SUPPLEMENTARY INFORMATION

(Unaudited)

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.


	2017
	1st Quarter			2nd Quarter			3rd Quarter			4th Quarter
	(1)			(2)(5)			(3)			(4)(5)
	(in thousands, except per share amounts)
Revenues:
Products	$	373,204		$	610,356		$	412,854		$	388,282
Services		83,709			86,545			90,524			91,133

Total revenues		456,913			696,901			503,378			479,415
Cost of revenues:
Cost of products		154,966			267,171			169,744			166,667
Cost of services		37,014			38,511			38,848			39,813

Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below)		191,980			305,682			208,592			206,480

Gross profit		264,933			391,219			294,786			272,935

Operating expenses:
Selling and administrative		84,906			89,131			86,244			88,006
Engineering and development		76,182			81,728			77,190			70,564
Acquired intangible assets amortization		7,952			8,166			7,028			7,384
Restructuring and other		2,511			2,288			(4,407	)		8,970

Total operating expenses		171,551			181,313			166,055			174,924

Income from operations		93,382			209,906			128,731			98,011
Non-operating (income) expense:
Interest income		(3,520	)		(3,292	)		(4,517	)		(6,476	)
Interest expense		5,402			5,509			5,372			5,380
Other (income) expense, net		(516	)		812			439			1,023

Income before income taxes		92,016			206,877			127,437			98,084
Income tax provision		6,795			31,901			24,017			204,007

Net income (loss)	$	85,221		$	174,976		$	103,420		$	(105,923	)

Net income (loss) per common share—basic	$	0.43		$	0.88		$	0.52		$	(0.54	)

Net income (loss) per common share—diluted	$	0.42		$	0.87		$	0.52		$	(0.54	)

Cash dividend declared per common share	$	0.07		$	0.07		$	0.07		$	0.07

(1)	Restructuring and other includes a $1.3 million charge for a lease impairment of a Wireless Test facility in Sunnyvale, CA, a $0.6 million fair value adjustment to increase the Universal Robots acquisition contingent consideration, and $0.6 million of employee severance charges.

(2)	Restructuring and other includes a $1.5 million charge for a fair value adjustment to increase the Universal Robots acquisition contingent consideration, and $0.8 million of employee severance charges.

(3)

Restructuring and other includes $5.1 million of property insurance recovery related to the Japan earthquake, a $0.4 million credit related to previously impaired lease termination of a Wireless Test facility in Sunnyvale, CA, and a $0.3 million credit for the decrease in the fair value of the Universal Robots contingent consideration liability, partially offset by $0.8 million of Japan earthquake related expenses and $0.6 million of employee severance charges.

(4)	Restructuring and other includes a $6.0 million fair value adjustment to increase the Universal Robots acquisition contingent consideration, $1.8 million of employee severance charges, and $1.1 million of charges for impairment of fixed assets.

(5)	Teradyne recorded pension and post retirement net actuarial gains of $2.5 million and $3.8 million for the second and fourth quarter in 2017, respectively. See Note B: “Accounting Policies” for a discussion of Teradyne’s accounting policy.


	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:
Selling and administrative		79,174			81,425			78,794			76,289
Engineering and development		73,464			76,109			71,400			70,052
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 a $1.4 million fair value adjustment to increase contingent consideration liability, of which $0.8 million was related to Universal Robots and $0.6 million was 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.