Teradyne at JPMorgan Conference: Navigating Uncertainty with Strategic Moves

On Wednesday, 14 May 2025, Teradyne (NASDAQ:TER) participated in the 53rd Annual JPMorgan Global Technology, Media and Communications Conference. The company highlighted its strategic resilience amid an uncertain macroeconomic climate, with both challenges and opportunities on the horizon. Teradyne’s leadership emphasized their adaptability to potential economic downturns while focusing on growth sectors like AI and robotics.

Key Takeaways

• Teradyne anticipates a 15% CAGR growth rate through 2028, driven by AI and compute sectors.
• The company’s acquisition of Quantify Photonics aims to bolster its position in silicon photonics testing.
• Tariff impacts are minimal, with a 2-cent EPS effect expected in Q2.
• Robotics demand is increasing, influenced by reshoring trends, though sales cycles remain lengthy.
• The memory test market, particularly DRAM, continues to be a stronghold for Teradyne.

Financial Results

• Tariff Impact:

- Minor impact on EPS, estimated at 2 cents for Q2.

- 10-15% of revenue comes from shipments to the U.S.

Operational Updates

• Supply Chain Resilience:

- Teradyne is enhancing its supply chain by investing in parallel production capacity.

- The company is considering U.S. expansion for robotics production, as one-third of revenue is U.S.-based.

• Quantify Photonics Acquisition:

- Strengthens Teradyne’s capabilities in silicon photonics and co-packaged optics testing.

- Focuses on production testing for high lane count photonics devices.

Future Outlook

• Growth Expectations:

- A 15% CAGR growth rate is anticipated through 2028.

- Auto and industrial sectors are expected to grow at 10-15%.

• AI and Compute:

- Demand remains robust and largely unaffected by macroeconomic downturns.

• Mobile Sector:

- The Q1 strength, driven by a supply chain shift, is not seen as a recovery indicator.

Q&A Highlights

• Automation Opportunity:

- Reshoring trends are boosting interest in Teradyne’s automation solutions.

- The robotics sales cycle is 12-24 months, suggesting mid-term demand growth.

• AI Compute Testing:

- Teradyne holds 50% of sockets in AI compute, noted for scalability and reliability.

- The market is variable, influenced by design success and competition.

• Memory Market:

- DRAM represents 80% of the total addressable market in 2024.

- Teradyne leads in final testing for both flash and DRAM memory.

• Auto and Industrial Market:

- Data centers drive industrial investment in power regulation.

- Electric vehicles, with higher semiconductor content, offer growth potential.

For more detailed insights, readers are encouraged to refer to the full transcript below.

Full transcript - 53rd Annual JPMorgan Global Technology, Media and Communications Conference:

Samik Chatterjee, Host: Good afternoon, everyone. Thank you for attending the session here. I’m Samik Chatterjee, and I have the pleasure of hosting Teradyne. And from Teradyne, I’m Greg Smith, who’s the President and CEO. Thank you, Greg, for coming to the conference.

Thank you to the audience as well for attending. Greg, I’m starting off most of my conversations with companies ask and since we have the pleasure of hosting CEOs, CFOs here, you have regular conversations with your customers. It’s useful to us to hear what you’re thinking about the macro. There’s a lot of investor concern about what the second half looks like in terms of how much of whether there’s a big economic slowdown or not. Really want to get your thoughts based on your conversations with customers, where do you think the macro is headed?

How are you planning to run the business, particularly given the maybe the different scenarios that you see sort of happening in the second half of the year? Year?

Greg Smith, President and CEO, Teradyne: Sure. So I think the situation is a lot more calm, but there’s still a lot of uncertainty. When we were in the very first part of the year, like February, March, there was a rapid deterioration of customer confidence. And in that period of time, we heard from customers that wanted to either reschedule deliveries or delay placing orders. Since sort of the March, it’s kind of stabilized in terms of that hasn’t gotten any worse.

There’s still a great deal of uncertainty about what will happen in the second half of the year, but there isn’t sort of the rapid spinning that’s happened. I think everybody is hopeful that, things will calm down and we’ll avoid, a general recession, like the tariffs leading to a demand destruction and then a recession. But our customers haven’t gained enough confidence that that is the scenario that will play out, that they’ve come roaring back. There’s still caution around placing orders and we still are like we have an unusual amount of uncertainty around the second half. You know that we have almost an equal number of upside opportunities and downside risks against the second half of the year.

