Teradyne, Inc. (NASDAQ:TER) Q4 2023 Earnings Conference Call January 31, 2024 8:30 AM ET Company Participants Andy Blanchard - Vice President, Corporate Communications Greg Smith - Chief Executive Officer Sanjay Mehta - Chief Financial Officer Conference Call Participants Mehdi Hosseini - SIG Timothy Arcuri - UBS C.J. Muse - Cantor Fitzgerald Vivek Arya - Bank of America Securities Krish Sankar - TD Cowen Brian Chin - Stifel Samik Chatterjee - JPMorgan Toshiya Hari - Goldman Sachs Operator Greetings. Welcom ...

Shares of Teradyne declined in post-market trading on Tuesday after it warned of weaker demand for some systems and forecast another drop in revenue. The stock TER, -1.40% was down 7.3% to $97.00 in after-hours trading, and lost 1.4% to fall to $104.59 at the close. Shares are down 2.8% in the past year. The automatic testing-equipment maker said it expects first-quarter revenue of $540 million to $590 million, a fall of about 4.5% to 12.5% from the same period a year earlier. Analysts polled by FactSet ...

Teradyne (TER) came out with quarterly earnings of $0.79 per share, beating the Zacks Consensus Estimate of $0.72 per share. This compares to earnings of $0.92 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 9.72%. A quarter ago, it was expected that this maker of wireless products, data storage and equipment to test semiconductors would post earnings of $0.72 per share when it actually produced earnings of $0.80, delivering a ...

Wall Street analysts forecast that Teradyne (TER) will report quarterly earnings of $0.72 per share in its upcoming release, pointing to a year-over-year decline of 21.7%. It is anticipated that revenues will amount to $676.37 million, exhibiting a decline of 7.6% compared to the year-ago quarter.Over the last 30 days, there has been an upward revision of 1.4% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of thei ...

Sure. So yeah, I'm -- I think we're both sort of working off of the same source data when it comes to like reading the tea leaves about this large customer. We don't really know what their product plans are. The things that we are watching for are how quickly 3-nanometer goes into their high-performance computing process -- products that the more of that product line that's on 3-nanometer, the more complexity there will be, and that's a tailwind towards loading. The next is what's the relationship between - ...

Andy Blanchard - Vice President of Corporate Relations Conference Call Participants Vivek Arya - Bank of America Toshiya Hari - Goldman Sachs Greetings and welcome to the Teradyne Second Quarter 2023 Earnings Call and Webcast. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. Thank you, operator. And good morning, everyone, and welcome to our discussion o ...

Q2 2023 Financial Performance - Q2'23 sales reached $684 million[14, 19], a 12% decrease compared to Q2'22[9, 19] - Gross margin was 58.8%[14, 43], an increase from 57.7% in Q1'23[43] - Non-GAAP EPS was $0.79[14, 20], above the high end of guidance due to better gross margins[15] Segment Performance - Semiconductor Test sales were $475 million[23] - System Test sales were $94 million[23] - Wireless Test sales were $44 million[23] - Robotics sales were $72 million[23], down 29% compared to Q2'22[100] Market Outlook - 2023 SOC Test Market Forecast increased to $3.7 - $4.1 billion[97, 115], up $300 million from the April outlook[97, 115] - 2023 Memory Test Market Forecast remains at $0.9 - $1.0 billion[6, 104], but trending towards the lower end of the range[6, 104] - Expect Robotics full year revenue to be flat to down 10% in 2023[98, 104] Capital Allocation - The company repurchased 1.3 million shares for $136 million at an average price of $100.67 per share[20] - Since 2015, Teradyne has repurchased 76.6 million shares at an average price of approximately $48 per share[35]

