Revenue

9 Months Ended

Sep. 29, 2024

Revenue from Contract with Customer [Abstract]

Revenue

D. REVENUE

Disaggregation of Revenue

The following table provides information about disaggregated revenue by timing of revenue recognition, primary geographical market, and major product lines.

		Semiconductor Test				System Test		Robotics				Wireless Test
		System on-a-Chip		Memory				Universal Robots		Mobile Industrial Robots				Total
	(in thousands)
For the Three Months Ended September 29, 2024 (1)
Timing of Revenue Recognition
Point in Time		$	323,507	$	143,581	$	55,611	$	71,607	$	15,065	$	29,465	$	638,836
Over Time			68,848		6,798		17,701		1,811		168		3,136		98,462
Total		$	392,355	$	150,379	$	73,312	$	73,418	$	15,233	$	32,601	$	737,298
Geographical Market
Asia Pacific		$	364,476	$	137,890	$	29,277	$	10,873	$	2,960	$	24,342	$	569,818
Americas			17,150		1,325		39,919		32,315		8,460		5,515		104,684
Europe, Middle East and Africa			10,729		11,164		4,116		30,230		3,813		2,744		62,796
Total		$	392,355	$	150,379	$	73,312	$	73,418	$	15,233	$	32,601	$	737,298
For the Three Months Ended October 1, 2023 (1)
Timing of Revenue Recognition
Point in Time		$	330,846	$	86,247	$	66,418	$	68,938	$	14,012	$	32,638	$	599,099
Over Time			73,264		7,506		16,785		1,607		1,135		4,336		104,633
Total		$	404,110	$	93,753	$	83,203	$	70,545	$	15,147	$	36,974	$	703,732
Geographical Market
Asia Pacific		$	360,375	$	91,352	$	40,464	$	15,430	$	3,180	$	24,727	$	535,528
Americas			24,752		1,356		35,888		26,073		7,154		10,139		105,362
Europe, Middle East and Africa			18,983		1,045		6,851		29,042		4,813		2,108		62,842
Total		$	404,110	$	93,753	$	83,203	$	70,545	$	15,147	$	36,974	$	703,732
For the Nine Months Ended September 29, 2024 (2)
Timing of Revenue Recognition
Point in Time		$	896,635	$	367,679	$	157,203	$	210,222	$	49,850	$	82,652	$	1,764,241
Over Time			211,612		21,626		52,232		5,542		938		10,805		302,755
Total		$	1,108,247	$	389,305	$	209,435	$	215,764	$	50,788	$	93,457	$	2,066,996
Geographical Market
Asia Pacific		$	1,016,674	$	357,993	$	76,317	$	37,254	$	11,361	$	70,776	$	1,570,375
Americas			59,912		13,631		105,197		82,220		28,195		16,240		305,395
Europe, Middle East and Africa			31,661		17,681		27,921		96,290		11,232		6,441		191,226
Total		$	1,108,247	$	389,305	$	209,435	$	215,764	$	50,788	$	93,457	$	2,066,996
For the Nine Months Ended October 1, 2023 (2)
Timing of Revenue Recognition
Point in Time		$	886,201	$	260,052	$	200,076	$	194,698	$	42,748	$	108,262	$	1,692,038
Over Time			219,436		21,890		52,030		5,731		3,364		11,210		313,661
Total		$	1,105,638	$	281,942	$	252,106	$	200,429	$	46,112	$	119,472	$	2,005,699
Geographical Market
Asia Pacific		$	946,696	$	270,297	$	121,698	$	43,530	$	6,973	$	70,320	$	1,459,514
Americas			98,511		8,586		105,031		69,346		25,051		42,476		349,001
Europe, Middle East and Africa			60,431		3,059		25,377		87,553		14,088		6,676		197,184
Total		$	1,105,638	$	281,942	$	252,106	$	200,429	$	46,112	$	119,472	$	2,005,699

(1)Includes $0.8 million and $1.4 million in 2024, and 2023, respectively, for leases of Teradyne’s systems recognized outside Accounting Standards Codification (“ASC”) 606 “Revenue from Contracts with Customers.”

(2)Includes $2.5 million and $3.9 million in 2024 and 2023, respectively, for leases of Teradyne’s systems recognized outside Accounting Standards Codification (“ASC”) 606 “Revenue from Contracts with Customers.”

Contract Balances

During the three and nine months ended September 29, 2024, Teradyne recognized $13.4 million and $60.2 million, respectively, that was included within the deferred revenue and customer advances balances at the beginning of the period. During the three and nine months ended October 1, 2023, Teradyne recognized $21.9 million and $91.3 million, respectively, that was included within the deferred revenue and customer advances balances at the beginning of the period. This revenue primarily relates to undelivered hardware, extended warranties, training, application support, and post contract support. Each of these represents a distinct performance obligation. As of September 29, 2024, Teradyne had $1,045.4 million of unsatisfied performance obligations. Teradyne expects to recognize approximately 93% of the remaining performance obligations in the next 12 months and the remainder in 1-3 years.

Deferred revenue and customer advances consist of the following and are included in short and long-term deferred revenue and customer advances on the balance sheet:

	September 29, 2024		December 31, 2023
	(in thousands)
Maintenance, service and training	$	57,866	$	66,458
Customer advances, undelivered elements and other		44,116		35,731
Extended warranty		38,929		34,897
Total deferred revenue and customer advances	$	140,911	$	137,086

Accounts Receivable

During the three and nine months ended September 29, 2024, and October 1, 2023, Teradyne sold certain trade accounts receivables on a non-recourse basis to third-party financial institutions pursuant to factoring agreements. During the three months ended September 29, 2024, and October 1, 2023, total trade accounts receivable sold under the factoring agreements were $36.1 million and $94.1 million, respectively. During the nine months ended September 29, 2024, and October 1, 2023, total trade accounts receivable sold under the factoring agreements were $116.8 million and $191.2 million, respectively. Factoring fees for the sales of receivables were recorded in interest expense and were not material. Teradyne accounted for these transactions as sales of receivables and presented cash proceeds as cash provided by operating activities in the consolidated statements of cash flows.