| Segment/Quarter | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|-----------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **Semiconductor Test** ($ million) | **481**  **[TER_3178195_5]**  | **415**  **[TER_3247647_4]** **[0001193125-23-119702_d450766dex991.htm:0]**  | **474.7**  **[0001193125-23-203780_d417157d10q.htm:43]** **[0001193125-23-195224_d454874dex991.htm:0]**  | **497.9**  **[0000950170-23-058679_ter-20231001.htm:47]**  | **431**  **[TER_3371496_4]**  | **412**  **[TER_3380968_3]**  | **543**  **[TER_3394488_3]**  | **543**  **[TER_3403831_3]**  |
| **System Test** ($ million) | **100**  **[TER_3178195_5]**  | **75**  **[TER_3247647_4]** **[0001193125-23-119702_d450766dex991.htm:0]**  | **94.3**  **[0001193125-23-203780_d417157d10q.htm:43]** **[0001193125-23-195224_d454874dex991.htm:0]**  | **83.2**  **[0000950170-23-058679_ter-20231001.htm:47]**  | **86**  **[TER_3371496_4]**  | **75**  **[TER_3380968_3]**  | **61**  **[TER_3394488_3]**  | **73**  **[TER_3403831_3]**  |
| **Wireless Test** ($ million) | **40**  **[TER_3178195_5]**  | **39**  **[TER_3247647_4]** **[0001193125-23-119702_d450766dex991.htm:0]**  | **43.8**  **[0001193125-23-203780_d417157d10q.htm:43]** **[0001193125-23-195224_d454874dex991.htm:0]**  | **37.0**  **[0000950170-23-058679_ter-20231001.htm:47]**  | **25**  **[TER_3371496_4]**  | **25**  **[TER_3380968_3]**  | **36**  **[TER_3394488_3]**  | **33**  **[TER_3403831_3]**  |
| **Robotics** ($ million) | **110**  **[TER_3178195_5]**  | **89**  **[TER_3247647_4]** **[0001193125-23-119702_d450766dex991.htm:0]**  | **71.6**  **[0001193125-23-203780_d417157d10q.htm:43]** **[0001193125-23-195224_d454874dex991.htm:0]**  | **85.7**  **[0000950170-23-058679_ter-20231001.htm:47]**  | **129**  **[TER_3371496_4]**  | **88**  **[TER_3380968_3]**  | **90**  **[TER_3394488_3]**  | **89**  **[TER_3403831_3]**  |

5d0b0ac67bacf569451c59353434ebf5a2e096db664868467dc8c013917f4fa5

| Geographical Segment | Q3 2024 | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 | Q2 2023 | Q1 2023 | Q4 2022 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **Korea** (%)        | **26%**  **[0000950170-24-119923_ter-20240929.htm:46]**  | **29%**  **[0000950170-24-089858_ter-20240630.htm:45]**  | N/A     | N/A     | N/A     | **15%**  **[0001193125-23-203780_d417157d10q.htm:43]**  | N/A     | N/A     |
| **Taiwan** (%)       | **26%**  **[0000950170-24-119923_ter-20240929.htm:46]**  | **21%**  **[0000950170-24-089858_ter-20240630.htm:45]**  | N/A     | N/A     | N/A     | **15%**  **[0001193125-23-203780_d417157d10q.htm:43]**  | N/A     | N/A     |
| **China** (%)        | **13%**  **[0000950170-24-119923_ter-20240929.htm:46]**  | **13%**  **[0000950170-24-089858_ter-20240630.htm:45]**  | N/A     | N/A     | N/A     | **13%**  **[0001193125-23-203780_d417157d10q.htm:43]**  | N/A     | N/A     |
| **United States** (%)| **12%**  **[0000950170-24-119923_ter-20240929.htm:46]**  | **11%**  **[0000950170-24-089858_ter-20240630.htm:45]**  | N/A     | N/A     | N/A     | **17%**  **[0001193125-23-203780_d417157d10q.htm:43]**  | N/A     | N/A     |
| **Europe** (%)       | **8%**  **[0000950170-24-119923_ter-20240929.htm:46]**   | **8%**  **[0000950170-24-089858_ter-20240630.htm:45]**   | N/A     | N/A     | N/A     | **9%**  **[0001193125-23-203780_d417157d10q.htm:43]**   | N/A     | N/A     |
| **Japan** (%)        | **2%**  **[0000950170-24-119923_ter-20240929.htm:46]**   | **9%**  **[0000950170-24-089858_ter-20240630.htm:45]**   | N/A     | N/A     | N/A     | **13%**  **[0001193125-23-203780_d417157d10q.htm:43]**  | N/A     | N/A     |
| **Singapore** (%)    | **2%**  **[0000950170-24-119923_ter-20240929.htm:46]**   | **2%**  **[0000950170-24-089858_ter-20240630.htm:45]**   | N/A     | N/A     | N/A     | **3%**  **[0001193125-23-203780_d417157d10q.htm:43]**   | N/A     | N/A     |
| **Thailand** (%)     | **2%**  **[0000950170-24-119923_ter-20240929.htm:46]**   | **2%**  **[0000950170-24-089858_ter-20240630.htm:45]**   | N/A     | N/A     | N/A     | **4%**  **[0001193125-23-203780_d417157d10q.htm:43]**   | N/A     | N/A     |
| **Malaysia** (%)     | **2%**  **[0000950170-24-119923_ter-20240929.htm:46]**   | **1%**  **[0000950170-24-089858_ter-20240630.htm:45]**   | N/A     | N/A     | N/A     | **5%**  **[0001193125-23-203780_d417157d10q.htm:43]**   | N/A     | N/A     |
| **Philippines** (%)  | **2%**  **[0000950170-24-119923_ter-20240929.htm:46]**   | **1%**  **[0000950170-24-089858_ter-20240630.htm:45]**   | N/A     | N/A     | N/A     | **4%**  **[0001193125-23-203780_d417157d10q.htm:43]**   | N/A     | N/A     |
| **Rest of World** (%)| **5%**  **[0000950170-24-119923_ter-20240929.htm:46]**   | **3%**  **[0000950170-24-089858_ter-20240630.htm:45]**   | N/A     | N/A     | N/A     | **2%**  **[0001193125-23-203780_d417157d10q.htm:43]**   | N/A     | N/A     |
| **Asia Pacific** ($) | N/A     | N/A     | **$423.7M**  **[0000950170-24-052761_ter-20240331.htm:8]**  | N/A     | **$535.5M**  **[0000950170-23-058679_ter-20231001.htm:12]**  | N/A     | **$424.5M**  **[0001193125-23-136994_d489720d10q.htm:7]**  | N/A     |
| **Americas** ($)     | N/A     | N/A     | **$108.7M**  **[0000950170-24-052761_ter-20240331.htm:8]**  | N/A     | **$105.4M**  **[0000950170-23-058679_ter-20231001.htm:12]**  | N/A     | **$118.6M**  **[0001193125-23-136994_d489720d10q.htm:7]**  | N/A     |
| **EMEA** ($)         | N/A     | N/A     | **$67.5M**  **[0000950170-24-052761_ter-20240331.htm:8]**   | N/A     | **$62.8M**  **[0000950170-23-058679_ter-20231001.htm:12]**   | N/A     | **$74.4M**  **[0001193125-23-136994_d489720d10q.htm:7]**   | N/A     |

6789a049b9d0dfccedbd705fae3d26ec66fd0b1095a9f52ef29a2394b4e67c57

Adjustments for Non-Cash Items

Stock-Based Compensation

Changes in Working Capital

Capital Expenditures (CapEx)

Proceeds from / Repayments of Debt

Share Repurchases

Dividend Payments

Net Change in Cash

e5f050366e9c92e33a46c53a39693a7074da66986c5dcf81e5affb9fdf828792

Teradyne, Inc. is a leading global supplier of automated test equipment and robotics solutions, designing, developing, manufacturing, and selling products used across various industries such as consumer electronics, wireless, automotive, industrial, computing, communications, and aerospace and defense **[0000950170-24-089858_ter-20240630.htm:42]** **[0000950170-24-119923_ter-20240929.htm:43]** **[0000950170-24-018701_ter-20231231.htm:3]** **[0000950170-24-018701_ter-20231231.htm:74]**. The company offers a range of automated test systems and robotics products, including semiconductor test systems, storage and system level test systems, and collaborative robotic arms **[0000950170-24-089858_ter-20240630.htm:42]** **[0000950170-24-119923_ter-20240929.htm:43]** **[0000950170-24-018701_ter-20231231.htm:3]** **[0000950170-24-018701_ter-20231231.htm:74]**. Teradyne's revenue is geographically diverse, with a significant portion coming from the Asia Pacific region **[0000950170-24-018701_ter-20231231.htm:85]** **[0000950170-24-018701_ter-20231231.htm:11]**.

