Overview of FY2005 Third Quarter Financial Results (Consolidated)
(Prepared in accordance with U.S. GAAP)
January 26, 2006
Company name Advantest Corporation (Stock code number: 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
September 30, 2005): No
Number of consolidated subsidiaries: 40
(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 3Q (April 1, 2005 through December
31, 2005)
(1) Consolidated Financial Results
Net sales Operating income Income before income taxes Net income
Million yen % increase Million yen % increase Million yen % increase Million yen % increase
(decrease) (decrease) (decrease) (decrease)
FY2005 Q3 174,906 (7.6) 40,453 (21.9) 43,065 (18.6) 25,941 (18.9)
FY2004 Q3 189,226 78.6 51,826 327.9 52,893 375.3 31,967 349.9
(For reference)
FY2004 239,439 60,719 61,808 38,078
Net income per share Net income per share
(basic) (diluted)
Yen Yen
FY2005 Q3 280.35 279.18
FY2004 Q3 325.19 324.48
(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.
(Qualitative Information Regarding Consolidated Financial Results)
During this third quarter (a period of nine months from April 1, 2005 to
December 31, 2005), although inventory control in the IT-related industries
continued during the first half of this nine months period, Advantest's
operating environment was favorable, as stimulated by the strong demand for
consumer digital products, among other products, and due to an increase in
capital expenditures by the semiconductor industry that intended to increase the
semiconductor production. In particular, the increased demand for portable audio
players, flat screen televisions and notebooks computers led to an increase in
semiconductor sales. In addition, the trend towards a weaker yen in currency
exchange was a positive factor.
Under this environment, Advantest made concentrated efforts to increase orders
input received and expand sales with a focus on the introduction of new products
for next generation semiconductors that meet customers' demands. Advantest
continued to make efforts to implement a thorough inventory and lead time
control based on the just-in-time production system, to improve the quality of
products and to reduce costs. As a result of the above, in this third quarter,
orders input received was (Y)197.3 billion (15.3% increase in comparison to the
corresponding third quarter of the previous fiscal year), sales was (Y)174.9
billion (7.6% decrease), net income before income taxes was (Y)43.1 billion
(18.6% decrease), and net income was (Y)25.9 billion (18.9% decrease). These
results from this third quarter did not match the results from the corresponding
third quarter of the previous fiscal year as Advantest achieved the highest net
sales in the interim period of the previous fiscal year, and thus the outcome of
this third quarter resulted in lower earnings on lower sales. Nevertheless,
Advantest's performance for each quarter has been improving from the
corresponding quarter of the previous fiscal year (a period of three months from
October 1, 2004 to December 31, 2004). Overseas sales as a percentage of total
sales were 68.9%, as compared with 75.4% in the corresponding third quarter of
the previous fiscal year.
(Results by Business Segment)
For the Semiconductor and Component Test System Segment, with respect to
semiconductor test systems for DRAM, sales for next generation DRAM has
increased, especially due to the increased demand for flash memory semiconductor
test systems. Furthermore, sales remained steady for non-memory semiconductor
test systems for MPU and LCD driver IC. Orders input received was (Y)149.7
billion, sales was (Y)130.8 billion and operating income was (Y)37.6 billion.
- 1 -
For the Mechatronics System Segment, sales remained steady for memory
semiconductor test handlers and device interface products. Orders input received
was (Y)36.0 billion, sales was (Y)32.6 billion and operating income was (Y)7.7
billion. For the Services, Support and Others Segment, orders input received was
(Y)15.7 billion, sales was (Y)14.6 billion and operating income was (Y)2.8
billion.
