FY2005 Consolidated Financial Results
(Prepared in accordance with U.S. GAAP)
(Year ended March 31, 2006)
April 26, 2006
Company name : Advantest Corporation
(URL http://www.advantest.co.jp/investors/)
-------------------------------------
Stock exchanges on which shares are listed : Tokyo Stock Exchange
Stock code number : 6857
Location of head office : Tokyo Prefecture
Company representative : Toshio Maruyama, Representative Board Director, President and
CEO
Contact person : Hiroshi Nakamura, Manager, Accounting Department
(03) 3214-7500
Date of Board meeting to approve the
financial results : April 26, 2006
Adoption of U.S. GAAP : Yes
1. Consolidated Results of FY2005 (April 1, 2005 through March 31, 2006)
(1) Consolidated Financial Results
- ------------ ------------------------------------ ---------------------------------- -----------------------------
Net sales Operating income Income before income taxes
- ------------ ------------------------------------ ---------------------------------- -----------------------------
Million Yen % increase Million Yen % increase Million Yen % increase
FY2005 253,922 6.0 64,458 6.2 67,454 9.1
FY2004 239,439 37.4 60,719 96.1 61,808 114.0
- ------------ --------------------- -------------- --------------------- ------------ ----------------- -----------
- ------------ ----------------------- -------------- --------------- ------------ ---------------- ----------------
Ratio of Ratio of
Net income Net income Return on income before income before
Net income per share per share equity income taxes income taxes
(basic) (diluted) to total assets to net sales
- ------------ ------------ ---------- -------------- --------------- ------------ ---------------- ----------------
Million Yen % increase Yen Yen % % %
FY2005 41,374 8.7 446.34 443.96 17.8 20.8 26.6
FY2004 38,078 119.7 389.54 388.51 17.8 19.7 25.8
- ------------ ------------ ---------- -------------- --------------- ------------ ---------------- ----------------
Note 1: There were no investments in affiliates that have been accounted for
under the equity method in FY2005 and FY2004, respectively.
Note 2: No change in accounting policies during FY2005.
Note 3: Average number of shares outstanding on a consolidated basis was
92,694,513 shares during FY2005 and 97,750,345 shares during FY2004.
Note 4: 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.
(2) Consolidated Financial Position
- ----------------- ----------------------- ------------------------ ----------------------- -----------------------
Total assets Stockholders' equity Equity-to-assets ratio Stockholders' equity
per share
- ----------------- ----------------------- ------------------------ ----------------------- -----------------------
Million Yen Million Yen % Yen
FY2005 350,776 257,927 73.5 2,763.71
FY2004 296,769 206,749 69.7 2,236.97
- ----------------- ----------------------- ------------------------ ----------------------- -----------------------
Note: Outstanding number of shares on a consolidated basis at year end was
93,326,649 shares in FY2005 and 92,423,615 shares in FY2004.
(3) Consolidated Cash Flows
- ----------------- ----------------------- ------------------------ ----------------------- -----------------------
Cash flows from Cash flows from Cash flows from Cash and cash
operating activities investing activities financing activities equivalents at end of
period
- ----------------- ----------------------- ------------------------ ----------------------- -----------------------
Million Yen Million Yen Million Yen Million Yen
FY2005 59,480 (8,542) (18,336) 157,925
FY2004 90,327 (8,250) (63,036) 120,986
- ----------------- ----------------------- ------------------------ ----------------------- -----------------------
-1-
(4) Scope of Consolidation and Equity Method
Number of consolidated subsidiaries: 40 companies
Number of unconsolidated subsidiaries: none
Number of affiliates accounted for under the equity method: none
(5) Changes in Scope of Consolidation and Equity Method
Consolidated subsidiaries
(Newly included) 1 company
(Excluded) none
Affiliates accounted for under the equity method
(Newly included) none
(Excluded) none
2. Projected Results for FY2006 (April 1, 2006 through March 31, 2007)
- ---------------- ----------------- --------------------- -------------------
Net sales Income before Net income
income taxes
- ---------------- ----------------- --------------------- -------------------
Million Yen Million Yen Million Yen
FY2006 interim 130,000 35,000 21,000
FY2006 265,000 72,000 44,000
- ---------------- ----------------- --------------------- -------------------
(Reference) Projected net income per share for the fiscal year: (Y) 471.46
Figures presented in this Earning Digest have been rounded to the nearest
million Yen.
For a discussion of the assumptions and other factors upon which these
projections are based, please refer to "Prospects for the Fiscal Year" appearing
elsewhere in the document.
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.
-2-
1. Management Policy
Advantest's Basic Management Policy
- -----------------------------------
Advantest believes that its philosophy of management is to support
leading-edge technology at its forefront. Its basic management policy consists
of the following elements: increasing corporate value, improving shareholder and
customer satisfaction and achieving excellence.
Business Strategy
- -----------------
While maintaining "Measurements" as our core competence, Advantest
intends to improve its corporate value by establishing an operation and finance
structure that responds timely to changes in the global market, and also aims to
increase market share by introducing fine products that will inspire the market
demands of the next generation. To achieve these objectives, Advantest is driven
to further strengthen its product development operations and improve production
efficiency by selectively focusing on certain businesses, while strengthening
its overseas operations and support system in the U.S., Europe and Asia.
Further, Advantest seeks to increase the level of customer satisfaction
by maximizing the functions of our test systems by providing them with a
solution for businesses to improve business efficiency.
On October 1, 2005, Advantest launched a company-wide initiative called
"Activate 21". Not only does this initiative, which is set to end with FY2008,
continue with the improvements and reforms initiated with "Initiative 21", which
ended with the previous fiscal year, but also implements reforms that emphasizes
cost and efficiency from a global perspective.
Target Financial Index
- ----------------------
Advantest applies the "AVA" (Advantest Value Added), a financial index
incorporating the concept of EVA(R) (Economic Value Added) *(1), as a
significant performance indicator, along with profit margin, ROE and cash flows,
to measure its business performance. Specifically, Advantest will continue to
set the minimum return-on-investment ratio ("hurdle rate") for evaluating AVA at
8% and a mid-term target at 12% with an aim to increase corporate value and
shareholder value.
*(1)"EVA(R)" is a registered trademark of Stern Stewart & Co.
Basic Policy on Distribution of Profits
- ---------------------------------------
Advantest believes that shareholder value is premised on the
realization of long-term and continued growth in corporate value.
With respect to the distribution of profits, Advantest has adopted a
policy of maintaining consistent dividend payouts after taking into
consideration of business performance and financial condition.
In response to the new Company Law coming into effect on May 1, 2006,
Advantest does not intend to revise its dividend distribution policies and plans
to continuingly distribute dividends twice a year, in accordance with the
ordinary practice, on the ending dates of the interim period and the fiscal
year. Pursuant to Paragraph 1, Article 459 of the Company Law, Advantest plans
to submit, to the ordinary general shareholders' meeting to be held at the end
of June 2006, a resolution to amend its Articles of Incorporation. This
resolution aims to make a resolution by the Board of Directors on dividend
matters possible.
-3-
Retained profits will be utilized for research and development,
streamlining efforts, overseas expansion and investing in new businesses to
enable the strengthening of its business position and creation of corporate
value.
Advantest's Views and Policies on Lowering its Investment Unit
- --------------------------------------------------------------
As part of its capital policy, Advantest has long recognized the
importance of increasing the market liquidity of its shares, promoting long-term
and stable holding of its shares among investors and expanding its investor
base. Accordingly, Advantest introduced the minimum investment unit of 100
shares.
As Advantest considers the current liquidity level of its shares to be
sufficient and expects any further reduction of investment unit to require
significant costs, it is cautious about implementing any further reductions and
will do so only after careful consideration of prevailing market conditions,
business performance, share prices and other factors.
Matters Relating to Parent Companies
- ------------------------------------
Advantest does not have a parent company as of the end of this fiscal
year.
2. Business Results and Financial Condition
(1) Business Results
Fiscal Year Results
- -------------------
During the fiscal year, Advantest's operating environment was very
favorable, as stimulated by increased demand for consumer digital products,
including portable audio players, and flat screen televisions and personal
computers (particularly notebooks computers), and due to an increase in capital
expenditures by the semiconductor industry that intended to increase the
semiconductor production. 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 control
and lead time reduction based on the just-in-time production system, to improve
the quality of products and to reduce costs.
As a result of the above, as compared to the previous fiscal year,
orders input received increased by 14.0% to (Y)259.4 billion, net sales
increased by 6.0% to (Y)253.9 billion, net income before income taxes for the
fiscal year increased by 9.1% to (Y)67.5 billion, and net income for the fiscal
year increased by 8.7% to (Y)41.4 billion. Overseas sales as a percentage of
total sales were 68.0%, as compared with 74.9% in the previous fiscal year.
-4-
Condition of Business by Segment
- --------------------------------
(Semiconductor and Component Test System Segment)
In this segment, as inventory adjustment by IT related industries has
rapidly completed from the second half of the previous fiscal year, and
thereafter, due to increased demand for consumer digital products, demand for
new test systems greatly increased in connection with the increased production
of semiconductors.
In the memory test system market, due to market expansion of NAND type
flash memory semiconductors used in products such as portable audio players,
sales in test systems for flash memory semiconductors remained strong
domestically and overseas. With respect to test systems for DRAM semiconductor,
sales remained strong throughout the fiscal year in terms of test systems for
DRAM used in consumer digital products and personal computers. Especially,
demand for test systems for high-speed memory semiconductors increased
domestically and in Taiwan. Each of semiconductor manufacturers implemented, in
the second half of the fiscal year, a full scale production of DDR2
semiconductors for DRAM (next generation DRAM) that is high-speed and
high-efficiency.
