Overview of FY2005 First Quarter Financial Results (Consolidated)
(Prepared in accordance with U.S. GAAP)
July 26, 2005
(Stock code number:
Company name Advantest Corporation 6857, TSE 1st Section)
(URL http://www.advantest.co.jp/investors/) (Ticker Symbol: ATE, NYSE)
Contacts Company representative: Toshio Maruyama, Representative Board Director, President and CEO
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 March No
31, 2005):
Number of consolidated subsidiaries: 39
(Newly included) 0
(Excluded) 0
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.
2. Consolidated Financial Results of FY2005 1Q (April 1, 2005 through June 30, 2005)
(1) Consolidated Financial Results
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Net sales Operating income Income before income Net income
taxes
------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Million yen increase(%) Million yen Million yen Million yen
FY2005 Q1 52,002 (27.8) 11,770 (47.5) 12,121 (46.5) 7,820 (44.1)
FY2004 Q1 72,065 165.2 22,402 92.5 times 22,660 94.1 times 13,995 97.7 times
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(For reference) FY2004 239,439 60,719 61,808 38,078
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- ----------------------------------------------------------------------------------
Net income per share Net income per share
(basic) (diluted)
- ----------------------------------------------------------------------------------
Yen Yen
FY2005 Q1 84.61 84.37
FY2004 Q1 142.38 142.02
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(For reference) FY2004 389.54 388.51
- ----------------------------------------------------------------------------------
(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. The multiples shown for operating income, income before
income taxes and net income are changes in comparison to the corresponding
period of the previous fiscal year.
1
(Qualitative Information Regarding Consolidated Financial Results)
During the first quarter of the current fiscal year, as a result of progress
in the inventory adjustment for digital consumer products such as flat screen
televisions, DVD recorders and cellular phones, and due to strong sales in
personal computers, particularly notebook computers, Advantest's operating
environment was steady due to the trend towards recovery in capital expenditures
by the semiconductor manufacturers. In such an environment, Advantest introduced
new products for next-generation semiconductors in order to meet customers'
needs, as an effort to increase incoming orders and sales. Advantest continued
to make efforts to improve productivity and reduce costs. As a result, during
the first quarter of the current fiscal year, incoming orders decreased by 21.7%
to JPY 60.8 billion from the same quarter of the previous fiscal year and net
sales decreased by 27.8% to JPY 52 billion from the same quarter of the previous
fiscal year. Income before income taxes decreased by 46.5% to JPY 12.1 billion
from the same quarter of the previous fiscal year and net income for the current
fiscal year decreased by 44.1% to JPY 7.8 billion from the same quarter of the
previous fiscal year. Overseas sales as a percentage of total sales was 69.5%
compared with 73.6% in the same quarter of the previous fiscal year.
(Results by Business Segment)
During the first quarter of the current fiscal year, in the Semiconductor and
Component Test System segment, incoming orders, net sales and operating income
were JPY 46.9 billion, JPY 39.2 billion and JPY 11.2 billion, respectively, as
semiconductor test systems for flash memory, MPUs and LCD driver IC maintained
steady sales, despite restrained capital expenditures by some of the
semiconductor manufacturers for DRAM semiconductor test systems due to low DRAM
prices. In the Mechatronics System segment, incoming orders, net sales and
operating income were JPY 10.8 billion, JPY 9.3 billion and JPY 2.2 billion
respectively, as a result of steady demand in device interface products for
DDR-SDRAM and flash memory, despite lagging sales in test handlers for DRAM. In
the Services, Support and Others segment, incoming orders, net sales and
operating income were JPY 4.5 billion, JPY 4.1 billion and JPY 0.8 billion
respectively.