1. **Semiconductor Test Systems** - Provides automated test systems for semiconductor devices, focusing on System-on-a-Chip and Memory tests.
2. **Robotics Products** - Offers collaborative robotic arms and autonomous mobile robots, enhancing automation in various industries.
3. **Storage and System Level Test Systems** - Develops test systems for storage devices and complete systems, ensuring reliability and performance.
4. **Defense/Aerospace Test Instrumentation and Systems** - Supplies test solutions for defense and aerospace applications, supporting mission-critical operations.
5. **Circuit-Board Test and Inspection Systems** - Manufactures systems for testing and inspecting circuit boards, ensuring quality and functionality.
6. **Wireless Test Systems** - Delivers test solutions for wireless communication devices, supporting the development and deployment of wireless technologies.

000f3d4080b6179a934cf2b5c7ff4c8d5c41efa2688e862efabbd1e6aee089e1

1. Given that your Robotics business has achieved only a 5% CAGR over the past five years, significantly below your forecasted 20–30% growth, what concrete actions are you taking to close this gap, and how confident are you in achieving these ambitious targets amid current market challenges?

2. With the increased OpEx in your Semi Test business, is this elevated spending a new structural level due to competition and platform development, or is it a cyclical increase aimed at gaining market share, and how will this impact your long-term profitability?

3. Considering the divergence in growth and strategic focus between your Semiconductor Test and Robotics divisions, have you evaluated the potential benefits of divesting or spinning off the Robotics business to unlock shareholder value and focus on core competencies?

4. Given your limited exposure to the accelerated AI market and the escalating test times for next-generation AI chips like Blackwell, how do you plan to leverage System Level Test solutions to penetrate this market and enhance your competitive position?

5. With the mobile SoC test TAM declining from $2 billion to $800 million due to factors like longer smartphone replacement cycles, what is your strategy to mitigate the impact of this contraction on your business, and how do you plan to drive growth in this segment going forward?

7b77667c3e5875b6f5fa4930c59c49c68d3572ec3dfac89e76d9f9cb31147b42

e8e3cc25d81734cd6eb9814cf2649ec1d98317894ce02722c322bf1bf7d62ab2

6a81c482a268a42518534c0d73900f4ccf779b10dfe7698ee6aedcd312ff0b22

7aeed5578dd2b878fd689d8f0b6696789535eecca684fa1ea384c7173bff6dab

9c6c202277019fca161bf592c51211bb38251b69b905df2bb568b33c58ae959f

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: Q4 2024
- **Guidance**:
  1. **Sales**: $710 million to $760 million  **[TER_3403831_3]** .
  2. **Gross Margins**: 59.5% to 60.5%  **[TER_3403831_3]** .
  3. **Operating Expenses (OpEx)**: 36.5% to 38.5% of sales  **[TER_3403831_3]** .
  4. **Non-GAAP Operating Profit Rate**: 23% at midpoint  **[TER_3403831_3]** .
  5. **Non-GAAP EPS**: $0.80 to $0.97 on 164 million diluted shares  **[TER_3403831_3]** .
  6. **GAAP EPS**: $0.73 to $0.91  **[TER_3403831_3]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: Q3 2024
- **Guidance**:
  1. **Sales**: $680 million to $740 million  **[TER_3394488_3]** .
  2. **Non-GAAP EPS**: $0.66 to $0.86 on 164 million diluted shares  **[TER_3394488_3]** .
  3. **GAAP EPS**: $0.62 to $0.82  **[TER_3394488_3]** .
  4. **Gross Margins**: 58.5% to 59.5%  **[TER_3394488_4]** .
  5. **Operating Expenses (OpEx)**: 38% to 40% of sales  **[TER_3394488_4]** .
  6. **Non-GAAP Operating Profit Rate**: 20% at midpoint  **[TER_3394488_4]** .
  7. **Full Year 2024 Revenue Growth**: Low single-digit range  **[TER_3394488_5]** .
  8. **Full Year 2024 Gross Margins**: 58% to 59%  **[TER_3394488_5]** .
  9. **Full Year 2024 OpEx Growth**: Approximately 8%  **[TER_3394488_5]** .
  10. **Full Year 2024 GAAP and Non-GAAP Tax Rate**: 14.25% and 15%  **[TER_3394488_5]** .
  11. **Robotics Revenue Growth**: Low end of 10% to 20% range  **[TER_3394488_5]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: Q2 2024
- **Guidance**:
  1. **Sales**: $665 million to $725 million  **[TER_3380968_3]** .
  2. **Non-GAAP EPS**: $0.64 to $0.84  **[TER_3380968_3]** .
  3. **Gross Margins**: 57% to 58%  **[TER_3380968_4]** .
  4. **Operating Expenses (OpEx)**: 36% to 39% of sales  **[TER_3380968_4]** .
  5. **Non-GAAP Operating Profit Rate**: 20% at midpoint  **[TER_3380968_4]** .
  6. **Full Year 2024 Revenue Growth**: Low single-digit range  **[TER_3380968_4]** .
  7. **Full Year 2024 Gross Margins**: 58% to 59%  **[TER_3380968_4]** .
  8. **Full Year 2024 OpEx Growth**: 5% to 7%  **[TER_3380968_4]** .
  9. **Full Year 2024 GAAP and Non-GAAP Tax Rate**: 15% to 15.5%  **[TER_3380968_4]** .
  10. **Revenue Distribution for 2024**: 47% in first half, 53% in second half  **[TER_3380968_4]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: Q1 2024
- **Guidance**:
  1. **Sales**: $540 million to $590 million  **[TER_3371496_4]** .
  2. **Non-GAAP EPS**: $0.22 to $0.38 on 162 million diluted shares  **[TER_3371496_4]** .
  3. **Gross Margins**: 53.5% to 54.5%  **[TER_3371496_4]** .
  4. **Operating Expenses (OpEx)**: 42% to 46% of sales  **[TER_3371496_4]** .
  5. **Non-GAAP Operating Profit Rate**: 10% at midpoint  **[TER_3371496_4]** .
  6. **Full Year 2024 Gross Margins**: 58% to 59%  **[TER_3371496_5]** .
  7. **Full Year 2024 OpEx Growth**: 5% to 7%  **[TER_3371496_5]** .
  8. **Full Year 2024 GAAP and Non-GAAP Tax Rate**: 16%  **[TER_3371496_5]** .
  9. **Robotics Revenue Growth for 2024**: 10% to 20%  **[TER_3371496_5]** .
  10. **Capital Allocation**: Limit share buybacks to offset dilution, aim for $800 million cash  **[TER_3371496_5]** .

