Teradyne, Inc.

Greetings and welcome to the Teradyne fourth quarter and full year 2022 earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the call over to Andy Blanchard, Vice President of Corporate Communications. Thank you. You may begin.

Thank you, Daryl. Good morning, everyone, and welcome to our discussion of Terranite's most recent financial results. I'm joined this morning by our CEO, Mark Jagala, President Greg Smith, and our CFO, Sanjay Mehta. Following our opening remarks, we'll provide details of our performance for 2022's fourth quarter and full year, along with our outlook for the first quarter of 2023. The press release containing our fourth quarter results was issued last evening. We're providing slides on the investor page of the website that may be helpful to you in following the discussion. Replays of this call will be available via the same page after the call ends. The matters that we discuss today will include forward-looking statements that involve risk factors that could cause Teradyne's results to differ materially from management's current expectations. We encourage you to review the safe harbor statement contained in the earnings release, as well as our most recent SEC filings. Additionally, Those forward-looking statements are made as of today, and we take no obligation to update them as a result of developments occurring after this call. During today's call, we'll make reference to non-GAAP financial measures. We've posted additional information concerning these non-GAAP financial measures, including reconciliation to the most directly comparable GAAP financial measure. We're available on the investor page of our website. Looking ahead, between now and our next earnings call, Teradyne expects to participate in technology or industrial-focused investor conferences hosted by Citi, Susquehanna, Loop Capital, and Morgan Stanley. Now let's get on with the rest of the agenda. First, Mark and Greg will comment on our recent results and the market conditions as we enter the new year. Sanjay will then offer more details on our quarterly results along with our guidance for the first quarter. We'll then answer your questions, and this call is scheduled for one hour. Mark?

Hello, everyone, and thanks for joining us this morning. I'm going to limit my remarks today as Greg will be taking full leadership of the company from next week. I'll leave the outlook to Greg, and Sanjay will provide the financial details, including our updated midterm earnings model. 2022 was another good year for Teradyne, with our second highest sales in history. Midyear, we saw a turn in our markets, with the SOC test market softening after six years of growth and industrial automation growth slowing. At the company level, our financial results were slightly under the long-term trend line after operating well above trend in 2020 and 2021. This oscillation around the trend line is a familiar pattern that we expect to continue. We manage our business investments according to this trend line and tend not to chase these excursions up or down. Sanjay will note how these trend lines roll into our updated midterm earnings model. Looking at a longer-term perspective, Over the last eight years, Teradyne's revenue has about doubled, and EPS has grown about 4x. Growth of our core test markets is part of the story, as is expansion into new markets like industrial automation and system-level test. This, combined with a rich cash flow and a balanced capital allocation plan, has been the recipe for shareholder returns. As you will hear, we see all of these drivers remaining in place for the years to come. Since this is my last earnings call, I would like to thank all of you who follow, invest, and influence our journey at Teradyne. As Greg takes on the role, I'm confident we won't miss a beat, and he's been a key part of developing and implementing our strategy for many years. With that, I'll turn things over to Greg for his deeper perspective on our results and outlook. Greg?