(2) Changes in Consolidated Financial Position
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Total assets Stockholders' equity Equity-to-assets ratio Stockholders' equity
per share
- --------------------------------------------------------------------------------------------------------------------------------
Million yen Million yen % Yen
FY2005 Q1 306,734 213,448 69.6 2,309.40
FY2004 Q1 341,443 234,517 68.7 2,385.79
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(For reference) FY2004 296,769 206,749 69.7 2,236.97
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(Consolidated Cash Flows)
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Cash flows from Cash flows from investing Cash flows from Cash and cash equivalents
operating activities activities financing activities at end of period
- ----------------------------------------------------------------------------------------------------------------------------------
Million yen Million yen Million yen Million yen
FY2005 Q1 (785) (1,372) (2,157) 117,601
FY2004 Q1 10,383 (2,489) (2,140) 107,535
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(For reference) FY2004 90,327 (8,250) (63,036) 120,986
- ----------------------------------------------------------------------------------------------------------------------------------
2
(Qualitative Information Regarding Changes in Consolidated Financial Position)
With respect to Advantest's financial position for the first fiscal quarter,
total assets increased by JPY 9.9 billion to JPY 306.7 billion, due to the
increase of accounts receivables by JPY 7.4 billion and inventory assets by JPY
6.1 billion. Total liabilities increased by JPY 3.2 billion to JPY 93.2 billion,
primarily due to the increase of accounts payable by JPY 6.5 billion.
Shareholders' equity was JPY 213.4 billion and equity-to-assets ratio decreased
by 0.1 percentage points to 69.6% from the last fiscal year end.
(Cash Flow Statements)
Cash and cash equivalents at the end of the first fiscal quarter decreased by
JPY 3.3 billion from the end of the previous fiscal year to JPY 117.6 billion.
Cash flows from operating activities was an outflow of JPY 0.7 billion, which
consisted of an increase in account receivables and inventory assets despite
posting net income for current period of JPY 7.8 billion.
Cash flows from investing activities was an outflow of JPY 1.3 billion, which
consisted primarily of capital expenditures on tangible fixed assets including
lease assets.
Cash flows from financing activities was an outflow of JPY 2.1 billion, which
consisted primarily of dividends paid.
3. Projected Results for FY2005 (April 1, 2005 through March 31, 2006)
- -----------------------------------------------------------------------------------------------------------
Net sales Income before income taxes Net income
- -----------------------------------------------------------------------------------------------------------
Million yen Million yen Million yen
FY2005 interim 112,000 25,000 15,000
FY2005 240,000 60,000 37,000
- -----------------------------------------------------------------------------------------------------------
(Qualitative Information Regarding Projected Results)
With respect to Advantest's projected results in the second quarter and
beyond, the prospect for semiconductor related capital expenditures remain
positive with the recovering demand attributed to the progress in inventory
adjustment of digital consumer products and the increase in demand for DRAM
towards the year end sale season, despite the uncertainties regarding the
economy attributable to inflating oil prices and fluctuations in the currency
exchange rates against the Chinese yuan and the US dollar. Earnings forecast for
the interim and the fiscal year ending March 2006, therefore, remains unchanged.
(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
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.
3
Quarterly Consolidated Financial Statements (Summary) Advantest Corporation - Consolidated (June 2005)
1. Quarterly Consolidated Balance Sheets (Summary)
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Q1 of FY2005 FY2004 Increase Q1 of FY2004
(As of June 30, 2005) (As of March 31, 2005) (Decrease) (As of June 30, 2004)
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Item Notes Amount Percentage Amount Percentage Amount Amount Percentage
(in (%) (in (%) (in (in (%)
million yen) million yen) million yen) million yen)
- -----------------------------------------------------------------------------------------------------------------------------------
(Assets)
Cash and cash equivalents 117,601 120,986 (3,385) 107,535
Trade accounts receivable, less
allowance for doubtful accounts *1 64,157 56,702 7,455 88,818
Inventories 35,685 29,585 6,100 46,406
Other current assets 17,599 16,658 941 23,154
----------- ----------- --------------------------
Total current assets 235,042 76.6 223,931 75.5 11,111 265,913 77.9
Investment securities 7,944 2.6 7,772 2.6 172 7,818 2.3
Property, plant and equipment, net *2 50,683 16.5 51,364 17.3 (681) 51,253 15.0
Intangible assets, at cost, less