(2) Changes in Consolidated Financial Position
Total Assets Stockholders' equity Equity-to-assets ratio Stockholders' equity
per share
Million yen Million yen % Yen
FY2005 Q3 323,901 238,324 73.6 2,564.15
FY2004 Q3 343,966 251,146 73.0 2,553.78
(For reference)
FY2004 296,769 206,749 69.7 2,236.97
(Consolidated Cash Flows)
Cash flows from Cash flows from Cash flows from Cash and cash equivalents
operating activities investing activities financing activities at end of period
Million yen Million yen Million yen Million yen
FY2005 Q3 30,009 (6,217) (21,001) 127,851
FY2004 Q3 66,497 (6,791) (4,386) 156,362
(For reference)
FY2004 90,327 (8,250) (63,036) 120,986
(Qualitative Information Regarding Changes in Consolidated Financial Position)
At the end of this third quarter, total assets increased by (Y)27.1 billion from
the end of the previous fiscal year to (Y)323.9 billion, due to the increase of
trade accounts receivable by (Y)8.1 billion, inventory assets by (Y)8.0 billion
and cash and cash equivalents by (Y)6.9 billion. Shareholders' equity was
(Y)238.3 billion and equity-to-assets ratio increased by 3.9 percentage points
from the end of the previous fiscal year to 73.6%.
(Cash Flow Statements)
Cash and cash equivalents at the end of this third quarter increased by (Y)6.9
billion from the end of the previous fiscal year to (Y)127.9 billion. Cash flows
from operating activities was an inflow of (Y)30.0 billion, which consisted of
an increase in trade accounts payable ((Y)7.0 billion), among other things, in
addition to the net income for this quarter period of (Y)25.9 billion. Cash
flows from investing activities was an outflow of (Y)6.2 billion, which
consisted primarily of capital expenditures on tangible fixed assets including
lease assets ((Y)5.0 billion). Cash flows from financing activities was an
outflow of (Y)21.0 billion, which consisted primarily of redemption of
corporate bonds ((Y)20.0 billion) and dividends paid ((Y)4.5 billion).
3. Projected Results for FY2005 (April 1, 2005 through March 31, 2006)
With respect to its earnings forecast for the fourth quarter and beyond,
Advantest anticipates that its orders input received and sales will remain
steady due to the increasing capital expenditures of the semiconductor and
related industries, that are primarily targeted for consumer digital devices.
This is so even Advantest is concerned with potential negative impacts that may
result from increasing petroleum prices, fluctuations in foreign exchange rates
and certain domestic and international economic conditions. Accordingly,
Advantest projects that its earnings will exceed our previous forecast as of
October 26, 2005 as below.
[Consolidated]
Income before
Net Sales income taxes Net income
Previous forecast (A) Million yen Million yen Million yen
(As of October 26, 2005) 240,000 61,000 37,000
Revised forecast (B) 250,000 66,000 41,000
Difference (B)-(A) 10,000 5,000 4,000
[Non-Consolidated] (Parent Company Only)
Income before
Net Sales income taxes Net income
Previous forecast (A) Million yen Million yen Million yen
(As of October 26, 2005) 210,000 48,000 31,000
Revised forecast (B) 218,000 53,000 34,000
Difference (B)-(A) 8,000 5,000 3,000
(Note) Figures presented in the Quarterly Financial Results have been rounded to
the nearest million yen.
