Overview of FY2004 Third Quarter Financial Results (Consolidated)
(Prepared in accordance with U.S. GAAP)
January 27, 2005
Company name Advantest Corporation (Stock code number: 6857, TSE 1st Section)
(URL http://www.advantest.co.jp/investors/)
-------------------------------------
Contacts Company representative: Toshio Maruyama, President and COO
Person-in-charge: Hiroshi Nakamura, Manager, Accounting Department
(TEL (03) 3214-7500)
1. Notes to the Quarterly Financial Results:
(1) Use of simplified accounting method: Yes
Simplified tax effect accounting is used for the calculation of tax expenses for the
purpose of the quarterly financial results.
(2) Changes in accounting method from the most recent fiscal year: No
(3) Changes in scope of consolidation and equity method (as compared to September 30, 2004): Yes
Number of consolidated subsidiaries: 39
(Newly included) 2
(Excluded) 2
Number of unconsolidated subsidiaries: 0
Number of affiliates accounted for under the equity method: 0
(Newly included) 0
(Excluded) 0
(4) Advantest's independent outside auditor has not been involved in the preparation of these consolidated quarterly
financial statements.
(5) Figures for the third quarter of FY2002 are nonexistent, and therefore, percentage changes therefrom are not available for
inclusion in the present presentation.
2. Consolidated Financial Results of FY2004 3Q (April 1, 2004 through December
31, 2004)
(1) Consolidated Financial Results
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Net sales Operating income Income before income taxes Net income
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Million yen % Million yen % Million yen % Million yen %
FY2004 Q3 189,226 78.6 53,349 340.5 54,416 389.0 33,490 371.3
FY2003 Q3 105,950 - 12,111 - 11,128 - 7,106 -
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(For reference) FY2003 174,218 30,960 28,878 17,329
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- ------------------------------------------------------------------------------------
Net income per share Net income per share
(basic) (diluted)
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Yen Yen
FY2004 Q3 340.68 339.94
FY2003 Q3 72.33 72.22
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(For reference) FY2003 176.37 176.02
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(Note) The percentages shown in the above items including net sales and
operating income are changes in comparison to the corresponding period of the
previous fiscal year.
(Qualitative Information Regarding Consolidated Financial Results)
With respect to the nine months ended December 31, 2004, Advantest's operating
environment remained strong throughout the first half of the nine months owing
to continuous strong sales of digital cameras, DVD recorders, flat-screen TVs
and other digital consumer products and steady demand for PCs. Since the second
half of the nine months, however, Advantest's operating environment has entered
a difficult phase due to the decreased capital expenditures of Japanese
semiconductor manufacturers in response to inventory cutbacks in the IT areas
such as digital consumer products and mobile phones.
Under these circumstances, Advantest made focused efforts to improve
productivity and profitability through increased delivery of new products and
fundamental overhaul of the production system.
As a result, incoming orders increased by 21.6% to (Y)171 billion from the
same quarter of last year and net sales increased by 78.6% to (Y)189.2 billion
from the same quarter of last year. In terms of profits, the income before
income taxes increased by 389.0% to (Y)54.4 billion and net quarterly income
increased by 371.3% to (Y)33.4 billion from the same quarter of last year.
Overseas sales ratio was 75.4% compared to 64.5% for the same quarter of last
year.
(Results by Business Segment)
In accordance with the restructuring of the business and organization
initiated on April 1, 2004, Advantest regrouped its two business segments -
"Automated Test Equipment" and "Measuring Instruments" - into three business
segments - "Semiconductor and Component Test System", "Mechatronics System" and
"Services, Support and Others."
With respect to results by business segment for the third quarter of the
current fiscal year, for the Semiconductor and Component Test System business
segment, incoming orders increased by 26.7% to (Y)129 billion from the same
period of last year, sales increased by 99.3% to (Y)144.1 billion from the same
period of last year and operating income increased by 293.9% to (Y)45.5 billion
from the same period of last year. For the Mechatronics System business segment,
incoming orders increased by 20.6% to (Y)33.1 billion from the same period last
year, sales increased by 62.5% to (Y)36.2 billion from
the same period of last year and operating income increased by 91.5% to (Y)11.8
billion from the same period of last year. For the Services, Support and Others
business segment, incoming orders increased by 4.9% to (Y)14.8 billion from the
same period of last year, sales increased by 10.4% to (Y)15.4 billion from the
same period of last year and operating income was (Y)1.1 billion.