The thing that’s unique about this year is that that range is far larger than it would normally be. So you ask sort of what are you doing to prepare? Teradyne’s over 60 years old, right? So this is not our first rodeo. We have experienced very cyclical business conditions in the semiconductor space.

Really, was the norm until sort of post 2010. Things have been far calmer, but we designed our business for uncertain market conditions. And so we have a highly variabilized business model. Our, you know, every single employee inside of Teradyne has a variable component of their compensation that’s tied either to their growth or to profitability or both. So if things turn down, we have an automatic, mechanism that allows us to curtail some OpEx.

We also are an outsourced business model. So as business goes down, we’re not carrying a lot of fixed overhead associated with manufacturing capacity. So we’ve kind of designed ourselves so that our OpEx is moderated when we face more challenging business circumstances. The other thing that we have learned over a period of time is that we run a very conservative balance sheet. So many peers run with more debt than we do.

But what we’ve seen is that because we want to be able to continue our investments, especially in research and development, through business conditions, we want to make sure that we run with adequate reserves and without an overwhelming amount of debt. And so right now, Teradyne is very low debt, and we maintain a healthy cash cash position. And so if things get worse, we have an ability to operate and not change our strategy, not be forced to change our strategy due to current circumstances. So that’s sort of the downside protection, but I think we are, definitely in a position to execute well, and we have a balanced upside and downside for the rest of the year. So I guess if the macro gets bad, we are well positioned to do well through that.

If the macro doesn’t get bad, we’re positioned for growth.

Samik Chatterjee, Host: Okay, fair. Maybe taking another sort of layer of that, there’s been sort of very frequent changes on the tariff front. One, can you just outline, do you have any direct exposure on that front? But secondarily, tariffs have moved around, even including this week. Do you see customers pulling forward demand or pushing demand based on sort of these week to week, month to month changes?

Are you seeing customers make decisions that frequently and change those frequently? How is this sort of unpredictability of the tariff environment playing out in customer orders?

Greg Smith, President and CEO, Teradyne: Yeah. So let me take those in backwards order. So let’s talk about, like, pull ins, and then after that, we can talk about the sort of the direct impact of tariffs on Teradyne. So there is no significant pull ins related to tariff changes that we’ve seen. We haven’t seen customers say hurry up and get us capacity.

We need to beat ninety day window. That has not been a factor. In any quarter, we will always have some push out, some pull ins, and we have had some pull ins, but none of that is related to tariff policy. It has to do with, our customers meeting their customers’ demands. Now in terms of direct effect on Teradyne, what we talked about in our last earnings call is, the the way that we see it.

So, tariffs has a a pretty minor impact on Teradyne in two ways. About, depending on the quarter, between 1015% of our revenue is shipments to The United States. And a, and if those are shipments of, like a semiconductor tester to an American customer, that is the the tariffs are their responsibility. They are picking that up. So most of the tariff burden would be falling on those customers.

There is a a portion of the business that we do in The US where we do final assembly and configuration in The U. S. Based on stuff that we have imported from contract manufacturers. And so we have a minor impact to our COGS, for a portion of that 10% to 15%. And, we also do all of our engineering in The U.

S, but most of the material that we do the engineering work on has to be imported from contract manufacturers and suppliers. So we also have a modest impact to operating expense. To put it into context, our expectation is EPS in the 41 to 64% range for Q2. In that guide, there’s about 2 pennies of impact between that COGS effect and the OpEx. So, you know, it’s a it’s a small but measurable impact to the overall results.

And as the year goes on, assuming that there is some consistency around the tariff policy, we expect to be able to increasingly mitigate more and more of that.

Samik Chatterjee, Host: Okay. Got it. And so maybe just a follow-up there, based where you left off. Given that there’s some amount of capacity coming from the contract manufacturers imported into The U. S.

And given the current tariff policies, are you looking to actively change the supply footprint relative to your contract manufacturers to get it to regions like Mexico where you probably get an exemption from that? Or would you generally sort of take a longer term view and say the tariff policy, let’s let it play out and then we sort of actively work to mitigate some of that capacity?

Greg Smith, President and CEO, Teradyne: So I’d like to put it in a little bit broader context that we’re always working to try to increase the resilience of our supply chain. And oftentimes that means that we will be investing in production capacity to establish parallel production capacity for the same product line. For test, we feel like we have a very resilient supply chain and that and the amount of business that we transact in The US is not large enough that we would consider significant production, like supply chain changes to try to build more of that in The US to avoid tariffs. For robotics, we are it’s a smaller business, it’s only 13% of our revenue, but we are trying to increase the resilience of that of the supply chain in robotics. So we are actively looking to try and figure out as that business grows, we’ll need to add production capacity.

