-- Revenue of $527 million, above high end of guidance -- Memory Test Q2’18 revenue of $67 million, up 34% from Q2’17 and 1H’18 revenue of $139 million, up 90% from 1H’17 -- Universal Robots revenue of $57 million, up 45% from Q2’17

Q2’18 Q1’18 Q2’17 Revenue (mil) $527 $487 $697 GAAP EPS $0.52 $0.43 $0.87 Non-GAAP EPS $0.59 $0.45 $0.90

NORTH READING, Mass., July 24, 2018 (GLOBE NEWSWIRE) -- Teradyne, Inc. (NYSE:TER) reported revenue of $527 million for the second quarter of 2018 of which $360 million was in Semiconductor Test, $70 million in System Test, $62 million in Industrial Automation, and $35 million in Wireless Test. GAAP net profit for the second quarter was $101.0 million or $0.52 per share. On a non-GAAP basis, Teradyne’s net income in the second quarter was $112.8 million, or $0.59 per diluted share, which excluded acquired intangible asset amortization, restructuring and other charges, non-cash convertible debt interest, discrete income tax adjustments, and included the related tax impact on non-GAAP adjustments.

“Second quarter sales and earnings exceeded guidance as our test businesses strengthened through the quarter,” said CEO and President Mark Jagiela. “Despite the slowdown in test demand for mobile devices, other test markets grew in the quarter led by memory in Semiconductor Test, connectivity in Wireless Test at LitePoint, and storage in System Test. In Industrial Automation, Universal Robots continued its high growth with sales up 45% from Q2 of 2017. At newly acquired Mobile Industrial Robots (MiR), full quarter sales grew over 85% from the year ago quarter on a standalone basis.”

"Reflecting a continued strong outlook in both our Test and Industrial Automation segments, Q3 company sales are expected to grow over 10% compared to Q3 2017 at the midpoint of our guidance."

Guidance for the third quarter of 2018 is revenue of $540 million to $570 million, with GAAP net income of $0.51 to $0.59 per diluted share and non-GAAP net income of $0.59 to $0.66 per diluted share. Non-GAAP guidance excludes acquired intangible asset amortization, non-cash convertible debt interest, restructuring and other charges and includes the related tax impact on non-GAAP adjustments.

Webcast A conference call to discuss the second quarter results, along with management's business outlook, will follow at 10:00 a.m. ET, Wednesday, July 25. 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 www.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 (NYSE: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 light industrial customers to improve quality and increase manufacturing efficiency. In 2017, Teradyne had revenue of $2.14 billion and currently employs approximately 4,700 people worldwide. For more information, visit www.teradyne.com. Teradyne(R) is a registered trademark of Teradyne, Inc. in the U.S. and other countries.

