Teradyne, Inc.
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Teradyne, Inc. Financial Snapshot
Operating Performance
Fast Facts
600 Riverpark Drive, North Reading, The company reported revenue of US$1,608.65
Headquarters Address
01864,United States of America million during the fiscal year 2010 (2010). The
company's revenue grew at a CAGR of 4.36% during
Telephone + 1 978 3702700
2006–2010, with an annual growth of 96.32% over
2009. In 2010, the company recorded an operating
Fax N/A margin of 25.70%, as against -14.94% in 2009.
Website www.teradyne.com
Revenue and Margins
Ticker Symbol, Stock Exchange TER, New York Stock Exchange
Number of Employees 2,900
Fiscal Year End December
Revenue (in US$ million) 1,608.65
SWOT Analysis
Strengths Weaknesses Return on Equity
Strong Market Presence Declining Market Share in Sector The company recorded a return on equity (ROE) of
33.84% for 2010, as compared to its peers, Xyratex
Limited (Ticker: XRTX), Agilent Technologies, Inc.
Strong Order Backlogs Limited Liquidity Position (Ticker: FLIR) and Advantest Corporation (Ticker:
6857), which recorded ROEs of 37.96%, 21.19% and
Wide Product Portfolio Litigation -7.62% respectively. The company reported a net
profit margin of 25.70% in 2010.
Weak Operational Performance
Return on Equity
Opportunities Threats
Growing Demand for Semiconductors Competitive Pressures
New Product Launches Regulations from RoHS and WEEE
Outlook for Memory Products
Liquidity Position
The company reported a current ratio of 3.24 in 2010,
as compared to its peers, Xyratex Limited, Agilent
Technologies, Inc. and Advantest Corporation, which
recorded current ratios of 2.39, 2.00 and 6.56
respectively. As of December 2010, the company
recorded cash and short-term investments of worth
US$806.80 million, against US$2.45 million current
debt. The company reported a debt to equity ratio of
0.14 in 2010 as compared to its peers, Xyratex
Limited, Agilent Technologies, Inc. and Advantest
Corporation, which recorded debt to equity ratios of
0.00, 1.14 and 0.00 respectively.
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Teradyne, Inc. - SWOT Profile Page 1
Teradyne, Inc.
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TABLE OF CONTENTS
1 Business Analysis ................................................................................................................................... 5
1.1 Company Overview .................................................................................................................................................5
1.2 Business Description ...............................................................................................................................................5
1.3 Major Products and Services ...................................................................................................................................7
2 Analysis of Key Performance Indicators ............................................................................................... 8
2.1 Five Year Snapshot: Overview of Financial and Operational Performance Indicators ...........................................8
2.2 Key Financial Performance Indicators ...................................................................................................................11
2.2.1 Revenue and Operating Profit .......................................................................................................................11
2.2.2 Asset, Liabilities and Capex ..........................................................................................................................12
2.2.3 Operational Efficiency ....................................................................................................................................13
2.2.4 Solvency ........................................................................................................................................................14
2.2.5 Valuation ........................................................................................................................................................15
2.3 Competitive Benchmarking ....................................................................................................................................16
2.3.1 Efficiency .......................................................................................................................................................17
2.3.2 Capital Expenditure .......................................................................................................................................18
2.3.3 Valuation ........................................................................................................................................................19
2.3.4 Turnover – Inventory and Asset ....................................................................................................................20
3 Recent Developments ........................................................................................................................... 21
4 SWOT Analysis ...................................................................................................................................... 23
4.1 SWOT Analysis - Overview ...................................................................................................................................23
4.2 Strengths ...............................................................................................................................................................23
4.3 Weaknesses ..........................................................................................................................................................24
4.4 Opportunities .........................................................................................................................................................25
4.5 Thr