19f969c1975a47c98b97c4714b4a87c620e744a30adf140b60fc3b6f767fd1ec

- **Advantest Corporation** - Competitor in the Semiconductor Test and System Test segments  **[0000950170-24-018701_ter-20231231.htm:12]** .
- **Cohu, Inc.** - Competitor in the Semiconductor Test segment  **[0000950170-24-018701_ter-20231231.htm:12]** .
- **Keysight Technologies, Inc.** - Competitor in the System Test and Wireless Test segments  **[0000950170-24-018701_ter-20231231.htm:12]** .
- **Test Research, Inc.** - Competitor in the System Test segment  **[0000950170-24-018701_ter-20231231.htm:12]** .
- **SPEA S.p.A.** - Competitor in the System Test segment  **[0000950170-24-018701_ter-20231231.htm:12]** .
- **Astronics Corporation** - Competitor in the System Test segment  **[0000950170-24-018701_ter-20231231.htm:12]** .
- **Rohde & Schwarz GmbH & Co. KG** - Competitor in the Wireless Test segment  **[0000950170-24-018701_ter-20231231.htm:12]** .
- **Anritsu Company** - Competitor in the Wireless Test segment  **[0000950170-24-018701_ter-20231231.htm:12]** .
- **National Instruments Corporation** - Competitor in the Wireless Test segment  **[0000950170-24-018701_ter-20231231.htm:12]** .
- **Welzek** - Competitor in the Wireless Test segment  **[0000950170-24-018701_ter-20231231.htm:12]** .
- **iTest** - Competitor in the Wireless Test segment  **[0000950170-24-018701_ter-20231231.htm:12]** .
- **KUKA Robotics Corporation** - Competitor in the Robotics segment  **[0000950170-24-018701_ter-20231231.htm:12]** .
- **ABB** - Competitor in the Robotics segment  **[0000950170-24-018701_ter-20231231.htm:12]** .
- **FANUC** - Competitor in the Robotics segment  **[0000950170-24-018701_ter-20231231.htm:12]** .
- **Staubli** - Competitor in the Robotics segment  **[0000950170-24-018701_ter-20231231.htm:12]** .
- **Yaskawa Electric Corporation** - Competitor in the Robotics segment  **[0000950170-24-018701_ter-20231231.htm:12]** .
- **Techman** - Competitor in the Robotics segment with emerging collaborative robot offerings  **[0000950170-24-018701_ter-20231231.htm:12]** .
- **Doosan** - Competitor in the Robotics segment with emerging collaborative robot offerings  **[0000950170-24-018701_ter-20231231.htm:12]** .
- **Jaka** - Competitor in the Robotics segment with emerging collaborative robot offerings  **[0000950170-24-018701_ter-20231231.htm:12]** .
- **AUBO Robotics** - Competitor in the Robotics segment with emerging collaborative robot offerings  **[0000950170-24-018701_ter-20231231.htm:12]** .
- **Omron** - Competitor in the Robotics segment in the material handling space  **[0000950170-24-018701_ter-20231231.htm:12]** .
- **Rockwell Automation** - Competitor in the Robotics segment in the material handling space  **[0000950170-24-018701_ter-20231231.htm:12]** .
- **Junion** - Competitor in the Robotics segment in the material handling space  **[0000950170-24-018701_ter-20231231.htm:12]** .
- **HikRobot** - Competitor in the Robotics segment in the material handling space  **[0000950170-24-018701_ter-20231231.htm:12]** .
- **Agilox** - Competitor in the Robotics segment in the material handling space  **[0000950170-24-018701_ter-20231231.htm:12]** .
- **KION** - Competitor in the Robotics segment in the material handling space  **[0000950170-24-018701_ter-20231231.htm:12]** .

4ee219d5c7805c4004175423e06b9cffc08d986a8b0ec8ac3614122fd8b53d2d

| Name              | Position                                | Start Date       | Short Bio                                                                                                                                                                                                 |
|-------------------|-----------------------------------------|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Gregory S. Smith  | President and Chief Executive Officer   | February 1, 2023 | Gregory S. Smith has been serving as CEO since February 1, 2023. He was previously the President of Robotics at Teradyne from October 2020 through July 2023 and President of the Semiconductor Test Business from February 2016 to October 2020  **[0000950170-24-038544_ter-20240329.htm:6]** **[0000950170-24-033472_ter-20240319.htm:6]** **[0001193125-23-086955_d420001ddef14a.htm:7]** . |
| Sanjay Mehta      | Vice President, Chief Financial Officer and Treasurer | April 2019       | Sanjay Mehta has been the Vice President, Chief Financial Officer, and Treasurer of Teradyne since April 2019. He previously held various positions at Qualcomm Technologies, Inc., including Senior Vice President and General Manager of Compute and XR Products  **[0000950170-24-038544_ter-20240329.htm:28]** **[0000950170-24-033472_ter-20240319.htm:28]** **[0001193125-23-044711_d414778d10k.htm:17]** . |
| Richard J. Burns  | President, Semiconductor Test           | October 2020     | Richard J. Burns has been the President of Semiconductor Test at Teradyne since October 2020. He was previously the Vice President of Semiconductor Test Engineering at Teradyne from February 2016 to September 2020  **[0000950170-24-038544_ter-20240329.htm:28]** **[0000950170-24-033472_ter-20240319.htm:28]** **[0001193125-23-044711_d414778d10k.htm:17]** . |
| Ujjwal Kumar      | President, Robotics                     | July 2023        | Ujjwal Kumar has been the President of Robotics at Teradyne since July 2023. Before joining Teradyne, he served as President of Honeywell Process Solutions from January 2021 to December 2022  **[0000950170-24-038544_ter-20240329.htm:28]** **[0000950170-24-033472_ter-20240319.htm:28]** . |
| Ryan E. Driscoll  | Vice President, General Counsel and Secretary | February 2024    | Ryan E. Driscoll has been serving as the Vice President, General Counsel, and Secretary of Teradyne since February 2024. He was previously the Deputy General Counsel of Teradyne from November 2009 to February 2024  **[0000950170-24-038544_ter-20240329.htm:28]** **[0000950170-24-033472_ter-20240319.htm:28]** . |
| John F. Wood      | President, Systems Test Group           | November 2023    | John F. Wood has been the President of the Systems Test Group at Teradyne since November 2023. He was previously the General Manager and Vice President of the Systems Test Group from November 2018 to October 2023  **[0000950170-24-038544_ter-20240329.htm:28]** **[0000950170-24-033472_ter-20240319.htm:28]** . |

9f80f3c70758d49d3d16f83506f6a45edf0bc1d49c633cc7f14bf872f4f1cd1a

39078ecf5c57906f740a9f415d512c1e5870ecf196d3ad5c5b840316b32092f6

| Program Details          | Program 1       |
|--------------------------|-----------------|
| Approval Date            | January 2023  **[0000950170-24-119923_ter-20240929.htm:41]** **[0000950170-24-119923_ter-20240929.htm:52]** **[0000950170-24-119923_ter-20240929.htm:57]**  |
| End Date/Duration        | N/A             |
| Total additional amount  | **$2.0 billion**  **[0000950170-24-119923_ter-20240929.htm:41]** **[0000950170-24-119923_ter-20240929.htm:52]** **[0000950170-24-119923_ter-20240929.htm:57]**  |
| Remaining authorization  | **$1,544,379,000**  **[0000950170-24-119923_ter-20240929.htm:57]**  |
| Details                  | Repurchase outstanding shares to offset dilution from equity compensation and employee share purchase program  **[0000950170-24-018701_ter-20231231.htm:24]** **[0000950170-24-119923_ter-20240929.htm:41]**  |

