Advantest's Earnings Drop, Lowers Guidance for Current FY, But Expects Recovery from April

| About: Advantest Corporation (ATE)

Advantest reported a sharp drop in Q3 earnings and warned full fiscal year (ending Mar. 2007) earnings would be lower than previously forecast. The firm's CFO is optimistic however, saying, "Next fiscal year's results will be much better (with) double-digit (sales and profit) growth." Advantest, the world's largest manufacturer of memory chip testing equipment, once again blamed a slowing of capex and orders from microprocessor and non-memory chip makers. Advantest-ATE-1yr-chart-01-25-07 It did not breakdown quarterly results but Bloomberg calculates Q3 net income fell 51% to ¥5.6b ($46m) on a 24% drop in sales to 57.9b ($477m). Operating profit was down 56% to ¥7.9b ($65m). Advantest says its expects full FY net income of ¥41b ($337m), versus its prior downward revised forecast of ¥43b ($354m), which is about 1% lower than the ¥41.4b earned in 2005. Its ordinary shares lost 1% in Tokyo to ¥6,030 ($49.63 ADR equiv. at ¥121.5/$1) ahead of its earnings announcement.

• Sources: Earnings release [pdf], Bloomberg, Forbes-Newswire
• Related commentary: Advantest's H1 Profit Up 52%, But Lowers Full Year Guidance, Semi Equipment Orders Continue To Rise, Semiconductor Equipment Companies Suffer Push Out Worries
• Potentially impacted stocks and ETFs: Advantest (NYSE:ATE)

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Tagged: , Semiconductor Equipment & Materials, Earnings, Japan
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