We’re trying to figure out where that production capacity should be. And if you think like for overall for Teradyne, it’s 10% to 15% of our revenue is in The U. S, for robotics it’s about a third. So it’s a much more logical thing for us to start developing production capability in The U. S, but we don’t have firm plans or dates for it.

It’s just something that we’re looking at and tariffs are only one reason that we would.

Samik Chatterjee, Host: Okay. Before we go into any of the end markets, I mean, of the things that’s come up a lot through this tariff discussion is the need for more automation in the manufacturing. How are you thinking about the opportunity for your robotics segment to participate in that, particularly if capacity has to actually move to The U. S, there has to be a significant amount of automation to take off the cost of labor disadvantage?

Greg Smith, President and CEO, Teradyne: So we have a lot of inbound around this topic. So companies with major companies that are looking at reshoring are reaching out to us, and frankly, they’re reaching out to our competitors and our ecosystem partners as well around, automating stuff. But the overall sales funnel for robotics is kinda twelve to twenty four months. And the process of developing a factory, like putting in a factory, building it up, getting it running, putting all the automation in is also kind of a multiyear thing. So we think that it’s a potential demand tailwind over the midterm.

But I it’s not like, I need to move production to The U. S. All of sudden, Q3 robotics is going to be very, very high. There’s going to be a lag associated with it.

Samik Chatterjee, Host: Got it. Okay. Moving into the end markets and particularly in relation to your decision to withhold the full year guidance Maybe just in the context of that, walk us through the visibility you have across the different end markets. What are customers willing to share with you in terms of their pipeline?

How long a visibility are they willing to give Yes.

Greg Smith, President and CEO, Teradyne: So at the point in time when we had our Analyst Day in early March, we had enough information about the first half of the year that we were able to moderate our people’s expectations for Q2. And at the same time, we didn’t have a lot of information about the second half of the year, but we communicated the idea that instead of having this, like, a really good 15% growth year, that it was more like five to 10% growth. That was the picture that we had in the mid March time frame. By the time we got to our earnings call at the end of q two, we had and at the time we said that, we did that full year guide more around the idea of like, yeah, we know this is more than a Q two problem, but we don’t know the exact magnitude. You know, that’s we we tried to make a judgment about that second half of the year.

By the time we got to the the earnings call in May, we the thing that we were sure of is that we have this very wide uncertainty range. And just let me walk sort of segment by segment. So in the automotive and industrial space, we had conversations with customers where they were actively acting us, asking us to push out forecasted demand for them. And so we have an idea in our mind, but if there is a snapback in automotive, you know, like if tariffs are not going to impede demand and there’s a snapback and people need capacity, there’s upside potential there. And if there’s a recession from where we are, there’s downside from there.

In mobile, we were expecting a very modest 2025 anyway. That we think that the big year for mobile is really going to be 2026 with really the introduction of edge AI empowered smartphones, things like that. So we had a relatively quiet expectation for the year and our main concern there is a downside risk associated with a general recession. You know, that or, like, and since, you know, like, who knows what the the tariff rules are today, whether there’s an exemption for that product category or an exemption for a particular place of of manufacture, There’s a lot of concern around that, but I think the main danger is whether there’s like a crisis in consumer confidence, not something around tariffs. So AI and compute though, as far as we can see, that is basically immune to the the macro that’s going on.

The investments are over a longer period of time. People are showing commitment to that. And the main uncertainties that we have, we still have uncertainties for the second half of the year, but they don’t have to do with tariffs. When it comes to compute, our revenue for compute is primarily in these vertically integrated producers, these hyperscalers, and that revenue is very, very lumpy. And so, there’s uncertainty about whether a a big slug of that revenue will be 2025 or bleeding into 2026.

So that’s another you know, if it pulls in, it’s a big upside for 2025. If it pushes out, it’s a downside for ’25 with an upside for ’26. And then in memory, the primary x factor that we don’t have a good read on is the transition from h b m three e to h b m four. And if there’s a rapid switchover towards h b m four, and, that would mean that, the major customers that we have in this space would need to add, test capacity. If H B M 3 E lasts more through the second half of this year, then those capacity adds would be delayed to 2026.

So, you know, looking at it, we see these ups and downs against every single one of the major segments. And so it’s it’s not a matter that we’re more pessimistic about the year. It’s just that we felt like we would be overstating our certainty by providing you know, like taking the average of those factors would give you a number, but it’s not a number that we felt like we could confidently stand behind.