860b662ae3d8d3911d0c75bf795c8739c04fcd4be7eecedc7e13b72dcabdf325

5f0f72c3146dd563879242fe848fc068bd3ae0c42c6f4445015cef825defa00d

**Quarterly guidance for Q4 2024:**
- **Sales**: $710 million to $760 million  **[TER_3403831_3]**  (raised from $680 million to $740 million  **[TER_3394488_3]** )  
- **Gross Margins**: 59.5% to 60.5%  **[TER_3403831_3]**  (raised from 58.5% to 59.5%  **[TER_3394488_4]** )  
- **Operating Expenses (OpEx)**: 36.5% to 38.5% of sales  **[TER_3403831_3]**  (lowered from 38% to 40% of sales  **[TER_3394488_4]** )  
- **Non-GAAP Operating Profit Rate**: 23% at midpoint  **[TER_3403831_3]**  (raised from 20% at midpoint  **[TER_3394488_4]** )  
- **Non-GAAP EPS**: $0.80 to $0.97 on 164 million diluted shares  **[TER_3403831_3]**  (raised from $0.66 to $0.86 on 164 million diluted shares  **[TER_3394488_3]** )  
- **GAAP EPS**: $0.73 to $0.91  **[TER_3403831_3]**  (raised from $0.62 to $0.82  **[TER_3394488_3]** )  

677b26332c92a855d4edba6aea7df64be6c3e5616ca6db18488db2e9462779ed

| Name                          | Start Date | End Date | Reason for Change |
|-------------------------------|------------|----------|-------------------|
| PricewaterhouseCoopers LLP   | 1968  **[0000950170-24-018701_ter-20231231.htm:68]**    | Present  | Current auditor   |

3d5907d62f886e4e99bdc17e9f8df6ce25c178ee8c77aa3133c74063d70b9dc6

- **Teradyne's large accounts remain sensitive to end market conditions, and potential budget constraints could lead to reduced automation purchases**.  **[TER_3380968_25]**
- **Weak end market conditions require Teradyne to focus on finding new opportunities, implying current markets are not driving sufficient growth**.  **[TER_3380968_25]**
- **Despite having 95% of the market unserved, Teradyne may face challenges in penetrating new industry verticals and applications**.  **[TER_3380968_25]**

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- Total Revenue: $737.3M (+5% YoY vs. $703.7M)  **[0000950170-24-119923_ter-20240929.htm:46]** **[0000950170-23-058679_ter-20231001.htm:47]**   
- Semiconductor Test: $542.7M (+9% YoY vs. $497.9M)  **[0000950170-24-119923_ter-20240929.htm:46]** **[0000950170-23-058679_ter-20231001.htm:47]**   
- System Test: $73.3M (**-12% YoY** vs. $83.2M)  **[0000950170-24-119923_ter-20240929.htm:46]** **[0000950170-23-058679_ter-20231001.htm:47]**   
- Wireless Test: $32.6M (**-12% YoY** vs. $37.0M)  **[0000950170-24-119923_ter-20240929.htm:46]** **[0000950170-23-058679_ter-20231001.htm:47]**   
- Asia Pacific: $569.8M (+6% YoY vs. $535.5M)  **[0000950170-24-119923_ter-20240929.htm:12]** **[0000950170-23-058679_ter-20231001.htm:12]**   
- Net Income: $145.6M (**+14% YoY** vs. $127.7M)  **[0000950170-24-119923_ter-20240929.htm:3]** **[0000950170-24-119923_ter-20240929.htm:40]** **[0000950170-24-119923_ter-20240929.htm:2]** **[0000950170-23-058679_ter-20231001.htm:3]**   

01e89c77900cf8380241a71a153a52403c6b71a02a2d150ff5ecf116ec0d0e90

- **Teradyne expects strong growth in their Semiconductor Test business in 2025, driven by increased confidence and strengthened outlook over the past 90 days, particularly in the Semi Test segment, which saw acceleration into more business in Q4 of 2024.**  **[TER_3413713_15]**
- **Despite challenges in the Robotics business, Teradyne is restructuring to improve efficiency and has made significant progress, including the introduction of new AI-enabled products and adding AI content to their products, positioning them well for future growth when the market recovers.**  **[TER_3413713_14]** **[TER_3413713_8]**
- **Utilization rates of Teradyne's semiconductor test equipment have increased by approximately 10% year-on-year exiting 2024, and the business has shifted from upgrades to more system sales, indicating increased demand and potential for revenue growth.**  **[TER_3413713_24]**

d7db4fc63e2dbd396bbcd866f0211ac4ea25a1697898131a5e725e5dad466cb2

- Teradyne's Robotics business is facing ongoing losses and underperformance due to prolonged weakness in the industrial automation market, which has not shown signs of recovery since 2022. The company reduced its 2025 growth forecast for robotics to about 10%, down from previous expectations of high teens growth.  **[TER_3413713_14]** **[TER_3413713_15]**
- The company anticipates a significant slowdown in its compute segment, with the compute TAM expected to grow only 5% in 2025 compared to 57% growth in 2024. This slowdown is attributed to increased efficiency in production and customers' reduced need for test equipment, which could limit Teradyne's revenue growth in this key sector.  **[TER_3413713_21]**
- Teradyne has had to restructure its Robotics business multiple times, highlighting persistent challenges in achieving profitability and growth in this segment. Ongoing restructuring efforts may indicate difficulties in capitalizing on the industrial automation market, raising concerns about the viability of their investment in this area.  **[TER_3413713_14]** **[TER_3413713_8]**

8cb3c27eeadbe0846bb95aec3c54ae53eb98aa4feecdbf8264570496e4240523

1. **Semi Test Growth Drivers**  
   **Q:** What drives low single-digit Semi Test share growth?  
   **A:** Teradyne anticipates low single-digit share growth in Semi Test, driven by maintaining the **50% share** in compute VIPs as the TAM grows.  **[TER_3413713_7]**  Incremental improvement in mobile is expected due to increased complexity filling underutilized testers.  **[TER_3413713_7]**  In auto and industrial, despite a short-term slowdown, increasing semiconductor content per model year should lead to modest growth.  **[TER_3413713_7]** 

2. **VIP Test TAM and Share**  
   **Q:** What is the VIP test TAM forecast and Teradyne's share?  
   **A:** The VIP test TAM is expected to be **$400–$500 million** in 2025, growing to around **$600 million** in 2026.  **[TER_3413713_21]**  Teradyne aims to maintain its **50% share**, expecting to win one in two sockets by leveraging strong product differentiation and customer relationships.  **[TER_3413713_13]** **[TER_3413713_16]** **[TER_3413713_20]** 

3. **Infineon Partnership Benefits**  
   **Q:** What are the benefits of the Infineon partnership?  
   **A:** Teradyne will accelerate its roadmap to cover new device types and higher powers in the discrete semiconductor market.  **[TER_3413713_9]**  Infineon benefits by having its test capabilities commercialized, addressing the entire market rather than just Infineon's needs.  **[TER_3413713_9]** 

4. **HBM Test Outlook**  
   **Q:** What is the outlook for HBM test demand?  
   **A:** HBM test demand may see digestion in 2025 due to existing capacity but could recover in 2026.  **[TER_3413713_18]**  The timing of the transition to HBM4 is key; an earlier ramp could pull capacity needs into 2025, providing upside to the TAM.  **[TER_3413713_18]** 

5. **Compute TAM Growth Slowing**  
   **Q:** Why is compute TAM growth slowing to 5% in 2025?  
   **A:** Compute TAM growth is slowing to **5%** due to increased production efficiency as devices mature, reducing test times.  **[TER_3413713_21]** **[TER_3413713_22]**  While AI cloud demand remains strong, test equipment needs don't grow in lockstep due to efficiency gains.  **[TER_3413713_20]** 

6. **AI Compute Customers and Share**  
   **Q:** How will Teradyne maintain 50% share in AI compute?  
   **A:** Teradyne plans to maintain its **50% share** by leveraging product differentiation and strong relationships with design service providers and hyperscalers.  **[TER_3413713_16]** **[TER_3413713_20]**  It expects to add one or two new customers between 2025 and 2026.  **[TER_3413713_16]** 