- 2 -
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 (December 2005)
1. Quarterly Consolidated Balance Sheets (Summary)
- ----------------------------------------------=========================-------------------------------------------------------------
Q3 of FY2005 FY2004 Increase Q3 of FY2004
(As of December 31, 2005) (As of March 31, 2005) (Decrease) (As of December 31, 2004)
- ------------------------------------------------------------------------------------------------------------------------------------
Item Notes Amount Percentage Amount Percentage Amount Amount Percentage
(in million (%) (in million (%) (in million (in million (%)
yen) yen) yen) yen)
- ------------------------------------------------------------------------------------------------------------------------------------
(Assets)
Cash and cash equivalents 127,851 120,986 6,865 156,362
Trade accounts receivable, less
allowance for doubtful accounts *1 64,815 56,702 8,113 65,586
Inventories 37,574 29,585 7,989 30,354
Other current assets 20,865 16,658 4,207 15,978
----------- ----------- ------------------------
Total current assets 251,105 77.5 223,931 75.5 27,174 268,280 78.0
Investment securities 10,803 3.3 7,772 2.6 3,031 7,888 2.3
Property, plant and equipment, net *2 50,298 15.5 51,364 17.3 (1,066) 51,166 14.9
Intangible assets, at cost, less
accumulated amortization 2,796 0.9 3,090 1.0 (294) 3,135 0.9
Other assets 8,899 2.8 10,612 3.6 (1,713) 13,497 3.9
----------- ----------- ------------------------
Total assets 323,901 100.0 296,769 100.0 27,132 343,966 100.0
----------- ----------- ------------------------
====================================================================================================================================
(Liabilities)
Current portion of long-term debt 47 20,043 (19,996) 24,543
Trade accounts payable 31,940 23,196 8,744 18,227
Other current liabilities 37,520 30,755 6,765 27,534
----------- ----------- ------------------------
Total current liabilities 69,507 21.5 73,994 24.9 (4,487) 70,304 20.4
Long-term debt, excluding current
portion 15 0.0 40 0.0 (25) 62 0.0
Accrued pension and severance cost 12,440 3.8 12,605 4.3 (165) 19,002 5.5
Other liabilities 3,615 1.1 3,381 1.1 234 3,452 1.1
----------- ----------- ------------------------
Total liabilities 85,577 26.4 90,020 30.3 (4,443) 92,820 27.0
----------- ----------- ------------------------
(Stockholders' equity)
Common stock 32,363 10.0 32,363 10.9 -- 32,363 9.4
Capital surplus 36,769 11.4 35,263 11.9 1,506 34,496 10.0
Retained earnings 230,255 71.1 210,121 70.8 20,134 204,218 59.4
Accumulated other comprehensive
income (loss) *3 380 0.1 (4,878) (1.6) 5,258 (7,599) (2.2)
Treasury stock (61,443) (19.0) (66,120) (22.3) 4,677 (12,332) (3.6)
----------- ----------- ------------------------
Total stockholders' equity 238,324 73.6 206,749 69.7 31,575 251,146 73.0
----------- ----------- ------------------------
Total liabilities and stockholders'
equity 323,901 100.0 296,769 100.0 27,132 343,966 100.0
----------- ----------- ------------------------
- ----------------------------------------------=========================-------------------------------------------------------------
(Notes)
1. Allowance for doubtful accounts 2,184 2,174 10 2,158
2. Accumulated depreciation on property,
plant and equipment 72,729 67,914 4,815 66,807
3. Accumulated other comprehensive income
(loss)
Foreign currency translation adjustment (1,563) (6,452) 4,889 (7,882)
Net unrealized gain (loss) on securities 1,943 1,574 369 1,365
Minimum pension liability adjustment -- -- -- (1,082)
- 4 -
Advantest Corporation - Consolidated (December 2005)
2. Quarterly Consolidated Statements of Income (Summary)
- ---------------------------------------=========================--------------------------------------------------------------------
Q3 of FY2005 Q3 of FY2004 Increase FY2004
(April 1, 2005 through (April 1, 2004 through (Decrease) (April 1, 2004 through
December 31, 2005) December 31, 2004) March 31, 2005)
- ------------------------------------------------------------------------------------------------------------------------------------
Item Amount Percentage Amount Percentage Amount Amount Percentage
(in million (%) (in million (%) (in million (in million (%)
yen) yen) yen) yen)
- ------------------------------------------------------------------------------------------------------------------------------------
Net sales 174,906 100.0 189,226 100.0 (14,320) 239,439 100.0
Cost of sales 83,980 48.0 86,895 45.9 (2,915) 115,994 48.4
--------- --------- --------- ---------
Gross profit 90,926 52.0 102,331 54.1 (11,405) 123,445 51.6
Research and development expenses 20,014 11.4 18,643 9.9 1,371 26,280 11.0
Selling, general and administrative
expenses 30,459 17.5 31,862 16.8 (1,403) 36,446 15.2
