Jan 29 (Reuters) - Teradyne ( TER ) forecast

first-quarter revenue below Wall Street estimates on Wednesday,

indicating softening demand for its semiconductor-testing

equipment.

Shares of the company were down 2% in after-hours trading.

High borrowing costs and economic uncertainty have forced

businesses to reduce investments, impacting demand for

Teradyne's ( TER ) products.

Demand from certain markets such as automotive continues to

face pressure as customers grapple with surplus inventory due to

a downturn triggered by stockpiling during the pandemic.

The North Reading, Massachusetts-based company also said it

plans to "strategically realign" its robotics business, which

would support Teradyne's ( TER ) growth and profitability over the

mid-term.

"In 2025, we expect year-over-year revenue acceleration with

improving conditions in our test businesses. We expect the

secular growth opportunities in AI compute and memory to remain,

and we will continue to invest into these areas," CEO Greg Smith

said.

Teradyne ( TER ) designs and develops technology for chips and

electronic equipment testing, and also sells robotic systems to

customers in the manufacturing sector.

The company, with customers including Qualcomm ( QCOM ) and

Texas Instruments ( TXN ), forecast first-quarter revenue

between $660 million and $700 million, the midpoint of which is

below analysts' average estimate of $694 million, according to

data compiled by LSEG.

It expects adjusted earnings per share in the range of 58

cents to 68 cents, against estimates of 63 cents.

Teradyne's ( TER ) revenue for the fourth quarter rose by 12% to

$752.9 million compared to the same period a year ago, above the

average estimate of $740.8 million.

On an adjusted basis, the company earned 95 cents per share,

compared with estimates of 91 cents per share in the fourth

quarter.