Teradyne beats quarterly revenue estimates on strong chip-testing equipment demand
(Reuters) - Teradyne reported third-quarter revenue above market expectations on Wednesday, helped by resilient demand for the company's chip-testing solutions.
The boom in demand for artificial intelligence chips used in data centers has helped suppliers of chip-testing products like Teradyne offset the weakness in sales of smartphones and personal computers.
The company designs and develops technology to test chips and electronic equipment and sells robotic systems to customers in the manufacturing sector.
One of its largest customers, Taiwan Semiconductor Manufacturing Company, showed optimism about the demand stabilization in the smartphone and computing markets after beating expectations for third-quarter net profit.
Teradyne's net revenue for the third quarter fell around 15%, to $703.7 million, from $827.1 million a year ago, but beat analysts' expectations of $684.6 million.
The company, which supplies equipment to chip designer Qualcomm and electronics firm Samsung, forecast fourth-quarter revenue between $640 million and $700 million, the midpoint of which is below analysts' estimate of $689.6 million, according to LSEG data.
On an adjusted basis, the company earned 80 cents per share, down from $1.15, a year earlier.
(Reporting by Zaheer Kachwala in Bengaluru; Editing by Pooja Desai)
