Earnings Forecast
| FY2023 | FY2024 | ||||
|---|---|---|---|---|---|
| Results | Forecast | vs. FY2023 | |||
| Change | (%) | ||||
| Sales(*1) | 486.5 | 525.0 | +38.5 | +7.9% | |
| Operating Income | 81.6 | 90.0 | +8.4 | +10.3% | |
| Operating Margin | 16.8% | 17.1% | +0.3pts | ||
| Income Before Tax | 78.2 | 89.0 | +10.8 | +13.9% | |
| Net Income | 62.3 | 67.0 | +4.7 | +7.6% | |
| Net Income Margin | 12.8% | 12.8% | +0.0pts | ||
| R&D Expenses | 65.5 | 67.0 | +1.5 | +2.3% | |
| CapEx | 20.8 | 22.0 | +1.2 | +5.8% | |
| D&A | 26.1 | 27.0 | +0.9 | +3.4% | |
| Exchange Rate(*2) | 1 US$ | ¥143 | ¥140 | ¥3 Appreciation | |
| 1 Euro | ¥155 | ¥155 | – | ||
(*1): Intersegment transactions have been eliminated from totals
(*2): Our latest forecast for the impact of exchange rate fluctuations on FY2024 operating income is plus ¥0.7 billion per 1 yen of JPY depreciation vs USD, and minus ¥0.3 billion per 1 yen of JPY depreciation vs the euro
Looking at Advantest's market environment going forward, in CY2024, the semiconductor market is expected to pick up in the second half of the calendar year, as the supply-demand balance for semiconductors is expected to improve and investments related to generative AI are expected to become more active. In tandem with an increase in demand of semiconductors for generative AI, the tester market that is related to such devices is likely to experience an increase in demand. Specifically, strength in tester demand for high-performance DRAM is expected to continue throughout the year, and tester demand for SoC semiconductors is expected to gradually pick up in the second half of the calendar year and beyond. On the other hand, in the automotive and industrial equipment related market, investment in semiconductor testers appear to be taking a pause. In addition, the recovery of the smartphone market continues to be uncertain. Therefore, recovery of semiconductor tester demand of related devices is likely to take some time. As a result, Advantest expects a turnaround in the semiconductor tester market in CY2024 compared to the previous year. Meanwhile, a bird's-eye view of the global economy shows that concerns about recession in the U.S. and elsewhere have not been dispelled. In addition, the situation remains highly uncertain due to factors such as the expansion of geopolitical risks and the risk of sharp exchange rate fluctuations.
Given our outlook for each of our business segment against the backdrop of an uncertain business environment, our full-year consolidated earnings forecast for FY2024 calls for net sales of (Y) 525.0 billion, operating income of (Y) 90.0 billion, income before income taxes of (Y) 89.0 billion, and net income of (Y) 67.0 billion. This forecast is based on exchange rate assumptions of 1 USD to 140 JPY and 1 EUR to 155 JPY. Regarding the tightening of restrictions on the export of semiconductor production equipment to China by the U.S. and its allies, the direct impact on our current fiscal year's earnings is expected to be limited, but Advantest will continue to closely monitor the situation.
In the mid/long-term, as semiconductors serve as social infrastructure which touches every corner of society, the requirement for higher production volume, higher performance, higher quality and reliability is expected to rise even further. In addition, energy efficiency improvement in semiconductor technology is becoming increasingly important against the backdrop of climate change countermeasures as a societal requirement. While semiconductor manufacturers are working daily to solve these societal issues through their technology development, the technical challenges in design and manufacturing are increasing every year, especially for leading-edge semiconductors, as we are entering an era of complexity.
Under such circumstances, Advantest will steadfastly carry out its purpose and mission of "Enabling leading-edge technologies.” By supporting our customers solve their challenges with our leading edge test solutions, Advantest will contribute to the realization of a better society while supporting semiconductor innovation. Advantest will continue to make sincere efforts to fulfill our responsibilities to all our stakeholders.