FOR IMMEDIATE RELEASE
March 11, 2005
ADVANTEST CORPORATION
(Toshio Maruyama, Representative Board Director,
President of Corporate Executive Officers and
Chief Operating Officer)
(Stock Code Number: 6857, TSE first section)
(Ticker Symbol: ATE, NYSE)
CONTACT:
Hiroshi Nakamura
(Manager, Accounting Department)
Phone: +81-(0)3-3214-7500
Revision of Earnings Forecast for the Fiscal Year Ending March 2005
In light of recent changes in business performance, we hereby revise the
consolidated earnings forecast for the fiscal year ending March 2005 (April 1,
2004 to March 31, 2005) released on January 27, 2005 at the end of the third
quarter, as well as the non-consolidated earnings forecast released on October
26, 2004 at the end of the interim fiscal period for the fical year ending March
2005 (April 1, 2004 to March 31, 2004), as follows:
1. (Consolidated Earnings) [US GAAP]
FY 2004 (April 1, 2004 to March 31, 2005)
(in millions of yen)
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Income before
Net Sales income taxes Net Income
- --------------------------------------------------------------------------------
Previous forecast (A) 250,000 71,000 43,000
(as of January 27, 2005)
- --------------------------------------------------------------------------------
Revised forecast (B) 241,000 64,000 39,000
- --------------------------------------------------------------------------------
Difference (B-A) - 9,000 - 7,000 - 4,000
- --------------------------------------------------------------------------------
Percentage change -3.6% -9.9% -9.3%
- --------------------------------------------------------------------------------
FY 2003 results 174,218 28,878 17,329
- --------------------------------------------------------------------------------
2. Reasons for the Above Revisions (Consolidated Earnings)
Since the Fall 2004 the performance of the digital industry has declined and
tighter inventory controls of the IT related products resulted in the loss of
momentum in capital investment of the semiconductor manufacturers. After January
27, 2005 when the third quarter report was released, investment continues to be
limited, and we predict that the sales of semiconductor test equipment will be
less than what was previously forecasted. We therefore revise the consolidated
earnings forecast as above. Please note that in December 2004, SFAS123R of the
US GAAP was established. To ensure higher standards and financial statement
visibility, we have implemented these rules 1 year advance of the required start
date. We anticipate 2.3 billion yen in operational expenses for compensation
based on stock options that are valued at the fair value of the date of grant.
3. (Unconsolidated Earnings) [Japanese GAAP]
FY 2004 (April 1, 2004 to March 31, 2005)
(in millions of yen)
- --------------------------------------------------------------------------------
Net Sales Ordinary Income Net Income
- --------------------------------------------------------------------------------
Previous forecast (A) 220,000 52,000 32,000
(as of October 26, 2004)
- --------------------------------------------------------------------------------
Revised forecast (B) 203,000 43,000 28,000
- --------------------------------------------------------------------------------
Difference (B-A) -17,000 - 9,000 -4,000
- --------------------------------------------------------------------------------
Percentage change -7.7% -17.3% -12.5%
- --------------------------------------------------------------------------------
FY 2003 results 150,558 24,033 11,957
- --------------------------------------------------------------------------------
4. Reasons for the Above Revisions (Unconsolidated Earnings)
Following the release of the semi-annual report of October 26, 2004, the
performance of the digital industry has declined and tighter inventory controls
of the IT related products resulted in the loss of momentum in capital
investment of the semiconductor manufacturers and we predict that the sales of
semiconductors testing equipment will be less than what was previously
forecasted. We therefore revise the unconsolidated earnings forecast as above.
* Cautionary Statement with Respect to Forward-Looking Statements
This release 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
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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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