FY2007 Interim Consolidated Financial Results
(Prepared in accordance with U.S. GAAP)
(Six months ended September 30, 2007)
(Unaudited)
October 26, 2007
Company name | : | Advantest Corporation |
Stock exchanges on which shares are listed | : | First section of the Tokyo Stock Exchange |
Stock code number | : | 6857 |
URL | : | http://www.advantest.co.jp/investors/en-index.shtml |
Company representative | : | Toshio Maruyama, Representative Board Director, President and CEO |
Contact person | : | Hiroshi Nakamura, Executive Officer, |
Interim report filing date (as planned) | : | December 14, 2007 |
Dividend payable date (as planned) | : | December 3, 2007 |
(Rounded to the nearest million yen)
1. | Consolidated Results of FY2007 Interim (April 1, 2007 through September 30, 2007) |
| (1) | Consolidated Financial Results |
|
| (% changes as compared to the corresponding period of the previous fiscal year) |
| Net sales | Operating income | Income before income taxes and equity in earnings of affiliated company | Net income | ||||
| Million yen | % increase | Million yen | % increase | Million yen | % increase | Million yen | % increase |
FY2007 interim | 114,863 | (4.7) | 24,647 | (23.5) | 27,360 | (19.4) | 16,930 | (23.8) |
FY2006 interim | 120,492 | 12.5 | 32,199 | 42.1 | 33,951 | 38.6 | 22,204 | 51.9 |
FY2006 | 235,012 | - | 56,792 | - | 61,090 | - | 35,556 | - |
| Net income per share (basic) | Net income per share (diluted) | ||
|
| Yen |
| Yen |
FY2007 interim | 91.52 |
| 91.24 |
|
FY2006 interim | 118.79 |
| 118.03 |
|
FY2006 | 190.01 |
| 188.85 |
|
(Note) Equity in earnings of affiliated company : loss of (Y) 4 million in FY2007 interim period, none in FY2006 interim period, loss of (Y) 14 million in FY2006.
| (2) | Consolidated Financial Position |
| Total assets | Net assets | Equity-to-assets ratio | Net assets | ||||
| ||||||||
|
| Million yen |
| Million yen |
| % |
| Yen |
FY2007 interim | 350,963 |
| 286,394 |
| 81.6 |
| 1,555.42 |
|
FY2006 interim | 347,089 |
| 278,673 |
| 80.3 |
| 1,489.45 |
|
FY2006 | 366,374 |
| 294,797 |
| 80.5 |
| 1,570.99 |
|
| (3) | Consolidated Cash Flows |
| Cash flows from operating activities | Cash flows from investing activities | Cash flows from | Cash and cash equivalents | ||||
| ||||||||
|
| Million yen |
| Million yen |
| Million yen |
| Million yen |
FY2007 interim | 6,007 |
| (6,354) |
| (24,968) |
| 170,431 |
|
FY2006 interim | 12,191 |
| (4,524) |
| (2,542) |
| 163,635 |
|
FY2006 | 48,951 |
| (8,013) |
| (3,662) |
| 196,395 |
|
(Note) Per share information for the FY2006 interim period is restated to reflect the effects of the two for one stock split of shares of its common stock conducted by Advantest on October 1, 2006
- 1 -
2. Dividends
| Dividend per share | ||
(Record Date) | Interim | Year end | Annual total |
| yen | yen | yen |
FY2006 | 17.50 | 32.50 | 50.00 |
FY2007 | 25.00 |
| 50.00 |
FY2007 (forecast) |
| 25.00 |
(Note) On October 1, 2006, a two for one stock split was made to shares of the common stock. The interim dividend per share for FY2006 is calculated based on the number of issued and outstanding shares after such stock split.
3. Projected Results for FY2007 (April 1, 2007 through March 31, 2008)
| (% changes as compared to the previous fiscal year) |
| Net sales | Operating income | Income before income taxes and equity in earnings of affiliated company | Net income | Net income per share (basic) | |||||
| ||||||||||
| Million yen | % increase | Million yen | % increase | Million yen | % increase | Million yen | % increase |
| Yen |
FY2007 | 230,000 | (2.1) | 47,000 | (17.2) | 51,000 | (16.5) | 33,000 | (7.2) | 178.40 |
|
4. Others
| (1) | Material changes in Subsidiaries during this fiscal period (Changes in specified subsidiaries resulting in changes in scope of consolidation): None |
| (2) | Changes in Accounting Principles, Procedures and the Presentation of the Consolidated Financial Statements |
| 1) | Changes based on revisions of accounting standard : Yes |
| 2) | Changes other than 1) above : None |
(Note) Please see “(5) Notes to the Interim Consolidated Financial Statements (Note 2) Significant Accounting
Policies” on page 17 for details.
| (3) | Number of issued and outstanding shares (Common Stock) |
| 1) | Number of issued and outstanding shares at the end of each fiscal period (including treasury shares): |
FY 2007 interim 199,566,770 shares, FY 2006 interim 199,566,770 shares, FY 2006 199,566,770 shares.
| 2) | Number of treasury shares at the end of each fiscal period: FY 2007 interim 15,440,097 shares, FY 2006 interim 12,468,808 shares, FY 2006 11,916,485 shares. |
| (Note) 1. | For the number of shares used to calculate net income per share, please see “(Note 4) Per Share Information” on page 20. |
| 2. | On October 1, 2006, a two for one stock split was made to shares of the common stock. Per share information for FY2006 interim is calculated based on the number of issued and outstanding shares after such stock split. |
(Reference) Selected Non-Consolidated Financial Data (Prepared in accordance with Japan GAAP)
(Rounded to the nearest million yen in FY2007 interim, truncated after the million yen in FY2006 interim and FY2006)
1. | Non-Consolidated Results of FY2007 Interim (April 1, 2007 through September 30, 2007) |
(1) | Non-Consolidated Financial Results |
| (% changes as compared to the corresponding period of the previous fiscal year) |
| Net sales | Operating income | Income before income taxes | Net income | ||||
| ||||||||
| Million yen | % increase | Million yen | % increase | Million yen | % increase | Million yen | % increase |
FY2007 interim | 93,074 | (6.5) | 14,381 | (33.0) | 47,618 | 96.0 | 37,499 | 124.4 |
FY2006 interim | 99,562 | (1.9) | 21,465 | 1.4 | 24,293 | (1.2) | 16,707 | 1.1 |
FY2006 | 197,753 | - | 41,503 | - | 43,638 | - | 29,436 | - |
| Net income per share (basic) | |
| ||
|
| Yen |
FY2007 interim | 202.72 |
|
FY2006 interim | 178.78 |
|
FY2006 | 157.31 |
|
(Note) On October 1, 2006, a two for one stock split was made to shares of the common stock. Basic net income per share for FY 2006 interim was calculated based on the number of issued and outstanding shares before such stock split. Retrospectively applying the effect of the stock split as at the beginning of the fiscal year, basic net income per share would be (Y) 89.39.
- 2 -
| (2) | Non-consolidated Financial Position |
| Total assets | Net assets | Equity-to-assets ratio | Net assets | ||||
|
| Million yen |
| Million yen |
| % |
| Yen |
FY2007 interim | 292,830 |
| 236,962 |
| 80.0 |
| 1,272.93 |
|
FY2006 interim | 266,206 |
| 211,459 |
| 79.2 |
| 2,253.49 |
|
FY2006 | 289,697 |
| 224,805 |
| 76.8 |
| 1,185.55 |
|
(Reference) Total equity : FY 2007 interim (Y) 234,380 million, FY 2006 interim (Y) 210,811 million, FY 2006 (Y) 222,468 million
(Note) On October 1, 2006, a two for one stock split was made to shares of the common stock. Net assets per share for FY2006 interim was calculated based on the number of issued and outstanding shares before such stock split. Retrospectively applying the effect of the stock split as at the beginning of the fiscal year, net assets per share would be (Y)1,126.74.
Explanation on the Appropriate Use of Future Earnings Projections and Other Special Instructions
1. | In this document, Advantest has revised its full-term earnings forecast which it announced on July 25, 2007. |
2. | This document contains “forward-looking statements” that are based on Advantest’s current expectations, estimates and projections. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause Advantest’s actual results, levels of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. These factors include: (i) changes in demand for the products and services produced and offered by Advantest’s customers, including semiconductors, communications services and electronic goods; (ii) circumstances relating to Advantest’s investment in technology, including its ability to timely develop products that meet the changing needs of semiconductor manufacturers and communications network equipment and components makers and service providers; (iii) significant changes in the competitive environment in the major markets where Advantest purchases materials, components and supplies for the production of its products or where its products are produced, distributed or sold; and (iv) changes in economic conditions, currency exchange rates or political stability in the major markets where Advantest procures materials, components and supplies for the production of its principal products or where its products are produced, distributed or sold. A discussion of these and other factors which may affect Advantest’s actual results, levels of activity, performance or achievements is contained in the “Operating and Financial Review and Prospects”, “Key Information – Risk Factors” and “Information on the Company” sections and elsewhere in Advantest’s annual report on Form 20-F, which is on file with the United States Securities and Exchange Commission. For the assumptions on which earnings projections are made and other related matters, please see “(1) Analysis of Business Results” in “1. Business Results” on page 4. |
- 3 -
Advantest Corporation (FY2007 interim)
1. Business Results
(1) Analysis of Business Results
1) Consolidated Financial Results of FY2007 Interim (April 1, 2007 through September 30, 2007)
| FY2006 interim | FY2007 interim | % increase (decrease) |
Orders input received | 115.2 | 95.2 | (17.4) |
Net sales | 120.5 | 114.9 | (4.7) |
Operating income | 32.2 | 24.6 | (23.5) |
Net income | 22.2 | 16.9 | (23.8) |
During this interim fiscal period, Advantest’s operating environment remained unfavorable, due to persistent economic uncertainty resulting from, among others, the instability of the financial market and the concerns over a slowdown of the U.S. economy, triggered by the issue regarding mortgages targeted to borrowers with low credit ratings (“Sub-prime Loans”), as well as by soaring crude oil and raw material prices. Results are varied in the semiconductor related markets, depending on the conditions of the main business of each of the semiconductor manufacturers. Capital expenditure by flash memory semiconductor manufacturers was positive, supported by active demand. However, in the DRAM semiconductor and MPU markets, capital expenditure was restrained as a result of a decline in prices due to excess supply and increased competition. In this environment, as a result of partial postponement of capital expenditure and the tendency for Advantest’s major clients to exercise restraint, orders received decreased by 17.4% from the previous interim fiscal period to (Y) 95.2 billion. Furthermore, interim results forecasted for net sales were not achieved, with net sales decreasing by 4.7% from the previous interim fiscal period to (Y) 114.9 billion.