Safe Harbor StatementThis 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 April 1, 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 SECOND FISCAL QUARTER OF 2018 ---- -- --- ------------------------ ------------- ------------ ------------- CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) --------------------------------------------------- ------------- ------------ ------------- ------------- Quarter Ended Six Months Ended ------------------------------------------ ---------------------------- July 1, 2018 April 1, 2018 July 2, 2017 July 1, 2018 July 2, 2017 (1) (1) ------------- ------------- ------------ ------------- ------------- Net revenues $ 526,929 $ 487,467 $ 696,901 $ 1,014,396 $ 1,153,814 Cost of revenues (exclusive of acquired intangible assets 219,595 217,635 306,263 437,230 498,159 amortization shown separately below) (2) - --------- - - --------- - - -------- - - --------- - - --------- - Gross profit 307,334 269,832 390,638 577,166 655,655 Operating expenses: Selling and administrative 99,410 90,505 90,111 189,916 174,903 Engineering and development 75,342 74,408 82,270 149,750 158,248 Acquired intangible assets 9,793 7,698 8,166 17,491 16,118 amortization Restructuring and other (3) 2,389 (313 ) 2,288 2,076 4,799 - --------- - - --------- - - -------- - - --------- - - --------- - Operating expenses 186,934 172,298 182,835 359,233 354,068 Income from operations 120,400 97,534 207,803 217,933 301,587 Interest and other (4) (388 ) (1,714 ) (926 ) (2,102 ) (2,694 ) - --------- - - --------- - - -------- - - --------- - - --------- - Income before income taxes 120,012 95,820 206,877 215,831 298,893 Income tax provision 18,975 8,846 31,901 27,821 38,696 - --------- - - --------- - - -------- - - --------- - - --------- - Net income $ 101,037 $ 86,974 $ 174,976 $ 188,010 $ 260,197 - --------- - - --------- - - -------- - - --------- - - --------- - Net income per common share: Basic $ 0.53 $ 0.45 $ 0.88 $ 0.97 $ 1.30 - --------- - - --------- - - -------- - - --------- - - --------- - Diluted $ 0.52 $ 0.43 $ 0.87 $ 0.94 $ 1.29 - --------- - - --------- - - -------- - - --------- - - --------- - Weighted average common shares - 190,730 195,255 198,774 192,992 199,390 basic - --------- - - --------- - - -------- - - --------- - - --------- - Weighted average common shares - 194,909 203,484 201,529 199,197 201,732 diluted (5) - --------- - - --------- - - -------- - - --------- - - --------- - Cash dividend declared per common $ 0.09 $ 0.09 $ 0.07 $ 0.18 $ 0.14 share - --------- - - --------- - - -------- - - --------- - - --------- - (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 Six Months Ended ------------------------------------------ ---------------------------- July 1, 2018 April 1, 2018 July 2, 2017 July 1, 2018 July 2, 2017 ------------- ------------- ------------ ------------- ------------- Provision for excess and $ 2,653 $ 3,522 $ 2,569 $ 6,175 $ 5,295 obsolete inventory Sale of previously (1,922 ) (2,243 ) (2,149 ) (4,165 ) (3,283 ) written down inventory $ 731 $ 1,279 $ 420 $ 2,010 $ 2,012 - --------- - - --------- - - -------- - - --------- - - --------- - (3 ) Restructuring and other Quarter Ended Six Months Ended consists of: ------------------------------------------ ---------------------------- July 1, 2018 April 1, 2018 July 2, 2017 July 1, 2018 July 2, 2017 ------------- ------------- ------------ ------------- ------------- Employee severance $ 2,398 $ 3,881 $ 789 $ 6,279 $ 1,372 Acquisition related 2,544 774 - 3,318 - expenses Other 947 - - 947 1,294 Contingent consideration (3,500 ) (4,968 ) 1,499 (8,468 ) 2,133 fair value adjustment $ 2,389 $ (313 ) $ 2,288 $ 2,076 $ 4,799 - --------- - - --------- - - -------- - - --------- - - --------- - (4 ) Interest and other includes: Quarter Ended Six Months Ended ------------------------------------------ ---------------------------- July 1, 2018 April 1, 2018 July 2, 2017 July 1, 2018 July 2, 2017 ------------- ------------- ------------ ------------- ------------- Non-cash convertible $ 3,245 $ 3,206 $ 3,088 $ 6,451 $ 6,138 debt interest Pension actuarial gains (71 ) - (2,504 ) (71 ) (2,504 ) $ 3,174 $ 3,206 $ 584 $ 6,380 $ 3,634 - --------- - - --------- - - -------- - - --------- - - --------- - 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 July 1, 2018, April 1, 2018 and (5 ) July 2, 2017, 2.6 million, 4.4 million and 0.7 million shares, respectively, have been included in diluted shares. For the six months ended July 1, 2018 and July 2, 2017, 3.5 million and 0.3 million shares, respectively, have been included in diluted shares. For the quarter ended April 1, 2018 and the six months ended July 1, 2018, diluted shares also included 1.8 million and 0.9 million shares, respectively, from the convertible note hedge transaction. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) ------------------------------------ ------------- ------------- ------------ July 1, 2018 December 31, 2017 ------------- ------------- Assets Cash and cash equivalents $ 480,384 $ 429,843 Marketable securities 712,309 1,347,979 Accounts receivable, net 454,122 272,783 Inventories, net 135,550 107,525 Prepayments and other current 111,820 112,151 assets Total current assets 1,894,185 2,270,281 Property, plant and equipment, 285,302 268,447 net Marketable securities 111,417 125,926 Deferred tax assets 73,574 84,026 Other assets 12,192 12,275 Retirement plans assets 18,252 17,491 Acquired intangible assets, net 148,173 79,088 Goodwill 388,625 252,011 Total assets $ 2,931,720 $ 3,109,545 - --------- - - --------- - Liabilities Accounts payable $ 102,737 $ 86,393 Accrued employees' compensation 115,264 141,694 and withholdings Deferred revenue and customer 82,491 83,614 advances Other accrued liabilities 83,681 59,083 Contingent consideration 35,911 24,497 Income taxes payable 32,226 59,055 Total current 452,310 454,336 liabilities Retirement plans liabilities 124,258 119,776 Long-term deferred revenue and 25,375 30,127 customer advances Deferred tax liabilities 22,281 6,720 Long-term other accrued 22,296 10,273 liabilities Long-term contingent 25,003 20,605 consideration Long-term income taxes payable 147,360 148,075 Long-term debt 372,897 365,987 Total liabilities 1,191,780 1,155,899 Shareholders' equity 1,739,940 1,953,646 Total liabilities and $ 2,931,720 $ 3,109,545 shareholders' equity - --------- - - --------- - CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) ------------------------------------ ------------- ------------- ------------ ------------- Quarter Ended Six Months Ended ---------------------------- --------------------------- July 1, 2018 July 2, 2017 July 1, 2018 July 2, 2017 ------------- ------------- ------------ ------------- Cash flows from operating activities: Net income $ 101,037 $ 174,976 $ 188,010 $ 260,197 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 16,820 16,331 33,156 32,474 Amortization 10,973 11,342 20,177 22,412 Deferred taxes 8,616 (86 ) 17,312 (3,563 ) Stock-based compensation 8,081 8,367 17,625 17,312 Provision for excess and 2,653 2,569 6,175 5,295 obsolete inventory Contingent consideration (3,500 ) 1,499 (8,468 ) 2,133 fair value adjustment Retirement plan actuarial (71 ) (2,504 ) (71 ) (2,504 ) gains Other (225 ) 1,151 1,168 1,153 Changes in operating assets and liabilities, net of businesses acquired: Accounts receivable (40,332 ) (90,397 ) (179,403 ) (214,189 ) Inventories (266 ) 54,003 (21,283 ) (8,149 ) Prepayments and other 2,320 3,321 1,641 4,425 assets Accounts payable and 38,551 22,002 (8,155 ) 34,504 accrued expenses Deferred revenue and 874 8,645 10,518 5,312 customer advances Retirement plans (1,153 ) (1,036 ) (2,173 ) (1,983 ) contributions Income taxes (14,203 ) 20,130 (26,308 ) 14,363 - --------- - - --------- - - -------- - - --------- - Net cash provided by operating 130,175 230,313 49,921 169,192 activities Cash flows from investing activities: Purchases of property, plant (27,866 ) (23,901 ) (62,663 ) (45,967 ) and equipment Purchases of marketable (156,747 ) (181,502 ) (647,071 ) (334,819 ) securities Proceeds from sales of 28,382 99,661 829,053 313,254 marketable securities Proceeds from maturities of 257,164 219,423 469,862 307,607 marketable securities Acquisition of businesses, net (145,276 ) - (170,632 ) - of cash acquired Net cash (used for) provided by (44,343 ) 113,681 418,549 240,075 investing activities Cash flows from financing activities: Issuance of common stock under stock purchase and stock option 27 131 10,681 15,215 plans Repurchase of common stock (226,519 ) (56,598 ) (360,795 ) (94,328 ) Dividend payments (17,094 ) (13,904 ) (34,682 ) (27,925 ) Payment related to net settlement of employee stock (122 ) (149 ) (19,751 ) (12,438 ) compensation awards Payment of contingent - - (13,571 ) (1,050 ) consideration - --------- - - --------- - - -------- - - --------- - Net cash used for financing (243,708 ) (70,520 ) (418,118 ) (120,526 ) activities Effects of exchange rate changes on 387 129 189 1,724 cash and cash equivalents (Decrease) increase in cash and cash (157,489 ) 273,603 50,541 290,465 equivalents Cash and cash equivalents at 637,873 324,746 429,843 307,884 beginning of period Cash and cash equivalents at end of $ 480,384 $ 598,349 $ 480,384 $ 598,349 period - --------- - - --------- - - -------- - - --------- -

