|FY2018 Results||FY2019 Forecast||YoY(%)|
|Income Before Tax||66.2||31.0||-53.2%|
|Exchange Rate||1 US$||¥110||¥110||---|
|1 Euro||¥129||¥130||¥1 Depreciation|
Advantest anticipates that semiconductor manufacturers will maintain a cautious stance toward new investment in test equipment due to increasing sense of global economic deceleration caused by concerns that the trade dispute between the United States and China will be prolonged.
Advantest’s performance exceeded initial expectations during this quarter, but due to industry and international economic trends, it has become even more difficult to forecast when semiconductor demand and semiconductor production equipment demand will rebound. Amidst this business environment, our forecast for FY2019 consolidated results is unchanged from our forecast published in April 2019. Our forecast calls for orders received of (Y) 230.0 billion, net sales of (Y) 230.0 billion, operating income of (Y) 30.0 billion, income before income taxes of (Y) 31.0 billion, and net income of (Y) 26.0 billion. This forecast is based on foreign exchange rates of 1 USD to 110 JPY and 1 EUR to 130 JPY, which are also unchanged.
As described above, uncertainty is increasing in our current business environment, but growing public demand for greater semiconductor performance and reliability continues to emphasize the importance of semiconductor test. Moreover, semiconductor manufacturers are making aggressive efforts to deliver new products compliant with the 5G next-generation communications standard, as well as higher performance servers and storage and network devices. In light of these factors, our medium- to long-term forecast that the market for semiconductor test equipment will grow as the semiconductor market expands, despite repeated short-term fluctuations in demand, remains unchanged.
Based on this outlook, Advantest will continue our efforts to establish and maintain a foundation for growth, improve periodic profitability, and use capital efficiently, to achieve the targets set forth in our mid-term management plan launched in FY2018.
Note: The above forecasts are based on information available at the time of publication. Due to various external and internal factors, actual results may differ. For more detailed information, please see the Financial Results.