On the other hand, in order to ensure profitability, Advantest continued to invest in the research and development of new products which will be a source of future profits, and continued to make efforts to implement the just-in-time-production-system, improve quality, productivity and yield and reduce costs in the production process. However, due mainly to net sales falling below that of the same period in the previous year, operating income decreased by 23.5% to (Y) 24.6 billion and net income for the interim fiscal period decreased by 23.8% to (Y) 16.9 billion, as compared to the same period in the previous year.
Conditions of Business by Segment are described below.
<Semiconductor and Component Test System Segment>
| FY2006 interim | FY2007 interim | % increase (decrease) |
Orders input received | 82.0 | 69.0 | (15.8) |
Sales | 86.0 | 85.3 | (0.8) |
Operating income | 26.5 | 23.1 | (12.8) |
- 4 - |
Advantest Corporation (FY2007 interim)
In the memory semiconductor test system market of this segment, the environment was unfavorable due to, among others, the decrease in the price of DRAM semiconductors used in personal computers continuing from the beginning of this year, as well as the prolonged stagnation in demand for personal computers with a new operating system, contrary to expectations for high demand at the beginning of this fiscal year. These factors have resulted in some DRAM semiconductor manufacturers postponing their capital expenditures. Despite the trend for some DRAM semiconductor manufacturers to shift their capital expenditures to the field of flash memory semiconductors, because the amount of such expenditure fell short of what was expected to be spent on DRAM semiconductors, orders received of the test systems for memory semiconductors decreased significantly. However, sales remained favorable as a result of sales made in response to the backlog of orders from the previous period.
On the other hand, in the non memory semiconductor test system market, although capital expenditure for liquid crystal panel manufacturers, which had been weak since last summer showed temporary signs of recovery in the first half of the interim fiscal period, such recovery did not persist, and demand for the test systems for LCD driver ICs remained weak. Similarly, although demand for products such as mobile devices and digital cameras remained strong, demand for test systems for SoC semiconductors, which are used in high performance-large LCD televisions and high-tech game devices, suffered as a result of slow-growing demand for such products since the summer. Accordingly, orders received and sales of the test systems for non memory semiconductors remained weak.
As a result of the above, orders received was (Y) 69.0 billion (15.8% decrease in comparison to the previous interim fiscal period), sales was (Y) 85.3 billion (0.8% decrease) and operating income was (Y) 23.1billion (12.8% decrease).
<Mechatronics System Segment>
| FY2006 interim | FY2007 interim | % increase (decrease) |
Orders input received | 25.5 | 18.1 | (29.0) |
Sales | 26.7 | 21.4 | (19.8) |
Operating income | 7.6 | 3.4 | (54.5) |
This segment tends to be affected by demand for test systems for memory and non memory semiconductors in the semiconductor and component test system segment, and because the shipment of test systems for memory semiconductors, in particular the post process test systems, was stagnant, orders received and sales of handlers and device interface products were weak.
As a result of the above, orders received was (Y) 18.1billion (29.0% decrease in comparison to the previous interim fiscal period), sales was (Y) 21.4 billion (19.8% decrease) and operating income was (Y) 3.4 billion (54.5% decrease).
<Services, Support and Others Segment>
| FY2006 interim | FY2007 interim | % increase (decrease) |
Orders input received | 9.4 | 10.1 | 7.1 |
Sales | 9.7 | 10.2 | 5.2 |
Operating income | 1.4 | 1.6 | 14.1 |
- 5 - |
Advantest Corporation (FY2007 interim)
Orders received was (Y) 10.1billion (7.1% increase in comparison to the previous interim fiscal period), sales was (Y) 10.2 billion (5.2% increase) and operating income was (Y) 1.6 billion (14.1% increase).
2) Prospects for the Fiscal Year
With respect to its future operating environment, although Advantest expects an increase in demand for digital consumer products leading up to the Beijing Olympics, as well as due to corporations replacing personal computers with those equipped with a new operating system, because of the excessive supply of semiconductors and price decline risk resulting from the deterioration of the supply and demand balance in the semiconductors market, it is expected that semiconductor manufacturers will continue to exercise prudence in increasing their capital expenditures.
In order to respond to these conditions, Advantest plans to continue its efforts to increase orders received and expand sales through the timely introduction of new products that meet customers’ demands. To further strengthen its cost competitiveness, Advantest will make continued efforts to improve profitability by reviewing its operational process company wide and promote not only reduction of production cost but also the increased productivity of various activities.
With respect to its business outlook for the fiscal year, because Advantest predicts that business conditions will continue to be severe in the second half of the fiscal year as it was for this interim period with sales remaining at the same level, Advantest revised its forecast as follows:
(Consolidated) | (in million yen) |
| Net sales | Operating income | Income before | Net income | |||||
|
|
|
|
| income taxes and equity in earnings of affiliated company |
| |||
|
|
|
|
|
|
|
|
|
|
Previous forecast (A) (as of July 25, 2007) | 255,000 |
|
| 60,000 |
| 65,000 |
| 42,000 |
|
Revised forecast (B) | 230,000 |
|
| 47,000 |
| 51,000 |
| 33,000 |
|
Difference (B-A) | (25,000 | ) |
| (13,000 | ) | (14,000 | ) | (9,000 | ) |
% increase (decrease) | (9.8 | ) |
| (21.7 | ) | (21.5 | ) | (21.4 | ) |
(2) Financial Condition
1) Assets, Liabilities and Net Assets
Total assets at the end of FY2007 interim period was (Y) 351.0 billion, a decrease of (Y) 15.4 billion compared to the previous fiscal year, due primarily to a decrease of (Y) 26.0 billion in cash and cash equivalents, an increase of (Y) 4.3 billion in trade receivables and of (Y) 4.0 billion in deferred tax assets compared to the previous fiscal year. The amount of total liabilities was (Y) 64.6 billion, a decrease of (Y) 7.0 billion compared to the previous fiscal year. Shareholders’ equity was (Y) 286.4 billion. Equity to assets ratio was 81.6%, an increase of 1.1 point.
- 6 - |
Advantest Corporation (FY2007 interim)
(2) Cash Flow Condition
Cash and cash equivalents held at September 30, 2007 were (Y) 170.4 billion, a decrease of (Y) 26.0 billion from March 31, 2007.
Significant cash flows during this interim fiscal period and their causes are described below.
Net cash provided by operating activities was (Y) 6.0 billion. This amount was primarily attributable to a net income of (Y) 16.9 billion, a decrease of (Y) 6.3 billion in trade accounts payable and an increase of (Y) 4.3 billion in trade receivables.
Net cash used in investing activities was (Y) 6.4 billion. This amount was primarily attributable to capital expenditures of (Y) 5.8 billion.
Net cash used in financing activities was (Y) 25.0 billion. This amount was primarily attributable to the repurchase of treasury stock in the amount of (Y) 19.1 billion and dividend payments in the amount of (Y) 6.1 billion.
(3) Basic Policy on Distribution of Profits and Distribution for the FY2007 interim period
Based on the premise that long-term and continued growth in corporate value is fundamental to the creation of shareholder value, Advantest deems the consistent distribution of profits to be the most important management priority. Accordingly, Advantest engages in active distribution of profits based on its consolidated business performance.
With respect to the distribution of surplus, Advantest makes payout decisions after taking into consideration its consolidated business performance, financial conditions, as well as the need for strategic investment for mid- to long-term business development. While aiming to make consistent distributions, because of the constant fluctuation of the market in which it operates, Advantest makes dividend payouts following a target payout ratio of 20% or more.
Retained earnings will be devoted to research and development, streamlining efforts, overseas expansion, investments in new businesses and resources for M&A activities, with an aim to strengthen the Company’s management base and enhance its corporate value.
Advantest will repurchase its treasury stock in order to maintain flexible capital strategies which will allow Advantest to respond quickly to changes in the operating environment and enhance its corporate value, by taking into account factors such as stock price trend, capital efficiency and cash flow.
- 7 - |
Advantest Corporation (FY2007 interim)
For this interim period, Advantest decided, pursuant to the above profit distribution policy, to distribute an interim dividend of (Y) 25.00 per share as planned and plans to distribute a total annual dividend of (Y) 50.00 per share as forecasted.
At the meeting of its Board of Directors held on April 25, 2007, the Company resolved to repurchase its own shares. Pursuant to the resolution, the Company repurchased 3.6 million shares at an aggregate purchase price of (Y) 19.1 billion in May 2007.
2. Corporate Structure
There are no material changes from the information in “Business structure (Description of business)” and “Organizational Structure” of the most recent Annual Securities Report filed with the Director of the Kanto Local Finance Bureau on June 28, 2007.
3. Management Policy
(1) Advantest’s Basic Management Policy
Advantest’s management philosophy is to support leading-edge technology at its forefront. Its basic management policy consists of the following elements: enhancing corporate value, improving shareholder and customer satisfaction and achieving excellence.
(2) Target Financial Index
Advantest applies the “AVA” (Advantest Value Added), a financial index incorporating the concept of EVA®(Economic Value Added) *, as a significant performance indicator, along with profit margin, ROE and cash flows, to measure its business performance. Specifically, Advantest will continue to set the minimum return-on-investment ratio (“hurdle rate”) for evaluating AVA at 8% and a mid-term target at 12% or more with an aim to further enhance corporate value and shareholder value.
*”EVA®” is a registered trademark of Stern Stewart & Co.
(3) Mid-and-long-term Business Strategy and Issues to be addressed
While maintaining “Measurements” as our core competence, Advantest intends to enhance its corporate value by establishing an operation and finance structure that timely responds to changes in the global market, and by aiming to increase market share by introducing, in a timely manner, products that will inspire the market demands of the next generation. To achieve these objectives, Advantest has been strengthening its product development operations and improving production efficiency by selectively focusing on certain businesses, while strengthening its overseas operations and support system in the U.S., Europe and Asia.