GAAP to Non-GAAP Earnings Reconciliation (In millions, except per share amounts) Quarter Ended ----------- --------- -- --------- --------- ------------------- --------- --------- --------- ------ --------- --------- % of % of July 1, % of Net April 1, Net July 2, Net 2018 Revenues 2018 Revenue 2017 (1) Revenue s s ----------- --------- ----------- ------ --------- ------ Net $ 526.9 $ 487.5 $ 696.9 revenues Gross profit GAAP $ 307.3 58.3 % $ 269.8 55.3 % $ 390.6 56.0 % Inventory 0.4 0.1 % - - - - step-up - ------- - - ----- - - ------- - ---- - - ----- - ---- - Gross profit $ 307.7 58.4 % $ 269.8 55.3 % $ 390.6 56.0 % non-GAAP Income from $ 120.4 22.9 % $ 97.5 20.0 % $ 207.8 29.8 % operations - GAAP Acquired intangible 9.8 1.9 % 7.7 1.6 % 8.2 1.2 % assets amortization Restructuring 2.4 0.5 % (0.3 ) -0.1 % 2.3 0.3 % and other (2) Inventory 0.4 0.1 % - - - - step-up Income from operations - $ 133.0 25.2 % $ 104.9 21.5 % $ 218.3 31.3 % non-GAAP - ------- - - ----- - - ------- - ---- - - ----- - ---- - Net Income Net Income Net Income per Common Share per Common Share per Common Share -------------------- -------------------- -------------------- % of % of July 1, % of Net Basic Diluted April 1, Net Basic Diluted July 2, Net Basic Diluted 2018 Revenues 2018 Revenue 2017 Revenue s s ----------- --------- --------- --------- ----------- ------ --------- --------- --------- ------ --------- --------- Net income - GAAP $ 101.0 19.2 % $ 0.53 $ 0.52 $ 87.0 17.8 % $ 0.45 $ 0.43 $ 175.0 25.1 % $ 0.88 $ 0.87 Acquired intangible 9.8 1.9 % 0.05 0.05 7.7 1.6 % 0.04 0.04 8.2 1.2 % 0.04 0.04 assets amortization Interest and 3.2 0.6 % 0.02 0.02 3.2 0.7 % 0.02 0.02 3.1 0.4 % 0.02 0.02 other (3) Restructuring 2.4 0.5 % 0.01 0.01 (0.3 ) -0.1 % (0.00 ) (0.00 ) 2.3 0.3 % 0.01 0.01 and other (2) Inventory 0.4 0.1 % 0.00 0.00 - - - - - - - - step-up Pension mark-to-market (0.1 ) 0.0 % (0.00 ) (0.00 ) - - - - (2.5 ) -0.4 % (0.01 ) (0.01 ) adjustment (3) Exclude discrete tax (0.5 ) -0.1 % (0.00 ) (0.00 ) (6.3 ) -1.3 % (0.03 ) (0.03 ) 0.5 0.1 % 0.00 0.00 adjustments (4) Non-GAAP tax (3.4 ) -0.6 % (0.02 ) (0.02 ) (1.9 ) -0.4 % (0.01 ) (0.01 ) (5.1 ) -0.7 % (0.03 ) (0.03 ) adjustments Convertible share - - - 0.01 - - - 0.01 - - - - adjustment Net income - $ 112.8 21.4 % $ 0.59 $ 0.59 $ 89.4 18.3 % $ 0.46 $ 0.45 $ 181.5 26.0 % $ 0.91 $ 0.90 non-GAAP - ------- - - ----- - - ----- - - ----- - - ------- - ---- - - ----- - - ----- - - ----- - ---- - - ----- - - ----- - GAAP and non-GAAP weighted average 190.7 195.3 198.8 common shares - basic GAAP weighted average common 194.9 203.5 201.5 shares - diluted Exclude dilutive shares related (2.6 ) (6.2 ) (0.7 ) to convertible note transaction Non-GAAP weighted average common 192.3 197.3 200.8 shares - diluted - ------- - - ------- - - ----- - Certain prior period amounts were reclassified to conform with the first quarter 2018 (1) adoption of new accounting guidance for the presentation of pension and post retirement costs. Restructuring (2) and other consists of: Quarter Ended ---------------------------------------------------------------------------------------------------- July 1, April 1, July 2, 2018 2018 2017 ----------- ----------- --------- Employee $ 2.4 $ 3.9 $ 0.8 severance Acquisition related 2.5 0.8 - expenses Other 0.9 - - Contingent consideration (3.5 ) (5.0 ) 1.5 fair value adjustment $ 2.4 $ (0.3 ) $ 2.3 - ------- - - ------- - - ----- - For the quarters ended July 1, 2018, April 1, 2018 and July 2, 2017, adjustment to exclude non-cash convertible debt (3) interest expense. For the quarters ended July 1, 2018 and July 2, 2017, adjustments to exclude actuarial gains recognized under GAAP in accordance with Teradyne's mark-to-market pension accounting. (4) For