(2) Changes in Consolidated Financial Position
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Total assets Stockholders' equity Equity-to-assets Stockholders' equity
ratio per share
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Million yen Million yen % Yen
FY2004 Q3 343,966 251,146 73.0 2,553.78
FY2003 Q3 306,238 212,608 69.4 2,163.81
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(For reference) FY2003 330,808 221,768 67.0 2,256.59
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(Consolidated Cash Flows)
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Cash flows from Cash flows from Cash flows from Cash and cash
operating activities investing activities financing activities equivalents at end of period
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Million yen Million yen Million yen Million yen
FY2004 Q3 66,497 (6,791) (4,386) 156,362
FY2003 Q3 13,849 (3,064) (3,981) 91,965
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(For reference) FY2003 28,215 (5,070) (6,376) 101,146
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(Qualitative Information Regarding Changes in Consolidated Financial Position)
With respect to Advantest's financial position for the third quarter, total
assets increased by (Y)13.1 billion to (Y)343.9 billion due to the increase of
cash and cash equivalents by (Y)55.2 billion from the end of the previous fiscal
year, while total liabilities decreased by (Y)15.6 billion from the end of the
previous year to (Y)92.8 billion primarily due to the decrease of accounts
payable by (Y)19.9 billion. Shareholders' equity amounted to (Y)251.1 billion.
As a result, equitv-to-assets ratio increased 6.0 percentage points from last
fiscal year end to 73.0%.
(Cash Flow Statements)
Cash and cash equivalents at the end of the third fiscal quarter increased by
(Y)55.2 billion from the end of the previous fiscal year to (Y)156.3 billion.
Cash flows from operating activities was an inflow of (Y)66.4 billion, which
consisted primarily of an increase in quarterly net profit of (Y)33.4 billion, a
decrease in accounts receivable of (Y)11.1 billion and a decrease in inventory
of (Y)19.2 billion. Cash flows from investing activities was an outflow of
(Y)6.7 billion, which consisted primarily of capital expenditure on tangible
fixed assets including lease assets. Cash flows from financing activities was an
outflow of (Y)4.3 billion, which consisted primarily of dividends paid of
(Y)4.7 billion.
3. Projected Consolidated Results for FY2004 (April 1, 2004 through March 31,
2005)
With respect to Advantest's projected results for the fourth quarter and
beyond, the prospect for semiconductor related capital investments of some
semiconductor manufacturers remains strong throughout the interim despite the
negative impact on Advantest's business, due to, among others, inventory
adjustment of IT related products and the strong yen. As a result, Advantest
anticipates the sales and profits in the fourth quarter to be higher than that
of the third quarter. Accordingly, the earnings forecast for the fourth quarter
of FY2004 released on October 26, 2004 have not been revised.
(Reference) Consolidated Earnings Forecast Released on October 26, 2004
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Net sales Income before income taxes Net income
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Million yen Million yen Million yen
FY2004 250,000 71,000 43,000
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(Note) Figures Presented in the Quarterly Financial Results have been rounded to
the nearest million yen.
Cautionary Statement with Respect to Forward-Looking Statements
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
- 2 -
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.