Furthermore, Advantest seeks to increase the level of customer satisfaction by maximizing the functions of its test systems and by providing customers with a solution to improve business efficiency in all aspects of business.
In October 2005, Advantest launched a company-wide initiative called “Activate 21” to promote reforms that emphasize cost and efficiency from a global perspective, which will continue until the end of FY2008.
- 8 - |
Advantest Corporation (FY2007 Interim)
4. Interim Consolidated Financial Statements and Other Information |
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(1) Interim Consolidated Balance Sheets |
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| FY2006
(As of March 31, 2007) | FY2007 interim
(As of September 30, 2007) | As compared to the previous fiscal year | FY2006 interim
(As of September 30, 2006) | |||||
| Amount (in million yen) | Percentage (%) | Amount (in million yen) | Percentage (%) | Increase (decrease) (in million yen) | Amount (in million yen) | Percentage (%) | ||
(Assets) |
|
|
|
|
|
|
|
| |
| Cash and cash equivalents | 196,395 |
| 170,431 |
| (25,964) | 163,635 |
| |
| Trade receivables, net | 54,264 |
| 58,535 |
| 4,271 | 67,336 |
| |
| Inventories | 31,976 |
| 34,260 |
| 2,284 | 27,040 |
| |
| Deferred tax assets | 9,215 |
| 12,857 |
| 3,642 | 12,471 |
| |
| Other current assets | 2,958 |
| 2,987 |
| 29 | 2,626 |
| |
| Total current assets | 294,808 | 80.5 | 279,070 | 79.5 | (15,738) | 273,108 | 78.7 | |
| Investment securities | 11,370 | 3.1 | 10,320 | 2.9 | (1,050) | 11,423 | 3.3 | |
| Property, plant and equipment, net | 49,650 | 13.6 | 50,532 | 14.4 | 882 | 50,002 | 14.4 | |
| Deferred tax assets | 2,690 | 0.7 | 3,048 | 0.9 | 358 | 7,783 | 2.2 | |
| Intangible assets, net | 3,101 | 0.8 | 3,298 | 0.9 | 197 | 2,973 | 0.9 | |
| Other assets | 4,755 | 1.3 | 4,695 | 1.4 | (60) | 1,800 | 0.5 | |
| Total assets | 366,374 | 100.0 | 350,963 | 100.0 | (15,411) | 347,089 | 100.0 | |
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- 9 - |
Advantest Corporation (FY2007 Interim)
| FY2006
(As of March 31, 2007) | FY2007 interim
(As of September 30, 2007) | As compared to the previous fiscal year | FY2006 interim
(As of September 30, 2006) | |||||||||||
| Amount (in million yen) | Percentage (%) | Amount (in million yen) | Percentage (%) | Increase (decrease) (in million yen) |
| Amount (in million yen) | Percentage (%) | |||||||
(Liabilities) |
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| |
| Current portion of long-term debt | 10 |
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| 5 |
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| (5 | ) | 10 |
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| Trade accounts payable | 29,095 |
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| 22,890 |
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| (6,205 | ) | 22,915 |
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| Income taxes payable | 9,370 |
|
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| 10,106 |
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| 736 |
| 10,831 |
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| Accrued expenses | 13,637 |
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| 12,624 |
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| (1,013 | ) | 11,780 |
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| Accrued warranty expenses | 4,135 |
|
|
| 4,032 |
|
|
| (103 | ) | 4,373 |
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| Other current liabilities | 4,405 |
|
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| 5,113 |
|
|
| 708 |
| 3,532 |
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| Total current liabilities | 60,652 |
| 16.6 |
| 54,770 |
| 15.6 |
| (5,882 | ) | 53,441 |
| 15.4 |
|
| Long-term debt, excluding current portion | – |
| – |
| – |
| – |
| – |
| 5 |
| 0.0 |
|
| Accrued pension and severance cost | 8,267 |
| 2.2 |
| 7,709 |
| 2.2 |
| (558 | ) | 11,420 |
| 3.3 |
|
| Other liabilities | 2,658 |
| 0.7 |
| 2,090 |
| 0.6 |
| (568 | ) | 3,550 |
| 1.0 |
|
| Total liabilities | 71,577 |
| 19.5 |
| 64,569 |
| 18.4 |
| (7,008 | ) | 68,416 |
| 19.7 |
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(Stockholders’ equity) |
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| |
| Common stock | 32,363 |
| 8.8 |
| 32,363 |
| 9.2 |
| – |
| 32,363 |
| 9.3 |
|
| Capital surplus | 39,256 |
| 10.7 |
| 39,499 |
| 11.3 |
| 243 |
| 37,702 |
| 10.9 |
|
| Retained earnings | 273,082 |
| 74.6 |
| 283,843 |
| 80.8 |
| 10,761 |
| 262,875 |
| 75.7 |
|
| Accumulated other comprehensive income (loss) | 3,652 |
| 1.0 |
| 3,000 |
| 0.9 |
| (652 | ) | 1,757 |
| 0.5 |
|
| Treasury stock | (53,556 | ) | (14.6 | ) | (72,311 | ) | (20.6 | ) | (18,755 | ) | (56,024 | ) | (16.1 | ) |
| Total stockholders’ equity | 294,797 |
| 80.5 |
| 286,394 |
| 81.6 |
| (8,403 | ) | 278,673 |
| 80.3 |
|
| Total liabilities and stockholders’ equity | 366,374 |
| 100.0 |
| 350,963 |
| 100.0 |
| (15,411 | ) | 347,089 |
| 100.0 |
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- 10 - |
Advantest Corporation (FY2007 Interim)
(2) Interim Consolidated Statements of Income |
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| FY2006 interim
(April 1, 2006 through
September 30, 2006) | FY2007 interim
(April 1, 2007 through
September 30, 2007) | As compared to the corresponding period of the previous fiscal year | FY2006
(April 1, 2006 through
March 31, 2007) | ||||||||||||||||
| Amount (in million yen) | Percentage (%) | Amount (in million yen) | Percentage (%) | Increase (decrease) (in million yen) | Amount (in million yen) | Percentage (%) | |||||||||||||
| Net sales |
|
| 120,492 | 100.0 |
| 114,863 |
| 100.0 |
| (5,629 | ) |
|
| 235,012 |
| 100.0 |
| ||
| Cost of sales |
|
| 55,493 | 46.1 |
| 52,839 |
| 46.0 |
| (2,654 | ) |
|
| 108,718 |
| 46.3 |
| ||
|
|
| Gross profit |
|
| 64,999 | 53.9 |
| 62,024 |
| 54.0 |
| (2,975 | ) |
|
| 126,294 |
| 53.7 |
|
| Research and development expenses |
| 14,121 | 11.7 |
| 16,361 |
| 14.2 |
| 2,240 |
|
|
| 29,509 |
| 12.6 |
| |||
| Selling, general and administrative expenses |
| 18,679 | 15.5 |
| 21,016 |
| 18.3 |
| 2,337 |
|
|
| 39,993 |
| 16.9 |
| |||
|
|
| Operating income |
| 32,199 | 26.7 |
| 24,647 |
| 21.5 |
| (7,552 | ) |
|
| 56,792 |
| 24.2 |
| |
| Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
| Interest and dividends income | 1,384 |
|
| 2,170 |
|
|
|
|
|
| 3,026 |
|
|
|
|
| ||
|
| Interest expense |
| (8) |
|
| (6) |
|
|
|
|
|
| (16 | ) |
|
|
|
| |
|
| Other |
| 376 | 1,752 | 1.5 | 549 | 2,713 |
| 2.3 |
| 961 |
| 1,288 |
| 4,298 |
| 1.8 |
| |
|
| Income before income taxes and equity in earnings of affiliated company |
| 33,951 | 28.2 |
| 27,360 |
| 23.8 |
| (6,591 | ) |
|
| 61,090 |
| 26.0 |
| ||
| Income taxes |
|
| 11,747 | 9.8 |
| 10,426 |
| 9.1 |
| (1,321 | ) |
|
| 25,520 |
| 10.9 |
| ||
| Equity in earnings (losses) of affiliated company |
| – | – |
| (4 | ) | (0.0 | ) | (4 | ) |
|
| (14 | ) | (0.0 | ) | |||
|
| Net income |
|
| 22,204 | 18.4 |
| 16,930 |
| 14.7 |
| (5,274 | ) |
|
| 35,556 |
| 15.1 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
|
| FY2006 interim
(April 1, 2006 through
September 30, 2006) | FY2007 interim
(April 1, 2007 through
September 30, 2007) | As compared to the corresponding period of the previous fiscal year | FY2006
(April 1, 2006 through
March 31, 2007) | |||||||||||||||
|
| Amount (in yen) | Amount (in yen) | Increase (decrease) (in yen) | Amount (in yen) | |||||||||||||||
| Net income per share |
|
|
|
|
|
|
|
|
|
| |||||||||
|
| Basic |
|
| 118.79 |
|
| 91.52 |
| (27.27) |
| 190.01 |
| |||||||
|
| Diluted |
|
| 118.03 |
|
| 91.24 |
| (26.79) |
| 188.85 |
| |||||||
- 11 - |
Advantest Corporation (FY2007 Interim)
(3) Interim Consolidated Statements of Stockholders’ Equity |
|
|
|
|
|
|
|
| ||||||||||||||||
| FY2006 interim (April 1, 2006 through September 30, 2006) |
|
|
|
| (In million yen) | ||||||||||||||||||
|
|
|
|
|
| Common stock | Capital surplus | Retained earnings | Accumulated other comprehensive income (loss) | Treasury stock | Total equity | |||||||||||||
| Balance at March 31, 2006 |
| 32,363 |
| 37,147 |
| 245,090 |
| 1,344 |
| (58,017 | ) | 257,927 |
| ||||||||||
| Comprehensive income |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
|
| Net income |
|
|
|
|
|
| 22,204 |
|
|
|
|
| 22,204 |
| ||||||||
|
| Other comprehensive income (loss), net of tax |
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
|
|
| Foreign currency translation adjustments |
|
|
|
|
|
| 813 |
|
|
| 813 |
| |||||||||
|
|
| Net unrealized gains (losses) on securities |
