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Apr 04, 2021

Teradyne Q1 2021 Earnings Report

Reported an increase in revenue and earnings driven by growth in both Test and Industrial Automation businesses.

Key Takeaways

Teradyne reported Q1 2021 revenue of $782 million, an 11% increase compared to Q1 2020. GAAP EPS was $1.09, and non-GAAP EPS was $1.11. The company's growth was driven by strong demand in the Test and Industrial Automation sectors.

Revenue reached $782 million, up 11% year-over-year.

Test revenue increased by 9% compared to Q1 2020.

Industrial Automation revenue grew by 33% year-over-year.

GAAP EPS was $1.09, and non-GAAP EPS was $1.11.

Total Revenue
$782M
Previous year: $704M
+11.0%
EPS
$1.11
Previous year: $1
+11.0%
Revenue Growth
11%
Industrial Automation Growth
33%
Gross Profit
$462M
Previous year: $406M
+13.8%
Cash and Equivalents
$831M
Previous year: $593M
+40.0%
Free Cash Flow
-$1.11M
Previous year: $6.4M
-117.4%
Total Assets
$3.72B
Previous year: $2.82B
+31.9%

Teradyne

Teradyne

Teradyne Revenue by Segment

Forward Guidance

Teradyne expects Q2 2021 revenue to be between $1,010 million and $1,090 million, with GAAP net income per diluted share between $1.48 and $1.68 and non-GAAP net income per diluted share between $1.62 and $1.83.

Positive Outlook

  • Revenue between $1,010 million and $1,090 million
  • GAAP net income per diluted share between $1.48 and $1.68
  • Non-GAAP net income per diluted share between $1.62 and $1.83
  • Test demand at this point in the year is stronger than expected fueled by both continued device complexity increases and unit growth.
  • Both the SOC and Memory test markets will likely exceed the top end of our market forecast resulting in higher sales and profits as reflected in our Q2 guidance.

Challenges Ahead

  • Non-GAAP guidance excludes acquired intangible asset amortization
  • Non-GAAP guidance excludes non-cash convertible debt interest
  • Non-GAAP guidance includes the related tax impact on non-GAAP adjustments.
  • Global pandemic of the novel strain of the coronavirus (COVID-19) has resulted in authorities implementing numerous measures to try to contain the virus
  • These measures have impacted and may further impact Teradyne’s workforce and operations, the operations of its customers, and those of its contract manufacturers and suppliers.

Revenue & Expenses

Visualization of income flow from segment revenue to net income