Teradyne(US:TER)2025-04-29 12:30Financial Data and Key Metrics Changes - First quarter sales were $686 million, towards the high end of guidance, with non-GAAP EPS of $0.75 above the high end guide of $0.68 [17] - Non-GAAP gross margins were 60.6%, exceeding expectations due to product mix [17] - Non-GAAP operating expenses were $275 million, up year-over-year but down sequentially due to spending controls [18] Business Line Data and Key Metrics Changes - Semi Test revenue was $543 million, with SOC revenue contributing $406 million and memory revenue at $109 million [19] - Product Test revenue was $74 million, down 4% year-over-year, with wireless test revenue of $29 million up 20% year-over-year [20] - Robotics revenue was $69 million, declining both sequentially and year-over-year, with UR contributing $49 million and MiR $20 million [20] Market Data and Key Metrics Changes - 19% of revenue was shipped to China, 12% in support of multinational customers, and 7% for indigenous Chinese customers [23] - The company expects a significant sequential decline in memory revenue in Q2 as the market digests installed HBM test capacity [27] Company Strategy and Development Direction - The company is focusing on AI, verticalization, and electrification as primary industry drivers for future growth [5] - A strategic partnership with ADI was announced to deploy UR cobots in AMRs to support collaborative automation initiatives [13] - The company is actively managing expenses to generate operating leverage while continuing critical investments [12] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about the impact of trade policy on end market demand, particularly in mobile, automotive, and industrial segments [6][28] - Despite current uncertainties, management remains confident in long-term drivers of AI, electrification, and verticalization [29] - The company has historically emerged stronger from challenging macroeconomic periods and expects this trend to continue in 2025 [16] Other Important Information - The company has increased its share buyback target from $400 million in 2025 to up to $1 billion through the end of 2026, reflecting confidence in long-term plans [28] - The restructuring in the robotics division has reduced the operating breakeven revenue from $440 million to $365 million [21] Q&A Session Summary Question: Dynamics of tariff-related pushouts and pull-ins - Management noted that pull-ins are primarily affecting existing capacity, with pushouts mainly from customers in the auto and industrial sectors [33] Question: Update on gross margin and OpEx - Management indicated that gross margin guidance for the full year is not provided due to uncertainty, but the first half is expected to align with prior expectations [41][42] Question: SLT wins and AI accelerators - Management clarified that SLT wins are expected to drive significant revenue in 2026, with AI accelerators being incorporated into higher-level assemblies [48][50] Question: Impact of tariffs on competitive positioning - Management stated that there has been no significant competitive impact due to tariffs, and the competitive landscape remains stable [62] Question: Memory market dynamics - Management highlighted that mobile phone unit volume and new interface standards are key drivers for NAND demand [75] Question: Timing of large robotic order - The largest order in robotics history is expected to ship from Q1 into Q2, demonstrating the ability to sell combined products to strategic customers [53][57]