|
|
|
|
|
| (400) |
|
|
| (400 | ) | |||||||||
|
| Total comprehensive income |
|
|
|
|
|
|
|
|
|
| 22,617 |
| ||||||||||
| Cash dividends |
|
|
|
|
|
| (4,200 | ) |
|
|
|
| (4,200 | ) | |||||||||
| Stock option compensation expense |
|
| 648 |
|
|
|
|
|
|
| 648 |
| |||||||||||
| Exercise of stock option |
|
|
| (93 | ) |
|
|
|
| 2,004 |
| 1,911 |
| ||||||||||
| Repurchase of treasury stock |
|
|
|
|
|
|
|
|
| (18 | ) | (18 | ) | ||||||||||
| Sale of treasury stock |
|
|
|
|
|
| (219 | ) |
|
| 7 |
| (212 | ) | |||||||||
| Balance at September 30, 2006 | 32,363 |
| 37,702 |
| 262,875 |
| 1,757 |
| (56,024 | ) | 278,673 |
| |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
FY2007 interim (April 1, 2007 through September 30, 2007) |
|
|
|
|
| (In million yen) | ||||||||||||||||||
|
|
|
|
|
| Common stock | Capital surplus | Retained earnings | Accumulated other comprehensive income (loss) | Treasury stock | Total equity | |||||||||||||
| Balance at March 31, 2007 |
| 32,363 |
| 39,256 |
| 273,082 |
| 3,652 |
| (53,556 | ) | 294,797 |
| ||||||||||
| Comprehensive income |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
|
| Net income |
|
|
|
|
|
| 16,930 |
|
|
|
|
| 16,930 |
| ||||||||
|
| Other comprehensive income (loss), net of tax |
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
|
|
| Foreign currency translation adjustments |
|
|
|
|
|
| (21 | ) |
|
| (21 | ) | |||||||||
|
|
| Net unrealized gains (losses) on securities |
|
|
|
|
|
| (619 | ) |
|
| (619 | ) | |||||||||
|
|
| Pension liability adjustments |
|
|
|
|
|
| (12 | ) |
|
| (12 | ) | |||||||||
|
| Total comprehensive income |
|
|
|
|
|
|
|
|
|
| 16,278 |
| ||||||||||
| Cash dividends |
|
|
|
|
|
| (6,099 | ) |
|
|
|
| (6,099 | ) | |||||||||
| Stock option compensation expense |
|
| 289 |
|
|
|
|
|
|
| 289 |
| |||||||||||
| Exercise of stock option |
|
|
| (46 | ) |
|
|
|
| 365 |
| 319 |
| ||||||||||
| Repurchase of treasury stock |
|
|
|
|
|
|
|
|
| (19,121 | ) | (19,121 | ) | ||||||||||
| Sale of treasury stock |
|
|
|
|
| (70 | ) |
|
| 1 |
| (69 | ) | ||||||||||
| Balance at September 30, 2007 | 32,363 |
| 39,499 |
| 283,843 |
| 3,000 |
| (72,311 | ) | 286,394 |
| |||||||||||
- 12 - |
Advantest Corporation (FY2007 Interim)
FY2006 (April 1, 2006 through March 31, 2007) |
|
|
|
|
|
|
| (In million yen) | |||||||||
|
|
|
|
|
| Common stock | Capital surplus | Retained earnings | Accumulated other comprehensive income (loss) | Treasury stock | Total stockholders’ equity | ||||||
| Balance at March 31, 2006 |
| 32,363 |
| 37,147 |
| 245,090 |
| 1,344 |
| (58,017 | ) | 257,927 |
| |||
| Comprehensive income |
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
| Net income |
|
|
|
|
|
| 35,556 |
|
|
|
|
| 35,556 |
| |
|
| Other comprehensive income (loss), net of tax |
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
| Foreign currency translation adjustments |
|
|
|
|
|
| 1,123 |
|
|
| 1,123 |
| ||
|
|
| Net unrealized gains (losses) on securities |
|
|
|
|
|
| (362 | ) |
|
| (362 | ) | ||
|
| Total comprehensive income |
|
|
|
|
|
|
|
|
|
| 36,317 |
| |||
| Adjustment to initially apply SFAS 158, net of tax |
|
|
|
|
| 1,547 |
|
|
| 1,547 |
| |||||
| Cash dividends |
|
|
|
|
|
| (7,474 | ) |
|
|
|
| (7,474 | ) | ||
| Stock option compensation expense |
|
| 2,566 |
|
|
|
|
|
|
| 2,566 |
| ||||
| Exercise of stock option |
|
|
| (457 | ) |
|
|
|
| 4,520 |
| 4,063 |
| |||
| Repurchase of treasury stock |
|
|
|
|
|
|
|
|
| (68 | ) | (68 | ) | |||
| Sale of treasury stock |
|
|
|
|
|
| (90 | ) |
|
| 9 |
| (81 | ) | ||
| Balance at March 31, 2007 |
| 32,363 |
| 39,256 |
| 273,082 |
| 3,652 |
| (53,556 | ) | 294,797 |
|
-13- |
Advantest Corporation (FY2007 Interim)
(4) Interim Consolidated Statements of Cash Flows |
|
|
| (In million yen) | ||||||||||
|
|
|
|
|
(April 1, 2006 through |
(April 1, 2007 through | As compared to the corresponding |
(April 1, 2006 through | ||||||
|
|
|
|
| September 30, 2006) | September 30, 2007) | previous fiscal year | March 31, 2007) | ||||||
|
|
|
|
| Amount | Amount | Increase (decrease) | Amount | ||||||
I Cash flows from operating activities: |
|
|
|
|
|
|
|
| ||||||
|
| Net income |
| 22,204 |
| 16,930 |
| (5,274 | ) | 35,556 |
| |||
|
| Adjustments to reconcile net income |
|
|
|
|
|
|
|
|
| |||
|
|
| Depreciation and amortization | 3,810 |
| 3,884 |
| 74 |
| 8,214 |
| |||
|
|
| Deferred income taxes |
| 915 |
| (3,610 | ) | (4,525 | ) | 7,381 |
| ||
|
|
| Stock option compensation expense | 648 |
| 289 |
| (359 | ) | 2,566 |
| |||
|
|
| Changes in assets and liabilities: |
|
|
|
|
|
|
|
| |||
|
|
|
| Trade receivables | 2,180 |
| (4,321 | ) | (6,501 | ) | 15,563 |
| ||
|
|
|
| Inventories | 2,835 |
| (2,249 | ) | (5,084 | ) | (2,054 | ) | ||
|
|
|
| Trade accounts payable | (9,390 | ) | (6,258 | ) | 3,132 |
| (3,318 | ) | ||
|
|
|
| Income taxes payable | (9,156 | ) | 731 |
| 9,887 |
| (10,586 | ) | ||
|
|
|
| Accrued expenses | (1,013 | ) | (1,003 | ) | 10 |
| 815 |
| ||
|
|
|
| Accrued warranty expenses | (403 | ) | (103 | ) | 300 |
| (641 | ) | ||
|
|
|
| Accrued pension and severance cost | (873 | ) | (575 | ) | 298 |
| (1,437 | ) | ||
|
|
| Other | 434 |
| 2,292 |
| 1,858 |
| (3,108 | ) | |||
| Net cash provided by operating activities | 12,191 |
| 6,007 |
| (6,184 | ) | 48,951 |
| |||||
II Cash flows from investing activities: |
|
|
|
|
|
|
|
| ||||||
|
| Proceeds from sale of non-marketable securities | – |
| 41 |
| 41 |
| 20 |
| ||||
|
| Purchases of non-marketable securities | – |
| (117 | ) | (117 | ) | – |
| ||||
|
| Proceeds from sale of property, plant and equipment | 63 |
| 213 |
| 150 |
| 541 |
| ||||
|
| Purchases of intangible assets |
| (449 | ) | (517 | ) | (68 | ) | (897 | ) | |||
|
| Purchases of property, plant and equipment | (4,105 | ) | (5,792 | ) | (1,687 | ) | (7,511 | ) | ||||
|
| Other |
| (33 | ) | (182 | ) | (149 | ) | (166 | ) | |||
| Net cash used in investing activities | (4,524 | ) | (6,354 | ) | (1,830 | ) | (8,013 | ) | |||||
|
|
|
|
|
|
|
|
| ||||||
-14- |
Advantest Corporation (FY2007 Interim)
|
|
|
|
|
|
|
|
|
|
| (In million yen) |
| |
|
|
|
|
|
(April 1, 2006 through |
|
(April 1, 2007 through |
| As compared to the corresponding |
|
(April 1, 2006 through |
| |
|
|
|
|
| September 30, 2006) |
| September 30, 2007) |
| previous fiscal year |
| March 31, 2007) | ||
|
|
|
|
| Amount |
| Amount |
| Increase (decrease) |
| Amount |
| |
III | Cash flows from financing activities: |
|
|
|
|
|
|
|
| ||||
|
| Principal payments on long-term debt | (25 | ) | (5 | ) | 20 |
| (30 | ) | |||
|
| Proceeds from sale of treasury stock | 1,698 |
| 249 |
| (1,449 | ) | 3,913 |
| |||
|
| Payments to acquire treasury stock | (18 | ) | (19,121 | ) | (19,103 | ) | (68 | ) | |||
|
| Dividends paid |
| (4,193 | ) | (6,087 | ) | (1,894 | ) | (7,468 | ) | ||
|
| Other |
| (4 | ) | (4 | ) | 0 |
| (9 | ) | ||
| Net cash used in financing activities | (2,542 | ) | (24,968 | ) | (22,426 | ) | (3,662 | ) | ||||
IV | Net effect of exchange rate changes on cash and cash equivalents | 585 |
| (649 | ) | (1,234 | ) | 1,194 |
| ||||
V | Net change in cash and cash equivalents | 5,710 |
| (25,964 | ) | (31,674 | ) | 38,470 |
| ||||
VI | Cash and cash equivalents at beginning of period | 157,925 |
| 196,395 |
| 38,470 |
| 157,925 | |||||
VII | Cash and cash equivalents at end of period | 163,635 |
| 170,431 |
| 6,796 |
| 196,395 |
| ||||
-15- |
Advantest Corporation (FY2007 interim)
(5) Notes to the Interim Consolidated Financial Statements
(Note 1) Accounting Principles, Procedures and the Presentation of the Interim Consolidated Financial Statements
(a) Terminology, Form and Method of Preparation of the Interim Consolidated Financial Statements
Advantest prepares these interim consolidated financial statements in accordance with the accounting principles, procedures, terminology, form and method of preparation required in the United States of America in connection with its issuance of American Depository Shares as established under Accounting Research Bulletins (“ARB”), Accounting Principles Board (“APB”) statements, Statements of Financial Accounting Standards (“SFAS”) and other relevant sources (collectively “U.S. GAAP”). However, Advantest Corporation and its consolidated subsidiaries prepare their unconsolidated financial statements in accordance with accounting principles generally accepted in the country of their domicile. Certain adjustments and reclassifications have been incorporated in the accompanying non-consolidated financial statements to present them in conformity with accounting principles generally accepted in the United States of America.