In the market of non-memory semiconductor test system, stimulated by
strong sales in personal computers, sales of the T2000, a test system compatible
with OPENSTAR(R)*(2), continually remained strong from the previous fiscal year.
In addition, sales in SoC semiconductor test systems for devices used in
consumer digital products and test systems for car IC increased. Due to an
increase in demand for personal computer monitors and flat screen televisions,
sales in non-memory test systems for LCD Driver IC greatly increased
domestically and in Taiwan.
As a result of the above, orders input received was (Y)195.6 billion
(14.3% increase in comparison to the previous fiscal year), sales was (Y)191.4
billion (5.9% increase) and operating income was (Y)57.5 billion (13.6%
increase).
(Mechatronics System Segment)
Stimulated by the positive sales of T2000 and test systems for digital
consumer products, sales in non-memory semiconductor test handlers remained
steady. Sales of memory test handlers was weaker in the first half of the fiscal
year, especially due to a delay in the demand for DDR2 to pick up. However, the
sales of memory test handlers resulted positive due to an increase in sales of
DRAM test systems. Furthermore, sales of device interface products was steady,
due to an increase in demand for flash memory semiconductors and semiconductors
for SoC.
As a result, orders input received was (Y)49.5 billion (12.9% increase
in comparison with the previous fiscal year), sales was (Y)48.3 billion (4.0%
increase) and operating income was (Y)12.0 billion (12.4% decrease).
(Services, Support and Others Segment)
In this segment, orders input received was (Y)19.3 billion (0.7%
increase in comparison with the previous fiscal year), sales was (Y)19.1 billion
(3.1% decrease) and operating income was (Y)3.9 billion (13.2% increase).
-5-
*(2)OPENSTAR(R): The name of an open architecture standard published by
the STC (Semiconductor Testing Consortium, Inc.). OPENSTAR(R) is a registered
trademark or a trademark of STC in the United States, Japan and other countries.
Distribution of Profits
- -----------------------
As described above, due to the increase in capital expenditures by the
semiconductor industry, sales in the fiscal year achieved an increase in
revenues and profits compared to the previous fiscal year. Although there are
potential uncertainties affecting its operating environment, Advantest decided,
pursuant to its profit distribution policy described above, to distribute a year
end dividend of (Y)45 per share consistent with the revised forecast announced
on March 7, 2006. Since Advantest has paid an interim dividend of (Y)25, the
total dividend for the fiscal year is expected to be (Y)70 ((Y)50 for the
previous fiscal year). Advantest will propose this upward revision at its
Sixty-Fourth Ordinary General Meeting of Shareholders.
Prospects for the Upcoming Fiscal Year
- --------------------------------------
With respect to its operating environment in the upcoming fiscal year,
Advantest expects to see expanded volume and application of flash memory used
for digital consumer products, including mobile telephones, portable audio
players and flat screen televisions, and a continuing increase in the demand for
non-memory semiconductors. With respect to DRAM semiconductors, Advantest
expects a rapid shift to DDR2-type DRAM. Advantest expects an increase in demand
for such DRAM, anticipating that computers with a new operation system requiring
more memory and game devices will be introduced in the second half of the
upcoming fiscal year. Furthermore, continued capital expenditures relating to
300mm wafers by the semiconductor manufactures and foundries are expected.
On the other hand, restrained capital expenditures as a result of poor
supply and demand balance, an issue unique to the semiconductor market,
increased prices of raw materials such as oil, currency risk attributable to a
strong yen, and strengthened downward pressure on prices as a result of the
above-mentioned factors may affect our results.
In order to respond to these conditions, Advantest plans to continue
its efforts to increase orders input received and expand sales through the
timely introduction of new products that meets customers' needs by strengthening
marketing and development structure. To further strengthen its cost
competitiveness, Advantest will make continued efforts to improve profitability
by reviewing its operational process company wide and improving manufacturing
efficiency.
As a result of the above, Advantest's current business outlook for the
upcoming fiscal year are described below.
Net sales is expected to increase by 4.4% to 265.0 billion yen; net
income before income tax for this fiscal year is expected to increase by 6.7% to
72.0 billion yen; and net income is expected to increase by 6.3% to 44.0 billion
yen, each as compared with the current fiscal year.
-6-
Profit Distribution Forecast
- ----------------------------
Based on the prospects for the upcoming fiscal year and the profit
distribution policy described above, Advantest expects to distribute an annual
dividend of (Y)70 per share ((Y)35 per share as an interim dividend).
(2) Financial Condition
Total assets at the end fiscal year end is (Y)350.8 billion, an
increase of (Y)54.0 billion compared to the previous fiscal year, due primarily
to an increase of (Y)36.9 billion in cash and cash equivalents and (Y)12.9
billion in account receivable compared to the previous fiscal year. Total
liabilities are (Y)92.8 billion, an increase of (Y)2.8 billion compared to the
previous fiscal year. Shareholders' equity is (Y)257.9 billion after an increase
of (Y)41.4 billion in the net profit for the fiscal year. Equity to Assets ratio
is 73.5%, an increase by 3.8 point.
(Cash Flow Condition)
Cash and cash equivalents held at March 31, 2006 were (Y)157.9 billion,
an increase of (Y)36.9 billion from March 31, 2005.
Significant cash flows during this fiscal year and their causes are
described below.
Net cash provided by operating activities was (Y)59.5 billion. This
amount was primarily attributable to a net income of (Y)41.4 billion and an
increase in income tax payable by (Y)12.5 billion.
Net cash used in investment activities was an outflow of (Y)8.5
billion. This amount was primarily attributable to capital expenditures of
(Y)7.1 billion, including capital expenditures related to equipment for leasing.
Net cash used in financing activities was an outflow of (Y)18.3
billion. This amount was primarily attributable to redemption of corporate bonds
in the amount of (Y)20.0 billion, dividend payments in the amount of (Y)4.6
billion offset by proceeds from sale of treasury stock in the amount of (Y)6.4
billion.
The following table illustrates the historical movements of certain
cash flow indexes:
Year ended March 31,
- ----------------------------------------------------------------------------------------------------------------
2002 2003 2004 2005 2006
- ----------------------------------------------------------------------------------------------------------------
Stockholders' equity ratio (%) 78.3 74.9 67.0 69.7 73.5
- ----------------------------------------------------------------------------------------------------------------
Stockholders' equity ratio based on 311.4 147.4 253.4 256.0 373.3
market prices(%)
- ----------------------------------------------------------------------------------------------------------------
Debt to annual cash flow ratio 3.0 5.4 0.9 0.2 0.0
- ----------------------------------------------------------------------------------------------------------------
Interest coverage ratio 1,703.0 1,013.7 5,965.1 20,210.9 14,845.3
- ----------------------------------------------------------------------------------------------------------------
-7-
Stockholders' equity ratio: stockholders' equity / total assets
Stockholders' equity ratio based on market prices: market capitalization / total
assets
Debt to annual cash flow ratio: interest-bearing liabilities / operating cash
flows
Interest coverage ratio: operating cash flows / interest payments
(Notes) 1. These indexes are calculated using U.S. GAAP figures.
2. Operating cash flows are the cash flows provided by operating
activities on the consolidated statements of cash flows.
3. Interest-bearing liabilities include all liabilities on the
consolidated balance sheets that incur interests.
