Financial Review

Consolidated Financial Results of FY2024 (April 1, 2024 through March 31, 2025)

April 25, 2025
(in billion yen)

During Advantest’s fiscal year ended March 31, 2025, despite the ongoing uncertainty due to geopolitical risks, the global economy as a whole trended firmly, supported by the easing of monetary tightening policies particularly in Europe and the U.S.

Under such global economic conditions, the semiconductor market shifted from the correction phase of the last fiscal year to a recovery trend. While demand for semiconductors for applications such as those for automotive and industrial equipment remained soft, demand for semiconductors related to the proliferation of AI, such as HPC devices for data centers and high-performance DRAM, drove market growth.

In Advantest’s semiconductor test equipment business, demand for high-performance semiconductors related to AI increased significantly. In order to meet our customers' delivery requirements to the greatest extent possible, Advantest worked to ensure the timely procurement of parts and product supply capabilities. Our measures, such as long-term agreements with existing suppliers and the diversification of supply chain for core parts, have been successful.

As a result of the above, in the consolidated fiscal year ended March 31, 2025, net sales were (Y) 779.7 billion (60.3% increase in comparison to the previous fiscal year), operating income was (Y) 228.2 billion (2.8 times increase in comparison to the previous fiscal year), income before income taxes was (Y) 224.8 billion (2.9 times increase in comparison to the previous fiscal year), and net income was (Y) 161.2 billion (2.6 times increase in comparison to the previous fiscal year). All figures have reached record highs for the fiscal year due to factors such as an increase in the sales mix of high-margin products and the positive impact of the weaker yen on both sales and profits. In the fourth quarter, an impairment loss of approximately (Y) 21.4 billion was recorded for a portion of goodwill and intangible assets. Average currency exchange rates in the fiscal year ended March 31, 2025, were 1 USD to 153 JPY (143 JPY in the previous fiscal year) and 1 EUR to 164 JPY (155 JPY in the previous fiscal year). The percentage of net sales to overseas customers was 98.0% (95.9% in the corresponding period of the previous fiscal year).

(in billion yen)

In this segment, while demand for mature semiconductors in the automotive and industrial equipment sectors remained soft, sales of test equipment for high-performance SoC semiconductors increased significantly due to the increasing complexity of semiconductors and performance enhancement of semiconductors such as HPC devices. With regards to test equipment for memory semiconductors, sales grew significantly on the back of strong demand for high-performance DRAM such as HBM. Our enhanced procurement of materials and product supply capabilities also supported an increase in sales.

(in billion yen)

(in billion yen)

In this segment, support services sales increased as the installed base grew.
However, an impairment loss of approximately (Y) 21.4 billion was recorded for goodwill and intangible assets related to the test sockets business of Essai, Inc. This was due to softness in sales for a major customer and delays in expanding sales to new customers. As a result, this segment incurred a loss exceeding that of the previous fiscal year. The segment loss for the previous fiscal year includes a profit of approximately (Y) 3.2 billion from settlement payments related to disputes with business partners, as well as an impairment loss of approximately (Y) 9.0 billion on a portion of goodwill.

Total assets at the end of FY2024 were (Y) 854.2 billion, an increase of (Y) 183.0 billion compared to the previous fiscal year, primarily due to increases of (Y) 155.8 billion in cash and cash equivalents, (Y) 24.2 billion in trade and other receivables, (Y) 14.5 billion in deferred tax assets, and (Y) 10.0 billion in other financial assets offset by a decrease of (Y) 20.1 billion in goodwill and intangible assets. The total liabilities were (Y) 347.7 billion, an increase of (Y) 107.6 billion compared to the previous fiscal year, primarily due to increases of (Y) 62.8 billion in income taxes payable and (Y) 30.2 billion in trade and other payables. Total equity was (Y) 506.5 billion. Ratio of equity attributable to owners of the parent was 59.3%, a decrease of 4.9 percentage points from March 31, 2024.