(b) Preparation of the Consolidated Financial Statements and Registration with the U.S. Securities and Exchange Commission
Advantest Corporation became listed on the New York Stock Exchange on September 17, 2001 (local time) by means of an issuance of American Depository Shares, and has been filing a Form 20-F (equivalent to the Annual Securities Report in Japan) with the U.S. Securities and Exchange Commission since FY2001. Advantest prepares the consolidated financial statements in its Form 20-F in accordance with U.S. GAAP.
(c) Scope of Consolidation and Application of the Equity Method
Advantest’s interim consolidated financial statements include financial statements of Advantest Corporation and its majority-owned subsidiaries. With respect to variable interest entities as provided in the U.S. Financial Accounting Standards Board’s Interpretation No. 46 (Revised December 2003) –“Consolidation of Variable Interest Entities”, Advantest does not have any such entity to be included in its consolidated financial statements. All significant intercompany balances and transactions have been eliminated in consolidation.
The following table sets forth the number of consolidated subsidiaries and equity method affiliates of Advantest:
| FY 2007 interim | FY 2006 | Increase (decrease) | |
| Domestic | 24 | 23 | 1 |
Overseas | 17 | 17 | 0 | |
Consolidated subsidiaries | 41 | 40 | 1 | |
Equity method affiliates | 1 | 1 | 0 | |
Total | 42 | 41 | 1 |
Changes in the scope of consolidation:
Newly included (1): Advantest Component, Inc.*
* Advantest Component, Inc. was established on June 1, 2007 as a subsidiary to be engaged in the development and production of semiconductor test system key
devices and electronic components.
- 16 - |
Advantest Corporation (FY2007 interim)
(Note 2) | Significant Accounting Policies |
(Accounting Changes)
(a) | Property, Plant and Equipment |
Depreciation has been calculated principally by the declining-balance method, except for certain assets which are depreciated by the straight-line method over the estimated useful lives of the assets. On April 1, 2007, Advantest and its domestic subsidiaries elected to change the declining-balance method of depreciating machinery and equipments as well as furniture and fixtures from the fixed-percentage-on-declining base application to the 250% declining balance application. Estimated salvage values have also been reduced in conjunction with this change.
Advantest and its domestic subsidiaries believe that the 250% declining balance application is preferable because it provides a better matching of allocation of cost of machinery and equipments as well as furniture and fixtures with associated revenue in light of product life cycles. In accordance with Statement of Financial Accounting Standards No. 154 “Accounting Changes and Error Corrections – a replacement of APB Opinion No.20 and FASB Statement No. 3, “ this change in depreciation methods represents a change in accounting estimate effected by a change in accounting principle. Accordingly, the effects of the change are accounted for prospectively beginning with the period of change. The change in depreciation methods caused a decrease in income before income taxes and equity in earnings of affiliated company and net income by (Y) 359 million and (Y) 214 million, respectively for the six months ended September 30, 2007.
(b) | Accrued Pension and Severance cost |
On March 31, 2007, Advantest adopted the recognition and disclosure provisions of SFAS 158. SFAS 158 requires Advantest to recognize the funded status (i.e., the difference between the fair value of plan assets and the projected benefit obligations) of its pension plans in the consolidated balance sheet, with a corresponding adjustment to accumulated other comprehensive income (loss). The adjustment to other accumulated comprehensive income (loss) at adoption represents the unrecognized actuarial loss and unrecognized prior service cost, which were previously netted against the plans’ funded status in the consolidated balance sheet pursuant to the provisions of SFAS 87.
There are no other changes pertaining to accounting policies other than as mentioned above from the interim report which was submitted on December 15, 2006.
- 17 -
Advantest Corporation (FY2007 interim)
(Note 3) Segment Information
1. Business Segment Information
|
|
| FY 2006 interim |
| FY 2007 interim |
| As compared to the | FY 2006 | |||||||
|
|
| (April 1, 2006 through |
| (April 1, 2007 through |
| corresponding | (April 1, 2006 through | |||||||
|
|
| Amount (in million yen) |
| Percentage |
| Amount (in million yen) |
| Percentage |
| Increase | Amount (in million yen) |
| Percentage | |
Semi-conductor and Component Test System |
| Net sales to unaffiliated customers | 84,305 |
| 98.1 |
| 83,561 |
| 98.0 |
| (744 | ) | 164,899 |
| 98.3 |
| Intersegment sales | 1,669 |
| 1.9 |
| 1,703 |
| 2.0 |
| 34 |
| 2,916 |
| 1.7 | |
Sales | 85,974 |
| 100.0 |
| 85,264 |
| 100.0 |
| (710 | ) | 167,815 |
| 100.0 | ||
Operating expenses | 59,438 |
| 69.1 |
| 62,123 |
| 72.9 |
| 2,685 |
| 119,207 |
| 71.0 | ||
Operating income before | 26,536 |
| 30.9 |
| 23,141 |
| 27.1 |
| (3,395 | ) | 48,608 |
| 29.0 | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Mechatronics System |
| Net sales to unaffiliated customers | 26,527 |
| 99.5 |
| 21,144 |
| 99.0 |
| (5,383 | ) | 51,801 |
| 99.6 |
| Intersegment sales | 128 |
| 0.5 |
| 223 |
| 1.0 |
| 95 |
| 224 |
| 0.4 | |
Sales | 26,655 |
| 100.0 |
| 21,367 |
| 100.0 |
| (5,288 | ) | 52,025 |
| 100.0 | ||
Operating expenses | 19,101 |
| 71.7 |
| 17,933 |
| 83.9 |
| (1,168 | ) | 38,378 |
| 73.8 | ||
Operating income before | 7,554 |
| 28.3 |
| 3,434 |
| 16.1 |
| (4,120 | ) | 13,647 |
| 26.2 | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Services, Support and Others |
| Net sales to unaffiliated customers | 9,660 |
| 100.0 |
| 10,158 |
| 100.0 |
| 498 |
| 18,312 |
| 100.0 |
| Intersegment sales | - |
| - |
| - |
| - |
| - |
| - |
| - | |
Sales | 9,660 |
| 100.0 |
| 10,158 |
| 100.0 |
| 498 |
| 18,312 |
| 100.0 | ||
Operating expenses | 8,249 |
| 85.4 |
| 8,548 |
| 84.2 |
| 299 |
| 15,442 |
| 84.3 | ||
Operating income before | 1,411 |
| 14.6 |
| 1,610 |
| 15.8 |
| 199 |
| 2,870 |
| 15.7 | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Elimination and Corporate |
| Net sales to unaffiliated customers | - |
| - |
| - |
| - |
| - |
| - |
| - |
| Intersegment sales | (1,797 | ) | 100.0 |
| (1,926 | ) | 100.0 |
| (129 | ) | (3,140 | ) | 100.0 | |
Sales | (1,797 | ) | 100.0 |
| (1,926 | ) | 100.0 |
| (129 | ) | (3,140 | ) | 100.0 | ||
Operating expenses | 857 |
| - |
| 1,323 |
| - |
| 466 |
| 2,627 |
| - | ||
Operating income (loss) before | (2,654 | ) | - |
| (3,249 | ) | - |
| (595 | ) | (5,767 | ) | - | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Consolidated |
| Net sales to unaffiliated customers | 120,492 |
| 100.0 |
| 114,863 |
| 100.0 |
| (5,629 | ) | 235,012 |
| 100.0 |
| Intersegment sales | - |
| - |
| - |
| - |
| - |
| - |
| - | |
Net sales | 120,492 |
| 100.0 |
| 114,863 |
| 100.0 |
| (5,629 | ) | 235,012 |
| 100.0 | ||
Operating expenses | 87,645 |
| 72.7 |
| 89,927 |
| 78.3 |
| 2,282 |
| 175,654 |
| 74.7 | ||
Operating income before | 32,847 |
| 27.3 |
| 24,936 |
| 21.7 |
| (7,911 | ) | 59,358 |
| 25.3 | ||
Adjustment: | 648 |
| 0.6 |
| 289 |
| 0.2 |
| (359 | ) | 2,566 |
| 1.1 | ||
Operating income | 32,199 |
| 26.7 |
| 24,647 |
| 21.5 |
| (7,552 | ) | 56,792 |
| 24.2 |
(Notes) | 1. | Adjustments to operating income (loss) in Corporate principally represent corporate general and administrative expenses and research and development expenses related to fundamental research activities that are not allocated to operating segments. |
| 2. | Advantest uses the operating income (loss) before stock option compensation expenses and net gain on settlement of substitutional portions of EPF for management’s analysis of business segment results. |
2. Geographic Segment Information
|
| FY 2006 interim |
| FY 2007 interim |
| As compared to the | FY 2006 | |||||||
|
| (April 1, 2006 through |
| (April 1, 2007 through |
| corresponding | (April 1, 2006 through | |||||||
| Net sales to unaffiliated customers | Amount (in million yen) |
| Percentage |
| Amount (in million yen) |
| Percentage |
| Increase | Amount (in million yen) |
| Percentage | |
| Americas | 6,136 |
| 5.1 |
| 4,974 |
| 4.3 |
| (1,162 | ) | 10,158 |
| 4.3 |
| Europe | 4,876 |
| 4.0 |
| 4,946 |
| 4.3 |
| 70 |
| 11,238 |
| 4.8 |
| Asia | 61,274 |
| 50.9 |
| 66,244 |
| 57.7 |
| 4,970 |
| 140,782 |
| 59.9 |
| Total Overseas | 72,286 |
| 60.0 |
| 76,164 |
| 66.3 |
| 3,878 |
| 162,178 |
| 69.0 |
| Japan | 48,206 |
| 40.0 |
| 38,699 |
| 33.7 |
| (9,507 | ) | 72,834 |
| 31.0 |
Consolidated | 120,492 |
| 100.0 |
| 114,863 |
| 100.0 |
| (5,629 | ) | 235,012 |
| 100.0 |
- 18 -
Advantest Corporation (FY2007 interim)
3. Segment Information by Geographic Area
|
|
| FY 2006 interim |
| FY 2007 interim |
| As compared to the | FY 2006 | |||||||
|
|
| (April 1, 2006 through |
| (April 1, 2007 through |
| corresponding | (April 1, 2006 through | |||||||