-8-
Advantest Corporation - Consolidated (FY2005)
Consolidated Financial Statements and other information
Consolidated Balance Sheets
- ----------------------------------------------------------------------------------------------------------------------------------
FY2004 FY2005
(As of March 31, 2005) (As of March 31, 2006)
- ----------------------------------------------------------------------------------------------------------------------------------
Amount Percentage Amount Percentage
Notes (in million Yen) (%) (in million Yen) (%)
- ----------------------------------------------------------------------------------------------------------------------------------
(Assets)
Cash and cash equivalents 120,986 157,925
Trade accounts receivable, less allowance for doubtful *1 56,702 69,567
accounts
Inventories 29,585 29,911
Deferred tax assets 13,673 13,708
Other current assets 2,985 4,522
------------------- -------------------
Total current assets 223,931 75.5 275,633 78.6
Investment securities 7,772 2.6 12,273 3.5
Property, plant and equipment, net *2 51,364 17.3 50,793 14.5
Deferred tax assets 8,438 2.9 7,378 2.1
Intangible assets, at cost, less accumulated amortization 3,090 1.0 2,858 0.8
Other assets 2,174 0.7 1,841 0.5
------------------- -------------------
Total assets 296,769 100.0 350,776 100.0
------------------- -------------------
(Liabilities)
Current portion of long-term debt 20,043 30
Trade accounts payable 23,196 32,584
Income taxes payable 7,278 19,970
Accrued expenses 13,865 12,781
Accrued warranty expenses 4,090 4,776
Deferred revenue 2,220 2,979
Other current liabilities 3,302 3,625
------------------- -------------------
Total current liabilities 73,994 24.9 76,745 21.9
Long-term debt, excluding current portion *3 40 0.0 10 0.0
Accrued pension and severance cost 12,605 4.3 12,292 3.5
Other liabilities 3,381 1.1 3,802 1.1
------------------- -------------------
Total liabilities 90,020 30.3 92,849 26.5
------------------- -------------------
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-9-
Advantest Corporation - Consolidated (FY2005)
- ----------------------------------------------------------------------------------------------------------------------------------
FY2004 FY2005
(As of March 31, 2005) (As of March 31, 2006)
- ----------------------------------------------------------------------------------------------------------------------------------
Amount Percentage Amount Percentage
Notes (in million Yen) (%) (in million Yen) (%)
- ----------------------------------------------------------------------------------------------------------------------------------
(Stockholders' equity)
Common stock 32,363 10.9 32,363 9.2
Capital surplus 35,263 11.9 37,147 10.6
Retained earnings 210,121 70.8 245,090 69.9
Accumulated other comprehensive income (loss) *4 (4,878) (1.6) 1,344 0.3
Treasury stock (66,120) (22.3) (58,017) (16.5)
------------------- ------------------
Total stockholders' equity 206,749 69.7 257,927 73.5
------------------- ------------------
Total liabilities and stockholders' equity 296,769 100.0 350,776 100.0
------------------- ------------------
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(Notes)
FY2004 FY2005
(As of March 31, 2005) (As of March 31, 2006)
- ----------------------------------------------------------------------------------------------------------------------------------
Amount Amount
(in million Yen) (in million Yen)
- ----------------------------------------------------------------------------------------------------------------------------------
*1. Allowance for doubtful accounts 2,174 2,117
- ----------------------------------------------------------------------------------------------------------------------------------
*2. Accumulated depreciation on property, plant and equipment 67,914 72,131
- ----------------------------------------------------------------------------------------------------------------------------------
*3. Collateralized assets and secured obligations
Property, plant and equipment 393 -
Obligations secured by the above 24 -
- ----------------------------------------------------------------------------------------------------------------------------------
*4. Accumulated other comprehensive income (loss)
Foreign currency translation adjustments (6,452) (1,378)
Net unrealized gain (loss) on available-for-sale securities 1,574 2,722
- ----------------------------------------------------------------------------------------------------------------------------------
5. Net assets per share (in Yen) 2,236.97 2,763.71
- ----------------------------------------------------------------------------------------------------------------------------------
-10-
Advantest Corporation - Consolidated (FY2005)
Consolidated Statements of Income
- ----------------------------------------------------------------------------------------------------------------------------------
FY2004 FY2005
(April 1, 2004 through (April 1, 2005 through
March 31, 2005) March 31, 2006)
- ----------------------------------------------------------------------------------------------------------------------------------
Amount Percentage Amount Percentage
(in million Yen) (%) (in million Yen) (%)
- ----------------------------------------------------------------------------------------------------------------------------------
Net sales 239,439 100.0 253,922 100.0
Cost of sales 115,994 48.4 121,429 47.8
----------- -----------
Gross profit 123,445 51.6 132,493 52.2
Research and development expenses 26,280 11.0 26,927 10.6
Selling, general and administrative expenses 36,446 15.2 41,108 16.2
----------- -----------
Operating income (loss) 60,719 25.4 64,458 25.4
Other income (expense):
Interest and dividend income 597 1,760
Interest expense (441) (290)
Minority interests (losses) (84) -
Other 1,017 1,089 0.4 1,526 2,996 1.2
--------------------- --------------------
Income (loss) before income taxes 61,808 25.8 67,454 26.6
Income taxes 23,730 9.9 26,080 10.3
----------- -----------
Net income (loss) 38,078 15.9 41,374 16.3
----------- -----------
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
FY2004 FY2005
(April 1, 2004 through (April 1, 2005 through
March 31, 2005) March 31, 2006)
- ----------------------------------------------------------------------------------------------------------------------------------
Amount Amount
(in Yen) (in Yen)
- ----------------------------------------------------------------------------------------------------------------------------------
Net income per share (Net loss per share)
Basic 389.54 446.34
Diluted 388.51 443.96
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-11-
Advantest Corporation - Consolidated (FY2005)
Consolidated Statements of Stockholders' Equity
- ----------------------------------------------------------------------------------------------------------------------------------
FY2004 FY2005
(April 1, 2004 through (April 1, 2005 through
March 31, 2005) March 31, 2006)
- ----------------------------------------------------------------------------------------------------------------------------------
Amount Amount
Notes (in million Yen) (in million Yen)
- ----------------------------------------------------------------------------------------------------------------------------------
Common stock :
Balance at beginning of year 32,363 32,363
------------------------------------------------------------
Balance at end of year 32,363 32,363
------------------------------------------------------------
Capital surplus :
Balance at beginning of year 32,973 35,263
Stock option compensation expense 2,290 1,884
------------------------------------------------------------
Balance at end of year 35,263 37,147
------------------------------------------------------------
Retained earnings :
Balance at beginning of year 177,404 210,121
Net income (loss) 38,078 41,374
Cash dividends (4,915) (4,625)
Loss on disposal of treasury stock (446) (1,780)
------------------------------------------------------------
Balance at end of year 210,121 245,090
------------------------------------------------------------
Accumulated other comprehensive income (loss) :
Balance at beginning of year (8,061) (4,878)
Other comprehensive income (loss), net of tax 3,183 6,222
------------------------------------------------------------
Balance at end of year (4,878) 1,344
------------------------------------------------------------
Treasury stock :
Balance at beginning of year (12,911) (66,120)
Treasury stock purchased (54,513) (55)
Exercise of stock options 1,302 8,157
Treasury stock sold 2 1
------------------------------------------------------------
Balance at end of year (66,120) (58,017)
------------------------------------------------------------
Total stockholders' equity 206,749 257,927
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
Disclosure of comprehensive income (loss) :
Net income (loss) 38,078 41,374
Other comprehensive income (loss), net of tax 3,183 6,222
------------------------------------------------------------
Total comprehensive income (loss) 41,261 47,596
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-12-
Advantest Corporation - Consolidated (FY2005)
Consolidated Statements of Cash Flows
- ----------------------------------------------------------------------------------------------------------------------------------
FY2004 FY2005
(April 1, 2004 through (April 1, 2005 through
March 31, 2005) March 31, 2006)
- ----------------------------------------------------------------------------------------------------------------------------------
Amount Amount
(in million Yen) (in million Yen)
- ----------------------------------------------------------------------------------------------------------------------------------
I Cash flows from operating activities:
Net income (loss) 38,078 41,374
Adjustments to reconcile net income (loss) to net cash
provided by operating activities:
Depreciation and amortization 8,285 8,275
Deferred income taxes 13,540 1,005
Stock option compensation expense 2,290 1,884
Decrease (increase) in trade accounts receivable 20,953 (11,072)
Decrease (increase) in inventories 20,218 108
Increase (decrease) in trade accounts payable (16,375) 7,627
Increase (decrease) in income taxes payable 3,311 12,506
Increase (decrease) in accrued expenses 4,445 (1,261)
Increase (decrease) in accrued warranty expenses 969 610
Increase (decrease) in deferred revenue (2,456) 548
Increase (decrease) in accrued pension and severance cost (3,409) (329)
Other 478 (1,795)
-------------------------------------------------------------
Net cash provided by operating activities 90,327 59,480
-------------------------------------------------------------
II Cash flows from investing activities:
Proceeds from sale of marketable securities (available-for- 1,428 2,977
sale securities)
Proceeds from sale of non-marketable securities 50 -
Purchases of marketable securities - (2,256)
Purchases of non-marketable securities - (1,900)
Proceeds from sale of property, plant and equipment 132 258
Purchases of intangible assets (470) (523)
Purchases of property, plant and equipment (8,738) (7,071)
Other (652) (27)
-------------------------------------------------------------
Net cash used in investing activities (8,250) (8,542)
-------------------------------------------------------------
III Cash flows from financing activities:
Principal payments on long-term debt (4,543) (20,043)
Proceeds from sales of treasury stock 939 6,378
Payments to acquire treasury stock (54,511) (57)
Dividends paid (4,907) (4,622)
Other (14) 8
-------------------------------------------------------------
Net cash used in financing activities (63,036) (18,336)
-------------------------------------------------------------
IV Net effect of exchange rate changes on cash and cash 799 4,337
equivalents -------------------------------------------------------------
V Net change in cash and cash equivalents 19,840 36,939
VI Cash and cash equivalents at beginning of year 101,146 120,986
-------------------------------------------------------------
VII Cash and cash equivalents at end of year 120,986 157,925
-------------------------------------------------------------
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-13-
Organization of the Advantest Group
The following diagram shows the business relationships among the major
affiliated companies of the Advantest Group.