Samik Chatterjee, Host: Okay. Moving to or focusing more on AI compute, beyond sort of the overall demand landscape which continues to be strong, just talk about what are the other drivers that drive more test equipment demand relative to just the number of chips just going up, is more of a volume increase. How do you think about the other drivers that increase the need for test equipment over that longer term cycle?

Greg Smith, President and CEO, Teradyne: So you’re talking exclusive outside of AI?

Samik Chatterjee, Host: AI compute, specifically the work that you do for the VIPs. And beyond volume, what do you see as the other drivers for testing intensity?

Greg Smith, President and CEO, Teradyne: In AI. In AI. Okay. So the complexity is obviously a big factor, but probably the most important factor is the quality requirements. If you’re trying to if you’re testing an AI accelerator and then that AI accelerator is going to be used in training, a latent defect in the device can lead to the waste of millions of dollars of compute time.

So the hyperscalers, the people who are building the servers, building the server farms, are driving very, very high quality requirements on merchant semiconductor providers and also themselves around these devices. So the test intensity, even for a device of a similar like if it’s a a GPU going into gaming or a similar complexity device going into AI, the, test intensity could be two x. Same thing is true for the AI accelerator. So the devices are more complex, but they also have these very high quality requirements. The other thing is that they have exceptionally high scrap cost.

So by the time you get to a full up AI accelerator, you have, a substrate. There’ll be probably two compute die on it. There’ll be six or eight HBM stacks on it. There may be other chiplets in it, all in an expensive package that’s designed to be to deal with the two kilowatts of power. If that fails after it’s all assembled, you’re throwing away, like, thousands of dollars of in process material.

So that is driving a shift left, you know, like they’re trying to increase the test coverage upstream. And so that is a upside for the amount of business that when you’re doing wafer level test in the memories and in the SoCs. So the fact that it’s complicated that the yield loss is expensive and the quality requirements are high are the primary drivers for why that part of the market is growing as much as it is, both HBM memory and the compute space.

Samik Chatterjee, Host: Got And you’ve talked about winning 50% of the sockets when I focus specifically on the AI compute side. What is the difference when you think about those wins, what is the differentiation Teradyne brings relative to its closest competitor there? And do you see necessarily you’ve talked even at the Investor Day about technology cycles and how that’s offered Teradyne a lot of opportunity. Do you see that market share potentially inflecting higher based on the technology differentiation you’re creating?

Greg Smith, President and CEO, Teradyne: So the advantage that Teradyne has is that we have a differentiated product. We have a better product. The disadvantage that we have is that our competitor has historically much higher share in the merchant part of the compute space. So they have, great reference customers. We have advantages.

The advantages that we have, our tester is easier to design. And so first, the biggest advantage that our tester has is that it scales to be able to test larger parts or a larger number of the same part. If it you know, if you can test two at once, you’re more likely to be able to do that on a Teradyne tester than the competitor’s tester. That gives us significant economic advantage. It’s also easier to design the interface hardware.

You need fewer layers. You get higher yield for the interface hardware. And our tester is also very reliable in production. So all of those things are these secondary factors that customers look at. It’s not enough to dislodge an incumbent, but if you’re talking about a jump ball, it gives us an ability to compete very, very well when we’re either competing for the first time or operating in an environment where a customer is doing business with both us and our competitor.

So, you’re asking, like, does that mean that we could get more share over time? I don’t know. I mean, the thing that I will tell you is that it is that business is so lumpy, and it’s lumpy in two ways. One is that there are very few end customers, but also the amount that the customers build of a particular device depends not only on whether their device works, but whether their device is significantly better than what NVIDIA built. So there are a lot of hyperscalers that have invested in developing chips, but when they benchmark what they designed and built versus what they can buy off the shelf, it’s not worth them ramping their own product.

Teradyne’s been fortunate in having a couple of really good sockets that have ramped hard and driven significant, not only like we won half and half in terms of the sockets, only a few of the sockets have ramped to high volume. We’ve been fortunate that a couple of those high volume sockets have been on our tester. But as I look forward, I think a lot of it there’s a lot that’s up to chance, whether whether the design is good, whether the design works, whether it ramps, and who’s the of the 50% that we win versus the 50% that our competitor wins, who hits the jackpot on a part that ramps.

