Yahoo Finance Teradyne Inc (TER) (Q1 2024) Earnings Call Transcript Highlights: Surpassing Expectations with ...
Q1 Revenue: $600 million, $10 million above guidance
Q1 Non-GAAP EPS: $0.51, above guidance of $0.38
Q1 Non-GAAP Gross Margin: 56.6%, above guidance
Q1 Non-GAAP Operating Profit: Approximately 15%
Q1 Semi Test Revenue: $412 million (SOC $302 million, Memory $110 million)
Q1 System Test Revenue: $75 million
Q1 Wireless Test Revenue: $25 million
Q1 Robotics Revenue: $88 million (UR $68 million, MiR $20 million)
Q1 Free Cash Flow: Outflow of $37 million
Q2 Sales Forecast: Between $665 million and $725 million
Q2 Non-GAAP EPS Forecast: Between $0.64 to $0.84
Q2 Gross Margin Estimate: 57% to 58%
Full Year Revenue Growth: Expected low single-digit growth from 2023
Full Year Gross Margin: Expected in the 58% to 59% range
Release Date: April 25, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Despite the weakness in mobile, was this already factored into your January guidance for the full year? A: (Sanjay Mehta - CFO, VP & Treasurer) Yes, the weakness in mobile had already been considered in our January guidance.
Q: With TSMC's revenue increase from Apple, does this indicate a potential need for more testers as utilization rates increase? A: (Gregory S. Smith - President, CEO & Director) Yes, utilization is increasing, and it's a matter of when, not if, there will be a need for significant additional capacity to support product lines.
Q: How does the growth of the accelerator market compare to the growth of your tester compute TAM? A: (Gregory S. Smith - President, CEO & Director) The $1.5 billion compute TAM supports significant market growth next year, especially as vertically integrated producers ramp up, translating into more direct buys.
Q: Can you provide a split between DRAM and NAND in your memory TAM for 2024 and discuss your competitive position in HBM? A: (Sanjay Mehta - CFO, VP & Treasurer) The memory TAM is roughly 80% DRAM and 20% flash. HBM is about $500 million of the $1.25 billion TAM. Our share in HBM is expected to decrease slightly even though our revenue will increase.
Q: What are the potential drivers for a stronger second half, given the current limited visibility? A: (Gregory S. Smith - President, CEO & Director) Potential drivers include a recovery in mobile and continued strength in the compute segment. However, industrial and automotive are not expected to strengthen significantly within the year.
Q: How do you see Edge AI impacting the smartphone market, and when might we see increased content to support this? A: (Gregory S. Smith - President, CEO & Director) Premium smartphones are starting to include more complex processors for AI, which could drive customer features. Significant AI capabilities in smartphones are expected to ramp towards the end of 2025 and become mainstream in 2026.
These Q&A highlights from Teradyne's earnings call provide insights into the company's performance, market dynamics, and strategic outlook, particularly in relation to AI applications and the semiconductor testing market.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