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| Customers and Distributors |
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| ^ ^ ^ ^ ^ |
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| _|___________________|________________________________________|____________________________________________________|_______|_ |
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| | | | Sales and Support Companies | | | | | |
| | | | - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - | | | |
| | | | | Advantest America, Inc. Advantest Taiwan Inc. | | | | |
| | | |---->| Advantest (Europe) GmbH Advantest Korea Co., Ltd. |<----------------| | | |
| | | | | Advantest (Singapore) Pte. Ltd. Advantest (Suzhou) Co., Ltd. | | | | |
| | | | - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - | | | |
| | | | | ^ ^ | | | | |
| | | | | | | | | |
| | | | | | | | | | | |
| | | Development, manufacturing and sales | | | | | |
| | | companies | | | Manufacturing|Company | Service Companies | | | |
| | | - - - - - - - - - - - - - - - - - - | - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - | | |
| | | | Japan Engineering Co., Ltd | | | | Advantest Engineering | | | Advantest Customer Support | | | |
| | | | Advantest Kyushu Systems Co., Ltd | | | (M)Sdn. Bhd. | | Corporation | | | |
| | | - - - - - - - - - - - - - - - - - - | | - - - - - - - - - - - - - - | | Advantest Finance Inc. | | | |
| | | | | | Electronic Retrofit Corporation. | | | |
| | | | | | | | Advantest Logistics Co., Ltd. | | | |
| | | | | | Advanfacilities Co., Ltd. | | | |
| | | | | | | | Advantest Technical Information | | | |
| | | | | | Service Corporation | | | |
| | | | | | | | Advantest Analysis Laboratories | | | |
| | | | | | Co., Ltd. | | | |
| | | | | | Advantest Staff Resource | | | |
| | | | | | | | Corporation | | | |
| | | | | | Advantest Media Service | | | |
| | | | | | | | Corporation | | | |
| | | | | | Advantest Information Systems, Inc. | | | |
| | | | | | | - - - - - - - - - - - - - - - - - - - | | |
| | | | | ^ | | |
| | | | | | | | | | |
| | | | | | | | |
| | | v | v | v | | |
| | | ===================================================================================================================== | | |
| | --- Advantest Corporation --- | |
| | ===================================================================================================================== | |
| | ^ | ^ | ^ | |
| | | | | | |
| | | | | | | | |
| | Manufacturing Company | Manufacturing|Companies Research and Development Companies | |
| | - - - - - - - - - - - - - - - - - - | | - - - - - - - - - - - - - - | - - - - - - - - - - - - - - - - - - - | |
| | | Advantest Manufacturing, Inc. |-| | Advanmechatec Co., Ltd. | | Advantest Laboratories Co., Ltd. | | |
| | - - - - - - - - - - - - - - - - - - | | | Advantest DI Corporation | | | Advantest Europe R&D S.A.R.L. | | |
| | | - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - | |
| | | | | | |
| | Development companies | | |
| | - - - - - - - - - - - - - - - - - - | | | | |
| | | Advansoft Development | | | |
| | | Corporation | | | | | |
| | | Advantest Tokyo Systems Co., Ltd. | | | |
| | | Advantest Tohoku Systems Co., Ltd.|- | | | |
| | | Advantest Kansai Systems Co., Ltd.| | |
| | | Advantest America R&D Center, | | | | |
| | | Inc. | | |
| | - - - - - - - - - - - - - - - - - - | | | |
| | | |
| | | | | |
| | | |
| |___________________________________________|____________________________________|____________________________________________| |
| |
| |
| __________________________________________ ____________________________________ ___________________________________________ |
| | | | | |
| | Semiconductor and Component Test System | Mechatronics System | Services, Support and Others | |
| |__________________________________________|____________________________________|___________________________________________| |
| |
|_________________________________________________________________________________________________________________________________|
There are 11 other consolidated subsidiaries in addition to those mentioned in the above diagram.
Consolidated subsidiaries (23 domestic; 17 overseas; 40 total)
<-- : Main flow of products and services
-14-
Notes to the Consolidated Financial Statements
(Note 1) Accounting Principles, Procedures and the Presentation of the
Consolidated Financial Statements
(a) Terminology, Form and Method of Preparation of the Consolidated Financial
Statements
Advantest prepares these consolidated financial statements in
accordance with the accounting principles, procedures, terminology, form and
mode of preparation required in the United States of America in connection with
its issuance of American Depository Shares as established under Accounting
Research Bulletins ("ARB"), Accounting Principles Board ("APB") statements,
Statements of Financial Accounting Standards ("SFAS") and other relevant sources
(collectively "U.S. GAAP"). However, Advantest Corporation and its consolidated
subsidiaries prepare their unconsolidated financial statements in accordance
with accounting principles generally accepted in the country of their domicile.
Certain adjustments and reclassifications have been incorporated in the
accompanying consolidated financial statements to present them in conformity
with accounting principles generally accepted in the United States of America.
(b) The Preparation of Consolidated Financial Statements and Registration with
the U.S. Securities and Exchange Commission
Advantest Corporation began listing on the New York Stock Exchange on
September 17, 2001 (local time) by means of an issuance of American Depository
Shares, and is registered with the U.S. Securities and Exchange Commission on
Form 20-F (equivalent to the Annual Securities Report in Japan) since FY2001. In
connection with the registration on Form 20-F, Advantest prepares its
consolidated financial statements in accordance with U.S. GAAP.
(c) Scope of Consolidation and Application of the Equity Method
Advantest's consolidated financial statements include financial
statements of Advantest Corporation and its majority-owned subsidiaries.
Advantest does not have any variable interest entities as provided in the U.S.
Financial Accounting Standards Board's Interpretation No. 46 (Revised December
2003)- "Consolidation of Variable Interest Entities". Thus, Advantest does not
include any such entity in its consolidated financial statements. All
significant intercompany balances and transactions have been eliminated in
consolidation.
The following table sets forth the number of consolidated subsidiaries
and equity method affiliates of Advantest:
- -------------- --------------- ------------------------- ------------------------- --------------------
FY 2004 FY 2005 Increase (decrease)
(As of March 31, 2005) (As of March 31, 2006)
- -------------- --------------- ------------------------- ------------------------- --------------------
Domestic 22 23 1
--------------- ------------------------- ------------------------- --------------------
Overseas 17 17 0
--------------- ------------------------- ------------------------- --------------------
Consolidated subsidiaries 39 40 1
- ------------------------------ ------------------------- ------------------------- --------------------
Equity method affiliates - - -
- ------------------------------ ------------------------- ------------------------- --------------------
Total 39 40 1
- ------------------------------ ------------------------- ------------------------- --------------------
Changes in the scope of consolidation:
Newly included (1): Advantest Technology Solutions Corporation *1
-15-
*1 Advantest Technology Solutions Corporation was established on July 1, 2005 as
a subsidiary to conduct semiconductor design validation system business.
(Note 2) Summary of Significant Accounting Policies and Practices
There was no change in accounting policies and practices.
For details regarding the accounting practices, please see the note
"Business Contents and Significant Accounting Policies" to the Consolidated
Financial statements on the Yuka Shoken Hokokusho from the previous fiscal year.
(Note 3) Investment Securities
Investment securities at March 31, 2005 and 2006 consist of
marketable and non-marketable equity securities. Advantest classifies marketable
equity securities as available-for-sale. The acquisition cost, gross unrealized
gains, gross unrealized losses and fair value at March 31, 2005 and 2006 were as
follows:
Million Yen
-----------
March 31, 2005
--------------
Gross Gross
----- -----
unrealized unrealized
---------- ----------
Acquisition
-----------
Cost Gains Losses Fair value
---- ----- ------ ----------
Noncurrent:
Available-for-sale:
Equity securities 3,803 2,516 - 6,328
Million Yen
-----------
March 31, 2006
--------------
Gross Gross
----- -----
unrealized unrealized
---------- ----------
Acquisition
-----------
Cost Gains Losses Fair value
---- ----- ------ ----------
Noncurrent :
Available-for-sale:
Equity securities 4,424 4,559 8 8,975
Gross realized gains and losses on available-for-sales equity
securities for the years ended March 31, 2005 and 2006 were as follows:
-16-
Million Yen
-----------
March 31, 2005 March 31, 2006
-------------- --------------
Gross Gross Gross Gross
----- ----- ----- -----
realized realized realized realized
---------- ---------- ---------- ----------
Gains Losses Gains Losses
----- ------ ----- ------
Noncurrent:
Available-for-Sale
Equity securities: 934 - 1,040 -
Gross realized gains and losses based on the averaged cost method are
included in "other income (expense)" in the consolidated statements of
operations and "other" in net cash provided by operating activities in the
consolidated statements of cash flows.
Non-marketable investment securities are carried at cost. On a
periodic basis, Advantest evaluates the investments for the possible impairment.
If the fair value of the investment securities is estimated to have declined and
such decline is judged to be other than temporary, Advantest recognizes the
impairment of the investment and the carrying value is reduced to its fair
value. The impairment is charged to earnings and a new cost basis for the
security is established.
(Note 4) Basic and diluted net income (loss) per share
Basic and diluted net income (loss) per share was computed as follows:
FY2004 FY2005
-------------------- --------------------
Numerator:
Net income 38,078 million 41,374 million
------------ ------------
Denominator
Basic weighted average shares 97,750,345 shares 92,694,513 shares
Dilutive effect of exercise of stock 260,394 shares 497,027 shares
option and warrants
------------ ------------
Diluted weighted average shares 98,010,739 shares 93,191,540 shares
------------ ------------
At March 31, 2005 and 2006, stock options and warrants representing, upon
exercise, 7,000 shares and 2,000 shares, respectively, were outstanding but were
not included in the computation for net income per share (diluted) because the
foregoing did not have any dilutive effect.
