
Cash and cash equivalents at beginning of period     814,019     418,677     429,843     307,884    
Cash and cash equivalents at end of period  $  926,752  $  429,843  $  926,752  $  429,843    
               


GAAP to Non-GAAP Earnings Reconciliation                        
                            
(In millions, except per share amounts)                        
            Quarter Ended             
    December 31,
2018
 % of Net Revenues     September 30,
2018
 % of Net Revenues     December 31,
2017 (1)
 % of Net Revenues     
                            
Net revenues $  519.6        $  566.8        $  479.4        
                            
Gross profit GAAP and non-GAAP$  309.5   59.6%     $  333.7  58.9%     $  270.9  56.5%     
                            
Income from operations - GAAP$  112.3   21.6%     $  143.6  25.3%     $  94.6  19.7%     
 Acquired intangible assets amortization   10.6   2.0%        11.1  2.0%        7.4  1.5%     
 Restructuring and other (2)   11.4   2.2%        1.7  0.3%        9.0  1.9%     
Income from operations - non-GAAP$  134.3   25.8%     $  156.4  27.6%     $  111.0  23.2%     
                            
        Net Income per Common Share     Net Income per Common Share     Net Income (Loss) per Common Share 
    December 31,
2018
 % of Net Revenues Basic  Diluted September 30,
2018
 % of Net Revenues Basic  Diluted December 31,
2017
 % of Net Revenues Basic  Diluted 
Net income (loss) – GAAP$  143.8   27.7% $  0.80  $  0.79  $  120.0  21.2% $  0.65  $  0.63  $  (105.9) -22.1% $  (0.54) $  (0.54) 
 Acquired intangible assets amortization   10.6   2.0%    0.06     0.06     11.1  2.0%    0.06     0.06     7.4  1.5%    0.04     0.04  
 Interest and other (3)   3.3   0.6%    0.02     0.02     3.3  0.6%    0.02     0.02     3.2  0.7%    0.02     0.02  
 Restructuring and other (2)   11.4   2.2%    0.06     0.06     1.7  0.3%    0.01     0.01     9.0  1.9%    0.05     0.05  
 Pension mark-to-market adjustment (3)   (3.5)  -0.7%    (0.02)    (0.02)    0.3  0.1%    0.00     0.00     (3.8) -0.8%    (0.02)    (0.02) 
 Exclude discrete tax adjustments (4)   (52.9)  -10.2%    (0.30)    (0.29)    0.3  0.1%    0.00     0.00     184.4  38.5%    0.94     0.94  
 Non-GAAP tax adjustments   0.3   0.1%    0.00     0.00     (3.4) -0.6%    (0.02)    (0.02)    (2.9) -0.6%    (0.01)    (0.01) 
 Convertible share adjustment   -      -       -      -      -     -       -      0.01     -     -       -      -   
Net income - non-GAAP$  113.0   21.7% $  0.63  $  0.63  $  133.3  23.5% $  0.72  $  0.71  $  91.4  19.1% $  0.47  $  0.46  
                            
GAAP and non-GAAP weighted average common shares - basic   179.0           185.7           196.0        
GAAP weighted average common shares - diluted   181.5           190.5           196.0        
 Include dilutive shares   -            -            3.0        
 Exclude dilutive shares related to convertible note transaction   (0.9)          (3.1)          -         
Non-GAAP weighted average common shares - diluted   180.6           187.4           199.0        
                            
                            
(1Certain prior period amounts were reclassified to conform with the first quarter 2018 adoption of new accounting guidance for the presentation of pension and post retirement costs. 
                            
(2)Restructuring and other consists of:                    
    Quarter Ended       
    December 31,
2018
       September 30,
2018
       December 31,
2017
       
  Contingent consideration fair value adjustment$  10.2        $  (0.8)       $  6.0        
  Employee severance    0.8           1.7           1.8        
  Acquisition related expenses and compensation   0.5           0.8           -         
  Impairment of fixed assets   -            -            1.1        
  Other    -            -            0.1        
    $  11.4        $  1.7        $  9.0        
                            
(3)For the quarters ended December 31, 2018, September 30, 2018 and December 31, 2017,  adjustment to exclude non-cash convertible debt interest expense and adjustment to exclude actuarial (gains)losses recognized under GAAP in accordance with Teradyne's mark-to-market pension accounting. 
                            
(4)For the quarters ended December 31, 2018, September 30, 2018 and December 31, 2017, adjustment to exclude discrete income tax items. For the quarter ended December 31, 2018, adjustment to treat the $52 million tax benefit related to the finalization of our U.S. toll tax liability as a discrete item. For the quarter ended December 31, 2017, adjustment to treat the $186 million expense related to the estimated impact of the U.S. Tax Reform Act, as a discrete item.
   