|
|
| Amount (in million yen) |
| Percentage |
| Amount (in million yen) |
| Percentage |
| Increase | Amount (in million yen) |
| Percentage | |
Japan |
| Net sales to unaffiliated customers | 69,791 |
| - |
| 64,638 |
| - |
| (5,153 | ) | 132,035 |
| - |
| Intersegment sales | 36,606 |
| - |
| 37,664 |
| - |
| 1,058 |
| 80,289 |
| - | |
Sales | 106,397 |
| 100.0 |
| 102,302 |
| 100.0 |
| (4,095 | ) | 212,324 |
| 100.0 | ||
Operating expenses | 79,960 |
| 75.2 |
| 81,836 |
| 80.0 |
| 1,876 |
| 159,782 |
| 75.3 | ||
Operating income | 26,437 |
| 24.8 |
| 20,466 |
| 20.0 |
| (5,971 | ) | 52,542 |
| 24.7 | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Americas |
| Net sales to unaffiliated customers | 12,483 |
| - |
| 4,276 |
| - |
| (8,207 | ) | 16,266 |
| - |
| Intersegment sales | 2,395 |
| - |
| 2,396 |
| - |
| 1 |
| 4,660 |
| - | |
Sales | 14,878 |
| 100.0 |
| 6,672 |
| 100.0 |
| (8,206 | ) | 20,926 |
| 100.0 | ||
Operating expenses | 12,946 |
| 87.0 |
| 6,446 |
| 96.6 |
| (6,500 | ) | 19,049 |
| 91.0 | ||
Operating income | 1,932 |
| 13.0 |
| 226 |
| 3.4 |
| (1,706 | ) | 1,877 |
| 9.0 | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Europe |
| Net sales to unaffiliated customers | 6,547 |
| - |
| 9,810 |
| - |
| 3,263 |
| 17,841 |
| - |
| Intersegment sales | 641 |
| - |
| 684 |
| - |
| 43 |
| 1,271 |
| - | |
Sales | 7,188 |
| 100.0 |
| 10,494 |
| 100.0 |
| 3,306 |
| 19,112 |
| 100.0 | ||
Operating expenses | 6,419 |
| 89.3 |
| 9,888 |
| 94.2 |
| 3,469 |
| 17,426 |
| 91.2 | ||
Operating income | 769 |
| 10.7 |
| 606 |
| 5.8 |
| (163 | ) | 1,686 |
| 8.8 | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Asia |
| Net sales to unaffiliated customers | 31,671 |
| - |
| 36,139 |
| - |
| 4,468 |
| 68,870 |
| - |
| Intersegment sales | 3,466 |
| - |
| 3,277 |
| - |
| (189 | ) | 6,852 |
| - | |
Sales | 35,137 |
| 100.0 |
| 39,416 |
| 100.0 |
| 4,279 |
| 75,722 |
| 100.0 | ||
Operating expenses | 29,559 |
| 84.1 |
| 32,684 |
| 82.9 |
| 3,125 |
| 67,073 |
| 88.6 | ||
Operating income | 5,578 |
| 15.9 |
| 6,732 |
| 17.1 |
| 1,154 |
| 8,649 |
| 11.4 | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Elimination and Corporate |
| Net sales to unaffiliated customers | - |
| - |
| - |
| - |
| - |
| - |
| - |
| Intersegment sales | (43,108 | ) | - |
| (44,021 | ) | - |
| (913 | ) | (93,072 | ) | - | |
Sales | (43,108 | ) | - |
| (44,021 | ) | - |
| (913 | ) | (93,072 | ) | - | ||
Operating expenses | (40,591 | ) | - |
| (40,638 | ) | - |
| (47 | ) | (85,110 | ) | - | ||
Operating income (loss) | (2,517 | ) | - |
| (3,383 | ) | - |
| (866 | ) | (7,962 | ) | - | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Consolidated |
| Net sales to unaffiliated customers | 120,492 |
| - |
| 114,863 |
| - |
| (5,629 | ) | 235,012 |
| - |
| Intersegment sales | - |
| - |
| - |
| - |
| - |
| - |
| - | |
Net sales | 120,492 |
| 100.0 |
| 114,863 |
| 100.0 |
| (5,629 | ) | 235,012 |
| 100.0 | ||
Operating expenses | 88,293 |
| 73.3 |
| 90,216 |
| 78.5 |
| 1,923 |
| 178,220 |
| 75.8 | ||
Operating income | 32,199 |
| 26.7 |
| 24,647 |
| 21.5 |
| (7,552 | ) | 56,792 |
| 24.2 |
(Notes) | 1. | Adjustments to operating income (loss) in Corporate principally represent corporate general and administrative expenses and research and development expenses related to fundamental research activities that are not allocated to corporate general administrative expense and segment by geographic area. Stock option expenses of (Y) 648 million, (Y) 289 million and (Y) 2,566 million for FY2006 interim, FY2007 interim and FY2006, respectively, are included in Corporate operating expenses. |
- 19 -
Advantest Corporation (FY2007 interim)
(Note 4) Per Share Information
Basic and diluted net income per share were computed as follows:
| FY2006 interim |
| FY2007 interim |
| FY2006 | |||||
| Numerator: |
|
|
|
|
|
|
|
|
|
| Net income (million yen) |
| 22,204 |
|
| 16,930 |
|
| 35,556 |
|
|
|
|
|
|
|
|
|
|
|
|
| Denominator: |
|
|
|
|
|
|
|
|
|
| Basic weighted average shares |
| 186,911,714 |
|
| 184,980,284 |
|
| 187,128,842 |
|
| Dilutive effect of exercise of stock option |
| 1,215,246 |
|
| 568,116 |
|
| 1,141,846 |
|
|
|
|
|
|
|
|
|
|
|
|
| Diluted weighted average shares |
| 188,126,960 |
|
| 185,548,400 |
|
| 188,270,688 |
|
|
|
|
|
|
|
|
|
|
|
|
As of September 30, 2006, September 30, 2007 and March 31, 2007, Advantest held 1,581,980 shares, 2,336,980 shares and 11,980 shares, respectively, of issued stock options that are excluded from the calculation of net income per share (diluted) because they do not currently have a dilutive effect.
Per share information for FY2006 interim is restated to reflect the effects of the two for one stock split of shares of its common stock conducted by Advantest on October 1, 2006.
(Note 5) | Subsequent Event |
On October 26, 2007, the Board of Directors of the Company approved a plan to repurchase up to 5.5 million shares of the Company’s common stock at a cost up to (Y) 20,000 million for the period from October 29, 2007 to December 28, 2007.
(Omission of Disclosure)
For purposes of semi-annual release in Japan, notes for lease transactions, securities, derivative transactions, and stock options, among others, have not been disclosed because such disclosure in this interim consolidated financial results is not considered significant.
- 20 - |
Advantest Corporation (FY2007 interim)
(All non-consolidated financial information has been prepared in accordance
with accounting principles generally accepted in Japan.)
5. | Non-Consolidated Financial Statements |
| (1) | Interim Balance Sheets |
|
| Summarized balance sheet of FY2006 | FY2007 interim | As compared to | FY2006 interim | |||||||||||||||||
|
| Amount | Percentage | Amount | Percentage | Increase | Amount | Percentage | ||||||||||||||
(Assets) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
I | Current Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 1. | Cash and deposits | 112,558 |
|
|
|
|
| 119,942 |
|
|
|
|
| 7,384 |
| 88,398 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 2. | Trade notes receivables | 4,505 |
|
|
|
|
| 1,576 |
|
|
|
|
| (2,929 | ) | 844 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 3. | Accounts receivable | 56,313 |
|
|
|
|
| 52,343 |
|
|
|
|
| (3,970 | ) | 67,352 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 4. | Inventories | 24,274 |
|
|
|
|
| 25,929 |
|
|
|
|
| 1,655 |
| 19,721 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 5. | Other receivable | 952 |
|
|
|
|
| 471 |
|
|
|
|
| (481 | ) | 1,089 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 6. | Deferred tax assets | 9,017 |
|
|
|
|
| 9,731 |
|
|
|
|
| 714 |
| 8,331 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 7. | Other | 6,544 |
|
|
|
|
| 6,568 |
|
|
|
|
| 24 |
| 6,852 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 8. | Allowance for doubtful accounts | (983 | ) |
|
|
|
| (1,325 | ) |
|
|
|
| (342 | ) | – |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total current assets |
|
| 213,182 |
| 73.6 |
|
|
| 215,235 |
| 73.5 |
| 2,053 |
|
|
| 192,591 |
| 72.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
II | Noncurrent assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
(1) | Property, plant and equipment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| 1. | Buildings | 13,461 |
|
|
|
|
| 14,151 |
|
|
|
|
| 690 |
| 13,740 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 2. | Land | 17,622 |
|
|
|
|
| 17,623 |
|
|
|
|
| – |
| 17,915 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 3. | Other | 6,701 |
|
|
|
|
| 7,730 |
|
|
|
|
| 1,029 |
| 6,239 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total property, plant and equipment |
|
| 37,784 |
| 13.0 |
|
|
| 39,504 |
| 13.5 |
| 1,720 |
|
|
| 37,894 |
| 14.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) | Intangible fixed assets |
|
| 1,467 |
| 0.5 |
|
|
| 1,657 |
| 0.6 |
| 190 |
|
|
| 1,343 |
| 0.5 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
(3) | Investments and other assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| 1. | Investment in affiliated companies | 16,480 |
|
|
|
|
| 16,560 |
|
|
|
|
| 80 |
| 16,470 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 2. | Deferred tax assets | 4,791 |
|
|
|
|
| 4,987 |
|
|
|
|
| 196 |
| 4,124 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 3. | Other | 15,991 |
|
|
|
|
| 14,887 |
|
|
|
|
| (1,104 | ) | 13,781 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total investment and other assets |
|
| 37,263 |
| 12.9 |
|
|
| 36,434 |
| 12.4 |
| (829 | ) |
|
| 34,376 |
| 13.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total noncurrent assets |
|
| 76,515 |
| 26.4 |
|
|
| 77,595 |
| 26.5 |
| 1,080 |
|
|
| 73,615 |
| 27.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total assets |
|
| 289,697 |
| 100.0 |
|
|
| 292,830 |
| 100.0 |
| 3,133 |
|
|
| 266,206 |
| 100.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- 21 -
Advantest Corporation (FY2007 interim)
(All non-consolidated financial information has been prepared in accordance
with accounting principles generally accepted in Japan.)