accumulated amortization 2,966 1.0 3,090 1.0 (124) 3,509 1.0
Other assets 10,099 3.3 10,612 3.6 (513) 12,950 3.8
----------- ----------- --------------------------
Total assets 306,734 100.0 296,769 100.0 9,965 341,443 100.0
----------- ----------- --------------------------
===================================================================================================================================
(Liabilities)
Current installments of
long-term debt 20,043 20,043 -- 4,543
Trade accounts payable 29,748 23,196 6,552 34,048
Other current liabilities 27,189 30,755 (3,566) 25,482
----------- ----------- --------------------------
Total current liabilities 76,980 25.1 73,994 24.9 2,986 64,073 18.8
Long-term debt, excluding current
installments 40 0.0 40 0.0 -- 20,083 5.9
Accrued pension and severance cost 12,476 4.1 12,605 4.3 (129) 18,618 5.5
Other long-term liabilities 3,790 1.2 3,381 1.1 409 3,495 0.9
----------- ----------- --------------------------
Total liabilities 93,286 30.4 90,020 30.3 3,266 106,269 31.1
----------- ----------- --------------------------
(Minority interests)
Minority interests -- -- -- -- -- 657 0.2
(Stockholders' equity)
Common stock 32,363 10.6 32,363 10.9 -- 32,363 9.5
Capital surplus 35,277 11.5 35,263 11.9 14 32,973 9.7
Retained earnings 215,625 70.3 210,121 70.8 5,504 188,867 55.2
Accumulated other comprehensive
income (loss) *3 (3,719) (1.2) (4,878) (1.6) 1,159 (6,960) (2.0)
Treasury stock (66,098) (21.6) (66,120) (22.3) 22 (12,726) (3.7)
----------- ----------- --------------------------
Total stockholders' equity 213,448 69.6 206,749 69.7 6,699 234,517 68.7
----------- ----------- --------------------------
Total liabilities and
stockholders' equity 306,734 100.0 296,769 100.0 9,965 341,443 100.0
----------- ----------- --------------------------
(Notes)
1. Allowance for doubtful accounts 2,184 2,174 10 2,461
2. Accumulated depreciation on
property, plant and equipment 69,117 67,914 1,203 65,599
3. Accumulated other comprehensive
income (loss)
Foreign currency translation
adjustment (5,401) (6,452) 1,051 (7,100)
Net unrealized gains on
securities 1,682 1,574 108 1,435
Minimum pension liability
adjustment -- -- -- (1,295)
4
2. Quarterly Consolidated Statements of Income (Summary)
- -------------------------------------------------------------------------------------------------------------------------------
Q1 of FY2005 Q1 of FY2004 Increase FY2004
April 1, 2005 April 1, 2004 (Decrease) April 1, 2004
through through through
June 30, 2005 June 30, 2004 March 31, 2005
- -------------------------------------------------------------------------------------------------------------------------------
Amount Percentage Amount Percentage Amount Amount Percentage
Item (in million (%) (in million (%) (in million (in million (%)
yen) yen) yen) yen)
- -------------------------------------------------------------------------------------------------------------------------------
Net sales 52,002 100.0 72,065 100.0 (20,063) 239,439 100.0
Cost of sales 24,330 46.8 34,027 47.2 (9,697) 115,994 48.4
Gross profit 27,672 53.2 38,038 52.8 (10,366) 123,445 51.6
Research and development expenses 6,635 12.8 5,813 8.1 822 26,280 11.0
Selling, general and administrative 9,267 17.8 9,823 13.6 (556) 36,446 15.2
expenses
Operating income 11,770 22.6 22,402 31.1 (10,632) 60,719 25.4
Other income (expense)
Interest and dividend 329 98 231 597
income
Interest expense (106) (113) 7 (441)
Minority interests (loss) - (65) 65 (84)
Other 128 351 0.7 338 258 0.3 (210) 93 1,017 1,089 0.4
------------- ------------- --------------------------------
Income before income 12,121 23.3 22,660 31.4 (10,539) 61,808 25.8
taxes
Income taxes 4,301 8.3 8,665 12.0 (4,364) 23,730 9.9
--------- --------- --------- ---------
Net income 7,820 15.0 13,995 19.4 (6,175) 38,078 15.9
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
Q1 of FY2005 Q1 of FY2004 Increase FY2004
April 1, 2005 through April 1, 2004 through (Decrease) April 1, 2004 through
June 30, 2005 June 30, 2004 March 31, 2005
- -------------------------------------------------------------------------------------------------------------------------------
Item Amount (in yen) Amount (in yen) Amount (in yen) Amount (in yen)
- -------------------------------------------------------------------------------------------------------------------------------
Net income per share
Basic 84.61 142.38 (57.77) 389.54
Diluted 84.37 142.02 (57.65) 388.51
- -------------------------------------------------------------------------------------------------------------------------------
5
Advantest Corporation - Consolidated (June 2005)
3. Quarterly Consolidated Statements of Cash Flows (Summary)
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Q1 of FY2005 Q1 of FY2004 FY2004
April 1, 2005 through April 1, 2004 through April 1, 2004 through
June 30, 2005 June 30, 2004 March 31, 2005
- ------------------------------------------------------------------------------------------------------------------------------------
Item Amount Amount Amount
(in million yen) (in million yen) (in million yen)