Samik Chatterjee, Host: Got it. Got it. Maybe talk about the acquisition of Quantify Photonics Okay. And what drove that? Strategically, what are you thinking in terms of the opportunity that you get as you sort of combine products with Quantifei’s technology?

Greg Smith, President and CEO, Teradyne: Yes. So let me talk about this generally in terms of the strategic importance of silicon photonics and co packaged optics. In a data center, if if a data center if you waved a wand and magically the copper networking was turned into photonic interconnections, you would get 10 times as much bandwidth and a 30% power savings. There’s a huge amount of interest in the end market to be able to go to this as the primary interconnection medium for, AI compute farms, for training and for inference. So, we see that this is gonna be a growing segment on its own, but we also believe that the company that has the best solution for silicon photonics and co packaged optics is going to be in a position to gain share for high performance compute and AI.

Okay. So we are investing to try and make sure that we establish that leadership position. And we were very interested in quantified photonics because they are founded on the idea of, the direction that silicon photonics is going. So higher lane counts and rapidly increasing data rates across the interfaces. They bring an ability to do higher lane counts at attractive, capital cost versus the sort of instrumentation grade equipment that is being used today.

So, Teradyne in 02/2012 bought LitePoint, and LitePoint essentially pioneered this idea of production optimized test equipment for the wireless space. Quantify is doing the same thing in photonics. It’s production optimized equipment for high lane count photonics devices, And we think that, that capability is critical for us to gain share in the high performance compute space.

Samik Chatterjee, Host: Okay. And the target market here is again the VIP?

Greg Smith, President and CEO, Teradyne: I’m

Samik Chatterjee, Host: sorry? The target customer here is again the VIPs that you work with as they move towards more CPO adoption?

Greg Smith, President and CEO, Teradyne: Well, I think it’s interesting because not only the VIPs, but the merchant silicon, you know, the AMD’s and Nvidia’s and Intel’s of the world, this is an important enough inflection and enough of a technology disruption that it may open doors. So we’re not looking at this as just reinforcing within VIPs. We think that this could be a shift, like a a ground shift in the high performance computing space that if you great at Copart packaged optics test that you are likely to lose share in high performance computing.

Samik Chatterjee, Host: Okay, okay, great. Memory test. You’ve typically talked about it as being divided between what’s a more competitive high volume wafer testing. And then sort of the more low volume performance testing as well, where you want to play, right? And so could you talk us through the various stages and where Teradyne is now primarily engaged with its customers.

Where where are you engaged with your current customers? Where do you see more opportunity in the memory test segment?

Greg Smith, President and CEO, Teradyne: Yeah. So, the the high level model that Teradyne uses to understand the memory market is, DRAM and flash memory. And then, wafer level testing of the memories, and then and then final testing of the memories. In the past, the wafer market was quite the the memory market was quite balanced between flash and DRAM. And typically, if mobile is strong, then flash is strong.

If compute cloud compute is strong, then DRAM is stronger. We’re definitely in a period of time where DRAM is the strongest in it was like 80% of the TAM in 2024. So, that’s the first division. Now performance test. Typically, the way the memory market has worked pre HBM is that the wafer level test was nondifferentiated.

The test time was dominated by the algorithms that had to be run, and the tester didn’t need to do very much. It just needed to present those test patterns and and collect the results. The final test, when the device was packaged, that was when the performance test took place. It’s still high volume, but it is much higher capital intensity. That is where and it’s also where tester performance is much more critical to the delivery of value.

So you could get higher throughput or higher yield by testing on a better tester. So Teradyne has, established a leadership position in final test for both flash memory and also for DRAM. And now with the introduction of HBM, that has we’ve the that performance test actually happens at the wafer level after the dies have been stacked up. And Teradyne has made great progress in terms of winning memory wafer test business on like when it’s performance test for this kind of HBM memory.

Samik Chatterjee, Host: Okay, okay. Got it. Let me take a pause and see if anyone in the audience has a question. Any questions? Okay.

Maybe if we continue to autos and industrial, and maybe before we get into the drivers itself, maybe give us some of the use cases of what the exact application looks like in the autos and industrial market for test equipment.

Greg Smith, President and CEO, Teradyne: Yeah. So the the two primary drivers in the auto and industrial space, One is actually AI. So the build out of data centers, it’s estimated that a significant portion of all of the electricity in The US is gonna be consumed by data centers. The amount of power in data centers is gonna go from, like, 50 gigawatts to two twenty five between now and 02/1930. So, that’s an enormous load on the grid.