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Advantest Corporation-Consolidated (December 2004)
Quarterly Consolidated Financial Statements (Summary)
1. Quarterly Consolidated Balance Sheets (Summary)
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Q3 of FY2004 FY2003 Increase Q3 of FY2003
(As of December 31, 2004) (As of March 31, 2004) (Decrease) (As of December 31, 2003)
Item Notes Amount Percentage Amount Percentage Amount Amount Percentage
(in million yen) (%) (in million yen) (%) (in million yen) (in million yen) (%)
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(Assets)
Cash and cash equivalents 156,362 101,146 55,216 91,965
Trade accounts receivable, less
allowance for doubtful accounts *1 65,586 76,133 (10,547) 56,798
Inventories 30,354 49,423 (19,069) 45,988
Other current assets 15,978 29,060 (13,082) 17,327
------------- ------------ ---------- ----------
Total current assets 268,280 78.0 255,762 77.3 12,518 212,078 69.3
Investment securities 7,888 2.3 7,952 2.4 (64) 7,437 2.4
Property, plant and equipment, net *2 51,166 14.9 50,516 15.3 650 52,525 17.2
Intangible assets, at cost, less
accumulated amortization 3,135 0.9 3,756 1.1 (621) 4,933 1.6
Other assets 13,497 3.9 12,822 3.9 675 29,265 9.5
------------- ------------ ----------- ----------
Total assets 343,966 100.0 330,808 100.0 13,158 306,238 100.0
------------- ------------ ----------- ----------
====================================================================================================================================
(Liabilities)
Current installments of long-term debt 24,543 4,543 20,000 2,243
Trade accounts payable 18,227 38,214 (19,987) 30,282
Other current liabilities 27,534 23,854 3,680 16,774
------------- ------------ ----------- ----------
Total current liabilities 70,304 20.4 66,611 20.1 3,693 49,299 16.1
Long-term debt, excluding
current installments 62 0.0 20,083 6.1 (20,021) 24,604 8.0
Accrued pension and severance cost 19,002 5.5 18,348 5.6 654 15,600 5.1
Other liabilities 3,452 1.1 3,411 1.0 41 3,632 1.2
------------- ------------ ----------- ----------
Total liabilities 92,820 27.0 108,453 32.8 (15,633) 93,135 30.4
------------- ------------ ----------- ----------
(Minority interests)
Minority interests - - 587 0.2 (587) 495 0.2
(Stockholders' equity)
Common stock 32,363 9.4 32,363 9.8 - 32,363 10.6
Capital surplus 32,973 9.6 32,973 10.0 - 32,973 10.8
Retained earnings 205,741 59.8 177,404 53.5 28,337 167,190 54.5
Accumulated other comprehensive
income (loss) *3 (7,599) (2.2) (8,061) (2.4) 462 (6,840) (2.2)
Treasury stock (12,332) (3.6) (12,911) (3.9) 579 (13,078) (4.3)
------------- ------------ ----------- ----------
Total stockholders' equity 251,146 73.0 221,768 67.0 29,378 212,608 69.4
------------- ------------ ----------- ----------
Total liabilities and
stockholders' equity 343,966 100.0 330,808 100.0 13,158 306,238 100.0
------------- ------------ ----------- ----------
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(Notes)
1. Allowance for doubtful accounts 2,158 2,464 (306) 2,568
2. Accumulated depreciation of 66,807 64,533 2,274 70,145
property, plant and equipment
3. Accumulated other comprehensive income (loss)
Foreign currency translation adjustments (7,882) (8,087) 205 (7,526)
Net unrealized gains on available-for-sale
securities 1,365 1,422 (57) 686
Minimum pension liability adjustments (1,082) (1,396) 314 -
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Advantest Corporation-Consolidated (December 2004)
2. Quarterly Consolidated Statements of Income (Summary)
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Q3 of FY2004 Q3 of FY2003 Increase
April 1, 2004 April 1, 2003 (Decrease)
through through
December 31, 2004 December 31, 2003
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Item Amount Percentage Amount Percentage Amount
(in million yen) (%) (in million yen) (%) (in million yen)
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Net sales 189,226 100.0 105,950 100.0 83,276
Cost of sales 86,895 45.9 53,727 50.7 33,168
----------- -------------- ------------
Gross profit 102,331 54.1 52,223 49.3 50,108
Research and development expenses 18,643 9.9 15,895 15.0 2,748
Selling, general and administrative expenses 30,339 16.0 24,217 22.9 6,122
----------- -------------- ------------
Operating income 53,349 28.2 12,111 11.4 41,238
Other income (expense):
Interest and dividend income 372 258 114
Interest expense (338) (356) 18
Minority interests (loss) (85) (85) 0
Other 1,118 1,067 0.6 (800) (983) (0.9) 1,918 2,050
------------------ --------------------- -------------------
Income before income taxes 54,416 28.8 11,128 10.5 43,288
Income taxes 20,926 11.1 4,022 3.8 16,904
----------- -------------- ------------
Net income 33,490 17.7 7,106 6.7 26,384
----------- -------------- ------------
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FY2003
April 1, 2003
through
March 31, 2004
- --------------------------------------------------------------------------------------
Item Amount Percentage
(in million yen) (%)
- --------------------------------------------------------------------------------------
Net sales 174,218 100.0
Cost of sales 85,513 49.1
------------
Gross profit 88,705 50.9
Research and development expenses 21,637 12.4
Selling, general and administrative expenses 36,108 20.7
------------
Operating income 30,960 17.8
Other income (expense):
Interest and dividend income 339
Interest expense (469)
Minority interests (loss) (214)
Other (1,738) (2,082) (1.2)
---------------------
Income before income taxes 28,878 16.6
Income taxes 11,549 6.6
------------
Net income 17,329 10.0
