Advantest Corporation

Advantest said FY2024 sales, operating income and net income were record highs. Full-year sales exceeded the January guidance by about JPY40 billion, mainly from greater-than-expected deliveries of SoC testers. Core operating income excluding one-off items was JPY249.7 billion and the core operating margin was 32%; the company said one-time impairment losses caused operating margin and net profit to fall below guidance. For FY2025, management guided to sales of JPY755 billion, operating income of JPY242 billion, income before tax of JPY240 billion, net income of JPY179 billion and basic EPS of JPY243.96, assuming JPY140/USD and JPY155/EUR. Gross profit margin for FY2025 is expected to be around 58%.

Douglas Lefever said FY2024 performance reflected strong AI-related tester demand, better supply capabilities, and supply-chain diversification, and he described the year as a strong start to the third midterm plan. He emphasized that increasing semiconductor complexity continues to drive more test content, and pointed to new solutions like SiConic and die-level probing as growth avenues. His tone was constructive but cautious: he repeatedly noted macro and geopolitical uncertainty, said the company is taking a cautious approach beyond the first half, and framed FY2025 guidance as conservative relative to the underlying demand trend.

Hisako Takada highlighted that yen weakness helped sales and that product mix improvement supported record operating profit and net profit. She said FY2024 sales were about JPY40 billion above the January guide, core operating income was JPY249.7 billion, and core margin was 32%, while impairment losses on Essai-related goodwill/intangibles reduced reported margins and net profit; she also noted the effective tax rate rose to about 28% because impairment losses are not tax deductible. On the balance sheet, she reported cash and cash equivalents of JPY262.5 billion and inventory of JPY209.7 billion as of March 31, and said the company will keep balancing growth investment and capital efficiency. She also confirmed an annual dividend forecast of JPY39 and said the buyback program could reach up to JPY70 billion for up to 19 million shares.

Analysts focused on whether AI-server yield-related “special demand” could fade, but management said they do not see anomalies affecting overall test-capacity demand and that demand is more a continuous AI/HPC ramp than a one-time yield effect. They also said first-half FY2025 visibility is better than the second half, but the gap should not be large, and that some customer capacity may be ordered later in the year for next-generation ramps. On tariffs and macro uncertainty, management said there has been no real change in large-customer behavior and no direct tariff impact so far, though they are watching for indirect macro effects. Management also said custom ASIC demand is expected to grow, especially into 2026, and that their market share should rise as those devices launch.