-17-
Advantest Corporation - Consolidated (FY2005)
(Segment Information)
1. Business Segment Information
====================================================================================================================================
FY2004 FY2005
(April 1, 2004 through (April 1, 2005 through
March 31, 2005) March 31, 2006)
- ------------------------------------------------------------------------------------------------------------------------------------
Amount (million) Percentage Amount (million) Percentage
(%) (%)
====================================================================================================================================
Semi-conductor and Net sales to unaffiliated customers 173,938 96.3 187,136 97.8
Component Test System
Intersegment sales 6,747 3.7 4,279 2.2
-----------------------------------------------------------------------------------------------------
Net sales 180,685 100.0 191,415 100.0
----------------------------------------------------------------------------------------------------------
Operating expenses 130,061 72.0 133,898 70.0
----------------------------------------------------------------------------------------------------------
Operating income (loss) 50,624 28.0 57,517 30.0
==========================================================================================================
Expenditures for additions to long-lived assets 2,431 2,649
----------------------------------------------------------------------------------------------------------
Depreciation and amortization 3,225 2,993
----------------------------------------------------------------------------------------------------------
Total assets 86,104 94,745
====================================================================================================================================
====================================================================================================================================
Mechatronics System Net sales to unaffiliated customers 45,821 98.8 47,724 98.9
Intersegment sales 574 1.2 536 1.1
-----------------------------------------------------------------------------------------------------
Net sales 46,395 100.0 48,260 100.0
----------------------------------------------------------------------------------------------------------
Operating expenses 32,733 70.6 36,294 75.2
----------------------------------------------------------------------------------------------------------
Operating income (loss) 13,662 29.4 11,966 24.8
==========================================================================================================
Expenditures for additions to long-lived assets 654 1,177
----------------------------------------------------------------------------------------------------------
Depreciation and amortization 1,220 1,058
----------------------------------------------------------------------------------------------------------
Total assets 22,587 27,444
====================================================================================================================================
====================================================================================================================================
Services, Support and Net sales to unaffiliated customers 19,680 100.0 19,062 100.0
Others
Intersegment sales - - - -
-----------------------------------------------------------------------------------------------------
Net sales 19,680 100.0 19,062 100.0
----------------------------------------------------------------------------------------------------------
Operating expenses 16,278 82.7 15,209 79.8
----------------------------------------------------------------------------------------------------------
Operating income (loss) 3,402 17.3 3,853 20.2
==========================================================================================================
Expenditures for additions to long-lived assets 5,709 4,203
----------------------------------------------------------------------------------------------------------
Depreciation and amortization 3,361 3,680
----------------------------------------------------------------------------------------------------------
Total assets 16,197 16,722
====================================================================================================================================
====================================================================================================================================
Elimination and Corporate Net sales to unaffiliated customers - - - -
Intersegment sales (7,321) 100.0 (4,815) 100.0
-----------------------------------------------------------------------------------------------------
Net sales (7,321) 100.0 (4,815) 100.0
----------------------------------------------------------------------------------------------------------
Operating expenses 675 - 2,179 -
----------------------------------------------------------------------------------------------------------
Operating income (loss) (7,996) - (6,994) -
==========================================================================================================
Expenditures for additions to long-lived assets 554 294
----------------------------------------------------------------------------------------------------------
Depreciation and amortization 479 544
----------------------------------------------------------------------------------------------------------
Total assets 171,881 211,865
====================================================================================================================================
====================================================================================================================================
Consolidated Net sales to unaffiliated customers 239,439 100.0 253,922 100.0
Intersegment sales - - - -
-----------------------------------------------------------------------------------------------------
Net sales 239,439 100.0 253,922 100.0
----------------------------------------------------------------------------------------------------------
Operating expenses 179,747 75.1 187,580 73.9
----------------------------------------------------------------------------------------------------------
Operating income (loss) 59,692 24.9 66,342 26.1
==========================================================================================================
Expenditures for additions to long-lived assets 9,348 8,323
----------------------------------------------------------------------------------------------------------
Depreciation and amortization 8,285 8,275
----------------------------------------------------------------------------------------------------------
Total assets 296,769 350,776
====================================================================================================================================
(Notes) 1. Adjustments 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.
2. The operating profit in the business segment information for the
previous fiscal year and in the consolidated income statement do
not match with the operating income in the consolidated income
statement as the business segment information does not include
the temporary profit of (Y)3,317 million and the stock option
cost of (Y)2,290 million. Also, the operating profit for this
fiscal year in the consolidated income statement does not include
the stock option cost of (Y) 1,884 million. Profit and loss from
these are not included in management's analysis of results.
3. Total assets included in Corporate primarily consist of the
parent company's cash and cash equivalents, assets for general
corporate use and assets used for fundamental research
activities.
-18-
2. Geographic Segment Information
Net sales to unaffiliated customers
=====================================================================================================================
FY2004 FY2005
(April 1, 2004 through (April 1, 2005 through
March 31, 2005) March 31, 2006)
- ---------------------------------------------------------------------------------------------------------------------
Net sales to unaffiliated customers Amount (million) Percentage Amount (million) Percentage
(%) (%)
=====================================================================================================================
Americas 23,024 9.6 25,516 10.0
---------------------------------------------------------------------------------------------------------------
Europe 12,270 5.1 14,558 5.7
---------------------------------------------------------------------------------------------------------------
Asia 144,120 60.2 132,708 52.3
---------------------------------------------------------------------------------------------------------------
Total Overseas 179,414 74.9 172,782 68.0
---------------------------------------------------------------------------------------------------------------
Japan 60,025 25.1 81,140 32.0
---------------------------------------------------------------------------------------------------------------
Consolidated 239,439 100.0 253,922 100.0
=====================================================================================================================
(Cautionary Statement Regarding the Presentation of Notes)
In order to enable timely disclosure of business results, certain notes have
been omitted.
These notes will be presented as a "Supplement to the Earnings
Release" as soon as they become available.
-19-
Advantest Corporation - Supplemental Information (FY2005)
Supplemental Information to the FY2005 Earnings Digest
*All consolidated figures were prepared in accordance with U.S. GAAP.
1. Summary of FY2005 Results (April 1, 2005 through March 31, 2006)
(Consolidated) (Rounded to the nearest million Yen)
------------------------------------------------------------------------------------------------------------------------
FY2004 FY2005 Increase/Decrease Percentage change (%)
========================================================================================================================
Net sales 239,439 253,922 14,483 6.0
------------------------------------------------------------------------------------------------------------------------
Operating income (loss) 60,719 64,458 3,739 6.2
------------------------------------------------------------------------------------------------------------------------
Income (loss) before income taxes 61,808 67,454 5,646 9.1
------------------------------------------------------------------------------------------------------------------------
Net income (loss) 38,078 41,374 3,296 8.7
------------------------------------------------------------------------------------------------------------------------
Total assets 296,769 350,776 54,007 18.2
------------------------------------------------------------------------------------------------------------------------
Stockholders' equity 206,749 257,927 51,178 24.8
------------------------------------------------------------------------------------------------------------------------
Net income (loss) per share (basic) (in Yen) 389.54 446.34 56.80 14.6
------------------------------------------------------------------------------------------------------------------------
Net income (loss) per share (diluted) (in Yen) 388.51 443.96 55.45 14.3
------------------------------------------------------------------------------------------------------------------------
Stockholders' equity per share (in Yen) 2,236.97 2,763.71 526.74 23.5
------------------------------------------------------------------------------------------------------------------------
Net interest expense 156 1,470 1,314 839.4
------------------------------------------------------------------------------------------------------------------------
ROE(%) 17.8 17.8 - -
------------------------------------------------------------------------------------------------------------------------
(Non-Consolidated) (Parent Company only, Japanese GAAP) (Truncated after the million Yen)
------------------------------------------------------------------------------------------------------------------------
FY2004 FY2005 Increase/Decrease Percentage change (%)
========================================================================================================================
Net sales 203,315 217,688 14,373 7.1
------------------------------------------------------------------------------------------------------------------------
Operating income (loss) 41,910 49,746 7,836 18.7
------------------------------------------------------------------------------------------------------------------------
Income (loss) before income taxes 43,365 53,878 10,512 24.2
------------------------------------------------------------------------------------------------------------------------
Net income (loss) 28,421 35,273 6,851 24.1
------------------------------------------------------------------------------------------------------------------------
Total assets 238,109 274,538 36,428 15.3
------------------------------------------------------------------------------------------------------------------------
Stockholders' equity 159,074 197,226 38,151 24.0
------------------------------------------------------------------------------------------------------------------------
Net income (loss) per share (in Yen) 288.68 378.34 89.66 31.1
------------------------------------------------------------------------------------------------------------------------
Fully diluted net income per share (in Yen) 287.91 376.33 88.42 30.7
------------------------------------------------------------------------------------------------------------------------
Stockholders' equity per share (in Yen) 1,718.95 2,111.11 392.16 22.8
------------------------------------------------------------------------------------------------------------------------
Dividends per share (in Yen) 50.00 70.00 20.00 40.0
------------------------------------------------------------------------------------------------------------------------
2. Consolidated Net Sales by Business and Geographic Segment (Rounded to the nearest million Yen)
------------------------------------------------------------------------------------------------------------------------
By Business Segment FY2004 FY2005 Increase/Decrease Percentage change (%)
========================================================================================================================
Semiconductor and Component 180,685 191,415 10,730 5.9
Test System
------------------------------------------------------------------------------------------------------------------
Mechatronics System 46,395 48,260 1,865 4.0
------------------------------------------------------------------------------------------------------------------
Services, Support and Others 19,680 19,062 (618) (3.1)
------------------------------------------------------------------------------------------------------------------
Intercompany transactions elimination (7,321) (4,815) 2,506 -
------------------------------------------------------------------------------------------------------------------
Total net sales 239,439 253,922 14,483 6.0
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
By Geographic Segment FY2004 FY2005 Increase/Decrease Percentage change (%)
========================================================================================================================
Japan 60,025 81,140 21,115 35.2
------------------------------------------------------------------------------------------------------------------------
Americas 23,024 25,516 2,492 10.8
------------------------------------------------------------------------------------------------------------------
Europe 12,270 14,558 2,288 18.6
------------------------------------------------------------------------------------------------------------------
Asia 144,120 132,708 (11,412) (7.9)
------------------------------------------------------------------------------------------------------------------
Total overseas 179,414 172,782 (6,632) (3.7)
------------------------------------------------------------------------------------------------------------------------
-20-
3. Consolidated Orders input received and Orders backlog by Business Segment (Rounded to the nearest million Yen)
------------------------------------------------------------------------------------------------------------------------
Orders input received FY2004 FY2005 Increase/Decrease Percentage change (%)
========================================================================================================================
Semiconductor and Component 171,079 195,585 24,506 14.3
Test System
------------------------------------------------------------------------------------------------------------------
Mechatronics System 43,833 49,491 5,658 12.9
------------------------------------------------------------------------------------------------------------------
Services, Support and Others 19,117 19,251 134 0.7
------------------------------------------------------------------------------------------------------------------
Intercompany transactions elimination (6,547) (4,892) 1,655 -
------------------------------------------------------------------------------------------------------------------
Total orders input received 227,482 259,435 31,953 14.0
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
Orders backlog FY2004 FY2005 Increase/Decrease Percentage change (%)
========================================================================================================================
Semiconductor and Component 32,046 36,215 4,169 13.0
Test System
------------------------------------------------------------------------------------------------------------------
Mechatronics System 6,660 7,891 1,231 18.5
------------------------------------------------------------------------------------------------------------------
Services, Support and Others 848 1,038 190 22.3
------------------------------------------------------------------------------------------------------------------
Intercompany transactions elimination (16) (93) (77) -
------------------------------------------------------------------------------------------------------------------
Total orders backlog 39,538 45,051 5,513 13.9
------------------------------------------------------------------------------------------------------------------------
(Note) The amount of orders input received for any given period consists of
the sum of the revenues for such period and the amount of orders
backlog at the end of such period less the orders backlog at the
beginning of such period. Orders input received are recorded upon
receipt of a written customer order.