------------
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Q3 of FY2004 Q3 of FY2003 Increase
April 1, 2004 April 1, 2003 (Decrease)
through through
December 31, 2004 December 31, 2003
- ------------------------------------------------------------------------------------------------------------------------------------
Item Amount Amount Amount
(in yen) (in yen) (in yen)
- ------------------------------------------------------------------------------------------------------------------------------------
Net income per share
Basic 340.68 72.33 268.35
Diluted 339.94 72.22 267.72
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FY2003
April 1, 2003
through
March 31, 2004
- --------------------------------------------------------------------------------------
Item Amount
(in yen)
- --------------------------------------------------------------------------------------
Net income per share
Basic 176.37
Diluted 176.02
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Advantest Corporation-Consolidated (December 2004)
3. Quarterly Consolidated Statements of Cash Flows (Summary)
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Q3 of FY2004 Q3 of FY2003 FY2003
April 1, 2004 April 1, 2003 April 1, 2003
through through through
December 31, 2004 December 31, 2003 March 31, 2004
- ------------------------------------------------------------------------------------------------------------------------------------
Item Amount Amount Amount
(in million yen) (in million yen) (in million yen)
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I Cash flows from operating activities:
Net income 33,490 7,106 17,329
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 6,019 7,054 9,328
Decrease (increase) in trade accounts receivable 11,150 (15,084) (35,285)
Decrease (increase) in inventories 19,243 (10,931) (14,570)
Increase (decrease) in trade accounts payable (20,670) 20,645 29,190
Other 17,265 5,059 22,223
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Net cash provided by operating activities 66,497 13,849 28,215
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II Cash flows from investing activities:
Purchases of property, plant and equipment (6,706) (3,049) (5,068)
Other (85) (15) (2)
---------------------------------------------------------
Net cash used in investing activities (6,791) (3,064) (5,070)
---------------------------------------------------------
III Cash flows from financing activities:
Dividends paid (4,776) (2,344) (2,462)
Other 390 (1,637) (3,914)
---------------------------------------------------------
Net cash used in financing activities (4,386) (3,981) (6,376)
---------------------------------------------------------
IV Net effect of exchange rate changes on cash
and cash equivalents (104) (2,177) (2,961)
---------------------------------------------------------
V Net change in cash and cash equivalents (decrease) 55,216 4,627 13,808
VI Cash and cash equivalents at beginning of period 101,146 87,338 87,338
---------------------------------------------------------
VII Cash and cash equivalents at end of period 156,362 91,965 101,146
---------------------------------------------------------
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Advantest Corporation-Supplemental Information (December 2004)
Supplemental Information to FY2004 Third Quarter Financial Results
1. Business Segment Operating Income
(In billion yen; truncated after the hundred million)
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Q3 of FY2004 Q3 of FY2003 Increase
April 1, 2004 April 1, 2003
through through (Decrease)
December 31, 2004 December 31, 2003
- ----------------------------------------------------------------------------------------------------------------------------------
Amount Percentage Amount Percentage Amount
(%) (%)
- ----------------------------------------------------------------------------------------------------------------------------------
Semiconductor Sales to unaffiliated customers 138.0 95.8 69.8 96.6 68.2
and
component Intersegment sales 6.1 4.2 2.4 3.4 3.7
test
system
- ----------- --------------------------------------------------------------------------------------------------------------
Net sales 144.1 100.0 72.3 100.0 71.8
- ----------------------------------------------------------------------------------------------------------------------------------
Operating expenses 98.6 68.4 60.7 84.0 37.9
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Operating income (loss) 45.5 31.6 11.5 16.0 34.0
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- ----------------------------------------------------------------------------------------------------------------------------------
Mechatronics Sales to unaffiliated customers 35.7 98.7 22.0 99.0 13.7
system
Intersegment sales 0.4 1.3 0.2 1.0 0.2
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Net sales 36.2 100.0 22.3 100.0 13.9
- ----------------------------------------------------------------------------------------------------------------------------------
Operating expenses 24.3 67.3 16.1 72.2 8.2
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Operating income (loss) 11.8 32.7 6.1 27.8 5.7
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
Services, Sales to unaffiliated customers 15.4 100.0 13.9 100.0 1.5
support
and others Intersegment sales - - - - -
- ----------- --------------------------------------------------------------------------------------------------------------
Net sales 15.4 100.0 13.9 100.0 1.5
- ----------------------------------------------------------------------------------------------------------------------------------
