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Jun 28, 2020
Teradyne Q2 2020 Earnings Report
Revenue and profits exceeded guidance due to strong SOC test shipments and effective supply chain management.
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
Revenue by Segment
Semiconductor Test Revenue
CapyFin.comRobotics Revenue
CapyFin.com 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