|FY2018 Results||FY2019 Forecast||YoY(%)|
|Income Before Tax||66.2||56.7||-14.4%|
|Exchange Rate||1 US$||¥110||¥108||¥2 Appreciation|
|1 Euro||¥129||¥121||¥8 Appreciation|
In SoC test equipment, which has been the key driver of Advantest's business results in the current fiscal year, Advantest expects that the current robust market conditions will continue, but nevertheless there may be a reaction to the previous acceleration of customer investment. On the other hand, the market for memory test equipment, which has continued to lag, may be poised for recovery against the background of improvement in the device market and advances in memory semiconductor performance.
Based on these industry trends and our business results so far, Advantest is revising its full-year consolidated business forecast for the current fiscal year as follows. Orders received (Y) 270.0 billion (formerly (Y) 235.0 billion in our forecast announced in October 2019); sales (Y) 270.0 billion (formerly (Y) 247.0 billion); operating income (Y) 56.0 billion (formerly (Y) 45.0 billion); income before income taxes (Y) 56.7 billion (formerly (Y) 45.8 billion); net income (Y) 49.0 billion (formerly (Y) 36.5 billion). The above net income forecast includes the anticipated posting of deferred tax assets based on an expected future reduction in tax expenses. Our forecast for the fourth quarter of this fiscal year assumes exchange rates of 1 USD to 105 JPY and 1 EUR to 120 JPY.
Looking ahead to Advantest's business environment in the next fiscal year and beyond, the progress of the digital transformation led by 5G will stimulate the development of semiconductors with higher performance, lower power consumption, and better reliability. With the evolution of semiconductor technologies such as device miniaturization, the importance of semiconductor test will continue to increase.
Based on this outlook, in January 2020, Advantest completed the acquisition of Essai, Inc., which develops and manufactures high-performance IC sockets. The acquisition will reinforce Advantest's business base in high-precision test, which is expected to become more important in the future, and will contribute to diversifying and stabilizing its earnings base by strengthening Advantest's recurring business.
Advantest will continue to seek to realize its corporate Vision Statement of "adding customer value in an evolving semiconductor value chain" and maintain a foundation for growth, improve periodic profitability, and use capital efficiently, to achieve the targets set forth in the mid-to-long term management plan launched in FY2018.