--------- --------- --------- ---------
Operating income (loss) 40,453 23.1 51,826 27.4 (11,373) 60,719 25.4
Other income (expense):
Interest and dividend income 1,185 372 813 597
Interest expense (288) (338) 50 (441)
Minority interests (loss) -- (85) 85 (84)
Other 1,715 2,612 1.5 1,118 1,067 0.6 597 1,545 1,017 1,089 0.4
--------------- --------------- -----------------------------
Income (loss) before income
taxes 43,065 24.6 52,893 28.0 (9,828) 61,808 25.8
Income taxes 17,124 9.8 20,926 11.1 (3,802) 23,730 9.9
--------- --------- --------- ---------
Net income (loss) 25,941 14.8 31,967 16.9 (6,026) 38,078 15.9
--------- --------- --------- ---------
- ---------------------------------------=========================--------------------------------------------------------------------
- ---------------------------------------=========================--------------------------------------------------------------------
Q3 of FY2005 Q3 of FY2004 Increase FY2004
(April 1, 2005 through (April 1, 2004 through (Decrease) (April 1, 2004 through
December 31, 2005) December 31, 2004) March 31, 2005)
- ------------------------------------------------------------------------------------------------------------------------------------
Item Amount (in yen) Amount (in yen) Amount (in yen) Amount (in yen)
- ------------------------------------------------------------------------------------------------------------------------------------
Net income per share
Basic 280.35 325.19 (44.84) 389.54
Diluted 279.18 324.48 (45.30) 388.51
- ---------------------------------------=========================--------------------------------------------------------------------
- 5 -
Advantest Corporation - Consolidated (December 2005)
3. Quarterly Consolidated Statements of Cash Flows (Summary)
- -------------------------------------------------------------======================-------------------------------------------------
Q3 of FY2005 Q3 of FY2004 FY2004
(April 1, 2005 through (April 1, 2004 through (April 1, 2004 through
December 31, 2005) December 31, 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 (loss) 25,941 31,967 38,078
Adjustments to reconcile net income (loss) to net cash
provided by operating activities:
Depreciation and amortization 6,158 6,019 8,285
Decrease (increase) in trade accounts receivable (6,298) 11,150 20,953
Decrease (increase) in inventories (7,362) 19,243 20,218
Increase (decrease) in trade accounts payable 7,001 (20,670) (16,375)
Other 4,569 18,788 19,168
-----------------------------------------------------------------------
Net cash provided by operating activities 30,009 66,497 90,327
-----------------------------------------------------------------------
II Cash flows from investing activities:
Purchases of property, plant and equipment (4,952) (6,706) (8,738)
Other (1,265) (85) 488
-----------------------------------------------------------------------
Net cash used in investing activities (6,217) (6,791) (8,250)
-----------------------------------------------------------------------
III Cash flows from financing activities:
Principal payments on long-term debt (20,021) (21) (4,543)
Dividends paid (4,499) (4,776) (4,907)
Other 3,519 411 (53,586)
-----------------------------------------------------------------------
Net cash used in financing activities (21,001) (4,386) (63,036)
-----------------------------------------------------------------------
IV Net effect of exchange rate changes on cash and cash
equivalents 4,074 (104) 799
-----------------------------------------------------------------------
V Net change in cash and cash equivalents 6,865 55,216 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 127,851 156,362 120,986
-----------------------------------------------------------------------
- -------------------------------------------------------------======================-------------------------------------------------
- 6 -
Advantest Corporation - Supplemental Information (December 2005)
Supplemental Information to FY2005 Third Quarter Financial Results
1. Business Segment Operating Income
(Rounded to the nearest million yen)
- --------------------------------------------========================----------------------------------------------------------------
Q3 of FY2005 Q3 of FY2004 Increase FY2004
(April 1, 2005 through (April 1, 2004 through (April 1, 2004 through
December 31, 2005) December 31, 2004) (Decrease) March 31, 2005)
- ------------------------------------------------------------------------------------------------------------------------------------
Amount (in Percentage Amount (in Percentage Amount Amount (in Percentage
million yen) (%) million yen) (%) million yen) (%)
- ------------------------------------------------------------------------------------------------------------------------------------
Sales to unaffiliated