|
| Summarized balance sheet of FY2006 | FY2007 interim | As compared to | FY2006 interim | |||||||||||||||||||
|
| Amount | Percentage | Amount | Percentage | Increase | Amount | Percentage | ||||||||||||||||
(Liabilities) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
I | Current liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
| 1. | Trade accounts payable | 26,407 |
|
|
|
|
| 20,857 |
|
|
|
|
| (5,550 | ) | 21,049 |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
| 2. | Income tax payable | 8,082 |
|
|
|
|
| 9,310 |
|
|
|
|
| 1,228 |
| 6,910 |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
| 3. | Allowance for product warranty | 4,192 |
|
|
|
|
| 4,009 |
|
|
|
|
| (183 | ) | 4,395 |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
| 4. | Bonus accrual for directors | 203 |
|
|
|
|
| 95 |
|
|
|
|
| (108 | ) | 104 |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
| 5. | Other | 17,473 |
|
|
|
|
| 14,017 |
|
|
|
|
| (3,456 | ) | 13,625 |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
| Total current liabilities |
|
| 56,358 |
| 19.5 |
|
|
| 48,288 |
| 16.5 |
| (8,070 | ) |
|
| 46,085 |
| 17.3 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
II | Noncurrent liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
| 1. | Long-term borrowings | – |
|
|
|
|
| – |
|
|
|
|
| – |
| 5 |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
| 2. | Allowance for retirement benefits | 6,255 |
|
|
|
|
| 5,858 |
|
|
|
|
| (397 | ) | 6,359 |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
| 3. | Other | 2,277 |
|
|
|
|
| 1,722 |
|
|
|
|
| (555 | ) | 2,296 |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
| Total noncurrent liabilities |
|
| 8,533 |
| 2.9 |
|
|
| 7,580 |
| 2.6 |
| (953 | ) |
|
| 8,661 |
| 3.3 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
| Total liabilities |
|
| 64,891 |
| 22.4 |
|
|
| 55,868 |
| 19.1 |
| (9,023 | ) |
|
| 54,746 |
| 20.6 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
(Net assets) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
I | Stockholders’ equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
| 1. | Common stock |
|
| 32,362 |
| 11.2 |
|
|
| 32,363 |
| 11.1 |
| – |
|
|
| 32,362 |
| 12.2 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
| 2. | Capital surplus |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
| (1) | Additional paid-in capital | 32,973 |
|
|
|
|
| 32,973 |
|
|
|
|
| – |
| 32,973 |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
| Total capital surplus |
|
| 32,973 |
| 11.4 |
|
|
| 32,973 |
| 11.3 |
| – |
|
|
| 32,973 |
| 12.4 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
| 3. | Retained earnings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
| (1) | Legal reserve | 3,083 |
|
|
|
|
| 3,083 |
|
|
|
|
| – |
| 3,083 |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
| (2) | Other retained earnings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
| Reserve for losses in foreign investments | 27,062 |
|
|
|
|
| 27,062 |
|
|
|
|
| – |
| 27,062 |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
| General reserve | 146,880 |
|
|
|
|
| 146,880 |
|
|
|
|
| – |
| 146,880 |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
| Retained earnings brought forward | 31,347 |
|
|
|
|
| 62,632 |
|
|
|
|
| 31,285 |
| 22,197 |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
| Total retained earnings |
|
| 208,372 |
| 71.9 |
|
|
| 239,657 |
| 81.8 |
| 31,285 |
|
|
| 199,222 |
| 74.8 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
| 4. | Treasury stock |
|
| (53,555 | ) | (18.5 | ) |
|
| (72,311 | ) | (24.7 | ) | (18,756 | ) |
|
| (56,024 | ) | (21.1 | ) | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
| Total stockholders’ equity |
|
| 220,152 |
| 76.0 |
|
|
| 232,682 |
| 79.5 |
| 12,529 |
|
|
| 208,534 |
| 78.3 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
II | Difference of appreciation and conversion |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| �� | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
| 1. | Net unrealized gains on securities | 2,315 |
|
|
|
|
| 1,698 |
|
|
|
|
| (617 | ) | 2,277 |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
| Total difference of appreciation and conversion |
|
| 2,315 |
| 0.8 |
|
|
| 1,698 |
| 0.5 |
| (617 | ) |
|
| 2,277 |
| 0.9 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
III | Stock Acquisition Rights |
|
| 2,337 |
| 0.8 |
|
|
| 2,582 |
| 0.9 |
| 245 |
|
|
| 648 |
| 0.2 |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
| Total net assets |
|
| 224,805 |
| 77.6 |
|
|
| 236,962 |
| 80.9 |
| 12,157 |
|
|
| 211,459 |
| 79.4 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
| Total liabilities and net assets |
|
| 289,697 |
| 100.0 |
|
|
| 292,830 |
| 100.0 |
| 3,133 |
|
|
| 266,206 |
| 100.0 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
- 22 -
Advantest Corporation (FY2007 interim)
(All non-consolidated financial information has been prepared in accordance
with accounting principles generally accepted in Japan.)
| (2) | Interim Statements of Income |
|
| FY2006 interim | FY2007 interim | As compared to period of the previous fiscal year | Summarized statement of income | ||||||||||||||||
|
| Amount | Percentage | Amount | Percentage | Increase | Amount | Percentage | |||||||||||||
I | Net sales |
|
| 99,562 |
| 100.0 |
|
|
| 93,074 |
| 100.0 |
| (6,488 | ) |
|
| 197,753 |
| 100.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
II | Cost of sales |
|
| 50,768 |
| 51.0 |
|
|
| 47,727 |
| 51.3 |
| (3,041 | ) |
|
| 98,195 |
| 49.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gross profit |
|
| 48,793 |
| 49.0 |
|
|
| 45,347 |
| 48.7 |
| (3,446 | ) |
|
| 99,558 |
| 50.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
III | Selling, general and administrative expenses |
|
| 27,328 |
| 27.4 |
|
|
| 30,966 |
| 33.2 |
| 3,638 |
|
|
| 58,054 |
| 29.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating income |
|
| 21,465 |
| 21.6 |
|
|
| 14,381 |
| 15.5 |
| (7,084 | ) |
|
| 41,503 |
| 21.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IV | Non-operating income |
|
| 3,852 |
| 3.8 |
|
|
| 35,160 |
| 37.8 |
| 31,308 |
|
|
| 5,440 |
| 2.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
V | Non-operating expenses |
|
| 1,024 |
| 1.0 |
|
|
| 1,923 |
| 2.1 |
| 899 |
|
|
| 3,306 |
| 1.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Ordinary income |
|
| 24,293 |
| 24.4 |
|
|
| 47,618 |
| 51.2 |
| 23,325 |
|
|
| 43,638 |
| 22.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income before income taxes |
|
| 24,293 |
| 24.4 |
|
|
| 47,618 |
| 51.2 |
| 23,325 |
|
|
| 43,638 |
| 22.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income taxes | 6,774 |
|
|
|
|
| 10,610 |
|
|
|
|
|
|
| 14,769 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income taxes - deferred | 810 |
| 7,585 |
| 7.6 |
| (491 | ) | 10,119 |
| 10.9 |
| 2,534 |
| (567 | ) | 14,201 |
| 7.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income |
|
| 16,707 |
| 16.8 |
|
|
| 37,499 |
| 40.3 |
| 20,792 |
|
|
| 29,436 |
| 14.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- 23 -
Advantest Corporation (FY2007 interim)
(All non-consolidated financial information has been prepared in accordance
with accounting principles generally accepted in Japan.)
