Teradyne Q2 2020 Earnings Report
Key Takeaways
Teradyne reported Q2 2020 revenue of $839 million, a 49% increase year-over-year, driven by strong Semiconductor Test demand. GAAP EPS was $1.05, up 91% year-over-year, and Non-GAAP EPS was $1.33, up 102% year-over-year.
Revenue of $839 million in Q2’20 grew 49% from Q2’19
Q2’20 GAAP earnings per share grew 91% and Non-GAAP earnings per share grew 102% from Q2’19
Test revenue grew 59% from Q2’19 on Semiconductor Test strength
Industrial Automation revenue declined 21% from Q2’19 on global manufacturing weakness
Teradyne
Teradyne
Teradyne Revenue by Segment
Forward Guidance
Teradyne anticipates Q3 2020 revenue between $745 million and $805 million, with GAAP net income per diluted share of $0.91 to $1.06 and non-GAAP net income per diluted share of $1.01 to $1.17.
Positive Outlook
- Increased memory and storage test shipments.
- Production ramps of new product design wins in SOC test.
- Mid-point revenue guidance represents 33% growth from Q3 2019.
- Stronger than expected System on a Chip (SOC) test shipments.
- Accelerated demand for mobility related test capacity.
Challenges Ahead
- Industrial Automation sales were down from the year ago period due to the global slowdown in business activity.
- The COVID-19 pandemic has adversely impacted the Company’s results of operations, including increased costs company-wide and decreased sales in its industrial automation businesses.
- New regulations restrict the sale to Huawei and the designated Huawei entities of items, such as semiconductor devices, manufactured by Huawei’s contract manufacturers.
- The new export controls could disrupt the Company’s supply chain, increase compliance costs and impact the demand for the Company’s products in China.
- Due to the uncertainty regarding the length, severity and potential business impact of the COVID-19 pandemic, Teradyne has suspended its stock repurchase program announced in January 2020.
Revenue & Expenses
Visualization of income flow from segment revenue to net income