7. **Robotics Restructuring Confidence**  
   **Q:** What gives confidence in the robotics restructuring plan?  
   **A:** The restructuring combines marketing, sales, and service of UR and MiR to improve efficiency and partner experience.  **[TER_3413713_8]** **[TER_3413713_25]**  Despite market weakness, progress with AI-enabled products and OEM channels is positive.  **[TER_3413713_8]** 

8. **Robotics Profitability Plan**  
   **Q:** What is the plan to make robotics profitable?  
   **A:** Teradyne aims to reset robotics breakeven to **$365 million** in 2024, focusing on efficiency to generate positive operating margin even under weak conditions.  **[TER_3413713_10]** **[TER_3413713_14]**  They plan to leverage top-line growth by limiting OpEx increases and improving gross margins.  **[TER_3413713_13]** 

9. **System-Level Test Growth**  
   **Q:** How does system-level testing contribute to growth?  
   **A:** System-level test is a long-term growth factor, adding necessary test insertions to achieve required quality, contributing to expected test revenue growth of **12–17%** through 2028.  **[TER_3413713_26]** 

10. **Utilization Rates and Capacity**  
    **Q:** What is the status of test cell utilization rates?  
    **A:** Utilization rates have increased by about **10%** year-over-year exiting 2024 due to upgrades activating idle testers.  **[TER_3413713_24]**  The business has shifted from upgrades to system sales as utilization tightens, indicating capacity investments in the second half.  **[TER_3413713_19]** **[TER_3413713_24]** 

11. **Second Half Recovery Risks**  
    **Q:** What are the risks to second-half improvement?  
    **A:** Recovery depends on end-market conditions in mobile, auto, and industrial sectors.  **[TER_3413713_19]**  Teradyne sees utilization tightening and has a pipeline that gives confidence, but macroeconomic headwinds pose risks.  **[TER_3413713_19]** 

12. **Revenue Assumptions for 2028**  
    **Q:** What are the revenue assumptions behind the 2028 model?  
    **A:** Teradyne expects overall revenues to grow **12–18%**, with test revenues growing **12–17%** and robotics **18–24%** annually.  **[TER_3413713_26]**  This is based on drivers like AI compute growth, silicon content in cars, and system-level test expansion.  **[TER_3413713_26]** 

13. **Consolidating Robotics Go-to-Market**  
    **Q:** What does consolidating go-to-market in robotics entail?  
    **A:** Teradyne combined marketing, sales, and service functions of UR and MiR to create a unified organization, improving efficiency and partner experience, as many partners work with both product lines.  **[TER_3413713_25]** 

14. **2-Nanometer Ramp Outlook**  
    **Q:** What is the outlook for 2-nanometer ramp timing?  
    **A:** Early production of 2-nanometer devices is expected in late **2025**, with the bulk in **2026**.  **[TER_3413713_11]**  These devices have higher complexity, requiring more tester memory and higher peak power, leading to equipment upgrades.  **[TER_3413713_11]** 

15. **Compute Market Dynamics**  
    **Q:** How are compute and mobile segments expected to grow?  
    **A:** Compute is expected to grow, driven by AI cloud demand, while mobile is anticipated to have a modest increase.  **[TER_3413713_12]**  The shift from mobile to high-performance compute affects dynamics, with primary benefits from client compute expected in the wireless business unit.  **[TER_3413713_12]** 

16. **Outlook for 2025 Revenue Growth**  
    **Q:** What changed in Teradyne's outlook for 2025 revenue growth?  
    **A:** Revenue is expected to grow about **15%** from 2024 levels, with Semi Test strength offsetting lower robotics growth due to market conditions.  **[TER_3413713_15]**  The earlier expectation of high-teens growth was adjusted due to a reduced robotics market outlook.  **[TER_3413713_15]** 

17. **SoC Compute Revenue Growth**  
    **Q:** How is SoC compute revenue expected to grow?  
    **A:** Compute will be one of the largest growers, with TAM increasing in compute VIPs from **$300 million** in 2024 to around **$600 million** in 2026.  **[TER_3413713_16]**  Mobile is expected to be flat to slightly up, with auto and industrial growing.  **[TER_3413713_16]** 

18. **Robotics Market Benchmark**  
    **Q:** Is the robotics industry benchmark down this year?  
    **A:** Teradyne anticipates the broader robotics market to be down about **5%**, with Teradyne expecting to outperform and grow around **10%**.  **[TER_3413713_25]**  If the market were flat, they would expect growth of around **20%**.  **[TER_3413713_25]** 

19. **Plan B for Robotics Business**  
    **Q:** Is there a Plan B if robotics doesn't improve?  
    **A:** The company is not considering divesting the robotics business; they believe in its long-term growth potential despite market headwinds.  **[TER_3413713_10]** **[TER_3413713_14]**  They aim to improve efficiency and generate positive operating margin under weak conditions.  **[TER_3413713_13]** 

20. **SOC Test TAM Breakdown**  
    **Q:** What is the SOC test TAM breakdown for 2025?  
    **A:** The SOC TAM is expected to be **$4.9 billion** in 2025, with **$2.3 billion** in compute, **$0.9 billion** in mobile, **$1 billion** in auto and industrial, and **$0.7 billion** in service.  **[TER_3413713_23]** 

21. **Details on Revenue Assumptions**  
    **Q:** What are the finer details behind revenue assumptions?  
    **A:** Revenue growth assumptions are based on both top-down and bottoms-up analysis, considering segment drivers like AI compute, silicon content in cars, and share gains in compute.  **[TER_3413713_26]**  Test revenues are expected to grow at **12–17%**, and robotics at **18–24%** annually.  **[TER_3413713_26]** 

ee0e02b817e6434437b58c96164f12dfabe6267568f68b5fc4c77f254a6ded16

Despite a robotics slowdown from high teens to 10% growth, Teradyne’s Q4’24 saw a 10% YoY jump in Semi Test utilization. Management projects 15% revenue growth in 2025, fueled by strong system sales and maintaining a 50% share in a VIP test TAM reaching $600M by 2026.

cabecdf4ca9f2c40e0e3241c0d251aaf55c2ca1e7f9f118c10156a785ecde0e8

**Quarterly guidance for Q1 2025:**  
- **Sales**: $660 million to $700 million  **[TER_3413713_5]**  (no change from prior guidance of 5%-10% below $710 million-$760 million  **[TER_3403831_3]** )  
- **Non-GAAP EPS**: $0.58 to $0.68  **[TER_3413713_5]**  (no prior guidance)  
- **Gross Margins**: 58.5% to 59.5%  **[TER_3413713_5]**  (lowered from 59.5% to 60.5%  **[TER_3403831_3]** )  
- **Operating Expenses (OpEx)**: 41.5% to 42.5% of sales  **[TER_3413713_5]**  (raised from 36.5% to 38.5%  **[TER_3403831_3]** )  
- **Non-GAAP Operating Profit Rate**: 17%  **[TER_3413713_5]**  (lowered from 23%  **[TER_3403831_3]** )  
- **GAAP Tax Rate**: 15.25%  **[TER_3413713_5]**  (no prior guidance)  
- **Non-GAAP Tax Rate**: 15%  **[TER_3413713_5]**  (no prior guidance)  

**Annual guidance for FY 2025:**  
- **SOC Test TAM**: $4.7B to $5.1B  **[TER_3413713_5]**  (no prior guidance)  
- **Memory TAM**: $1.3B to $1.5B  **[TER_3413713_5]**  (no prior guidance)  
- **Revenue Growth in Robotics**: ~10%  **[TER_3413713_5]**  (no prior guidance)  
- **Gross Margins**: 59% to 60%  **[TER_3413713_5]**  (no prior guidance)  
- **Operating Expenses (OpEx)**: 8% to 10% year-over-year  **[TER_3413713_5]**  (lowered from low teens year-over-year  **[TER_3403831_4]** )  
- **GAAP Tax Rate**: 15.25%  **[TER_3413713_5]**  (no prior guidance)  
- **Share Buybacks**: up to $400 million  **[TER_3413713_5]**  (no prior guidance)  

