In This Article:
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Revenue: $686 million for Q1, towards the high-end of guidance.
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Non-GAAP EPS: $0.75, above the high-end guide of $0.68.
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Non-GAAP Gross Margin: 60.6%, above guidance due to product mix.
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Non-GAAP Operating Expenses: $275 million, up year-over-year, but down sequentially.
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Non-GAAP Operating Profit: 20.5%.
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Semi Test Revenue: $543 million, with SoC at $406 million, Memory at $109 million, and IST at $27 million.
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Product Test Revenue: $74 million, down 4% year-over-year.
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Wireless Test Revenue: $29 million, up 20% year-over-year.
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Robotics Revenue: $69 million, declining both sequentially and year-over-year.
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Free Cash Flow: $98 million.
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Cash and Marketable Securities: $622 million at the end of the quarter.
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Q2 Sales Guidance: Expected between $610 million and $680 million.
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Q2 Gross Margin Guidance: Estimated at 56.5% to 57.5%.
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Q2 Non-GAAP EPS Guidance: Expected to be in the range of $0.41 to $0.64.
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Share Buyback Target: Increased from $400 million in 2025 to up to $1 billion through the end of 2026.
Release Date: April 29, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Teradyne Inc (NASDAQ:TER) delivered first quarter revenue towards the high end of their guidance range with gross margin and earnings per share above expectations.
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The company secured a significant HBM 4 performance test win with a major DRAM manufacturer, marking a milestone for their memory business.
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Teradyne's Robotics division received the largest order in its history from a global automotive manufacturer, indicating strong demand in the sector.
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The company is on track to close the acquisition of Quantifi Photonics, which supports their goal to establish a leadership position in silicon photonics test.
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Teradyne Inc (NASDAQ:TER) increased their share buyback target from $400 million to up to $1 billion through the end of 2026, reflecting confidence in their long-term plans and free cash flow generation.
Negative Points
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Visibility beyond the second quarter is very limited, and the company is not commenting on or reaffirming expectations beyond this period.
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Trade policy and customer uncertainty around end market demand have caused order pushouts, particularly affecting the auto and industrial segments.
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The wireless test end market for Teradyne's LitePoint business has been generally weak since 2023.
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Revenue in the Robotics division declined both sequentially and year-over-year, with an operating loss of $22 million.
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The impact of tariffs on end market demand remains a concern, with potential effects on mobile, automotive, and industrial end markets.