- ------------------------------------------------------------------------------------------------------------------------------------
I Cash flows from operating activities:
Net income 7,820 13,995 38,078
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 1,953 2,036 8,285
Decrease (increase) in trade accounts receivable (6,901) (12,254) 20,953
Decrease (increase) in inventories (5,977) 3,284 20,218
Increase (decrease) in trade accounts payable 6,023 (4,632) (16,375)
Other (3,703) 7,954 19,168
---------------------------------------------------------------
Net cash provided by operating activities (785) 10,383 90,327
---------------------------------------------------------------
II Cash flows from investing activities:
Purchases of property, plant and equipment (1,444) (2,436) (8,738)
Other 72 (53) 488
---------------------------------------------------------------
Net cash used in investing activities (1,372) (2,489) (8,250)
---------------------------------------------------------------
III Cash flows from financing activities:
Dividends paid (2,190) (2,319) (4,907)
Other 33 179 (58,129)
----------------------------------------------------------------
Net cash used in financing activities (2,157) (2,140) (63,036)
----------------------------------------------------------------
IV Net effect of exchange rate changes on cash and cash
equivalents 929 635 799
----------------------------------------------------------------
V Net change in cash and cash equivalents (3,385) 6,389 19,840
VI Cash and cash equivalents at beginning of period 120,986 101,146 101,146
----------------------------------------------------------------
VII Cash and cash equivalents at end of period 117,601 107,535 120,986
----------------------------------------------------------------
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6
Advantest Corporation - Supplemental Information (June 2005)
Supplemental Information to FY2005 First Quarter Financial Results
1. Business Segment Operating Income
(In billion yen; truncated after the hundred million)
- ------------------------------------------------------------------------------------------------------------------------------------
Q1 of FY2005 Q1 of FY2004 Increase FY2004
April 1, 2005 April 1, 2004 (Decrease) April 1, 2004
through through through
June 30, 2005 June 30, 2004 March 31, 2005
- -----------------------------------------------------------------------------------------------------------------------------------
Amount Percentage Amount Percentage Amount Amount Percentage
(%) (%) (%)
- -----------------------------------------------------------------------------------------------------------------------------------
Semiconductor Sales to unaffiliated 38.5 98.2 54.0 94.5 (15.5) 173.9 96.3
and customers
Component
Test System Intersegment sales 0.7 1.8 3.1 5.5 (2.4) 6.7 3.7
- -----------------------------------------------------------------------------------------------------------------------------------
Net sales 39.2 100.0 57.2 100.0 (18.0) 180.6 100.0
- -----------------------------------------------------------------------------------------------------------------------------------
Operating expenses 27.9 71.3 37.8 66.2 (9.9) 130.0 72.0
- -----------------------------------------------------------------------------------------------------------------------------------
Operating income 11.2 28.7 19.3 33.8 (8.1) 50.6 28.0
- -----------------------------------------------------------------------------------------------------------------------------------
Mechatronics Sales to unaffiliated
System customers 9.3 99.6 12.4 99.2 (3.1) 45.8 98.8
Intersegment sales 0.0 0.4 0.0 0.8 0.0 0.5 1.2
- -----------------------------------------------------------------------------------------------------------------------------------
Net sales 9.3 100.0 12.5 100.0 (3.2) 46.3 100.0
- -----------------------------------------------------------------------------------------------------------------------------------
Operating expenses 7.0 75.6 7.7 61.7 (0.7) 32.7 70.6
- -----------------------------------------------------------------------------------------------------------------------------------
Operating income 2.2 24.4 4.7 38.3 (2.5) 13.6 29.4
- -----------------------------------------------------------------------------------------------------------------------------------
Services, Sales to unaffiliated
Support customers 4.1 100.0 5.5 100.0 (1.4) 19.6 100.0
and Others
Intersegment sales - - - - - - -
- -----------------------------------------------------------------------------------------------------------------------------------
Net sales 4.1 100.0 5.5 100.0 (1.4) 19.6 100.0
- -----------------------------------------------------------------------------------------------------------------------------------
Operating expenses 3.2 79.1 4.9 89.2 (1.7) 16.2 82.7
- -----------------------------------------------------------------------------------------------------------------------------------
Operating income 0.8 20.9 0.6 10.8 0.2 3.4 17.3
- -----------------------------------------------------------------------------------------------------------------------------------
