Teradyne(US:TER) Huachuang Securities·2024-05-08 14:02Investment Rating - The report maintains a positive outlook for the company, with expectations for revenue growth in the low single digits for the year [2][58]. Core Insights - The company reported Q1 2024 revenue of $600 million, exceeding guidance, driven by strong demand in memory and SoC testing due to AI applications [2][58]. - The semiconductor testing market's total addressable market (TAM) for computing is now estimated at $1.5 billion, up from $1.4 billion, while the memory test TAM is revised to $1.2 billion to $1.3 billion, driven by strong HBM demand [2][58]. - The company expects Q2 2024 revenue to be between $665 million and $725 million, with a non-GAAP gross margin of 57% to 58% [2][58]. Summary by Sections Overall Performance - Q1 2024 revenue was $600 million, down 8.33% year-over-year and 4.69% quarter-over-quarter, but above the guidance range [2][47]. - Non-GAAP gross margin was 56.6%, a decrease of 1.1 percentage points year-over-year but stable quarter-over-quarter [2][48]. - Net profit for Q1 2024 was $64 million, reflecting a year-over-year decline of 23.11% and a quarter-over-quarter decline of 45.18% [2][49]. Downstream Analysis - Semiconductor testing market revenue was $412 million, down 1% year-over-year and 4.4% quarter-over-quarter, with demand in MCU and industrial markets being weak [2][33]. - System testing market revenue was $75 million, flat year-over-year but down 12.8% quarter-over-quarter, primarily due to weak SLT/mobile demand [2][34]. - Wireless testing market revenue was $25 million, down 36% year-over-year, reflecting a decline in demand from PCs and smartphones [2][35]. - Industrial automation market revenue was $88 million, down 2% year-over-year but up 31.8% quarter-over-quarter, with MiR sales increasing by 16% [2][36]. Company Q1 Summary - AI-driven demand for memory and SoC testing was strong, and the robotics business met expectations for the third consecutive quarter [2][82]. - The company announced a strategic partnership with NVIDIA to develop UR and MiR1200 Pallet Jack [2][82]. Strategic Partnership Update - Technoprobe will acquire the company's DIS business, and the company will invest in Technoprobe to gain a 10% stake [2][96]. Market Size Forecast - The company predicts the semiconductor testing market's TAM for SOC testing to be between $3.6 billion and $4.2 billion, with the memory testing market's TAM revised to $1.25 billion [2][61][95]. Q2 Performance Guidance - The company expects Q2 2024 revenue to be between $665 million and $725 million, with a non-GAAP gross margin of 57% to 58% [2][58].