Operating expenses 14.3 92.8 14.5 104.4 (0.2)
- ----------------------------------------------------------------------------------------------------------------------------------
Operating income (loss) 1.1 7.2 (0.6) (4.4) 1.7
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
Elimination Sales to unaffiliated customers - - - - -
and
corporate Intersegment sales (6.5) 100.0 (2.6) 100.0 (3.9)
- ----------- ---------------------------------------------------------------------------------------------------------------
Net sales (6.5) 100.0 (2.6) 100.0 (3.9)
- -----------------------------------------------------------------------------------------------------------------------------------
Operating expenses (1.4) - 2.3 - (3.7)
- -----------------------------------------------------------------------------------------------------------------------------------
Operating income (loss) (5.1) - (5.0) - (0.1)
- -----------------------------------------------------------------------------------------------------------------------------------
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Consolidated Sales to unaffiliated customers 189.2 100.0 105.9 100.0 83.3
- ------------
Intersegment sales - - - - -
- -----------------------------------------------------------------------------------------------------------------------------------
Net sales 189.2 100.0 105.9 100.0 83.3
- -----------------------------------------------------------------------------------------------------------------------------------
Operating expenses 135.8 71.8 93.8 88.6 42.0
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Operating income (loss) 53.3 28.2 12.1 11.4 41.2
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(Notes) 1. Advantest regrouped its two business segments - "Automated Test
Equipment" and "Measuring Instruments" - into three business
segments - "Semiconductor and Component Test System",
"Mechatronics System" and "Services, Support and Others".
Certain reclassifications have been made to the business segment
information for Q3 of FY2003 to conform presentation used for Q3
of FY2004.
2. Adjustments to operating income (loss) included under
"Elimination and corporate" consist primarily of expenses for
fundamental research activities and costs of the administrative
operations of headquarters.
2. Geographic Segment Net Sales (Based on Location of Customers)
(In billion yen; truncated after the hundred million)
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Q3 of FY2004 Q3 of FY2003 Increase FY2003
April 1, 2004 April 1, 2003 April 1, 2003
through through through
December 31, 2004 December 31, 2003 (Decrease) March 31, 2004
- ----------------------------------------------------------------------------------------------------------------------------------
Amount Percentage Amount Percentage Amount Amount Percentage
(%) (%) (%)
- ----------------------------------------------------------------------------------------------------------------------------------
Americas 18.8 9.9 7.5 7.1 11.3 16.2 9.3
------------------------------------------------------------------------------------------------------------------------
Europe 10.7 5.7 7.2 6.8 3.5 10.4 6.0
------------------------------------------------------------------------------------------------------------------------
Asia 113.1 59.8 53.5 50.6 59.6 89.5 51.4
------------------------------------------------------------------------------------------------------------------------
Overseas total 142.7 75.4 68.3 64.5 74.4 116.2 66.7
------------------------------------------------------------------------------------------------------------------------
Japan 46.5 24.6 37.5 35.5 9.0 57.9 33.3
------------------------------------------------------------------------------------------------------------------------
Consolidated 189.2 100.0 105.9 100.0 83.3 174.2 100.0
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- 7 -
Advantest Corporation-Supplemental Information (December 2004)
3. Consolidated Net Sales by Business Segment
(In billion yen; truncated after the hundred million)
- --------------------------------------------------------------------------------------------------------------------------
Q3 of FY2004 Q3 of FY2003 Increase
April 1, 2004 April 1, 2003
through through (Decrease)
December 31, 2004 December 31, 2003
- --------------------------------------------------------------------------------------------------------------------------
Semiconductor and component test 144.1 72.3 71.8
system
------------------------------------------------------------------------------------------------------------------
Mechatronics system 36.2 22.3 13.9
------------------------------------------------------------------------------------------------------------------
Services, support and others 15.4 13.9 1.5
------------------------------------------------------------------------------------------------------------------
Intersegment transactions (6.5) (2.6) (3.9)
------------------------------------------------------------------------------------------------------------------
Net sales total 189.2 105.9 83.3
- --------------------------------------------------------------------------------------------------------------------------
4. Consolidated Volume of Order and Orders Backlog by Business Segment
(In billion yen; truncated after the hundred million)
- --------------------------------------------------------------------------------------------------------------------------
Q3 of FY2004 Q3 of FY2003 Increase
April 1, 2004 April 1, 2003
through through (Decrease)
