Financial Review

Consolidated Financial Results of FY2024 Q3 (April 1, 2024 through December 31, 2024)

Overview of Business Results

Jan 29, 2025
(in billion yen)

Nine months ended
December 31, 2023
Nine months ended
December 31, 2024
As compared to the corresponding period of the previous fiscal year increase (decrease)
Net sales 350.7 547.4 56.1%
Operating income 62.1 164.1 2.6 times
Income before income taxes 59.6 163.2 2.7 times
Net income 47.1 121.2 2.6 times

During Advantest’s nine-month period ended December 31, 2024, the global economy as a whole trended firmly, amidst the easing of monetary tightening policies particularly in Europe and the U.S. On the other hand, uncertainties about the future have increased due to rising geopolitical risks, including concerns about the prolonged situation in Ukraine and in the Middle East.

Under such global economic conditions, the semiconductor market shifted from the adjustment phase of the same period last year to a recovery trend. While demand for semiconductors for applications other than AI, 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, net sales were (Y) 547.4 billion (56.1% increase in comparison to the corresponding period of the previous fiscal year), operating income was (Y) 164.1 billion (2.6 times increase in comparison to the corresponding period of the previous fiscal year), income before income taxes was (Y) 163.2 billion (2.7 times increase in comparison to the corresponding period of the previous fiscal year) and net income was (Y) 121.2 billion (2.6 times increase in comparison to the corresponding period of the previous fiscal year).All figures have reached record highs for the nine-month period due to factors such as strong demand for testing equipment, an increase in the sales mix of high margin products, and the positive impact of the weaker yen on both sales and profits. Average currency exchange rates in the nine-month period ended December 31, 2024 were 1 USD to 152 JPY (142 JPY in the corresponding period of the previous fiscal year) and 1 EUR to 165 JPY (154 JPY in the corresponding period of the previous fiscal year). The percentage of net sales to overseas customers was 97.6% (96.1% in the corresponding period of the previous fiscal year).

Semiconductor and Component Test System Segment

(in billion yen)

Nine months ended
December 31, 2023
Nine months ended
December 31, 2024
As compared to the corresponding period of the previous fiscal year increase (decrease)
Net sales 240.0 414.2 72.6%
Segment income (loss) 65.3 160.7 2.5 times

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.

Mechatronics System Segment

(in billion yen)

Nine months ended
December 31, 2023
Nine months ended
December 31, 2024
As compared to the corresponding period of the previous fiscal year increase (decrease)
Net sales 35.9 55.1 53.5%
Segment income (loss) 4.9 13.3 2.7 times

In this segment, robust customer demand for semiconductor test equipment led to growth in sales of related device interfaces. Sales of nano-technology products also increased.

Services, Support and Others Segment

(in billion yen)

Nine months ended
December 31, 2023
Nine months ended
December 31, 2024
As compared to the corresponding period of the previous fiscal year increase (decrease)
Net sales 74.8 78.1 4.4%
Segment income (loss) 4.3 5.7 33.5%

In this segment, support services sales increased as the installed base grew. In terms of profit, an increase in sales and a change in the sales mix contributed to improved profitability in this segment. The segment income in the corresponding period of the previous fiscal year includes approximately.

Overview of Financial Condition

Total assets at December 31, 2024 amounted to (Y) 793.8 billion, an increase of (Y) 122.6 billion compared to the fiscal year ended March 31, 2024. This was primarily attributable to increases of (Y) 89.3 billion in cash and cash equivalents, (Y) 22.7 billion in trade and other receivables and (Y) 8.4 billion in inventories. The amount of total liabilities was (Y) 296.9 billion, an increase of (Y) 56.9 billion compared to the fiscal year ended March 31, 2024. This was primarily attributable to increases of (Y) 32.1 billion in income taxes payable and (Y) 12.0 billion in trade and other payables. Total equity was (Y) 496.9 billion. Ratio of equity attributable to owners of the parent was 62.6%, a decrease of 1.6 percentage point from March 31, 2024.

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