4. Consolidated Cash Flows (Rounded to the nearest million Yen)
------------------------------------------------------------------------------------------------------------------------
FY2004 FY2005 Increase/Decrease Percentage change (%)
========================================================================================================================
Operating activities 90,327 59,480 (30,847) (34.2)
------------------------------------------------------------------------------------------------------------------
Investing activities (8,250) (8,542) (292) -
------------------------------------------------------------------------------------------------------------------
(Free cash flows) 82,077 50,938 (31,139) (37.9)
------------------------------------------------------------------------------------------------------------------
Financing activities (63,036) (18,336) 44,700 -
------------------------------------------------------------------------------------------------------------------
Total cash flows 19,041 32,602 13,561 71.2
------------------------------------------------------------------------------------------------------------------------
Cash and cash equivalents at end of period 120,986 157,925 36,939 30.5
------------------------------------------------------------------------------------------------------------------------
5. Consolidated Outstanding Interest-bearing liabilities (Rounded to the nearest million Yen)
------------------------------------------------------------------------------------------------------------------------
FY2004 FY2005 Increase/Decrease Percentage change (%)
========================================================================================================================
Bonds and warrant bonds 20,000 - (20,000) -
------------------------------------------------------------------------------------------------------------------
Loans and lease obligations 97 64 (33) (34.1)
------------------------------------------------------------------------------------------------------------------
Total interest-bearing liabilities 20,097 64 (20,033) (99.7)
------------------------------------------------------------------------------------------------------------------------
6. Consolidated Capital Expenditure, Depreciation and Amortization and Research and Development Expenses
(Rounded to the nearest million Yen)
------------------------------------------------------------------------------------------------------------------------
FY2004 FY2005 Increase/Decrease Percentage change (%)
========================================================================================================================
Capital expenditures 9,348 8,323 (1,025) (11.0)
------------------------------------------------------------------------------------------------------------------------
Depreciation and amortization 8,285 8,275 (10) (0.1)
------------------------------------------------------------------------------------------------------------------------
Research and development expenses 26,280 26,927 647 2.5
------------------------------------------------------------------------------------------------------------------------
7. Number of Employees (Advantest Corporation and Consolidated Subsidiaries) (Persons)
------------------------------------------------------------------------------------------------------------------------
FY2004 FY2005 Increase/Decrease Percentage change (%)
========================================================================================================================
Non-Consolidated (Parent Company only) 1,433 1,445 12 0.8
------------------------------------------------------------------------------------------------------------------------
Domestic 1,350 1,355 5 0.4
------------------------------------------------------------------------------------------------------------------
Overseas 782 795 13 1.7
------------------------------------------------------------------------------------------------------------------
Consolidated Subsidiaries total 2,132 2,150 18 0.8
------------------------------------------------------------------------------------------------------------------------
Consolidated full-time employee total 3,565 3,595 30 0.8
------------------------------------------------------------------------------------------------------------------------
-21-
8. Supplemental Segment Information
Segment information by geographic area (Rounded to the nearest million Yen)
==================================================================================================================================
FY2004 FY2005
(April 1, 2004 through percentage (April 1, 2005 percentage
March 31, 2005) (%) through March 31, 2006) (%)
==================================================================================================================================
Japan Net sales to unaffiliated customers 110,095 - 119,996 -
Intersegment sales 101,609 - 111,958 -
---------------------------------------------------------------------------------------------------------
Net sales 211,704 100.0 231,954 100.0
--------------------------------------------------------------------------------------------------------------
Operating expenses 160,283 75.7 169,426 73.0
--------------------------------------------------------------------------------------------------------------
Operating income (loss) 51,421 24.3 62,528 27.0
--------------------------------------------------------------------------------------------------------------
Total assets 157,726 180,431
==================================================================================================================================
==================================================================================================================================
Americas Net sales to unaffiliated customers 55,877 - 53,834 -
Intersegment sales 2,601 - 3,605 -
---------------------------------------------------------------------------------------------------------
Net sales 58,478 100.0 57,439 100.0
--------------------------------------------------------------------------------------------------------------
Operating expenses 54,388 93.0 54,399 94.7
--------------------------------------------------------------------------------------------------------------
Operating income (loss) 4,090 7.0 3,040 5.3
--------------------------------------------------------------------------------------------------------------
Total assets 27,074 31,353
==================================================================================================================================
==================================================================================================================================
Europe Net sales to unaffiliated customers 16,307 - 18,505 -
Intersegment sales 934 - 1,312 -
---------------------------------------------------------------------------------------------------------
Net sales 17,241 100.0 19,817 100.0
--------------------------------------------------------------------------------------------------------------
Operating expenses 15,333 88.9 17,810 89.9
--------------------------------------------------------------------------------------------------------------
Operating income (loss) 1,908 11.1 2,007 10.1
--------------------------------------------------------------------------------------------------------------
Total assets 13,082 14,990
==================================================================================================================================
==================================================================================================================================
Asia Net sales to unaffiliated customers 57,160 - 61,587 -
Intersegment sales 7,523 - 7,000 -
---------------------------------------------------------------------------------------------------------
Net sales 64,683 100.0 68,587 100.0
--------------------------------------------------------------------------------------------------------------
Operating expenses 56,621 87.5 62,691 91.4
--------------------------------------------------------------------------------------------------------------
Operating income (loss) 8,062 12.5 5,896 8.6
--------------------------------------------------------------------------------------------------------------
Total assets 48,214 65,372
==================================================================================================================================
==================================================================================================================================
Elimination and Net sales to unaffiliated customers - - - -
Corporate
Intersegment sales (112,667) - (123,875) -
---------------------------------------------------------------------------------------------------------
Net sales (112,667) - (123,875) -
--------------------------------------------------------------------------------------------------------------
Operating expenses (107,905) - (114,862) -
--------------------------------------------------------------------------------------------------------------
Operating income (loss) (4,762) - (9,013) -
--------------------------------------------------------------------------------------------------------------
Total assets 50,673 58,630
==================================================================================================================================
==================================================================================================================================
Consolidated Net sales to unaffiliated customers 239,439 - 253,922 -
Intersegment sales - - - -
---------------------------------------------------------------------------------------------------------
Net sales 239,439 100.0 253,922 100.0
--------------------------------------------------------------------------------------------------------------
Operating expenses 178,720 74.6 189,464 74.6
--------------------------------------------------------------------------------------------------------------
Operating income (loss) 60,719 25.4 64,458 25.4
--------------------------------------------------------------------------------------------------------------
Total assets 296,769 350,776
==================================================================================================================================
(Notes) 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 expense and segment by geographic area.
Stock option compensation expense of (Y) 1,884 million in this
consolidated fiscal year is included in Corporate operating
cost. Furthermore, temporary profit of (Y) 3,317 million from
the return of substitutional portion of its Employee's Pension
Fund plans and stock option compensation expense of (Y) 2,290
million in the previous consolidated financial year are
included in Corporate operating costs.
2. Total assets included in Corporate primarily consist of the
parent company's cash and cash equivalents, assets for general
corporate use and assets used for fundamental research
activities.
-22-
(All non-consolidated financial information has been prepared in accordance
with accounting principles generally accepted in Japan.)