And so there is a, increased investment in the technologies to do power regulation and power supply into these into these areas. And that is driving growth in power semiconductors, especially in, you know, exotic materials. So data center is actually a key driver of the industrial space. Now the other driver for this space is the slow motion crossover between internal combustion and battery powered vehicles. If you look at if you compare the way the automotive market looked in 2022, the forecast in 2022 to the forecast in 2024, what has happened is the growth expectations or the volume expectations for gas powered vehicles has been revised down significantly.

The growth projection for battery powered vehicles is basically the same in each of those forecasts. And so the key to Teradyne is that the semiconductor content in an electric vehicle is at least two x what it is in an internal combustion engine, and the number of battery powered vehicles is increasing every single year. So we think that there’s this TAM growth tailwind in this space. It’s you know, obviously, it’s growth it’s growth cyclical because of the end market conditions, but we think that there’s a good market here, and we expect that that market is gonna grow at a healthy rate over the midterm. And we’re in a leadership position.

We have, like, 46% in 2024 of this market. And by the time we get out to 2028, we expect we’d be in the mid-50s. So the market’s going to grow and we’re going to grow share because of that leadership position.

Samik Chatterjee, Host: Okay. Got it. And I know current macro headwinds are impacting your outlook here, but what is a typical through the cycle long term growth rate in autos and industrial in your view?

Greg Smith, President and CEO, Teradyne: Oh, so if you look at, like, the the growth rate through this midterm, yeah, we would probably expect that. Overall, Teradyne, we’re expecting about 15% CAGR growth through this midterm, 24 out to 28. Inside of semiconductor test, we expect the the growth rate to be in that same neighborhood overall. In auto and industrial, I would expect the growth rate to be slightly lower than that, maybe between 1015% over that period of time. Still healthy growth, but there are other parts of the business, especially like system level tests that are going to have a much higher growth rate because it’s coming off of a low number here to a much bigger number.

Samik Chatterjee, Host: Got it. Got it. To then finish up, maybe we move to Mobility for a couple of questions. If in the scenario we do have a pullback in the macro in the second half and the smartphone market responds to that slowdown in the macro with lower volumes, what do you see as offsets? Because you’ve talked about underutilization of test equipment in that space.

As you think about then sort of the drivers in the second half, do you see any other offsets that would help sort of offset some of that volume decline?

Greg Smith, President and CEO, Teradyne: It’s a tough scenario to game out what you just said because the thing that would cause a mobile slowdown would be a general economic slowdown, like an erosion in customer confidence. The erosion in customer confidence is unlikely to be just mobile focused. It would probably also affect automotive sales. Right? So we would probably be tracking to the low scenario in that space as well.

I would expect that the factors driving the AI and memory part of the business are largely decoupled from consumer confidence and a recession. So I think that would not be correlated with that downturn, but I don’t think it would necessarily get stronger because of that, you know, like there’s no offsetting effect there. I think the upside would be more around, like if we started to see leading edge around this reshoring or upside in robotics because of because now even that I think if there is a general economic slowdown, then you’d see a contraction in manufacturing capital investment. So like I don’t see a lot of offsets to a recession.

Samik Chatterjee, Host: Okay, okay. And just finishing off, I mean you did have a strong quarter by the way in Mobility. So what do you attribute that to? I mean one of the questions we get often is why isn’t that an indication of pull forward by segment? Just maybe clarify that before we wrap up.

Greg Smith, President and CEO, Teradyne: Yes. So we’re proud of the results that we delivered in Q1. The primary driver of our upside was actually a relatively large order around a supply chain shift in mobile. You know? So it’s not that there’s that anybody’s gonna sell more phones, but where the parts were coming for for to go into those phones was coming through a different source, and that source needed to add capacity to do it.

They were interested in adding that capacity as quickly as they could, and we were able to accelerate those deliveries around like our operational capability. So like our overperformance in q one wasn’t really an indication of a strong rebound in end demand. It was more around, meeting customer desired delivery dates by improving our operational, you know, sort of our operational capacity. You know, looking into Q2, we, you know, in our earnings call, we we guided our Q2 in line with our ex what expectations we set at the Analyst Daytime. And we expect we certainly don’t think that the strength that we saw in Q2 was like the leading edge of a recovery.

It’s much more related to the onetime factors.

Samik Chatterjee, Host: Okay. Got it. I’ll wrap it up there. But thank you for coming to the conference. Thank you to the audience as well.

Thank you.

Greg Smith, President and CEO, Teradyne: Awesome. Thank you.

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