Teradyne, Inc. (NASDAQ: TER) stock rose over 11.7% on 24th July, 2019 (As of 9:40 am GMT-4; Source: Google finance) after the company posted better than expected results for the second quarter of FY 19 as continued growth in 5G infrastructure, networking and memory test spending more than offset lower demand from automotive and industrial device makers. On a non-GAAP basis, Teradyne’s net income in the second quarter was $113.2 million.
TER in the second quarter of FY 19 has reported the adjusted earnings per share of 66 cents, beating the analysts’ estimates for the adjusted earnings per share of 61 cents, according to FactSet. The company had reported the adjusted revenue growth of 35.9 percent to $564.2 million in the second quarter of FY 19, beating the analysts’ estimates for revenue of $536.7 million. The company has generated the revenue in Semiconductor Test, $75 million in Industrial Automation, $73 million in System Test, and $41 million in Wireless Test. In Industrial Automation, the Universal Robots and MiR collaborative robots business grew 20% in the quarter, highlighting their compelling value even in a challenging global industrial investment environment.
For the third quarter, Teradyne expects the adjusted earnings to be in the range of 64 cents to 74 cents a share on revenue expected to be in the range of $540 million to $580 million, while analysts had forecast 62 cents a share on revenue of $538.9 million.
Meanwhile, TER has recently announced the introduction of the UltraWaveMX44, an UltraFLEX test solution for the new 5G-NR millimeter wave (mmWave) market. The new UltraWaveMX44 instrument enables faster time to market and higher product yields for semiconductor devices used in emerging 5G mmWave applications. The UltraWaveMX44 supports characterization and production device testing for probe, package, over-the-air and module applications. Its patented active thermal control and NIST traceable integrated calibration circuitry delivers superior instrument performance and tester-to-tester repeatability for frequencies between 6GHz and 44GHz. The UltraWaveMX44 instrument maintains complete DIB and test cell compatibility with currently released wireless applications, such as LTE and WLAN, making the UltraWaveMX44 the ideal upgrade solution for installed UltraFLEX systems while maximizing return on investment for new system purchases. This addition to the UltraFLEX platform leverages the test system’s native features of dedicated background DSP computers, award-winning IGXL software environment, fully integrated debug tools and instrument pattern support to deliver high test cell throughput and fast time to market. This, along with its industry-leading performance, makes the UltraWaveMX44 the premier test solution for the fast growing 5G market.