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- **Teradyne's Robotics segment is poised for significant growth**, targeting a **20% to 30% CAGR** by 2026 while maintaining **high gross margins over 60%**. The company plans to invest in this low-penetration market to drive growth and profitability.  **[TER_3371496_19]**
- **Anticipated rebound in mobile and PC markets**, driven by the adoption of **generative AI** and **EDGE AI**, is expected to increase device complexity and **positively impact test demand** in both the mobile and automotive segments.  **[TER_3371496_14]**
- **Strong position in the HBM (High Bandwidth Memory) market**, with HBM accounting for **more than 50% of Memory shipments** in Q4. Upcoming standards like **HBM3e and HBM4** are expected to drive retooling and boost demand in the second half of the year.  **[TER_3371496_21]**

1b091eec3bfb5c5aa1d2deb4fc94b5891dd59a7a0c92e827e16b59cf2dde6cba

- **Teradyne's Q1 2024 earnings power is expected to be almost half of prior periods with similar revenue levels**, primarily due to **lower volumes and unfavorable product mix** impacting gross margins.  **[TER_3371496_15]**
- Despite a strong Q4 in Robotics driven by a new product, **underlying weakness in Industrial markets and low PMIs** are limiting growth expectations to **10%-20% in 2024**, below their long-term target of **20%-30%**.  **[TER_3371496_22]**
- The company has **limited visibility into demand from its historically largest customer**, expecting them to remain **less than 10% of total revenue in 2024**, indicating ongoing weakness in this key customer relationship.  **[TER_3371496_10]**

e9f258f25603ca3bf33de46052a58393e7915bbaea35401178124afc1df17880

1. **2025 Revenue Growth Outlook**  
   **Q:** Is 20–25% sales growth realistic for 2025?  
   **A:** Teradyne believes they are positioned to achieve growth in line with their midterm model, expecting a **20–25% sales increase** in 2025. They anticipate improvements across mobility, automotive, industrial, and compute segments, and plan to provide a detailed outlook in January. Management feels confident about staying on track towards their 2026 plan.  **[TER_3403831_7]**   **[TER_3403831_9]**   **[TER_3403831_16]** 

2. **Compute TAM Expansion and AI Demand**  
   **Q:** What's driving TAM expansion in compute and AI markets?  
   **A:** The TAM expansion is driven by significantly stronger business in **AI compute and HBM memory**, along with better visibility into demand served by Chinese tester companies. Teradyne expects the compute TAM to become even **hotter in 2025**, fueled by AI market growth and increased adoption by vertically integrated producers (VIPs).  **[TER_3403831_7]**   **[TER_3403831_11]** 

3. **Operating Expenses and Leverage**  
   **Q:** Why is OpEx rising, and will you show operating leverage in 2025?  
   **A:** Teradyne plans to increase OpEx by **low teens** in 2025, focusing on investments in Semiconductor Test to align with market shifts toward AI, HBM, and VIPs. They aim to demonstrate operating leverage next year, expecting revenue growth to outpace OpEx growth. These investments are viewed as necessary and cyclical, not structural, to capture future growth opportunities.  **[TER_3403831_9]**   **[TER_3403831_16]**   **[TER_3403831_20]** 

4. **Mobile Test TAM Outlook**  
   **Q:** How do you see the mobile test TAM evolving?  
   **A:** Teradyne expects the mobile test TAM floor to be closer to **$1 billion** rather than the current **$800 million** once excess capacity is absorbed, likely in 2025. Upside beyond that depends on the adoption of **AI-enabled smartphones**, which could increase device complexity and shorten the refresh cycle if consumers find value in new features.  **[TER_3403831_18]** 

5. **Robotics Business Growth Prospects**  
   **Q:** What needs to happen for Robotics to grow 20–30%?  
   **A:** Teradyne acknowledges that better end-market conditions are needed to achieve **20–30% growth** in Robotics. They have addressed internal issues like distribution by adding high-payload robots, introducing new products, and establishing an OEM channel, positioning themselves to outgrow traditional suppliers by **15–20 percentage points** annually in a normal market.  **[TER_3403831_8]**   **[TER_3403831_10]**   **[TER_3403831_16]** 

6. **Utilization of Existing Testers**  
   **Q:** How has tester utilization changed recently?  
   **A:** Over **100 testers** have been repurposed from mobile to other markets like compute, with over **200 expected** by year-end. This has led to a meaningful uptick in utilization, with less idle capacity now than a quarter ago, and further improvements anticipated by the end of the year.  **[TER_3403831_14]**   **[TER_3403831_23]** 

7. **HBM Market Share Opportunities**  
   **Q:** What's Teradyne's opportunity in HBM stack die and wafer sort?  
   **A:** After being qualified by a major HBM supplier mid-year, Teradyne has significant second-half business in **stack-die performance test**. They are engaged with an additional HBM supplier, potentially driving revenue in 2025. In wafer sort, their share is expected to remain stable, but they anticipate **gaining share in stack-die testing**.  **[TER_3403831_21]** 

8. **Industrial Test TAM Revision Due to China**  
   **Q:** Why was the industrial test TAM revised higher?  
   **A:** The revision stems from better visibility into the size of the TAM in China, which is being served by indigenous suppliers. It's not a strengthening of the TAM but an improved understanding of the market dynamics within China.  **[TER_3403831_13]** 

9. **System Level Test (SLT) Opportunities**  
   **Q:** What are the SLT opportunities in compute for Teradyne?  
   **A:** Teradyne sees SLT becoming a critical part of the test strategy for processors in smartphones and has added compute customers to this area. They expect **SLT revenue to grow more meaningfully in 2025**, driven by increased device complexity and adoption by hyperscalers deploying their own silicon.  **[TER_3403831_5]**   **[TER_3403831_6]** 

7e54a34c98bce305fda6b9232e40b008c662ac5ce4d51f9d2e48442b1a657aa5

- **Teradyne is experiencing dramatic growth in the compute segment**, with increased demand coming in **bigger and faster than expected**, which could lead to strengthened results in the **second half** of the year if the trend continues.  **[TER_3380968_12]**
- The company expects **significant growth in the high-bandwidth memory (HBM) market**, with HBM **TAM increasing from $100 million last year to over $500 million this year**, and **45% of their Q1 memory revenue tied to HBM**.  **[TER_3380968_16]** ,  **[TER_3380968_10]**
- **Teradyne's robotics business is poised for sequential growth throughout the year**, driven by new products like the **MiR1200 pallet jack**, partnerships such as collaboration with **NVIDIA**, and a **58% year-on-year increase in their OEM business**.  **[TER_3380968_21]** ,  **[TER_3380968_15]**

20702ddbe4938bfb840d96e035c1f73f442d44453d8c0585d919d2bf89ba724f

1. **Largest Customer Outlook**  
   **Q:** Can your largest customer return to 10%+ revenue in 2024?  
   **A:** Management expects their historically largest customer to remain under **10%** of total revenue in 2024, similar to 2023. Visibility into second half demand is limited, but there isn't much downside to their base case regarding this customer.  **[TER_3371496_10]** 

2. **Midterm Growth Confidence**  
   **Q:** Why are you confident in hitting high growth rates in '25 and '26?  
   **A:** Management believes significant growth after downturns is expected, citing past recoveries in 2001, 2009, and 2020. They anticipate a snapback in mobile phones and PCs, with generative AI driving device complexity, especially in EDGE AI, benefiting mobile and automotive markets.  **[TER_3371496_15]** 

3. **Memory Test Market Outlook**  
   **Q:** Could Memory Test growth be stronger than forecasted?  
   **A:** There's potential upside depending on capacity additions at wafer sort as memory inventories decline. While confident in their 2024 view, management notes competitors may have better visibility into customer needs.  **[TER_3371496_19]** 

