Revenue for Teradyne robotics group hits $92M in Q2

The Robot Report
Teradyne Universal Robots

Universal Robots’ ActiNav machine-loading system. Credit: Universal Robots

After earning $80 million in Q1 2021, the good times continued for Teradyne’s industrial automation group in the second quarter. On the backs of Mobile Industrial Robots (MiR) and RBR50 winner Universal Robots (UR), the group’s revenue reached $92 million. That’s a 15% increase Q/Q, a 57% increase Y/Y and a 23% increase from Q2 2019.

UR’s revenue was $76 million for Q2 2021, which is up 15% Q/Q and up 75% Y/Y. MiR earned $16 million, which is up 14% Q/Q and 41% Y/Y and up 51% from Q2 2019. The group’s revenue increased in all regions in Q2 over last year, with North America delivering the highest absolute revenue growth. The U.S. and Europe represented about 77% of the group’s revenue in the quarter, with China contributing about 14%.

“The longer-term outlook in our [industrial automation] business continues to brighten,” said Teradyne vice president and chief financial officer Sanjay Mehta. “We expect continued labor shortages to drive new applications for both our fixed and mobile robots.”

Teradyne expects the group’s revenue to grow about 40% for the year compared to 2020. Along with continued investments in engineering programs, Teradyne is also expanding support for distributors and sales to OEMs that integrate its robots into their products.

Cobots seeing an uptick in welding applications

Teradyne CEO and president Mark Jagiela highlighted UR’s growth in welding applications. After entering the welding market about three years ago, he said welding applications have grown to be about 6% of UR’s global sales. The company is on pace to sell 1,000 cobots into welding applications in 2021, which is more than triple the pace from 2020.

“[Welding] is just one of many job categories with acute short-term and long-term labor shortages,” said Mehta. “Our strategy is to provide an open platform that creative developers can leverage to solve industry-specific labor shortages.”

Teradyne on The Robot Report Podcast

Greg Smith, president of Teradyne’s industrial automation group, was a recent guest on The Robot Report Podcast. He took us inside the goals and strategy of building Teradyne’s automation portfolio and what Teradyne is looking for in other industrial automation acquisitions.

AutoGuide continues to reset

There was no mention of AutoGuide Mobile Robots on the earnings call, as the company continues to reset. During its Q1 2021 earnings call, Teradyne lowered its expectations for AutoGuide in 2021, expecting it to generate less than $10 million in revenue for the year.

“We will focus on expanding existing customer deployments while we complete a series of engineering projects designed to scale and win new customers in the future,” Mehta said at the time.

Sources told The Robot Report sales of AutoGuide’s robots were recently halted to make some improvements. As a result, both AutoGuide and Heartland Automation, which is the main integrator of AutoGuide’s robots and the company AutoGuide spun out of, have let employees go.

“No deployments, no need for new integrations,” one source said. “Heartland’s installers and techs were doing nothing but maintaining the current customers, which was too many people.”

AutoGuide president and CEO Rob Sullivan resigned on March 1.

Teradyne also owns Energid, a Bedford, Mass.-based company specializing in robot control software. Energid wasn’t mentioned in Teradyne’s earnings statement, which likely means it had no material impact on revenue.

You can listen to Teradyne’s Q2 earnings call here and read a transcript of the call here.

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Source: therobotreport

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