Teradyne beat analyst expectations with its second-quarter results, driven by strong semiconductor testing sales and improving demand.

The company, which makes testing equipment for semiconductors and robotics, on Tuesday posted a profit of $78.4 million, or 49 cents a share, in the second quarter, compared with $186.3 million, or $1.14 a share, a year earlier.

Stripping out certain one-time items, adjusted per-share earnings were 57 cents, ahead of the 54 cents forecast by analysts, according to FactSet.

Revenue fell 11% to $651.8 million. Analysts surveyed by FactSet forecast revenue of $650.6 million.

Teradyne's semiconductor testing business performed better than expected, the Chief Executive Greg Smith said, with sales hitting $492 million. Its system-on-a-chip product, which is designed for AI applications, was the biggest growth driver.

Shares rose 6.3% to $96.21 in overnight trading.

Visibility into the rest of the year has cleared and demand is strengthening in compute, networking and memory. "We believe that AI will drive strong second half performance for Teradyne," Smith said.

The company projects third-quarter revenue will be $710 million to $770 million, compared with the $759.1 million analysts forecast. Adjusted earnings per share are guided to be 69 cents to 87 cents, below the 89 cents Wall Street expects.