customers 127,868 97.8 138,042 95.8 (10,174) 173,938 96.3
Semiconductor Intersegment sales 2,926 2.2 6,105 4.2 (3,179) 6,747 3.7
and Component ----------------------------------------------------------------------------------------------------------------
Test System Net sales 130,794 100.0 144,147 100.0 (13,353) 180,685 100.0
---------------------------------------------------------------------------------------------------------------------
Operating expenses 93,172 71.2 98,639 68.4 (5,467) 130,061 72.0
---------------------------------------------------------------------------------------------------------------------
Operating income (loss) 37,622 28.2 45,508 31.6 (7,886) 50,624 28.0
- --------------------------------------------========================----------------------------------------------------------------
- --------------------------------------------========================----------------------------------------------------------------
Sales to unaffiliated
customers 32,479 99.5 35,773 98.7 (3,294) 45,821 98.8
Intersegment sales 164 0.5 487 1.3 (323) 574 1.2
Mechatronics ----------------------------------------------------------------------------------------------------------------
System Net sales 32,643 100.0 36,260 100.0 (3,617) 46,395 100.0
---------------------------------------------------------------------------------------------------------------------
Operating expenses 24,959 76.5 24,391 67.3 568 32,733 70.6
---------------------------------------------------------------------------------------------------------------------
Operating income (loss) 7,684 23.5 11,869 32.7 (4,185) 13,662 29.4
- --------------------------------------------========================----------------------------------------------------------------
- --------------------------------------------========================----------------------------------------------------------------
Sales to unaffiliated
customers 14,559 100.0 15,411 100.0 (852) 19,680 100.0
Intersegment sales - - - - - - -
Services, ----------------------------------------------------------------------------------------------------------------
Support Net sales 14,559 100.0 15,411 100.0 (852) 19,680 100.0
and Others ---------------------------------------------------------------------------------------------------------------------
Operating expenses 11,726 80.5 14,307 92.8 (2,581) 16,278 82.7
---------------------------------------------------------------------------------------------------------------------
Operating income (loss) 2,833 19.5 1,104 7.2 1,729 3,402 17.3
- --------------------------------------------========================----------------------------------------------------------------
- --------------------------------------------========================----------------------------------------------------------------
Sales to unaffiliated
customers - - - - - - -
Intersegment sales (3,090) 100.0 (6,592) 100.0 3,502 (7,321) 100.0
Elimination ----------------------------------------------------------------------------------------------------------------
and Net sales (3,090) 100.0 (6,592) 100.0 3,502 (7,321) 100.0
Corporate ---------------------------------------------------------------------------------------------------------------------
Operating expenses 3,090 - (1,460) - 4,550 675 -
---------------------------------------------------------------------------------------------------------------------
Operating income (loss) (6,180) - (5,132) - (1,048) (7,996) -
- --------------------------------------------========================----------------------------------------------------------------
- --------------------------------------------========================----------------------------------------------------------------
Sales to unaffiliated
customers 174,906 100.0 189,226 100.0 (14,320) 239,439 100.0
Intersegment sales - - - - - - -
----------------------------------------------------------------------------------------------------------------
Consolidated Net sales 174,906 100.0 189,226 100.0 (14,320) 239,439 100.0
---------------------------------------------------------------------------------------------------------------------
Operating expenses 132,947 76.0 135,877 71.8 (2,930) 179,747 75.1
---------------------------------------------------------------------------------------------------------------------
Operating income (loss) 41,959 24.0 53,349 28.2 (11,390) 59,692 24.9
- --------------------------------------------========================----------------------------------------------------------------
(Note 1) Adjustments to operating income (loss) included in Corporate mainly
consist of research and development expenses for basic research
activities, which are not allocated to corporate general
administrative expenses and segment by business sector.