FY2005 Selected Non-Consolidated Financial Data
(Year ended March 31, 2006)
April 26, 2006
Company name : Advantest Corporation
(URL http://www.advantest.co.jp/investors/)
-------------------------------------
Stock exchanges on which shares are listed : Tokyo Stock Exchange
Stock code number : 6857
Location of head office : Tokyo Prefecture
Company representative : Toshio Maruyama, Representative Board Director, President and
CEO
Contact person : Hiroshi Nakamura, Manager, Accounting Department
(03) 3214-7500
Date of Board meeting to approve the
financial results : April 26, 2006
Payment of interim dividend : Yes
Expected commencement date of dividend payment : June 28, 2006
Date of general shareholders meeting : June 27, 2006
Adoption of the unit share (tangenkabu) system : Yes (each unit comprises 100 shares)
1. Results of FY2005 (April 1, 2005 through March 31, 2006)
(1) Financial Results
- --------------- -------------------------------- -------------------------------- ---------------------------
Net sales Operating income Ordinary income
- --------------- -------------------------------- -------------------------------- ---------------------------
Million Yen % increase Million Yen % increase Million Yen % increase
FY2005 217,688 7.1 49,746 18.7 53,878 24.2
FY2004 203,315 35.0 41,910 76.3 43,365 80.4
- --------------- ------------------ ------------- ------------------ ------------- -------------- ------------
- --------------- --------------------------- ------------ -------------- ------------ ---------------- -------------
Net Fully diluted Ratio of Ratio of
Net income income net income Return on ordinary ordinary
per share per share equity income to total income to
assets net sales
- --------------- -------------- ------------ ------------ -------------- ------------ ---------------- -------------
Million Yen % increase Yen Yen % % %
FY2005 35,273 24.1 378.34 376.33 19.8 21.0 24.8
FY2004 28,421 137.7 288.68 287.91 16.3 16.8 21.3
- --------------- -------------- ------------ ------------ -------------- ------------ ---------------- -------------
Note 1: Average number of shares outstanding was 92,694,513 shares during
FY2005 and 97,750,345 shares during FY2004.
Note 2: No changes in accounting policies have been made during these
periods.
Note 3: The percentages shown for net sales, operating income, ordinary
income and net income are changes from the previous year.
(2) Dividends
- --------------- ----------------------------------------------- ------------------- ---------------- ---------------
Annual dividend per share Total dividend Payout ratio Dividend on
----------------- -------------- paid equity
Interim Year end
- --------------- -------------- ----------------- -------------- ------------------- ---------------- ---------------
Yen Yen Yen Million Yen % %
FY2005 70.00 25.00 45.00 6,513 18.5 3.3
FY2004 50.00 25.00 25.00 4,768 16.8 3.0
- --------------- -------------- ----------------- -------------- ------------------- ---------------- ---------------
(3) Financial Position
- --------------- ----------------------- ----------------------- --------------------- ---------------------
Total assets Stockholders' equity Equity-to-assets Stockholders'
ratio equity per share
- --------------- ----------------------- ----------------------- --------------------- ---------------------
Million Yen Million Yen % Yen
FY2005 274,538 197,226 71.8 2,111.11
FY2004 238,109 159,074 66.8 1,718.95
- --------------- ----------------------- ----------------------- --------------------- ---------------------
Note 1: Number of shares outstanding at year end was 93,326,649 shares in
FY2005 and 92,423,615 shares in FY2004.
Note 2: Number of shares held as treasury stock at year end was 6,456,736
shares in FY2005 and 7,359,770 shares in FY2004.
-23-
2. Projected Results for FY2006 (April 1, 2006 through March 31, 2007)
- --------------------- ----------------- ------------------- ------------------ ---------------------------------------
Net sales Ordinary Net income Annual dividend per share
income ------------ -------------
Interim Year end
- --------------------- ----------------- ------------------- ------------------ ------------ ------------- ------------
Million Yen Million Yen Million Yen Yen Yen Yen
FY2006 Interim 113,000 28,000 18,500 35.00 - -
FY2006 230,000 56,000 36,000 - 35.00 70.00
- --------------------- ----------------- ------------------- ------------------ ------------ ------------- ------------
(Reference) Projected net income per share for the fiscal year: (Y)385.74
Figures presented in this Earning Digest have been truncated after the million
Yen.
For a discussion of the assumptions and other factors upon which these
projections are based, please refer to "Prospects for the Upcoming Fiscal Year"
appearing elsewhere in this document.
-24-
(All non-consolidated financial information has been prepared in accordance
with accounting principles generally accepted in Japan.)
Advantest Corporation - non-consolidated (FY2005)
(Non-Consolidated Financial Statements)
(Balance Sheets)
- --------------------------------------------------------------------------------------------------------------------------
FY2004 FY2005
(As of March 31, 2005) (As of March 31, 2006)
- --------------------------------------------------------------------------------------------------------------------------
Amount Percentage Amount Percentage
(in million Yen) (%) (in million Yen) (%)
- --------------------------------------------------------------------------------------------------------------------------
(Assets)
I Current Assets
1. Cash and deposits 68,676 86,669
2. Trade notes receivables 12,418 1,001
3. Accounts receivable 43,564 71,892
4. Finished goods 4,371 3,571
5. Raw materials 3,627 4,774
6. Work in process 14,520 13,085
7. Supplies 67 177
8. Short-term loans receivable 6,876 5,917
9. Other receivable 1,168 1,962
10. Deferred tax assets 10,032 9,514
11. Other 727 1,307
12. Allowance for doubtful accounts (0) -
--------------- --------------
Total current assets 166,050 69.7 199,872 72.8
--------------- --------------
II Noncurrent assets
(1) Property, plant and equipment
1. Buildings 43,495 42,922
Accumulated depreciation 28,122 15,372 28,758 14,163
--------------- --------------
2. Structures 4,100 3,994
Accumulated depreciation 3,154 945 3,162 831
--------------- --------------
3. Machinery and equipment 17,651 18,387
Accumulated depreciation 14,350 3,301 14,746 3,640
--------------- --------------
4. Vehicles and delivery equipment 30 40
Accumulated depreciation 7 22 16 24
--------------- --------------
5. Tools and furniture 13,753 12,861
Accumulated depreciation 11,833 1,920 10,689 2,171
--------------- --------------
6. Land 18,141 17,915
7. Construction in progress 74 33
--------------- --------------
Total property, plant and 39,778 16.7 38,781 14.1
equipment --------------- --------------
- --------------------------------------------------------------------------------------------------------------------------
*Accumulated depreciation includes the accumulated impairment losses.
-25-
(All non-consolidated financial information has been prepared in accordance
with accounting principles generally accepted in Japan.)
Advantest Corporation - non-consolidated (FY2005)
- --------------------------------------------------------------------------------------------------------------------------
FY2004 FY2005
(As of March 31, 2005) (As of March 31, 2006)
- --------------------------------------------------------------------------------------------------------------------------
Amount Percentage Amount Percentage
(in million Yen) (%) (in million Yen) (%)
- --------------------------------------------------------------------------------------------------------------------------
(2) Intangible fixed assets
1. Patent rights 187 136
2. Leasehold rights 173 173
3. Telephone rights 39 39
4. Utility rights 84 12
5. Software 914 816
6. Other 38 54
--------------- --------------
Total intangible fixed assets 1,437 0.6 1,233 0.5
--------------- --------------
(3) Investments and other assets
1. Investment securities 7,430 12,228
2. Investment in associated 16,390 16,470
companies
3. Long-term loans receivable 22 28
4. Long-term loans to associated 1,050 1,050
companies
5. Long-term prepaid expenses 588 426
6. Deferred tax assets 4,137 3,482
7. Other 1,223 965
--------------- --------------
Total investment and other assets 30,842 13.0 34,650 12.6
--------------- --------------
Total noncurrent assets 72,058 30.3 74,665 27.2
--------------- --------------
Total assets 238,109 100.0 274,538 100.0
--------------- --------------
(Liabilities)
I Current liabilities
1. Trade accounts payable 22,642 30,476
2. Current installments of bonds 20,000 -
3. Other accounts payable 2,037 2,419
4. Accrued expenses 10,230 9,054
5. Income tax payable 4,116 16,315
6. Advance received 284 122
7. Deposits received 5,660 4,677
8. Allowance for product warranty 4,345 4,877
9. Other 178 177
--------------- --------------
Total current liabilities 69,495 29.2 68,120 24.8
--------------- --------------
- --------------------------------------------------------------------------------------------------------------------------
-26-
(All non-consolidated financial information has been prepared in accordance
with accounting principles generally accepted in Japan.)
Advantest Corporation - non-consolidated (FY2005)
- --------------------------------------------------------------------------------------------------------------------------
FY2004 FY2005
(As of March 31, 2005) (As of March 31, 2006)
- --------------------------------------------------------------------------------------------------------------------------
Amount Percentage Amount Percentage
(in million Yen) (%) (in million Yen) (%)
- --------------------------------------------------------------------------------------------------------------------------
II Noncurrent liabilities
1. Long-term borrowings 40 10
2. Allowance for retirement benefits 7,100 6,970
3. Allowance for officers' retirement 1,509 1,681
benefits
4. Other 888 529
--------------- --------------
Total noncurrent liabilities 9,539 4.0 9,191 3.4
---------------
Total liabilities 79,034 33.2 77,311 28.2
--------------- --------------
(Stockholders' equity)
I Common stock 32,362 13.6 32,362 11.8
II Capital surplus
1. Additional paid-in capital 32,973 32,973 32,973 32,973
------------------------------ ----------------------------
Total capital surplus 32,973 13.8 32,973 12.0
III Retained earnings
1. Legal reserve 3,083 3,083
2. Voluntary reserve
(1) Reserve for losses in 27,062 27,062
foreign investments
(2) General reserve 99,880 126,942 121,880 148,942
--------------- --------------
3. Unappropriated earnings at end of 28,538 35,204
year
--------------- --------------
Total retained earnings 158,563 66.6 187,229 68.2
IV Net unrealized holding gains on 1,294 0.5 2,677 0.9
other securities
V Treasury stock (66,119) (27.7) (58,017) (21.1)
--------------- --------------
Total stockholders' equity 159,074 66.8 197,226 71.8
--------------- --------------
Total liabilities and stockholders' equity 238,109 100.0 274,538 100.0
--------------- --------------
- --------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------
-27-
(All non-consolidated financial information has been prepared in accordance
with accounting principles generally accepted in Japan.)