Elimination Sales to unaffiliated
and customers
Corporate - - - - - - -
Intersegment sales (0.7) 100.0 (3.2) 100.0 2.5 (7.3) 100.0
- -----------------------------------------------------------------------------------------------------------------------------------
Net sales (0.7) 100.0 (3.2) 100.0 2.5 (7.3) 100.0
- -----------------------------------------------------------------------------------------------------------------------------------
Operating expenses 1.9 - (0.9) - 2.8 0.6 -
- -----------------------------------------------------------------------------------------------------------------------------------
Operating income (2.6) - (2.3) - (0.3) (7.9) -
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
Consolidated Sales to unaffiliated
customers 52.0 100.0 72.0 100.0 (20.0) 239.4 100.0
Intersegment sales - - - - - - -
- -----------------------------------------------------------------------------------------------------------------------------------
Net sales 52.0 100.0 72.0 100.0 (20.0) 239.4 100.0
- -----------------------------------------------------------------------------------------------------------------------------------
Operating expenses 40.2 77.4 49.6 68.9 (9.4) 179.7 75.1
- -----------------------------------------------------------------------------------------------------------------------------------
Operating income 11.7 22.6 22.4 31.1 (10.7) 59.6 24.9
- -----------------------------------------------------------------------------------------------------------------------------------
2. Geographic Segment Net Sales
(In billion yen; truncated after the hundred million)
- -----------------------------------------------------------------------------------------------------------------------------------
Q1 of FY2005 Q1 of FY2004 Increase FY2004
April 1, 2005 April 1, 2004 (Decrease) April 1, 2004
through through through
June 30, 2005 June 30, 2004 March 31, 2005
- -----------------------------------------------------------------------------------------------------------------------------------
Amount Percentage Amount Percentage Amount Amount Percentage
(%) (%) (%)
- -----------------------------------------------------------------------------------------------------------------------------------
Americas 4.7 9.2 8.1 11.3 (3.4) 23.0 9.6
-------------------------------------------------------------------------------------------------------------------------
Europe 2.0 4.0 3.3 4.6 (1.3) 12.2 5.1
-------------------------------------------------------------------------------------------------------------------------
Asia 29.2 56.3 41.6 57.7 (12.4) 144.1 60.2
-------------------------------------------------------------------------------------------------------------------------
Total Overseas 36.1 69.5 53.0 73.6 (16.9) 179.4 74.9
-------------------------------------------------------------------------------------------------------------------------
Japan 15.8 30.5 18.9 26.4 (3.1) 60.0 25.1
-------------------------------------------------------------------------------------------------------------------------
Consolidated 52.0 100.0 72.0 100.0 (20.0) 239.4 100.0
- -----------------------------------------------------------------------------------------------------------------------------------
7
3. Consolidated Net Sales by Business Segment
(In billion yen; truncated after the hundred million)
----------------------------------------------------------------------------------------------------------------------------------
Q1 of FY2005 Q1 of FY2004 Increase FY2004
April 1, 2005 through April 1, 2004 through (Decrease) April 1, 2004 through
June 30, 2005 June 30, 2004 March 31, 2005
==================================================================================================================================
Semiconductor and Component Test
System 39.2 57.2 (18.0) 180.6
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Mechatronics System 9.3 12.5 (3.2) 46.3
-----------------------------------------------------------------------------------------------------------------------------
Services, Support and Others 4.1 5.5 (1.4) 19.6
-----------------------------------------------------------------------------------------------------------------------------
Elimination (0.7) (3.2) 2.5 (7.3)
-----------------------------------------------------------------------------------------------------------------------------
Total net sales 52.0 72.0 (20.0) 239.4
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4. Consolidated Volume of Orders and Orders Backlog by Business Segment
(In billion yen; truncated after the hundred million)
----------------------------------------------------------------------------------------------------------------------------------
Q1 of FY2005 Q1 of FY2004 Increase FY2004
April 1, 2005 through April 1, 2004 through (Decrease) April 1, 2004 through
June 30, 2005 June 30, 2004 March 31, 2005
-----------------------------------------------------------------------------------------------------------------------------
Semiconductor and Component Test
System 46.9 63.2 (16.3) 171.0
