Advantest Forecasts 6% Profit Growth Driven by AI Chip Testing Demand
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Japan's Advantest expects 6% annual profit growth as AI boosts testing
TOKYO, April 25 (Reuters) - Japanese chip testing equipment maker Advantest (6857.T), opens new tab forecast on Friday its operating profit to grow 6% next fiscal year, buoyed by demand for its testing tools for chips used in the artificial intelligence tasks. Advantest "does not recognise more than a minor direct impact" from tariffs but the business environment is increasingly uncertain, the company said in an earnings release. "We are talking a cautious approach, particularly beyond what we can see in the first half," CEO Douglas Lefever told an earnings briefing. The company reported operating profit of 228.2 billion yen ($1.59 billion) for the year ended March 31, up sharply from 81.6 billion yen in fiscal year 2024. Advantest expects an operating profit of 242 billion next fiscal year. It said it would buy back about 19 million shares for up to 70 billion yen. Its shares closed up 4.6% ahead of earnings on Friday and have fallen around 33% this year so far. ($1 = 143.2400 yen) Reporting by Sam Nussey; Editing by Rashmi Aich and Tomasz Janowski Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Technology
[2]
Japan's Advantest expects 6% annual profit growth as AI boosts testing
The company reported a net profit of 228.2 billion yen ($1.59 billion) for the year ended March 31, sharply higher from 81.6 billion yen in fiscal year 2024. Advantest expects an operating profit of 242 billion next fiscal year.Japanese chip testing equipment maker Advantest forecast its operating profit to grow 6% next fiscal year on Friday, buoyed by demand for its testing tools for chips used in the artificial intelligence tasks. Advantest "does not recognise more than a minor direct impact" from tariffs but the business environment is increasingly uncertain, the company said in an earnings release. The company reported a net profit of 228.2 billion yen ($1.59 billion) for the year ended March 31, sharply higher from 81.6 billion yen in fiscal year 2024. Advantest expects an operating profit of 242 billion next fiscal year. It said it would buy back about 19 million shares for up to 70 billion yen. Its shares closed up 4.6% ahead of earnings on Friday and have fallen around 33% this year so far.
[3]
Japan's Advantest expects 6% annual profit growth as AI boosts testing
TOKYO (Reuters) -Japanese chip testing equipment maker Advantest forecast on Friday its operating profit to grow 6% next fiscal year, buoyed by demand for its testing tools for chips used in the artificial intelligence tasks. Advantest "does not recognise more than a minor direct impact" from tariffs but the business environment is increasingly uncertain, the company said in an earnings release. "We are talking a cautious approach, particularly beyond what we can see in the first half," CEO Douglas Lefever told an earnings briefing. The company reported operating profit of 228.2 billion yen ($1.59 billion) for the year ended March 31, up sharply from 81.6 billion yen in fiscal year 2024. Advantest expects an operating profit of 242 billion next fiscal year. It said it would buy back about 19 million shares for up to 70 billion yen. Its shares closed up 4.6% ahead of earnings on Friday and have fallen around 33% this year so far. ($1 = 143.2400 yen) (Reporting by Sam Nussey; Editing by Rashmi Aich and Tomasz Janowski)
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Japanese chip testing equipment maker Advantest projects a 6% increase in operating profit for the next fiscal year, fueled by growing demand for AI chip testing tools. The company reported significant profit growth but remains cautious about future market uncertainties.
Advantest's Profit Surge and Future Outlook
Japanese chip testing equipment manufacturer Advantest has reported a remarkable financial performance for the fiscal year ended March 31, with operating profits soaring to 228.2 billion yen ($1.59 billion), a significant increase from 81.6 billion yen in the previous fiscal year 123. This substantial growth has set the stage for the company's optimistic forecast for the coming year.
AI-Driven Growth Projections
Looking ahead, Advantest has projected a 6% growth in operating profit for the next fiscal year, anticipating it to reach 242 billion yen 123. This positive outlook is primarily attributed to the increasing demand for the company's testing tools, particularly those used for chips involved in artificial intelligence tasks. The surge in AI-related chip production and the need for sophisticated testing equipment have positioned Advantest favorably in the market.
Cautious Optimism Amidst Market Uncertainties
Despite the strong financial results and positive projections, Advantest's leadership is adopting a measured approach to future expectations. CEO Douglas Lefever emphasized a cautious stance, particularly regarding the latter half of the upcoming fiscal year 13. The company acknowledged that while it doesn't foresee significant direct impacts from tariffs, the overall business environment is becoming increasingly uncertain.
Strategic Financial Moves
In a move that signals confidence in its financial stability and commitment to shareholder value, Advantest announced a share buyback program. The company plans to repurchase approximately 19 million shares, with a cap of 70 billion yen allocated for this initiative 123. This decision could potentially boost investor confidence and support the company's stock price.
Market Performance and Challenges
Advantest's stock performance has been mixed. While shares closed up 4.6% ahead of the earnings announcement on Friday, they have experienced a significant decline of around 33% year-to-date 123. This downward trend highlights the challenges faced by technology companies in the current economic climate, despite strong financial performances.
Industry Implications
Advantest's success and optimistic outlook provide valuable insights into the broader semiconductor and AI industries. The growing demand for AI chip testing equipment suggests a robust pipeline of AI-related semiconductor production, indicating continued innovation and investment in artificial intelligence technologies across various sectors.
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