(Note 2) Stock option compensation expense of (Y)1,506 million and (Y)1,523
million in this third quarter and the third quarter of FY2004,
respectively are not included in operating income in the business
segment information. Operating income in the business segment
information for FY 2004 does not include the temporary profit of
(Y)3,317 million which arose from a return of the substitutional
portion of its Employee's Pension Fund Plans and the stock option
compensation expense of (Y)2,290 million. Therefore, these operating
income do not match with the operating income in the consolidated
statements of income and the interim consolidated statements of
income. Such exclusion was made since such items are not included in
the performance review of each business segment by management.
2. Geographic Segment Net Sales
Net Sales to Unaffiliated Customers (Rounded to the nearest million yen)
- --------------------------------------------========================----------------------------------------------------------------
Q3 of FY2005 Q3 of FY2004 Increase FY2004
(April 1, 2005 through (April 1, 2004 through (April 1, 2004 through
December 31, 2005) December 31, 2004) (Decrease) March 31, 2005)
- ------------------------------------------------------------------------------------------------------------------------------------
Amount (in Percentage Amount (in Percentage Amount Amount (in Percentage
million yen) (%) million yen) (%) million yen) (%)
- ------------------------------------------------------------------------------------------------------------------------------------
Americas 18,223 10.4 18,826 9.9 (603) 23,024 9.6
---------------------------------------------------------------------------------------------------------------------
Europe 10,166 5.8 10,716 5.7 (550) 12,270 5.1
---------------------------------------------------------------------------------------------------------------------
Asia 92,195 52.7 113,183 59.8 (20,988) 144,120 60.2
---------------------------------------------------------------------------------------------------------------------
Total Overseas 120,584 68.9 142,725 75.4 (22,141) 179,414 74.9
---------------------------------------------------------------------------------------------------------------------
Japan 54,322 31.1 46,501 24.6 7,821 60,025 25.1
---------------------------------------------------------------------------------------------------------------------
Consolidated 174,906 100.0 189,226 100.0 (14,320) 239,439 100.0
- --------------------------------------------========================----------------------------------------------------------------
- 7 -
Advantest Corporation - Supplemental Information (December 2005)
3. Consolidated Net Sales by Business Segment
(Rounded to the nearest million yen)
- -------------------------------------------=========================----------------------------------------------------------------
Q3 of FY2005 Q3 of FY2004 Increase FY2004
(April 1, 2005 through (April 1, 2004 through (Decrease) (April 1, 2004 through
December 31, 2005) December 31, 2004) March 31, 2005)
====================================================================================================================================
Semiconductor and Component Test
System 130,794 144,147 (13,353) 180,685
------------------------------------------------------------------------------------------------------------------------------
Mechatronics System 32,643 36,260 (3,617) 46,395
------------------------------------------------------------------------------------------------------------------------------
Services, Support and Others 14,559 15,411 (852) 19,680
------------------------------------------------------------------------------------------------------------------------------
Intercompany transactions elimination (3,090) (6,592) 3,502 (7,321)
------------------------------------------------------------------------------------------------------------------------------
Total net sales 174,906 189,226 (14,320) 239,439
- -------------------------------------------=========================----------------------------------------------------------------
4. Consolidated Orders input received and Orders Backlog by Business Segment
(Rounded to the nearest million yen)
- -------------------------------------------=========================----------------------------------------------------------------
Q3 of FY2005 Q3 of FY2004 Increase FY2004
(April 1, 2005 through (April 1, 2004 through (Decrease) (April 1, 2004 through
December 31, 2005) December 31, 2004) March 31, 2005)
====================================================================================================================================
Semiconductor and Component Test
System 149,689 129,039 20,650 171,079
------------------------------------------------------------------------------------------------------------------------------
Mechatronics System 36,026 33,163 2,863 43,833
------------------------------------------------------------------------------------------------------------------------------
Services, Support and Others 15,658 14,867 791 19,117
------------------------------------------------------------------------------------------------------------------------------
Intercompany transactions elimination (4,101) (6,007) 1,906 (6,547)