-----------------------------------------------------------------------------------------------------------------------------
Mechatronics System 10.8 13.7 (2.9) 43.8
-----------------------------------------------------------------------------------------------------------------------------
Services, Support and Others 4.5 5.3 (0.8) 19.1
-----------------------------------------------------------------------------------------------------------------------------
Elimination (1.5) (4.6) 3.1 (6.5)
-----------------------------------------------------------------------------------------------------------------------------
Total volume of orders 60.8 77.6 (16.8) 227.4
----------------------------------------------------------------------------------------------------------------------------------
Q1 of FY2005 Q1 of FY2004 Increase FY2004
(As of June 30, 2005) (As of June 30, 2004) (Decrease) (As of March 31, 2005)
---------------------------------------------------------------------------------------------------------------------------------
Semiconductor and Component Test 39.8 47.6 (7.8) 32.0
System
-----------------------------------------------------------------------------------------------------------------------------
Mechatronics System 8.1 10.4 (2.3) 6.6
-----------------------------------------------------------------------------------------------------------------------------
Services, Support and Others 1.2 1.1 0.1 0.8
-----------------------------------------------------------------------------------------------------------------------------
Elimination (0.8) (2.1) 1.3 (0.0)
-----------------------------------------------------------------------------------------------------------------------------
Total orders backlog 48.3 57.0 (8.7) 39.5
----------------------------------------------------------------------------------------------------------------------------------
(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)
Q1 of FY2005 Q1 of FY2004 FY2004
April 1, 2005 through April 1, 2004 through April 1, 2004 through
June 30, 2005 June 30, 2004 March 31, 2005
-----------------------------------------------------------------------------------
Operating activities (0.7) 10.3 90.3
-----------------------------------------------------------------------------------------------------------------------------
Investing activities (1.3) (2.4) (8.2)
-----------------------------------------------------------------------------------------------------------------------------
(Free cash flows) (2.1) 7.8 82.0
-----------------------------------------------------------------------------------------------------------------------------
Financing activities (2.1) (2.1) (63.0)
-----------------------------------------------------------------------------------------------------------------------------
Total cash flows (4.3) 5.7 19.0
--------------------------------------------------------------------------------
Cash and cash equivalents at end of period 117.6 107.5 120.9
----------------------------------------------------------------------------------------------------------------------------------
6. Consolidated Capital Expenditures, Depreciation and Amortization and Research and Development Expenses
----------------------------------------------------------------------------------------------------------------------------------
(In billion yen; truncated after the hundred million)
Q1 of FY2005 Q1 of FY2004 Increase FY2004
April 1, 2005 through April 1, 2004 through (Decrease) April 1, 2004 through
June 30, 2005 June 30, 2004 March 31, 2005
----------------------------------------------------------------------------------------------------------------------------------
Capital expenditures 1.1 2.3 (1.2) 9.3
----------------------------------------------------------------------------------------------------------------------------------
Depreciation and amortization 1.9 2.0 (0.1) 8.2
----------------------------------------------------------------------------------------------------------------------------------
Research and development expenses 6.6 5.8 0.8 26.2
----------------------------------------------------------------------------------------------------------------------------------
7. Number of Employees (Advantest Corporation and Consolidated Subsidiaries)
----------------------------------------------------------------------------------------------------------------------------------
(Persons)
Q1 of FY2005 FY2004 Increase Q1 of FY2004
(As of June 30, 2005) (As of March 31, 2005) (Decrease) (As of June 30, 2004)
----------------------------------------------------------------------------------------------------------------------------------
Unconsolidated 1,461 1,433 28 1,468
----------------------------------------------------------------------------------------------------------------------------------
Affiliates 2,138 2,132 6 2,096
----------------------------------------------------------------------------------------------------------------------------------
Consolidated full-time employee total 3,599 3,565 34 3,564
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8