4. **HBM Market Position**  
   **Q:** How is your competitive position in HBM, and what's the growth outlook?  
   **A:** Teradyne is roughly splitting the HBM test market with competitors. In Q4, HBM accounted for more than **50%** of their memory shipments. New competitors and standards like HBM3e and HBM4 are expected to drive growth in the latter half of the year.  **[TER_3371496_22]** 

5. **New Compute Customer Ramp**  
   **Q:** When will the new compute customer revenue ramp?  
   **A:** Socket wins for vertically integrated producers in cloud compute and EDGE devices will start towards the end of **2024**, hitting more significantly in **2025**. An SLT win for a compute customer will take until **2025** to reach material volume.  **[TER_3371496_8]** 

6. **Gross Margin Outlook**  
   **Q:** Will gross margins exceed 60% during 2024?  
   **A:** Some quarters in 2024 are anticipated to exceed **60%** gross margin, driven by stronger product mix, higher volumes, and operational efficiencies, particularly in the back half of the year.  **[TER_3371496_21]** 

7. **Robotics Growth and Profitability**  
   **Q:** Why is Robotics growth guided at 10%-20% for 2024, below long-term targets?  
   **A:** Despite a strong Q4 from a blockbuster product, underlying industrial market weakness limits optimism. While expecting continued growth, management is cautious due to low PMIs and softness in certain regions entering Q1 2024.   

8. **Technoprobe Investment**  
   **Q:** What's the strategic rationale behind investing in Technoprobe?  
   **A:** The investment reflects a trend towards tighter integration between testers and interfaces due to increasing complexity and performance demands. Partnering with Technoprobe allows them to unlock value by combining interface technology with their tester architecture.  **[TER_3371496_17]** 

9. **SOC TAM Breakdown**  
   **Q:** How did SOC TAM segments perform and what's expected for '24?  
   **A:** In 2023, SOC TAM was **$3.9 billion**: Compute at **$1.3B**, Mobility at **$0.9B**, Auto at **$0.6B**, Industrial at **$0.4B**, and Service at **$0.7B**. For 2024, Compute is expected at **$1.4B**, Mobility at **$0.9B**, Auto at **$0.5B**, maintaining total TAM at **$3.9B**.  **[TER_3371496_9]** 

10. **Second Half SOC Test Recovery**  
    **Q:** What gives confidence in SOC test recovery in the second half?  
    **A:** Improving utilization rates, especially in OSATs, suggest recovery by Q3 if trends continue. Expected unit growth in smartphones and PCs, along with short-term demand lulls in Industrial and Automotive, support recovery expectations.  **[TER_3371496_12]** 

11. **Hyperscaler ASICs Market Share**  
    **Q:** What's your expected share in hyperscaler ASICs growth?  
    **A:** Teradyne sees opportunity in the **$400-$600 million** incremental Compute TAM from hyperscaler VIPs by 2026-2027. They are winning a majority of targeted sockets and are hopeful for a good market share in this segment.  **[TER_3371496_18]** 

12. **Q1 Earnings Power**  
    **Q:** Why is Q1 earnings lower despite similar revenue run rate?  
    **A:** Lower earnings are due to much lower volume and an unfavorable product mix in Q1, with product mix being the larger factor.  **[TER_3371496_16]** 

13. **China Market Position**  
    **Q:** Are you pulling out of the China market?  
    **A:** Management clarifies there's no change; they have increased supply chain resilience by moving some production. Teradyne still has over **600** employees in China and continues to compete and grow in that market.  **[TER_3371496_15]** 

14. **Wins in Mobility and HPC**  
    **Q:** Can new wins reach the scale of your largest customer?  
    **A:** While new system-level test wins in Mobility and Compute are significant, they won't individually reach the scale of the largest customer. They are incremental tailwinds expected to grow over time.  **[TER_3371496_13]** 

1fc1c337682ef6ed1e9766bac8fe27acb9e6253340b6a17557bdf3448888ecc7

- Teradyne is gaining significant share in the High Bandwidth Memory (HBM) test market, with **significant second half business** from a major HBM supplier after being qualified in mid-2024, and expects to add additional suppliers in 2025, driving revenue growth.  **[TER_3403831_21]**
- The company has pivoted successfully towards **compute VIPs (Vertically Integrated Players)**, achieving a **50% share** in compute VIPs this year, up from much lower share in traditional compute, positioning itself strongly in the growing compute market.  **[TER_3403831_16]**
- Teradyne's **Robotics business is poised for growth**, with new high payload robots, upcoming products to **double their served market**, and an OEM solutions channel growing **50% year-over-year**, setting up for **20% to 25% growth** once market conditions improve.  **[TER_3403831_8]**

f731c35920acaff63d89c3e0fc4ec7ff3ee055cfb05152663de9c6258a41b5c3

- **Operating Expenses at New Highs**: Teradyne's operating expenses (OpEx) in Q1 are at new highs, while revenues are **37% below the prior peak**, raising concerns about the company's ability to achieve operating leverage in 2025.  **[TER_3403831_16]**
- **Internal Debate Over Robotics Business**: The company is debating whether they are the right owner of the Robotics business, indicating possible underperformance or strategic misalignment in this segment, which could impact overall growth.  **[TER_3403831_19]**
- **Limited Growth in Mobile Processor Complexity**: Teradyne does not expect significant complexity increases in next-generation mobile processors, potentially limiting growth opportunities in this market segment. Additionally, there is uncertainty due to shifts in modem suppliers rather than increased modem integration.  **[TER_3403831_22]**

c4c43478785055c17ce4f3d3a6a9fcb9c02a7f6a7f06c3f00b362d8a55a51942

- **Teradyne experienced shipment pull-ins from Q3 into Q2**, indicating that some of the quarterly strength may be due to demand being brought forward, potentially leading to softer demand in subsequent quarters.  **[TER_3394488_21]**
- **Non-Semiconductor Test businesses are underperforming**, with storage test down due to underutilized capacity, defense and aerospace projects delayed, and the production board business impacted by the automotive slowdown. Additionally, the Robotics segment is expected to grow at the **low end of the 10% to 20% range** and is projected to be roughly **break-even in 2024**, lower than initial expectations.  **[TER_3394488_14]** ,  **[TER_3394488_11]**
- **Operating expenses (OpEx) are expected to grow approximately 8% for the full year**, higher than the prior guidance of 5% to 7%, potentially impacting profitability as the company accelerates investments in R&D and sales.  **[TER_3394488_24]**

5ba6a70bf7208eb8a58a349c85814ca211c69fa62b950a54baf570676b46c81e

1. **HBM Memory and Market Share**  
   **Q:** What's Teradyne's outlook for HBM memory and market share?  
   **A:** Teradyne expects the HBM market TAM to increase from **$100 million** last year to **over $500 million** this year.  **[TER_3380968_10]**  Although their HBM market share may decline slightly, they anticipate significant revenue growth due to increased demand and opportunities to penetrate new customers and test steps.  **[TER_3380968_16]**  They remain optimistic about gaining share with their differentiated solutions in HBM testing.  **[TER_3380968_23]** 

2. **Compute TAM and AI Accelerators**  
   **Q:** How is the growth in AI accelerators affecting Teradyne's compute TAM?  
   **A:** The compute TAM is projected at **$1.5 billion** for 2024, up **7%** from the revised **$1.4 billion** in 2023.  **[TER_3380968_8]**  The surge in AI accelerators is driving demand, with most testers supporting this year's revenue purchased last year. Teradyne believes that additional capacity will be needed as utilization rates rise and new vertically integrated producers ramp up.  **[TER_3380968_8]** 

