Intelligence to make better decisions faster
Intelligence to make better decisions faster

 

Teradyne’s Outlook - 1 Q 2017

 

Highlights of the 1st Q conference call:

 

  • Orders +53% Y/Y
  • Sales +6% Y/Y
  • Driven by
    • Continued Semiconductor Test strength driven my
      • Continued strong and broadening customer demand from Q4
      • Healthy SOC unit growth
      • Rising device complexity,
        • Driving less parallelism
      • Move to 7nm
        • New defect modes
    • Universal Robots growth

 

Semiconductor Test Markets:

  • Mobile phone-related segment bookings largest
    • UltraFLEX platform
      • differentiated software and hardware for
      • cost and time-to-market constrained customers
  • Analog, memory, and image sensor test
    • marked increase in demand
    • Automotive driving orders across SOC product line
      • Demand to test
        • microcontrollers and related devices for
          • Engine control, adaptive driving, and infotainment
        • Power devices for
          • Hybrids and EVs
          • Safety devices for airbags and braking.
      • This plus demand from the catalog analog space
        • Led to highest Eagle Test orders in 7 quarters
    • Automotive image sensors gave P750 Image Sensor test platform
      • Devices require more extensive testing to ensure
        • long-term, reliable operation in broad extremes of
          • temperature and vibration
  • Memory test
    • More test capacity needed for high speed Flash
      • both smartphone and SSD demand
        • Growing unit volumes
      • 4K video driving need for interface speed
        • Requires refresh of tester installed base of testers
    • Magnum family gained traction in the quarter
      • Low-cost, high-throughput tester family
      • Orders +75% Q/Q

 

LitePoint:

  • Orders, sales, and profitability up Y/Y
  • Driven by
    • Wi-Fi connectivity testing of gateway and networking devices
      • Wi-Fi to remain LitePoint driver until
        • millimeter wave Wi-Fi and 5G cellular hit the market
      • 802.11ax seeing increased buying in the access point space
      • 802.11ad, 802.11ay next gen technology buys
    • Millimeter-wave cellular still at R&D and preproduction levels

 

System Test:

  • Defense and Aerospace order level strength continued
  • Storage Test levels disappointing
    • Significant investments to extend the platform to new markets.
    • Will push the System Test Group into the red for the next few quarters
    • Expect the group to be profitable in 2H

 

Universal Robots:

  • Q1 revenue more than doubled Y/Y
    • Demand strong across all products
      • On track to continue the rapid growth
        • after 62% growth in 2016
    • Good mix of developed and emerging market sales continues
  • UR reshaping how companies think about industrial automation
    • Breadth of applications nearly limitless due to
      • universal nature of human scale cobots
      • shop floor operators can easily program to repurpose
    • Cobots market leader with ~60% market share

 

Current projections for full year of 2017:

  • SOC test market: $2.4 to $2.6B range for 2017
    • up $150 million at the midpoint from Jan. est.
    • expect to gain  ~1% share from last year's 51% SOC share
  • Memory test market: high end of $450 to $550M range
    • Overall memory sales should increase
    • But due to limited by TER’s lower exposure in DRAM
      • Overall memory market share may fall back a few points
        • from >30% in 2016.
  • Wireless Test: ~$200 million for the year
    • Unchanged from Jan. est.
    • Steady stream of new Wi-Fi standards expanding it into more apps
    • Adoption of new Wi-Fi standards in 2018 or later
  • Collaborative robot market: $250 to $350M
  • Seasonality expectations
    • Revenue more heavily weighted to 1H
      • Seen 51% to 55% of sales in the first half since 2014,
      • This year it will likely be in the high 50s
        • with customers are driving hard to get capacity in place
          • a bit sooner than in prior years

 

Links to more information:

Investor Relations: http://www.teradyne.com/investors

Full Transcript: Seeking Alpha

 

Report File: VCR_TERt_170502

 

The contents of this release are approved for use by media for news purposes identifying VLSIresearch as the source. No advertising or promotional use of this release by corporations can be used without VLSIresearch approval. All trademarks, service marks, and logos are the property of VLSI Research Inc or their respective owners.

 

About VLSIresearch

VLSIresearch is an award-winning provider of market research and economic analysis on the technical, business, and economic aspects within semiconductor, nanotechnology, and related industries. VLSIresearch provides intelligence for faster and better decision making in the areas of semiconductors, photovoltaics, LEDs, manufacturing, materials, and critical subsystems.  VLSIresearch was founded in 1976. Learn more at www.vlsiresearch.com.

 

Contact: Risto Puhakka| email: analyst @ vlsiresearch.com | ph:+1.408.453.8844

VLSIresearch | Ph: 408.453.8844 | 2290 North First Street Suite 202 San Jose, CA 95131

 

… intelligence to make better decisions faster

VLSIresearch.com          ChipHistory.org           weSRCH.com

 

 

X
Ask
An
  Analyst?
X
Subscribe to SemiWEEK