    Twelve Months Ended         
    December 31,
2018
 % of Net Revenues     December 31,
2017 (1)
 % of Net Revenues             
                            
Net Revenues $  2,100.8        $  2,136.6                
                        
Gross profit GAAP$  1,220.4   58.1%     $  1,221.5  57.2%             
 Inventory step-up   0.4   0.0%        -     -                
Gross profit non-GAAP$  1,220.8   58.1%     $  1,221.5  57.2%             
                        
Income from operations - GAAP$  473.8   22.6%     $  525.3  24.6%         
 Acquired intangible assets amortization   39.2   1.9%        30.5  1.4%         
 Restructuring and other (2)   15.2   0.7%        9.4  0.4%         
 Inventory step-up   0.4   0.0%        -     -            
Income from operations - non-GAAP$  528.6   25.2%     $  565.2  26.5%         
                        
        Net Income
per Common Share
     Net Income
per Common Share
     
    December 31,
2018
 % of Net Revenues Basic  Diluted December 31,
2017
 % of Net Revenues Basic  Diluted     
Net income - GAAP$  451.8   21.5% $  2.41  $  2.35  $  257.7  12.1% $  1.30  $  1.28      
 Acquired intangible assets amortization   39.2   1.9%    0.21     0.20     30.5  1.4%    0.15     0.15      
 Interest and other (3)   13.1   0.6%    0.07     0.07     12.4  0.6%    0.06     0.06      
 Restructuring and other (2)   15.2   0.7%    0.08     0.08     9.4  0.4%    0.05     0.05      
 Inventory step-up   0.4   0.0%    0.00     0.00     -     -       -      -           
 Pension mark-to-market adjustment (3)   (3.3)  -0.2%    (0.02)    (0.02)    (6.3) -0.3%    (0.03)    (0.03)     
 Exclude discrete tax adjustments (4)    (59.4)  -2.8%    (0.32)    (0.31)    178.3  8.3%    0.90     0.88      
 Non-GAAP tax adjustments   (8.4)  -0.4%    (0.04)    (0.04)    (12.8) -0.6%    (0.06)    (0.06)     
 Convertible share adjustment   -      -       -      0.04     -     -       -      0.01      
Net income - non-GAAP$  448.6   21.4% $  2.39  $  2.37  $  469.2  22.0% $  2.37  $  2.34      
                        
GAAP and non-GAAP weighted average common shares - basic   187.7           198.1            
GAAP weighted average common shares - diluted   192.6           201.6            
 Exclude dilutive shares from convertible note   (3.2)          (1.3)           
Non-GAAP weighted average common shares - diluted   189.4           200.3            
                        
(1)Certain prior period amounts were reclassified to conform with the first quarter 2018 adoption of new accounting guidance for the presentation of pension and post retirement costs. 
                        
(2)Restructuring and other consists of: 
    Twelve Months Ended           
    December 31,
2018
       December 31,
2017
           
  Employee severance $  8.7        $  3.8            
  Acquisition related expenses and compensation   4.6           -             
  Contingent consideration fair value adjustment   1.0           7.8            
  Other    0.9           1.0           -         
  Impairment of fixed assets   -            1.1            
  Property insurance recovery, net   -            (4.3)           
    $  15.2        $  9.4            
                        
(3)For the twelve months ended December 31, 2018 and December 31, 2017, interest and other included non-cash convertible debt interest expense. For the twelve months ended December 31, 2018 and December 31, 2017, adjustments to exclude actuarial gains recognized under GAAP in accordance with Teradyne's mark-to-market pension accounting. 
                        
(4)For the twelve months ended December 31, 2018 and December 31, 2017, adjustment to exclude discrete income tax items. For the twelve months ended December 31, 2018, adjustment to treat the $52 million tax benefit related to the finalization of our U.S. toll tax liability as a discrete item. For the twelve months ended December 31, 2017, adjustment to treat the $186 million expense related to the estimated impact of the U.S. Tax Reform Act, as a discrete item.
                        
                        
GAAP to Non-GAAP Reconciliation of First Quarter 2019 guidance:
                    
GAAP and non-GAAP first quarter revenue guidance:  $460 million to$490 million           
GAAP net income per diluted share  $  0.31  $  0.39            
 Exclude acquired intangible assets amortization     0.06     0.06            
 Exclude non-cash convertible debt interest     0.02     0.02            
 Tax effect of non-GAAP adjustments     (0.02)    (0.02)           
 Convertible share adjustment     0.01     0.01            
Non-GAAP net income per diluted share  $  0.39  $  0.47            
                    

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