the quarters ended July 1, 2018, April 1, 2018 and July 2, 2017, adjustment to exclude discrete income tax items. Six Months Ended ----------------------------------------------------------------------------------------- % of July 1, % of Net July 2, Net 2018 Revenues 2017 (1) Revenue s ----------- --------- ----------- ------ Net $ 1,014.4 $ 1,153.8 Revenues Gross profit GAAP $ 577.2 56.9 % $ 655.7 56.8 % Inventory 0.4 0.0 % - - step-up - ------- - - ----- - - ------- - ---- - Gross profit $ 577.6 56.9 % $ 655.7 56.8 % non-GAAP Income from $ 217.9 21.5 % $ 301.6 26.1 % operations - GAAP Acquired intangible 17.5 1.7 % 16.1 1.4 % assets amortization Restructuring 2.1 0.2 % 4.8 0.4 % and other (2) Inventory 0.4 0.0 % - - step-up Income from operations - $ 237.9 23.5 % $ 322.5 28.0 % non-GAAP - ------- - - ----- - - ------- - ---- - Net Income Net Income per Common Share per Common Share -------------------- -------------------- % of July 1, % of Net Basic Diluted July 2, Net Basic Diluted 2018 Revenues 2017 Revenue s ----------- --------- --------- --------- ----------- ------ --------- --------- Net income - GAAP $ 188.0 18.5 % $ 0.97 $ 0.94 $ 260.2 22.6 % $ 1.30 $ 1.29 Acquired intangible 17.5 1.7 % 0.09 0.09 16.1 1.4 % 0.08 0.08 assets amortization Interest and 6.5 0.6 % 0.03 0.03 6.1 0.5 % 0.03 0.03 other (3) Restructuring 2.1 0.2 % 0.01 0.01 4.8 0.4 % 0.02 0.02 and other (2) Inventory 0.4 0.0 % 0.00 0.00 - - - - step-up Pension mark-to-market (0.1 ) 0.0 % (0.00 ) (0.00 ) (2.5 ) -0.2 % (0.01 ) (0.01 ) adjustment (3) Exclude discrete tax (6.8 ) -0.7 % (0.04 ) (0.03 ) (6.5 ) -0.6 % (0.03 ) (0.03 ) adjustments (4) Non-GAAP tax (5.3 ) -0.5 % (0.03 ) (0.03 ) (8.2 ) -0.7 % (0.04 ) (0.04 ) adjustments Convertible share - - - 0.02 - - - - adjustment Net income - $ 202.3 19.9 % $ 1.05 $ 1.04 $ 270.0 23.4 % $ 1.35 $ 1.34 non-GAAP - ------- - - ----- - - ----- - - ----- - - ------- - ---- - - ----- - - ----- - GAAP and non-GAAP weighted average 193.0 199.4 common shares - basic GAAP weighted average common 199.2 201.7 shares - diluted Exclude dilutive shares from (4.4 ) (0.3 ) convertible note Non-GAAP weighted average common 194.8 201.4 shares - diluted - ------- - - ------- - Certain prior period amounts were reclassified to conform with the first quarter (1) 2018 adoption of new accounting guidance for the presentation of pension and post retirement costs. Restructuring (2) and other consists of: Six Months Ended ----------------------------------------------------------- July 1, July 2, 2018 2017 ----------- ----------- Employee $ 6.3 $ 1.4 severance Acquisition related 3.3 - expenses Other 0.9 1.3 - Contingent consideration (8.5 ) 2.1 fair value adjustment $ 2.1 $ 4.8 - ------- - - ------- - For the six months ended July 1, 2018 and July 2, 2017, Interest and other included non-cash (3) convertible debt interest expense. For the six months ended July 1, 2018 and July 2, 2017, adjustments to exclude actuarial gains recognized under GAAP in accordance with Teradyne's mark-to-market pension accounting. (4) For the six months ended July 1, 2018 and July 2, 2017, adjustment to exclude discrete income tax items. GAAP to Non-GAAP Reconciliation of Third Quarter 2018 guidance: GAAP and non-GAAP $540 $570 third quarter million to million revenue guidance: GAAP net income per $ 0.51 $ 0.59 diluted share Exclude acquired intangible 0.06 0.06 assets amortization Exclude non-cash 0.02 0.02 convertible debt interest Exclude restructuring 0.01 0.01 and other Tax effect of non-GAAP (0.02 ) (0.02 ) adjustments Convertible share 0.01 0.01 adjustment - ----- - - ----- - Non-GAAP net income $ 0.59 $ 0.66 per diluted share

Contact: Teradyne, Inc. Andy Blanchard 978-370-2425 Vice President of Corporate Relations