Financial Data and Key Metrics Changes - In Q1 2023, the company reported sales of $618 million, exceeding the midpoint of guidance by $28 million, with non-GAAP EPS of $0.55, above the high end of guidance [48][16] - Non-GAAP gross margins were 57.7%, improved due to favorable product mix and operational efficiencies [48][29] - The non-GAAP operating profit rate was 17% for the quarter, with a tax rate of 16.5% on a GAAP basis [11][29] Business Line Data and Key Metrics Changes - Semiconductor Test revenue was $415 million, with SoC revenue contributing $347 million and memory at $68 million [11][23] - Robotics revenue was $89 million, with Universal Robots (UR) contributing $72 million and MiR $17 million, showing a 14% decline compared to Q1 2022 [24][45] - System Test Group revenue was $75 million, impacted by reduced demand for HDDs and declining smartphone shipments [8][23] Market Data and Key Metrics Changes - The SoC market is estimated to be between $3.3 billion and $3.8 billion in 2023, down about 20% to 30% from last year's $4.7 billion [7][19] - The automotive and industrial segments are showing stronger demand, with higher tester utilization compared to Compute and Mobility markets [6][19] - The LitePoint sales are expected to decline by 20% to 25% from last year's levels, reflecting the overall market conditions [7][19] Company Strategy and Development Direction - The company is focusing on an omnichannel strategy to enhance growth potential, aiming for 20% to 30% annual growth over the midterm [21][50] - Investments are being made to strengthen the global supply chain while maintaining R&D and go-to-market focus [31][30] - The company anticipates solid free cash flow in 2023, which will be used for potential M&A, dividends, and share repurchases [31][53] Management's Comments on Operating Environment and Future Outlook - Management noted that the semiconductor test market is facing challenges due to low end-market demand and high channel inventory, with tester utilization at its lowest in over 10 years [5][19] - The automotive and industrial test markets are expected to remain strong, driven by new applications such as EVs and autonomous driving [6][19] - The company expects Q2 sales to be between $625 million and $685 million, with gross margins estimated at 57% to 58% [28][29] Other Important Information - The company ended the quarter with $859 million in cash and securities [28] - The ongoing realignment of the distribution system is expected to create short-term headwinds but is aimed at long-term growth potential [9][21] - The company is experiencing component shortages impacting about 25% of Tester revenue in Q2 [55][76] Q&A Session Summary Question: Opportunities in Wi-Fi 6 and Wi-Fi 7 - Management indicated that Wi-Fi 6 tooling is largely in place, with Wi-Fi 6E driving investments in 2023, while Wi-Fi 7 contributions are expected to ramp in 2024 [33][34] Question: 3-nanometer capacity ramp in 2024 - Management noted that there have been no substantial changes in the pace of moving to 3-nanometer technology, with expectations for stronger demand in 2024 as unit volumes increase [34][64] Question: Mobility market recovery assumptions - Management acknowledged that the Mobility segment is experiencing its worst level of spending in five years, with expectations for a base case recovery if handset units remain flat [38][42] Question: Competition in the robotics market - Management confirmed that Chinese competitors are performing well in their local market, leading to a shift towards premium tier products for international customers [82][100] Question: Impact of component shortages on revenue - Management clarified that component shortages are expected to impact semi-test revenue in Q2 by approximately $25 million, which is outside of their guidance range [76][79] Question: Future growth in the robotics business - Management emphasized that the transition to an omnichannel strategy is ongoing, with expectations for significant growth potential once established [134][135]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ANNUAL REPORT PURSUANT TO SECTIONS 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (MARK ONE) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 001-06462 TERADYNE, INC. (Exact Name of Registrant as Specified in ...

Teradyne, Inc. (NASDAQ:TER) Q4 2022 Results Conference Call January 26, 2023 8:30 AM ET Company Participants Andrew Blanchard - VP, Corporate Communications Mark Jagiela - CEO Greg Smith - President Sanjay Mehta - CFO Conference Call Participants Brian Chin - Stifel C.J. Muse - Evercore Krish Sankar - Cowen Mehdi Hosseini - SIG Samik Chatterjee - JP Morgan Sidney Ho - Deutsche Bank Timothy Arcuri - UBS Toshiya Hari - Goldman Sachs Vedvati Shrotre - Jefferies Vivek Arya - Bank of America Operator Greetings, ...