July 31, 2024
(¥B)
| FY2023 | FY2024 | Change vs. Prior Full-Year Forecast | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Results | 1H Forecast | 2H Forecast | Full-year Forecast |
vs. FY2023 | FY2024 Forecast as of April | Change | ||||
| 1Q Results | 2Q Forecast | Change | (%) | |||||||
| Sales*1 | 486.5 | 138.7 | 153.3 | 292.0 | 308.0 | 600.0 | +113.5 | +23.3% | 525.0 | +75.0 |
| Operating Income | 81.6 | 31.3 | 35.7 | 67.0 | 71.0 | 138.0 | +56.4 | +69.1% | 90.0 | +48.0 |
| Operating Margin % | 16.8% | 22.6% | 23.3% | 22.9% | 23.1% | 23.0% | +6.2pts | 17.1% | +5.9pts | |
| Income Before Tax | 78.2 | 31.9 | 35.6 | 67.5 | 71.0 | 138.5 | +60.3 | +77.2% | 89.0 | +49.5 |
| Net Income | 62.3 | 23.9 | 26.7 | 50.6 | 54.4 | 105.0 | +42.7 | +68.6% | 67.0 | +38.0 |
| Net Income Margin % | 12.8% | 17.2% | 17.4% | 17.3% | 17.7% | 17.5% | +4.7pts | 12.8% | +4.7pts | |
| R&D Expenses | 65.5 | 17.3 | 17.7 | 35.0 | 35.0 | 70.0 | +4.5 | +6.9% | 67.0 | +3.0 |
|---|---|---|---|---|---|---|---|---|---|---|
| CapEx | 20.8 | 4.4 | 6.4 | 10.8 | 11.2 | 22.0 | +1.2 | +5.8% | 22.0 | - |
| D&A | 26.1 | 7.1 | 6.8 | 13.9 | 13.1 | 27.0 | +0.9 | +3.4% | 27.0 | - |
| Exchange Rate*2 | 1 US$ | ¥143 | ¥153 | ¥140 | ¥147 | ¥140 | ¥143 | - | ¥140 | ¥3 Depreciation | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 Euro | ¥155 | ¥165 | ¥155 | ¥160 | ¥155 | ¥158 | ¥3 Depreciation | ¥155 | ¥3 Depreciation | ||
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Intersegment transactions have been eliminated from totals
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Our latest forecast for the impact of exchange rate fluctuations on FY2024 operating income is plus ¥0.9 billion per 1 yen of JPY depreciation vs USD, and minus ¥0.3 billion per 1 yen of JPY depreciation vs the euro
Looking at Advantest’s market environment going forward, the semiconductor market is likely to return to a growth trajectory in CY2024, as the supply-demand balance for semiconductors is expected to improve and investments related to generative AI are becoming more active. In tandem with an increase in demand of semiconductors for generative AI, the tester market that is related to such devices is likely to experience a notable increase in demand. Specifically, in addition to strength in tester demand for high-performance DRAM, increasing complexity is also raising tester demand for SoC semiconductors more rapidly than originally expected. On the other hand, demand for testing equipment for automotive and industrial equipment is expected to take time to recover. Overall, the semiconductor test equipment market is expected to show stronger demand growth in CY2024 than previously forecasted.
Based on this outlook and the progress made for the three-month period ended June 30, 2024, Advantest has revised its full-year consolidated forecast for the current fiscal year from the forecast as of April 2024 as follows. Sales forecast is revised up to (Y) 600.0 billion from (Y) 525.0 billion, operating income to (Y) 138.0 billion from (Y) 90.0 billion, income before income taxes to (Y) 138.5 billion from (Y) 89.0 billion, net income to (Y) 105.0 billion from (Y) 67.0 billion, respectively. This forecast is based on exchange rate assumptions of 1 USD to 140 JPY and 1 EUR to 155 JPY for the nine months from the second quarter of the consolidated fiscal year. Regarding the restrictions on the export of semiconductor production equipment to China by the U.S. and its allies, the direct impact on our current fiscal year’s earnings is expected to be limited under the current laws and regulations, but Advantest will continue to closely monitor the situation.
In the mid/long-term, as the semiconductor market expands and the industry faces structural challenges in dealing with the complexity of semiconductors, Advantest believes that business opportunities will expand. In such an industry landscape, Advantest will strive to expand the value it provides to stakeholders over the mid/long-term by pursuing the measures out in the Third Mid-term Management Plan, of which the current fiscal year is the first year.