Teradyne, Inc. announced consolidated earnings results for the fourth quarter and full year ended December 31, 2016. For the quarter, the company reported net revenues of $379.989 million against $318.444 million a year ago. Income from operations was $59.172 million against loss from operations of $9.748 million a year ago. Income before income taxes was $58.884 million against loss before income taxes of $8.857 million a year ago. Net income was $66.345 million or $0.33 per diluted share against net loss of $0.641 million or $0.0 per diluted share a year ago. Net cash provided by operating activities was $36.443 million against $40.235 million a year ago. Purchases of property, plant and equipment was $19.020 million against $23.151 million a year ago. Income from operations - non-GAAP was $70.7 million against $33.2 million a year ago. Net income - non-GAAP was $64.6 million or $0.32 per basic and diluted share against $26.1 million or $0.13 per basic and diluted share a year ago.

For the year, the company reported net revenues of $1,753.250 million against $1,639.578 million a year ago. Loss from operations was $60.015 million against income from operations of $242.969 million a year ago. Loss before income taxes was $55.060 million against income before income taxes of $253.124 million a year ago. Net loss was $43.421 million or $0.21 per diluted share against net income of $206.477 million or $0.97 per diluted share a year ago. Net cash provided by operating activities was $445.179 million against $412.841 million a year ago. Purchases of property, plant and equipment was $85.272 million against $89.878 million a year ago. Income from operations - non-GAAP was $349.5 million against $336.4 million a year ago. Net income - non-GAAP was $308.9 million or $1.51 per diluted share against $271.1 million or $1.27 per diluted share a year ago.

The company provided earnings guidance for the first quarter of 2017. For the first quarter of 2017, the company expects revenue of $420 million to $450 million, with GAAP net income of $0.28 to $0.34 per diluted share and non-GAAP net income of $0.33 to $0.40 per diluted share. Non-GAAP guidance excludes acquired intangible asset amortization, non-cash convertible debt interest and includes the related tax impact on non-GAAP adjustments. First quarter gross margins are estimated 57%, about flat with the fourth quarter due to favorable product mix. The first quarter sales is up about $15 million from the fourth quarter due to further investments at Universal Robots, higher variable compensation accruals on higher anticipated profits and SemiTest engineering NREs concentrated in the first half of the year. The non-GAAP operating profit rate at the midpoint of first quarter guidance is about 20%.

For the full year 2017, the company expects gross margins to operate at about 55%, right in the middle of historical range of 54% to 56%. For the year 2017 tax rate is expected to be about 15%, down from prior guidance due to a higher mix of offshore profits and the favorable impacts from the convertible debt and call spread overlay. Non-GAAP interest expense include -- excluding the noncash imputed interest from the convert is expected to be de minimus, as the 1.25% annual coupon from the convertible debt should be offset by interest income on cash balances. In 2017, the company earmarked $80 million to $100 million for CapEx, up slightly at midpoint from 2016's $85 million.