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.


	2016
	1st Quarter			2nd Quarter			3rd Quarter			4th Quarter
	(1)(5)			(2)(5)			(3)(5)			(4)(5)
	(in thousands, except per share amounts)
Revenues:
Products	$	358,139		$	456,832		$	334,610		$	303,667
Services		72,855			74,960			75,865			76,322

Total revenues		430,994			531,792			410,475			379,989
Cost of revenues:
Cost of products		167,555			215,795			148,266			127,481
Cost of services		33,107			33,127			34,850			33,502

Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below)		200,662			248,922			183,116			160,983

Gross profit		230,332			282,870			227,359			219,006

Operating expenses:
Engineering and development		73,464			76,109			71,400			70,052
Selling and administrative		79,174			81,425			78,794			76,289
Acquired intangible assets amortization		19,994			16,244			8,487			7,923
Acquired intangible assets impairment		—			83,339			—			—
Goodwill impairment		—			254,946			—			—
Restructuring and other		1,587			2,608			12,177			5,570

Total operating expenses		174,219			514,671			170,858			159,834

Income (loss) from operations		56,113			(231,801	)		56,501			59,172
Non-operating (income) expense:
Interest income		(1,642	)		(1,666	)		(2,892	)		(3,095	)
Interest expense		710			691			633			1,604
Other (income) expense, net		(147	)		(9	)		(921	)		1,779

Income (loss) before income taxes		57,192			(230,817	)		59,681			58,884
Income tax provision (benefit)		7,206			(7,271	)		(4,113	)		(7,461	)

Net income (loss)	$	49,986		$	(223,546	)	$	63,794		$	66,345

Net income (loss) per common share—basic	$	0.24		$	(1.10	)	$	0.32		$	0.33

Net income (loss) per common share—diluted	$	0.24		$	(1.10	)	$	0.31		$	0.33

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

(1)	Restructuring and other includes a $1.2 million fair value adjustment to increase the Universal Robots acquisition contingent consideration.

(2)

Restructuring and other includes $4.2 million for an impairment of fixed assets, $0.9 million for expenses related to an earthquake in Kumamoto, Japan, and $1.4 million for the increase in the fair value of contingent consideration liability of which $0.8 million related to Universal Robots, and $0.6 million related to AIT, partially offset by $5.1 million of property insurance recovery related to the Japan earthquake.

(3)	Restructuring and other includes an $8.0 million fair value adjustment to increase the Universal Robots acquisition contingent consideration.

(4)	Restructuring and other includes a $5.4 million fair value adjustment to increase the Universal Robots acquisition contingent consideration.

(5)	Teradyne recorded pension and post retirement net actuarial (gains) losses of $(1.2) million, $(0.7) million, $0.7 million and $(2.0) million for the first, second, third and fourth quarter in 2016, respectively. See Note B: “Accounting Policies” for a discussion of Teradyne’s accounting policy.


	2015
	1st Quarter			2nd Quarter			3rd Quarter			4th Quarter
				(3)			(4)			(1)(2)
	(in thousands, except per share amounts)
Revenues:
Products	$	272,325		$	437,243		$	386,488		$	244,510
Services		70,076			75,496			79,506			73,934

Total revenues		342,401			512,739			465,994			318,444
Cost of revenues:
Cost of products		118,996			181,491			170,963			120,322
Cost of services		30,982			32,680			36,405			32,096

Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below)		149,978			214,171			207,368			152,418

Gross profit		192,423			298,568			258,626			166,026

Operating expenses:
Engineering and development		71,450			75,832			74,027			70,941
Selling and administrative		72,041			77,073			77,481			79,718
Acquired intangible assets amortization		13,808			15,258			20,053			19,911
Restructuring and other		—			(385	)		261			5,204

Total operating expenses		157,299			167,778			171,822			175,774

Income (loss) from operations		35,124			130,790			86,804			(9,748	)
Non-operating (income) expense:
Interest income		(1,816	)		(1,674	)		(1,708	)		(2,017	)
Interest expense		162			444			508			762
Other (income) expense, net		(5,660	)		(116	)		596			364

Income (loss) before income taxes		42,438			132,136			87,408			(8,857	)
Income tax provision (benefit)		9,651			29,257			15,955			(8,216	)

Net income (loss)	$	32,787		$	102,879		$	71,453		$	(641	)

Net income (loss) per common share—basic	$	0.15		$	0.48		$	0.34		$	(0.00	)

Net income (loss) per common share—diluted	$	0.15		$	0.48		$	0.34		$	(0.00	)

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

(1)	Restructuring and other includes a $5.3 million fair value adjustment to increase the Universal Robots acquisition contingent consideration, and a $(0.3) million fair value adjustment to decrease the AIT acquisition contingent consideration.

(2)	In the fourth quarter ended December 31, 2015, Teradyne recorded pension and post retirement net actuarial losses of $17.7 million. See Note B: “Accounting Policies” for a discussion of Teradyne’s accounting policy.

(3)	Restructuring and other includes a $(1.6) million fair value adjustment to decrease the ZTEC acquisition contingent consideration.

(4)	Restructuring and other includes a $(1.0) million fair value adjustment to decrease the AIT acquisition contingent consideration.