The following sets forth certain unaudited consolidated quarterly statements of operations data for each of Teradyne’s last eight quarters. In management’s opinion, this quarterly information reflects all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement for the periods presented. Such quarterly results are not necessarily indicative of future results of operations and should be read in conjunction with the audited consolidated financial statements of Teradyne and the notes thereto included elsewhere herein.


	2014
	1st Quarter			2nd Quarter			3rd Quarter			4th Quarter
				(1)			(1)(2)			(1)(3)(4)
	(in thousands, except per share amounts)
Revenues:
Products	$	255,386		$	452,488		$	402,987		$	253,162
Services		65,624			73,079			75,023			70,074

Total revenues		321,010			525,567			478,010			323,236
Cost of revenues:
Cost of products		124,448			202,411			182,591			131,337
Cost of services		29,515			32,743			34,298			31,673

Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below)		153,963			235,154			216,889			163,010

Gross profit		167,047			290,413			261,121			160,226

Operating expenses:
Engineering and development		67,085			73,414			71,953			79,188
Selling and administrative		78,003			77,489			73,064			91,157
Goodwill impairment		—			—			—			98,897
Acquired intangible assets amortization		18,271			18,271			18,271			15,957
Restructuring and other		—			572			(405	)		1,198

Total operating expenses		163,359			169,746			162,883			286,397

Income (loss) from operations		3,688			120,667			98,238			(126,171	)
Non-operating (income) expenses:
Interest income		(1,036	)		(1,266	)		(1,922	)		(2,035	)
Interest expense		6,417			159			144			214
Other (income) expense, net		180			382			(654	)		463

(Loss) income before income taxes		(1,873	)		121,392			100,670			(124,813	)
(Benefit) provision for income taxes		(2,802	)		20,187			17,721			(21,002	)

Net income (loss)	$	929		$	101,205		$	82,949		$	(103,811	)

Net income (loss) per common share—basic	$	0.00		$	0.52		$	0.40		$	(0.48	)

Net income (loss) per common share—diluted	$	0.00		$	0.47		$	0.38		$	(0.48	)

Cash dividend declared per common share	$	0.00		$	0.06		$	0.06		$	0.06

(1)	Dividends declared by Teradyne’s Board of Directors were paid in each of the second, third and fourth quarters of 2014.

(2)	Restructuring and other includes a $(0.6) million fair value adjustment to decrease the ZTEC acquisition contingent consideration.

(3)	In the fourth quarter ended December 31, 2014, Teradyne recorded pension and post retirement net actuarial losses of $46.6 million. See Note B: “Accounting Policies” for a discussion of our accounting policy.

(4)	In the fourth quarter ended December 31, 2014, Teradyne recorded a goodwill impairment charge of $98.9 million in its Wireless Test segment.


	2013
	1st Quarter			2nd Quarter			3rd Quarter			4th Quarter
										(1)(2)
	(in thousands, except per share amounts)
Revenues:
Products	$	214,300		$	363,087		$	365,825		$	211,710
Services		66,067			65,802			67,551			73,591

Total revenues		280,367			428,889			433,376			285,301
Cost of revenues:
Cost of products		96,793			158,411			150,365			93,461
Cost of services		30,157			29,245			28,717			31,983

Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below)		126,950			187,656			179,082			125,444

Gross profit		153,417			241,233			254,294			159,857

Operating expenses:
Engineering and development		62,751			67,773			68,918			64,613
Selling and administrative		67,890			69,230			72,917			69,523
Acquired intangible assets amortization		18,036			18,063			18,064			18,284
Restructuring and other		332			259			889			600

Total operating expenses		149,009			155,325			160,788			153,020

Income from operations		4,408			85,908			93,506			6,837
Non-operating (income) expenses:
Interest income		(1,072	)		(903	)		(948	)		(1,206	)
Interest expense		6,403			6,435			6,488			6,771
Other (income) expense, net		503			19			414			(34,168	)

(Loss) income from operations before income taxes		(1,426	)		80,357			87,552			35,439
(Benefit) provision for income taxes		(8,015	)		13,801			18,093			13,096

Net income	$	6,589		$	66,556		$	69,459		$	22,343

Net income per common share—basic	$	0.03		$	0.35		$	0.36		$	0.12

Net income per common share—diluted	$	0.03		$	0.28		$	0.29		$	0.09

Cash dividend declared per common share	$	0.0		$	0.0		$	0.0		$	0.0

(1)	Other (income) expense, net includes a $34.2 million gain from the sale of an equity investment.

(2)	In the fourth quarter ended December 31, 2013, Teradyne recorded pension and post retirement net actuarial gains of $9.0 million. See Note B: “Accounting Policies” for a discussion of our accounting policy.