December 31, 2004 December 31, 2003
- --------------------------------------------------------------------------------------------------------------------------
Semiconductor and component test 129.0 101.8 27.2
system
------------------------------------------------------------------------------------------------------------------
Mechatronics system 33.1 27.4 5.7
------------------------------------------------------------------------------------------------------------------
Services, support and others 14.8 14.1 0.7
------------------------------------------------------------------------------------------------------------------
Intersegment transactions (6.0) (2.7) (3.3)
------------------------------------------------------------------------------------------------------------------
Total volume of orders 171.0 140.7 30.3
- --------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------
Q3 of FY2004 Q3 of FY2003 Increase
(As of December 31, 2004) (As of December 31, 2003) (Decrease)
- --------------------------------------------------------------------------------------------------------------------------
Semiconductor and component test 26.5 40.6 (14.1)
system
------------------------------------------------------------------------------------------------------------------
Mechatronics system 6.1 9.1 (3.0)
------------------------------------------------------------------------------------------------------------------
Services, support and others 0.8 1.9 (1.1)
------------------------------------------------------------------------------------------------------------------
Intersegment transactions (0.2) (0.2) 0.0
------------------------------------------------------------------------------------------------------------------
Total orders backlog 33.3 51.5 (18.2)
- --------------------------------------------------------------------------------------------------------------------------
(Note) The amount of incoming orders for any given period consists of
the sum of the revenues for such period and the amount of
backlog at the end of such period less the backlog at the end
of the previous fiscal year. Incoming orders are recorded as
such upon receipt of a written customer order.
5. Consolidated Cash Flows
(In billion yen; truncated after the hundred million)
- ------------------------------------------------------------------------------------------------------------------------
Q3 of FY2004 Q3 of FY2003 FY2003
April 1, 2004 April 1, 2003 April 1, 2003
through through through
December 31, 2004 December 31, 2003 March 31, 2004
- ------------------------------------------------------------------------------------------------------------------------
Operating activities 66.4 13.8 28.2
----------------------------------------------------------------------------------------------------------------
Investing activities (6.7) (3.0) (5.0)
----------------------------------------------------------------------------------------------------------------
(Free cash flows) 59.7 10.7 23.1
----------------------------------------------------------------------------------------------------------------
Financing activities (4.3) (3.9) (6.3)
-------------------------------------------------------------------------------------------------------------
Total cash flows 55.3 6.8 16.7
- ------------------------------------------------------------------------------------------------------------------------
Cash and cash equivalents at end of period 156.3 91.9 101.1
- ------------------------------------------------------------------------------------------------------------------------
6. Consolidated Capital Expenditures, Depreciation and Amortization and
Research and Development Expenses
(In billion yen; truncated after the hundred million)
- ------------------------------------------------------------------------------------------------------------------------
Q3 of FY2004 Q3 of FY2003 Increase FY2003
April 1, 2004 April 1, 2003 April 1, 2003
through through (Decrease) through
December 31, 2004 December 31, 2003 March 31, 2004
- ------------------------------------------------------------------------------------------------------------------------
Capital expenditures 6.8 3.1 3.7 5.6
- ------------------------------------------------------------------------------------------------------------------------
Depreciation and amortization 6.0 7.0 (1.0) 9.3
- ------------------------------------------------------------------------------------------------------------------------
Research and development expenses 18.6 15.8 2.8 21.6
- ------------------------------------------------------------------------------------------------------------------------
7. Number of Employees (Advantest Corporation and Consolidated Subsidiaries)
(Persons)
- ------------------------------------------------------------------------------------------------------------------------------------
Q3 of FY2004 FY2003 Increase Q3 of FY2003
(As of December 31, 2004) (As of March 31, 2004) (Decrease) (As of December 31, 2003)
- ------------------------------------------------------------------------------------------------------------------------------------
Unconsolidated 1,441 1,450 (9) 1,444
- ------------------------------------------------------------------------------------------------------------------------------------
Affiliates 2,128 2,094 34 2,135
- ------------------------------------------------------------------------------------------------------------------------------------
Consolidated full-time employee total 3,569 3,544 25 3,579
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