Earnings Forecast

July 28, 2021 (¥B)
  FY20 FY21   vs. New Full-Year Forecast
  Results     1H Forecast 2H Forecast Full-Year Forecast vs. FY20   FY21 Forecast as of April (Δ)
1Q Results 2Q Results (Δ) (%)
Orders 330.6 161.2 98.8 260.0 140.0 400.0 +69.4 +21.0%   350.0 +50.0
Sales(*1) 312.8 97.1 93.9 191.0 194.0 385.0 +72.2 +23.1%   350.0 +35.0
Operating Income 70.7 26.1 23.5 49.6 50.4 100.0 +29.3 +41.4%   85.0 +15.0
Operating Margin 22.6% 26.9% 25.0% 26.0% 26.0% 26.0% +3.4pts     24.3% +1.7pts
Income Before Tax 69.6 25.7 23.5 49.2 50.8 100.0 +30.4 +43.6%   85.0 +15.0
Net Income 69.8 19.3 17.6 36.9 38.1 75.0 +5.2 +7.5%   64.0 +11.0
Net Income Margin 22.3% 19.9% 18.7% 19.3% 19.6% 19.5% -2.8pts     18.3% +1.2pts
 
Backlog 108.8 172.9 177.8 177.8 123.8 123.8 +15.0 +13.8%   108.8 +15.0
 
R&D Expenses 42.7 11.8 11.7 23.5 23.5 47.0 +4.3 +10.1%   46.0 +1.0
Capex 13.7 2.6 5.4 8.0 7.0 15.0 +1.3 +9.5%   15.0
D&A 11.8 3.4 3.3 6.7 6.8 13.5 +1.7 +14.4%   13.5
 
Exchange Rate(*2) 1 US$ ¥106 ¥109 ¥110 ¥110 ¥110 ¥110 ¥4 Depreciation   ¥105 ¥5 Depreciation
1 Euro ¥123 ¥131 ¥135 ¥133 ¥135 ¥134 ¥11 Depreciation   ¥130 ¥4 Depreciation

(*1): Intersegment transactions have been eliminated from totals
(*2): Our latest forecast for the impact of exchange rate fluctuations on FY21 operating income is plus ¥1,000 million per 1 yen of JPY depreciation vs USD, and minus ¥150 million per 1 yen of JPY depreciation vs the Euro

In terms of the market environment, Advantest anticipates that demand for semiconductors will grow as a result of increasing final demand and higher functionality of end products, driving continued capacity expansion investments to solve the semiconductor supply shortage in the near term. Amidst the ongoing "digital revolution" and the push to improve energy efficiency, there is also an increasing need for technology investments to achieve even higher semiconductor performance. Taking all of this together, Advantest expects the semiconductor and related markets to grow in the short and medium-to-long term.

Although Advantest anticipates some falloff in reaction to the sharp increase in orders in the first quarter, Advantest expects that orders will continue to hold a high level in the second quarter and beyond. Despite concerns about any potential sales impact from parts procurement status changes, Advantest expects stable sales to continue.

Based on this outlook, and on actual business results for the first quarter of the current consolidated period, Advantest has revised its full-year consolidated business results forecast for fiscal 2021 as follows: Orders received, (Y) 400.0 billion (was (Y) 350.0 billion in the forecast published in April 2021), sales, (Y) 385.0 billion (was (Y) 350.0 billion), operating income and income before income taxes, (Y) 100.0 billion (was (Y) 85.0 billion) respectively, and net income (Y) 75.0 billion (was (Y) 64.0 billion). This forecast is based on exchange rate assumptions of 1 USD to 110 JPY and 1 EUR to 135 JPY for the nine months from the second quarter of the current consolidated fiscal year.

Regarding the impact of the COVID-19 pandemic, business restrictions continue due to restrictions on human movement and urban lockdowns in many countries, but Advantest recognizes that these restrictions had only a minor impact on its business results in the first quarter of the current consolidated period. However, due to the spread of new variants, the virus is still causing a good deal of uncertainty in the global economy. As mentioned above, Advantest currently expects a favorable medium-to-long-term market environment, but Advantest will continue to place the highest priority on flexibly responding to changes in the external environment as Advantest conducts its business activities. Advantest will also implement the growth measures set forth in its second mid-term management plan, launched in FY2021, with the aim of achieving the sales target of (Y) 400.0 billion set forth in the "Grand Design" medium-to-long-term management policy.