Advantest Corporation - non-consolidated (FY2005)
(Statements of Income)
- --------------------------------------------------------------------------------------------------------------------------
FY2004 FY2005
(April 1, 2004 through (April 1, 2005 through
March 31, 2005) March 31, 2006)
- --------------------------------------------------------------------------------------------------------------------------
Amount Percentage Amount Percentage
(in million Yen) (%) (in million Yen) (%)
- --------------------------------------------------------------------------------------------------------------------------
I Net sales
1. Net product sales 203,315 203,315 100.0 217,688 217,688 100.0
--------------- --------------
II Cost of sales
1. Inventory of finished goods at 8,154 4,371
beginning of year
2. Cost of manufactured goods 104,942 113,665
--------------- --------------
Total 113,097 118,037
3. Transfers to other accounts 1,658 859
4. Inventory of finished goods at end of 4,371 3,571
year --------------- --------------
Balance of cost of sales 107,067 107,067 52.7 113,606 113,606 52.2
------------------------------ ----------------------------
Gross profit 96,247 47.3 104,082 47.8
III Selling, general and administrative 54,337 26.7 54,335 25.0
expenses --------------- --------------
Operating income (loss) 41,910 20.6 49,746 22.8
IV Non-operating income
1. Interest income 116 139
2. Dividends income 1,824 2,465
3. Lease income 2,015 2,085
4. Miscellaneous income 666 4,622 2.3 1,743 6,433 3.0
--------------- --------------
V Non-operating expenses
1. Interest expenses 29 23
2. Bond interests 409 265
3. Expenses related to leased equipment 1,516 1,598
4. Miscellaneous expenses 1,211 3,167 1.6 414 2,301 1.0
------------------------------ ----------------------------
Ordinary income (loss) 43,365 21.3 53,878 24.8
VI Extraordinary gain
1. Gain on return of substitutional
portion of the Employees' Pension Fund 2,503 2,503 1.3 - - -
------------------------------ --------------------------------------
Income (loss) before income taxes 45,868 22.6 53,878 24.8
Income taxes 4,141 18,364
Income taxes - deferred 13,305 17,446 8.6 239 18,604 8.6
------------------------------ ----------------------------
Net income (loss) 28,421 14.0 35,273 16.2
Retained earnings brought forward 3,020 4,024
Loss from disposition of treasury 446 1,780
stock
Interim dividend 2,457 2,313
--------------- --------------
Unappropriated earnings at end of year 28,538 35,204
--------------- --------------
- --------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------
-28-
(All non-consolidated financial information has been prepared in accordance
with accounting principles generally accepted in Japan.)
Advantest Corporation - non-consolidated (FY2005)
(Proposed Appropriation of Retained Earnings)
- --------------------------------------------------------------------------------------------------------------------------
FY2004 FY2005
(April 1, 2004 through (April 1, 2005 through
March 31, 2005) March 31, 2006)
- --------------------------------------------------------------------------------------------------------------------------
Amount Amount
(in million Yen) (in million Yen)
- --------------------------------------------------------------------------------------------------------------------------
I Unappropriated earnings at end 28,538 35,204
of year
II Appropriation of earnings
1. Dividends 2,310 4,199
((Yen)25 per share) ((Yen)45 per share)
2. Director's bonus 180 180
3. Corporate auditor's bonus 23 23
4. Voluntary reserve
General reserve 22,000 24,513 25,000 29,402
-----------------------------------------------------------------------------
III Unappropriated earnings 4,024 5,801
carried forward --------------- --------------
- --------------------------------------------------------------------------------------------------------------------------
(Note) Interim dividends paid were as follows:
FY2004 FY2005
Date of dividend payment December 1, 2004 December 1, 2005
Interim dividend amount (Yen)2,457 million (Yen)2,313 million
((Yen)25 per share) ((Yen)25 per share)
(Significant Accounting Policies)
There were no changes in accounting policies.
(Cautionary Statement Regarding the Presentation of Notes)
In order to enable timely disclosure of business results, certain notes
have been omitted. These notes will be presented as a "Supplement to the
Earnings Release" as soon as they become available.
-29-
Advantest
Changes in Board of Directors, Auditors and Executive Officers
(To be effective on June 27, 2006)
(1) Nominees for the Board of Directors
Director of the Board Naoyuki Akikusa (to be newly elected)
Corporate Auditor of Advantest
Corporation, Representative Director
and Chairman of the Board of Fujitsu
Limited
Director of the Board Yasushige Hagio (to be newly elected)
Attorney-at-Law, Partner of Seiwa
Patent and Law
(2) Nominee for Corporate Auditor
Corporate Auditor Megumi Yamamuro (to be newly elected)
Professor, The University of Tokyo
Graduate School for Law and Politics
(3) Nominees for Executive Officers
President and CEO Toshio Maruyama
Senior Executive Officer Junji Nishiura
Senior Executive Officer Hiroji Agata
Senior Executive Officer Takashi Tokuno (to be promoted)
Managing Executive Officer Hitoshi Owada
Managing Executive Officer Yuri Morita
Managing Executive Officer Jiro Katoh
Managing Executive Officer Takao Tadokoro
Managing Executive Officer Hiroyasu Sawai
Managing Executive Officer Hiroshi Tsukahara
Executive Officer Masao Shimizu
Executive Officer Masao Araki
Executive Officer Yuichi Kurita
Executive Officer Yoshiro Yagi
Executive Officer Hideaki Imada
Executive Officer Shinichiro Umeda
Executive Officer Akira Hatakeyama
Executive Officer Yasuhiro Kawata
Executive Officer Takashi Sugiura
Executive Officer Shinichiro Kuroe
Executive Officer Takashi Sekino (to be newly elected)
Executive Officer Hiroshi Nakamura (to be newly elected)
Executive Officer Yoshiaki Yoshida (to be newly elected)
Resignation from Corporate Auditor :
Naoyuki Akikusa, Corporate Auditor --
To be elected as Member of the Board of Directors
Other change :
Kenichi Mitsuoka, Managing Executive Officer --
To be elected as President of Advantest DI Corporation
Nominees for the Board of Directors (Biography)
Naoyuki Akikusa (Date of Birth: December 12, 1938)
Mar. 1961 Graduated from Waseda University, Faculty of Political
Science and Economics
Apr. 1961 Joined Fujitsu Limited
Jun. 1988 Member of the Board, Fujitsu Limited
Jun. 1991 Managing Director, Fujitsu Limited
Jun. 1992 Executive Director, Fujitsu Limited
Jun. 1998 Representative Director and President, Fujitsu Limited
Jun. 2003 Representative Director and Chairman, Fujitsu Limited
(Current Position)
Jun. 2005 Corporate Auditor, Advantest Corporation (Current Position)
Yasushige Hagio (Date of Birth: November 24, 1947)
Mar. 1970 Graduated from University of Tokyo, Faculty of Law
Apr. 1972 Assistant Judge, Tokyo District Court
Apr. 1982 District Court Judge, Tokyo District Court
Apr. 1998 Instructor, Legal Training and Research Institute
Dec. 2003 President of Shizuoka District Court
Jun. 2004 Attorney-at-Law, Partner of Seiwa Patent and Law (Current
Position)
Nominee for Corporate Auditor (Biography)
Megumi Yamamuro (Date of Birth: March 8, 1948)
Mar. 1972 Graduated from University of Tokyo, Faculty of Law
Apr. 1974 Assistant Judge, Tokyo District Court
Apr. 1984 District Court Judge, Tokyo District Court
Apr. 1988 Instructor, Legal Training and Research Institute
Apr. 1997 High Court Judge, Tokyo High Court
Jul. 2004 Attorney-at-Law, CAST Itoga Law P.C. (Current Position)
Oct. 2004 Professor, The University of Tokyo Graduate School for
Law and Politics (Current Position)
Nominees for New Executive Officers (Biography)
Takashi Sekino (Date of Birth: May 30, 1957)
Mar. 1982 Graduated from Gunma University, Graduate School of
Engineering
Apr. 1982 Joined Advantest Corporation
Apr. 2005 General Manager, 1st Technology Division, Technology
Development Group (Current Position)
Hiroshi Nakamura (Date of Birth: December 4, 1957)
Mar. 1981 Graduated from Kanazawa University, Faculty of Law and
Literature
Apr. 1981 Joined Advantest Corporation
Jun. 2002 Manager, Accounting Department, Corporate Affairs Group
(Current Position)
Yoshiaki Yoshida (Date of Birth: February 8, 1958)
Mar. 1980 Graduated from Yokohama National University, Management
Department
Apr. 1980 Joined Nihon Lease Corporation
Apr. 1999 Joined Advantest Corporation
Apr. 2000 Representative Board Director, Advantest Finance Inc.
(Current Position)