------------------------------------------------------------------------------------------------------------------------------
Total orders input received 197,272 171,062 26,210 227,482
- -------------------------------------------=========================----------------------------------------------------------------
- -------------------------------------------=========================----------------------------------------------------------------
Q3 of FY2005 Q3 of FY2004 Increase FY2004
(As of December 31, 2005) (As of December 31, 2004) (Decrease) (As of March 31, 2005)
====================================================================================================================================
Semiconductor and Component Test
System 50,941 26,544 24,397 32,046
------------------------------------------------------------------------------------------------------------------------------
Mechatronics System 10,044 6,125 3,919 6,660
------------------------------------------------------------------------------------------------------------------------------
Services, Support and Others 1,948 868 1,080 848
------------------------------------------------------------------------------------------------------------------------------
Intercompany transactions elimination (1,028) (205) (823) (16)
------------------------------------------------------------------------------------------------------------------------------
Total orders backlog 61,905 33,332 28,573 39,538
- -------------------------------------------=========================----------------------------------------------------------------
(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 backlog at the end of such period less the backlog at the beginning of such period. Orders input received are
recorded upon receipt of a written customer order.
5. Consolidated Cash Flows
(Rounded to the nearest million yen)
- -------------------------------------------=========================--------------------------------------------------
Q3 of FY2005 Q3 of FY2004 FY2004
(April 1, 2005 through (April 1, 2004 through (April 1, 2004 through
December 31, 2005) December 31, 2004) March 31, 2005)
======================================================================================================================
Operating activities 30,009 66,497 90,327
----------------------------------------------------------------------------------------------------------------
Investing activities (6,217) (6,791) (8,250)
----------------------------------------------------------------------------------------------------------------
(Free cash flows) 23,792 59,706 82,077
----------------------------------------------------------------------------------------------------------------
Financing activities (21,001) (4,386) (63,036)
----------------------------------------------------------------------------------------------------------------
Total cash flows 2,791 55,320 19,041
- ----------------------------------------------------------------------------------------------------------------------
Cash and cash equivalents at end of period 127,851 156,362 120,986
- -------------------------------------------=========================--------------------------------------------------
6. Consolidated Capital Expenditures, Depreciation and Amortization and Research and Development Expenses
(Rounded to the nearest million yen)
- -------------------------------------------=========================----------------------------------------------------------------
Q3 of FY2005 Q3 of FY2004 Increase FY2004
(April 1, 2005 through (April 1, 2004 through (Decrease) (April 1, 2004 through
December 31, 2005) December 31, 2004) March 31, 2005)
====================================================================================================================================
Capital expenditures 5,195 6,892 (1,697) 9,348
- ------------------------------------------------------------------------------------------------------------------------------------
Depreciation and amortization 6,158 6,019 139 8,285
- ------------------------------------------------------------------------------------------------------------------------------------
Research and development expenses 20,014 18,643 1,371 26,280
- -------------------------------------------=========================----------------------------------------------------------------
7. Number of Employees (Advantest Corporation and Consolidated Subsidiaries)
(Persons)
- -------------------------------------------=========================----------------------------------------------------------------
Q3 of FY2005 FY2004 Increase Q3 of FY2004
(As of December 31, 2005) (As of March 31, 2005) (Decrease) (As of December 31, 2004)
====================================================================================================================================
Non-Consolidated (Parent Company only) 1,445 1,433 12 1,441
- ------------------------------------------------------------------------------------------------------------------------------------
Consolidated subsidiaries 2,146 2,132 14 2,128
- ------------------------------------------------------------------------------------------------------------------------------------
Consolidated full-time employee total 3,591 3,565 26 3,569
- -------------------------------------------=========================----------------------------------------------------------------
- 8 -