FOR IMMEDIATE RELEASE
April 25, 2007
ADVANTEST CORPORATION
(Toshio Maruyama, Representative Board Director,
President and CEO)
(Stock Code Number: 6857, TSE first section)
(Ticker symbol: ATE, NYSE)
CONTACT:
Hiroshi Nakamura
(Executive Officer and Vice President, Corporate Affairs Group)
Phone: + 81-(0)3-3214-7500
Changes in Basic Policies with Respect to Distribution of Profits and Revision
of Dividend Forecast for the Fiscal Year Ended March 2007
Tokyo - April 25, 2007 - Advantest Corporation (the "Company") resolved at a
meeting of its Board of Directors today to amend its basic policies on
distribution of profits and revise its year-end per share dividend forecast for
the fiscal year ended March 31, 2007 pursuant to the new policies as described
below. The Company will propose this upward revision at its Ordinary General
Meeting of Shareholders scheduled to take place in June 2007.
1. Changes in Basic Policies Regarding the Distribution of Profits
Based on the premise that long-term and continued growth in corporate value
is fundamental to the creation of shareholder value, the Company has considered
the consistent distribution of profits to be the most important management
priority and has maintained a policy to continue with constant dividend payouts.
Going forward, pursuant to its new policies, the Company will promote
distribution of profits based on its consolidated business results as follows.
With respects to the distribution of the surplus, the Company makes payout
decisions after taking into consideration business performance, financial
conditions, as well as the need for strategic investment for mid- to long-term
business development. While aiming to make consistent distributions, because of
the fluctuation of the market in which it operates, the Company makes dividend
payouts following a target payout ratio of 20% or more.
Retained earnings are devoted to research and development, streamlining
efforts, overseas expansion, investments in new businesses and resources for M&A
activities, with an aim to strengthen the Company's business position and
enhance its corporate value.
In order to maintain capital strategies responsive to changes in the
operating environment, the Company will consider obtaining and plans to obtain
more treasury shares as necessary, by taking into account factors such as stock
price trend, capital efficiency and cash flow.
2. Revision of its year-end dividend forecast for the fiscal year ended
March 31, 2007
As announced today, the Company's business results for the fiscal year
ended March 31, 2007 were solid, even though it fell slightly short of the
previous forecast released on January 26, 2007. Accordingly, in response to the
consistent support we have received from our shareholders, the Company will,
based on the above profit distribution policies, increase
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the year-end dividend per share by 15.0 Yen from 17.5 Yen of the previous
forecast to 32.5 Yen. Since the Company has paid, on December 1, 2006, an
interim dividend of 35.0 Yen, the aggregate amount of the dividend for the
fiscal year is expected to be 67.5 Yen per share.
3. Details of the revision
With respect to the fiscal year ended March 31, 2007: (Yen)
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Dividend per share
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Interim Year-end Total Annual
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Previous forecast (as of October 27, 2006) 17.50 52.50
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Revised forecast (as of April 25, 2007) 32.50 67.50
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Dividend paid to date in Fiscal 2006 35.00
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Fiscal 2005 Results (Ended March 31, 2006) 25.00 45.00 70.00
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* On October 1, 2006, pursuant to the July 26, 2006 board resolution, a one
to two stock split was made to shares of the common stock owned as of September
30, 2006. Accordingly, the year-end dividend per share prior to the stock split
is valued at 65.0 Yen, and the aggregate amount of the dividend per share is
valued at 100.0 Yen, an increase in dividend payment of 30.0 Yen as compared to
the previous fiscal year.
* Cautionary Statement with Respect to Forward-Looking Statements
This release contains "forward-looking statements" that are based on
Advantest's current expectations, estimates and projections. These
forward-looking statements are subject to known and unknown risks, uncertainties
and other factors that may cause Advantest's actual results, levels of activity,
performance or achievements to be materially different from those expressed or
implied by such forward-looking statements. These factors include: (i) changes
in demand for the products and services produced and offered by Advantest's
customers, including semiconductors, communications services and electronic
goods; (ii) circumstances relating to Advantest's investment in technology,
including its ability to timely develop products that meet the changing needs of
semiconductor manufacturers and communications network equipment and components
makers and service providers; (iii) significant changes in the competitive
environment in the major markets where Advantest purchases materials, components
and supplies for the production of its products or where its products are
produced, distributed or sold; and (iv) changes in economic conditions, currency
exchange rates or political stability in the major markets where Advantest
procures materials, components and supplies for the production of its principal
products or where its products are produced, distributed or sold. A discussion
of these and other factors which may affect Advantest's actual results, levels
of activity, performance or achievements is contained in the "Operating and
Financial Review and Prospects", "Key Information - Risk Factors" and
"Information on the Company" sections and elsewhere in Advantest's annual report
on Form 20-F, which is on file with the United States Securities and Exchange
Commission.
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