3. **Mobile Market Outlook**  
   **Q:** What is the outlook for recovery in the mobile market?  
   **A:** Teradyne has dialed in the bottom for mobile demand, expecting more upside than downside.  **[TER_3380968_12]**  Utilization rates are tightening, and any capacity shortfalls could immediately translate into business as the mobile market recovers.  **[TER_3380968_7]**  However, they do not expect their historically largest customer to be a **10%** customer this year.  **[TER_3380968_14]** 

4. **Robotics Growth and Profitability**  
   **Q:** How is Teradyne's robotics business performing, and what's the profitability outlook?  
   **A:** The robotics business is expected to grow sequentially, with **42%** of revenue in the first half and **58%** in the second half of the year.  **[TER_3380968_15]**  Teradyne anticipates being profitable in robotics this year, aiming for single-digit profitability.  **[TER_3380968_15]**  New product launches and expansion into OEM and large accounts are driving growth, despite a weak macro environment.  **[TER_3380968_20]** 

5. **Edge AI in Smartphones**  
   **Q:** When will Edge AI meaningfully impact Teradyne's business?  
   **A:** Significant AI processors are just starting to hit the premium smartphone market.  **[TER_3380968_13]**  Teradyne expects broader adoption to begin towards the end of **2025**, becoming mainstream in **2026**, which could drive higher test intensity and demand for their products.  **[TER_3380968_13]** 

6. **Seasonality and Revenue Trajectory**  
   **Q:** Why is Teradyne's revenue trajectory deviating from normal seasonality?  
   **A:** The typical seasonality driven by mobile is muted due to the mobile market downturn.  **[TER_3380968_17]**  Teradyne expects growth in Q4, with seasonality expected to return once the mobile market strengthens.  **[TER_3380968_17]** 

7. **Memory Revenue from HBM**  
   **Q:** How much of Q1 memory revenue was from HBM?  
   **A:** Approximately **45%** of Teradyne's Q1 memory revenue was tied to HBM.  **[TER_3380968_16]** 

8. **Impact of Chiplets Beyond AI Accelerators**  
   **Q:** Is the use of chiplets expanding beyond AI accelerators?  
   **A:** Currently, chiplet technology is primarily used in cloud AI and high-performance computing due to advanced packaging capacity constraints.  **[TER_3380968_22]**  Migration into other markets like mobile is possible but expected to be a slow process.  **[TER_3380968_22]** 

9. **NVIDIA AI Partnership in Robotics**  
   **Q:** How will the NVIDIA AI partnership impact robotics implementation?  
   **A:** AI simplifies the development of robust robotic solutions by handling variation and simplifying programming.  **[TER_3380968_21]**  The partnership enables faster solution development, potentially driving growth in robotics through the OEM channel.  **[TER_3380968_20]** 

10. **Large Account Strategy in Robotics**  
    **Q:** Is the large account strategy making Teradyne's robotics business less cyclical?  
    **A:** While large accounts can still be sensitive to economic cycles, Teradyne focuses on adding new opportunities to drive growth even in weak markets.  **[TER_3380968_24]**  The largest ever MiR order came from an automotive customer, reflecting the effectiveness of strategic account management.  **[TER_3380968_24]** 

f0d75f9df7c0238b86cd2c776b982efdb7f92df0876494acc90d43f778de45d6

1. **Mobile TAM Recovery**  
   **Q:** What are your expectations for the mobile TAM recovery in 2025?  
   **A:** We anticipate that the mobile TAM will significantly improve in 2025, likely reaching somewhere in the middle of the range between its 2021 peak of approximately **$2 billion** and the lower levels seen in 2023 (**$900 million**) and 2024 (**$800 million**). While it's unlikely to return to peak levels, the recovery should be much stronger than recent years.  **[TER_3394488_12]** 

2. **Compute Market Outlook**  
   **Q:** How do you see the Compute market performing next year?  
   **A:** We expect the Compute market to remain strong in 2025, likely maintaining the high levels seen this year. While we don't anticipate a significant increase from the current **$1.6 billion** TAM, the market should stay robust, supported by continued demand in cloud AI and VIP customers.  **[TER_3394488_19]** 

3. **Robotics Business Profitability**  
   **Q:** When will the Robotics business achieve profitability?  
   **A:** We expect our Robotics business to be breakeven in 2024 and become profitable in 2025. Although growth this year is at the lower end of our **10% to 20%** range, we believe the trajectory towards profitability remains on track as we move into the future.  **[TER_3394488_11]** **[TER_3394488_13]** 

4. **HBM Market Share Growth**  
   **Q:** Can you update us on your progress with HBM customers?  
   **A:** We are optimistic about expanding our market share in HBM testing. We aim to gain share in performance testing of stacked HBM memory and expect to break into additional HBM accounts in 2025.  **[TER_3394488_6]** 

5. **Impact of N2 Process Node**  
   **Q:** How does the N2 process node affect your outlook?  
   **A:** We view N2 as an enabler for higher device complexity, particularly for cloud and edge AI applications. The increased complexity drives demand for our testing solutions, and we believe this will be a strong demand driver through **2025 to 2027**.  **[TER_3394488_9]** 

6. **VIP Business Trajectory**  
   **Q:** What's the outlook for your VIP business into 2025?  
   **A:** Currently, hundreds of testers are being used by multiple VIP customers. We expect to exit this year with **twice as many** testers being used by VIPs. Additional customers have planned to use our testers for parts releasing later this year and into 2025, indicating continued growth.  **[TER_3394488_7]** 

7. **DIS Sale Impact**  
   **Q:** How does the DIS sale affect your guidance?  
   **A:** The DIS business contributed about **$16 million** this quarter and was approximately **$100 million** in 2023 revenue. Adjusting for the sale, we expect a shortfall of roughly **3 percentage points** in growth. Without DIS, our year-over-year growth would increase by about **3 points**.  **[TER_3394488_8]** 

8. **Mobile Modem Supplier Change**  
   **Q:** How would a change in your large customer's modem supplier affect your business?  
   **A:** If our largest customer changes modem suppliers, it would have a slight positive impact for us but not a significant one. The effects are relatively small compared to the overall application processor business.  **[TER_3394488_12]** 

9. **Compute Testers and AI**  
   **Q:** Is AI-driven demand affecting your networking test business?  
   **A:** Yes, the growth in AI is increasing the need for high-speed data links in servers, boosting demand for our networking testers. We're seeing a trend toward higher networking content per server, which benefits our business alongside traditional GPU demand.  **[TER_3394488_15]** 

10. **Robotics Service Revenue**  
    **Q:** When will service and software significantly contribute to Robotics revenue?  
    **A:** We are piloting managed service plans and seeing good customer uptake. However, building necessary infrastructure and sales cycles takes time, so we anticipate material revenue impact from service and software in **2025**.  **[TER_3394488_17]** 

41ec6cb52836b317928bea7ea3e6f47108ada7b0a524ddaabf06eac65bed203c

- **Teradyne anticipates significant revenue growth in 2025 by expanding its market share in High Bandwidth Memory (HBM) testing**, both in pre-stacked wafer tests and performance testing after stacking, and **expects to break into additional accounts**, fueling revenue growth.  **[TER_3394488_6]**
- **Strong demand in the Compute segment driven by AI**, including increased networking silicon demand for AI-enabled servers, **is creating growth opportunities for Teradyne**, with expectations of continued tailwinds from both traditional GPU-based AI systems and vertically integrated producers' home-grown silicon.  **[TER_3394488_15]**
- **Teradyne expects a significant recovery in the mobile market in 2025**, with mobile test demand likely to be significantly stronger than in 2023 and 2024, supporting their confidence in achieving a **20-25% compound annual growth rate (CAGR) through 2026**, driven by growth in Mobility, Automotive, Industrial, Compute, and Robotics segments.  **[TER_3394488_20]** **[TER_3394488_12]**

9ceb49e5ab7adea4f2ef67f01adced90b220447e8f7486658cc7d7fc6fd4b760

Teradyne Inc (TER)

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