Chip-testing machines maker Teradyne revenue dips 19% to $684 mn

Chip-testing machines maker Teradyne said its revenue in the April-June quarter dropped 19 percent to $684.4 million from $840.8 million a year ago.
TeradyneTeradyne has generated revenue of $475 million from Semiconductor Test, $94 million from System Test, $44 million from Wireless Test and $72 million from Robotics business.

Teradyne’s net income for the second quarter was $120.1 million or $0.73 per diluted share.

“We delivered revenue at the high end of our guidance range with higher semiconductor test shipments which more than offset weaker robotics demand in the quarter while profits exceeded plan on higher gross margins,” said Teradyne CEO Greg Smith.

“As we enter Q3, test demand for DRR5 and HBM memory devices for data center applications remains strong and SOC test demand for automotive applications is incrementally stronger. In robotics, we expect order rates to decline as customers navigate slowing global industrial activity and macro-economic headwinds.”

Teradyne is targeting revenue of $650 million to $710 million, with net income of $0.57 to $0.77 per diluted share in third quarter.

For the current quarter, strong demand is seen from data center and automotive end-markets while order rates in robotics may decline, the company said.

The boom in demand for AI capabilities has benefited companies in the chip supply chain, softening the impact from a post-pandemic downturn in sales of personal computers and smartphones.

Teradyne supplies technology to test chips and electronic equipment to customers including chipmaker Taiwan Semiconductor Manufacturing (TSMC), chip designer Qualcomm and electronics firm Samsung. It also sells robotic systems to customers in the manufacturing sector.