(3) Interim Statements of Changes in Stockholders’ Equity
FY2006 interim (April 1, 2006 through September 30, 2006)
(In million yen) |
| Shareholders’ equity | Difference of | Stock | Total | ||||||||||||||||||
|
Common stock | Capital | Retained earnings | Treasury | Total | Net | ||||||||||||||||
| Additional | Legal | Other retained earning | |||||||||||||||||||
Reserve for | General | Retained | ||||||||||||||||||||
Balance at March 31, 2006 | 32,362 |
| 32,973 |
| 3,083 |
| 27,062 |
| 121,880 |
| 35,204 |
| (58,017 | ) | 194,548 |
| 2,677 |
| – |
| 197,226 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in the term |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transfer to voluntary reserve (Note) |
|
|
|
|
|
|
|
| 25,000 |
| (25,000 | ) |
|
| – |
|
|
|
|
| – |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bonus of directors and corporate auditors (Note) |
|
|
|
|
|
|
|
|
|
| (203 | ) |
|
| (203 | ) |
|
|
|
| (203 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends from surplus (Note) |
|
|
|
|
|
|
|
|
|
| (4,199 | ) |
|
| (4,199 | ) |
|
|
|
| (4,199 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
|
|
|
|
|
|
|
| 16,707 |
|
|
| 16,707 |
|
|
|
|
| 16,707 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Repurchase of treasury stock |
|
|
|
|
|
|
|
|
|
|
|
| (18 | ) | (18 | ) |
|
|
|
| (18 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Disposal of treasury stock |
|
|
|
|
|
|
|
|
|
| (312 | ) | 2,010 |
| 1,698 |
|
|
|
|
| 1,698 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net changes of items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
other than stockholders’ equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (400 | ) | 648 |
| 247 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total changes in the term | – |
| – |
| – |
| – |
| 25,000 |
| (13,007 | ) | 1,992 |
| 13,985 |
| (400 | ) | 648 |
| 14,233 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at September 30, 2006 | 32,362 |
| 32,973 |
| 3,083 |
| 27,062 |
| 146,880 |
| 22,197 |
| (56,024 | ) | 208,534 |
| 2,277 |
| 648 |
| 211,459 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Note) | These items were appropriated earnings items for the General Shareholders’ Meeting held in June, 2006. |
FY2007 interim (April 1, 2007 through September 30, 2007)
(In million yen) |
| Shareholders’ equity | Difference of | Stock | Total | ||||||||||||||||||
|
Common stock | Capital | Retained earnings | Treasury | Total | Net | ||||||||||||||||
| Additional | Legal | Other retained earning | |||||||||||||||||||
Reserve for | General | Retained | ||||||||||||||||||||
Balance at March 31, 2007 | 32,362 |
| 32,973 |
| 3,083 |
| 27,062 |
| 146,880 |
| 31,347 |
| (53,555 | ) | 220,152 |
| 2,315 |
| 2,337 |
| 224,805 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in the term |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends from surplus |
|
|
|
|
|
|
|
|
|
| (6,099 | ) |
|
| (6,099 | ) |
|
|
|
| (6,099 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
|
|
|
|
|
|
|
| 37,499 |
|
|
| 37,499 |
|
|
|
|
| 37,499 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Repurchase of treasury stock |
|
|
|
|
|
|
|
|
|
|
|
| (19,121 | ) | (19,121 | ) |
|
|
|
| (19,121 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Disposal of treasury stock |
|
|
|
|
|
|
|
|
|
| (115 | ) | 365 |
| 250 |
|
|
|
|
| 250 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net changes of items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
other than stockholders’ equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (617 | ) | 245 |
| (372 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total changes in the term | – |
| – |
| – |
| – |
| – |
| 31,285 |
| (18,756 | ) | 12,529 |
| (617 | ) | 245 |
| 12,157 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at September 30, 2007 | 32,363 |
| 32,973 |
| 3,083 |
| 27,062 |
| 146,880 |
| 62,632 |
| (72,311 | ) | 232,682 |
| 1,698 |
| 2,582 |
| 236,962 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- 24 -
Advantest Corporation (FY2007 interim)
(All non-consolidated financial information has been prepared in accordance
with accounting principles generally accepted in Japan.)
FY2006 (April 1, 2006 through March 31, 2007)
(In million yen) |
| Shareholders’ equity | Difference of | Stock | Total | ||||||||||||||||||
|
Common stock | Capital | Retained earnings | Treasury | Total | Net | ||||||||||||||||
| Additional | Legal | Other retained earning | |||||||||||||||||||
Reserve for | General | Retained | ||||||||||||||||||||
Balance at March 31, 2006 | 32,362 |
| 32,973 |
| 3,083 |
| 27,062 |
| 121,880 |
| 35,204 |
| (58,017 | ) | 194,548 |
| 2,677 |
| – |
| 197,226 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in the term |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transfer to voluntary reserve (Note 1) |
|
|
|
|
|
|
|
| 25,000 |
| (25,000 | ) |
|
| – |
|
|
|
|
| – |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bonus of directors and corporate auditors (Note 2) |
|
|
|
|
|
|
|
|
|
| (203 | ) |
|
| (203 | ) |
|
|
|
| (203 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends from surplus (Note 3) |
|
|
|
|
|
|
|
|
|
| (7,473 | ) |
|
| (7,473 | ) |
|
|
|
| (7,473 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
|
|
|
|
|
|
|
| 29,436 |
|
|
| 29,436 |
|
|
|
|
| 29,436 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Repurchase of treasury stock |
|
|
|
|
|
|
|
|
|
|
|
| (67 | ) | (67 | ) |
|
|
|
| (67 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Disposal of treasury stock |
|
|
|
|
|
|
|
|
|
| (617 | ) | 4,529 |
| 3,912 |
|
|
|
|
| 3,912 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net changes of items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
other than stockholders’ equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (362 | ) | 2,337 |
| 1,975 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total changes in the term | – |
| – |
| – |
| – |
| 25,000 |
| (3,857 | ) | 4,461 |
| 25,604 |
| (362 | ) | 2,337 |
| 27,579 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at March 31, 2007 | 32,362 |
| 32,973 |
| 3,083 |
| 27,062 |
| 146,880 |
| 31,347 |
| (53,555 | ) | 220,152 |
| 2,315 |
| 2,337 |
| 224,805 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note 1: Transfer to voluntary reserve was an appropriated earnings item for the General Shareholders' Meeting held in June, 2006.
Note 2: Bonus of directors and corporate auditors was an appropriated earnings item for the General Shareholders' Meeting held in June, 2006.
Note 3: 4,199 million yen out of Dividends from surplus was an appropriated earnings item for the General Shareholders' Meeting held in June, 2006.
- 25 -
Advantest Corporation (FY2007 interim)
Supplemental Information to the FY2007 Interim Earnings Digest
*All consolidated figures were prepared in accordance with U.S. GAAP.
1. | Consolidated Net Sales by Business and Geographic Segment | (Rounded to the nearest million yen) |
By Business Segment | FY2006 interim | FY2007 interim | Percentage change (%) | FY2006 | |
| Semiconductor and Component Test System | 85,974 | 85,264 | (0.8) | 167,815 |
| for memory semiconductors | 48,394 | 59,493 | 22.9 | 109,541 |
| for non memory semiconductors | 37,580 | 25,771 | (31.4) | 58,274 |
| Mechatronics System | 26,655 | 21,367 | (19.8) | 52,025 |
| Services, Support and Others | 9,660 | 10,158 | 5.2 | 18,312 |
| Intercompany transactions elimination | (1,797) | (1,926) | — | (3,140) |
Total net sales | 120,492 | 114,863 | (4.7) | 235,012 | |
|
|
|
|
|
|
By Geographic Segment | FY2006 interim | FY2007 interim | Percentage change (%) | FY2006 | |
Japan | 48,206 | 38,699 | (19.7) | 72,834 | |
| Americas | 6,136 | 4,974 | (18.9) | 10,158 |
| Europe | 4,876 | 4,946 | 1.4 | 11,238 |
| Korea | 18,922 | 21,667 | 14.5 | 51,177 |
| Taiwan | 28,706 | 35,647 | 24.2 | 63,098 |
| Asia and others | 13,646 | 8,930 | (34.6) | 26,507 |
Total overseas | 72,286 | 76,164 | 5.4 | 162,178 | |
| Overseas sales ratio (%) | 60.0 | 66.3 | — | 69.0 |
2. | Consolidated Orders Input Received and Orders Backlog by Business Segment | (Rounded to the nearest million yen) |
Orders Input Received | FY2006 interim | FY2007 interim | Percentage change (%) | FY2006 | ||
| Semiconductor and Component Test System | 82,048 | 69,046 | (15.8) | 175,126 | |
| Mechatronics System | 25,462 | 18,067 | (29.0) | 54,861 | |
| Services, Support and Others | 9,415 | 10,082 | 7.1 | 18,013 | |
| Intercompany transactions elimination | (1,707) | (2,004) | — | (5,131) | |
Total orders input received | 115,218 | 95,191 | (17.4) | 242,869 | ||
|
|
|
|
|
| |
Orders Backlog | FY2006 interim | FY2007 interim | Percentage change (%) | FY2006 | ||
| Semiconductor and Component Test System | 32,289 | 27,308 | (15.4) | 43,526 | |
| Mechatronics System | 6,698 | 7,427 | 10.9 | 10,727 | |
| Services, Support and Others | 794 | 663 | (16.4) | 739 | |
| Intercompany transactions elimination | (4) | (2,162) | — | (2,084) | |
Total orders backlog | 39,777 | 33,236 | (16.4) | 52,908 | ||
| (Note) | The amount of orders input received for any given period consists of the sum of the revenues for such period and the amount of orders backlog at the end of such period less the orders backlog at the end of the previous fiscal year. Orders input received are recorded upon receipt of a written customer order. |
3. | Consolidated Capital Expenditure, Depreciation and Amortization and Research and Development Expenses |
|
|
| FY2006 interim | FY2007 interim | Percentage change (%) | FY2006 |
Capital expenditures | 3,709 | 6,106 | 64.6 | 8,336 | |
Depreciation and amortization | 3,810 | 3,884 | 1.9 | 8,214 | |
Research and Development Expenses | 14,121 | 16,361 | 15.9 | 29,509 | |
| Sales ratio (%) | 11.7 | 14.2 | — | 12.6 |
- 26 -
Advantest Corporation (FY2007 interim)
4. | Number of Employees (Advantest Corporation and Consolidated Subsidiaries) | (Persons) |
| FY2006 interim | FY2007 interim | Percentage change (%) | FY2006 | |
Non-Consolidated (Parent Company Only) | 1,461 | 1,459 | (0.1) | 1,454 | |
| Domestic | 1,378 | 1,431 | 3.8 | 1,378 |
| Overseas | 813 | 818 | 0.6 | 805 |
Consolidated Subsidiaries total | 2,191 | 2,249 | 2.6 | 2,183 | |
Consolidated full-time employee total | 3,652 | 3,708 | 1.5 | 3,637 |
5. | Consolidated Results Indexes | (Rounded to the nearest million yen) |
| FY2006 interim | FY2007 interim | Percentage change (%) | FY2006 |
Net income per share (basic) (in yen) (Note) | 118.79 | 91.52 | (23.0) | 190.01 |
Net income per share (diluted) (in yen) (Note) | 118.03 | 91.24 | (22.7) | 188.85 |
Net assets per share (in yen) (Note) | 1,489.45 | 1,555.42 | 4.4 | 1,570.99 |
Dividends per share (in yen) | 17.50 | 25.00 | 42.9 | 50.00 |
Net interest expense | 1,376 | 2,164 | 57.3 | 3,010 |
Interest-bearing liabilities | 35 | 16 | (53.9) | 25 |
D/E ratio | 0.0 | 0.0 | 0.0 | 0.0 |
ROE (%) | — | — | — | 12.9 |
ROA (%) | — | — | — | 9.9 |
Payout ratio (%) | — | — | — | 26.3 |
| (Note) | Per share information for FY2006 interim is restated to reflect the effects of the two for one stock split of shares of its common stock conducted by Advantest on October 1, 2006. |
- 27 -