Teradyne revenue jumps 70 per cent on semiconductor testing demand
Teradyne posted third-quarter revenue of 1.306 billion dollars, with semiconductor testing accounting for its largest business. Adjusted earnings exceeded the market consensus tracked by Zacks. Chief executive Greg Smith linked demand to the artificial intelligence value chain. The test-equipment maker also issued fourth-quarter revenue and earnings ranges, following results below the preceding quarter.
Economics & Markets··Midday
Semiconductor tests lead revenue growth
US test-equipment producer Teradyne reported third-quarter revenue of 1.306 billion dollars, up 70 per cent from the corresponding quarter a year earlier. The reporting period ended on September 27. Semiconductor Test supplied 1.072 billion dollars of revenue, compared with 138 million dollars from Product Test and 96 million dollars from Robotics. Semiconductor testing was the largest of the three activities.[1]
Chief executive Greg Smith attributed demand to several parts of the artificial intelligence value chain, including memory, hard disk testing, high-speed interconnect components and robotics. The company said its robotics business achieved its highest third-quarter revenue and became profitable. Management described broader testing and robotics demand after results exceeded the upper end of the company’s own third-quarter guidance.[1]
Adjusted earnings exceed consensus
Adjusted earnings were 2.29 dollars per share, compared with the 2.04 dollars consensus tracked by Zacks and 0.85 dollars a year earlier. The adjusted result excludes specified expenses and their associated tax effects. Under generally accepted accounting principles, Teradyne earned 342.4 million dollars, or 2.17 dollars per diluted share. Adjusted net income was 359.9 million dollars after exclusions including intangible asset amortisation and restructuring charges.[1], [2]
The annual improvement accompanied lower results than in the preceding quarter. Second-quarter revenue had been 1.329 billion dollars, with reported earnings of 2.38 dollars per share and adjusted earnings of 2.47 dollars. In the year-earlier third quarter, revenue was 769.2 million dollars and reported earnings were 0.75 dollars per share. The sequential and annual comparisons therefore started from substantially different bases.[1]
Management sets fourth-quarter ranges
Teradyne forecast fourth-quarter revenue of 1.25 billion dollars to 1.35 billion dollars. Management’s corresponding earnings range was 1.88 dollars to 2.18 dollars per diluted share under accounting rules, or 1.95 dollars to 2.25 dollars after adjustments. The adjusted outlook excludes acquired intangible asset amortisation, amortisation on its Technoprobe investment and associated tax effects. These are the company’s forecasts for the next reporting period, following its reported September-quarter results.[1]
