Financial Review

Consolidated Financial Results of FY2024 Q1 (April 1, 2024 through June 30, 2024)

July 31, 2024
(in billion yen)

During Advantest’s three-month period ended June 30, 2024, the global economy as a whole trended firmly, despite the continuation of monetary tightening policies against a backdrop of persistent inflation.

Under such global economic conditions, the semiconductor market has moved out of the correction phase experienced in the corresponding period of the previous fiscal year and showed a recovery trend. Specifically, demand for semiconductors related to the proliferation of generative AI, such as HPC devices for data centers and high-performance DRAM such as HBM, grew significantly. However, recovery in overall semiconductors presented a mixed picture due to softness in demand for semiconductors in the automotive and industrial equipment sectors.

In Advantest’s semiconductor test equipment business, sales of our products grew significantly year-on-year backed by strong capital expenditure by customers for high-performance semiconductors.

As a result of the above, net sales were (Y) 138.7 billion (37.0% increase in comparison to the corresponding period of the previous fiscal year). Due to an increase in sales partly boosted by the Japanese yen’s depreciation and a change in sales mix, operating income was (Y) 31.3 billion (2.2 times increase in comparison to the corresponding period of the previous fiscal year), income before income taxes was (Y) 31.9 billion (2.5 times increase in comparison to the corresponding period of the previous fiscal year) and net income was (Y) 23.9 billion (2.6 times increase in comparison to the corresponding period of the previous fiscal year). Average currency exchange rates in the current period were 1 USD to 153 JPY (135 JPY in the corresponding period of the previous fiscal year), and 1 EUR to 165 JPY (146 JPY in the corresponding period of the previous fiscal year). The percentage of net sales to overseas customers was 96.2% (95.8% in the corresponding period of the previous fiscal year).

(in billion yen)

In this segment, sales of test equipment for SoC semiconductors increased significantly for advanced process products, driven by performance enhancement of HPC devices and application processors. On the other hand, soft demand for mature semiconductors in the automotive and industrial equipment sectors led to a decline in sales of related test equipment. With regards to test equipment for memory semiconductors, sales grew on the back of strong demand for high-performance DRAM such as HBM.

(in billion yen)

(in billion yen)

In this segment, support services sales increased as the installed base grew. On the other hand, in our system-level test, sales declined due to soft demand for products which have high sales exposure to a limited number of customers. In terms of profit, a change in the sales mix contributed to improved profitability in this segment.

Total assets at June 30, 2024 amounted to (Y) 723.2 billion, an increase of (Y) 52.0 billion compared to March 31, 2024, primarily due to increases of (Y) 13.9 billion in inventories, (Y) 9.9 billion in trade and other receivables, (Y) 9.9 billion in goodwill and intangible assets, and (Y) 8.7 billion in cash and cash equivalents. The amount of total liabilities was (Y) 266.3 billion, an increase of (Y) 26.2 billion compared to March 31, 2024, primarily due to increases of (Y) 9.1 billion in income taxes payable and (Y) 8.4 billion in trade and other payables. Total equity was (Y) 456.9 billion. Ratio of equity attributable to owners of the parent was 63.2%, a decrease of 1.0 percentage point from March 31, 2024.