(Reuters) – Chip-testing machines maker Teradyne on Wednesday surpassed estimates for sales and profit in the second quarter, helped by growing demand for semiconductors that power artificial intelligence (AI) technology.
Higher shipments in Teradyne’s core semiconductor-test segment more than offset weaker robotics demand, said Teradyne CEO Greg Smith.
The company’s shares rose 1.8% to $116.7 in extended trading, after its forecast for third-quarter revenue of between $650 million to $710 million came in above analysts’ estimates of $671.5 million, according to Refinitiv.
For the current quarter, strong demand is seen from data center and automotive end-markets while order rates in robotics may decline, the company said.
The boom in demand for AI capabilities have benefited companies in the chip supply chain, softening the impact from a post-pandemic downturn in sales of personal computers and smartphones.
Teradyne supplies technology to test chips and electronic equipment to customers including chipmaker Taiwan Semiconductor Manufacturing Co, chip designer Qualcomm and electronics firm Samsung. It also sells robotic systems to customers in the manufacturing sector.
Revenue in the quarter ended July 2 dropped to $684.4 million from $840.8 million a year ago. Analysts had expected $658.2 million, according to Refinitiv.
The company earned 79 cents per share on an adjusted basis, higher than estimates of 66 cents.
(Reporting by Zaheer Kachwala and Yuvraj Malik in bengaluru; Editing by Devika Syamnath)
