Advantest Shares Slump After It Projects Profit Drop on Weaker Chip Production
By Kosaku Narioka
Advantest Corp. shares fell sharply Thursday morning after the semiconductor-testing-equipment maker projected net profit would drop 40% this fiscal year, citing chip makers' production cuts.
The shares were recently 11% lower at 10,300 yen after falling as much as 12% earlier.
Advantest said Wednesday after market close that it expected net profit to drop to Y78.00 billion ($583.5 million) for the fiscal year that started in April, from a record net profit of Y130.40 billion for the previous fiscal year.
Revenue is forecast to fall 14% to Y480.00 billion, the company said.
Advantest said the market for chip-testing equipment is expected to shrink in 2023 as semiconductor makers are likely to continue reducing inventory and production amid growing concerns about an economic recession.
For the fiscal year ended March, net profit increased 49% as revenue rose 34%. Advantest said that as more advanced chips are being produced, demand for semiconductor testing has increased, helping offset a drop in demand for chips used for smartphones, personal computers and television sets.
Meanwhile, supply remains tight for chips used in cars and industrial equipment, it said.
Write to Kosaku Narioka at kosaku.narioka@wsj.com
(END) Dow Jones Newswires
April 26, 2023 22:29 ET (02:29 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.-
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