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Investing.com -- Advantest reported first-quarter sales of ¥263.7 billion, up 90% year-over-year, and operating profit of ¥124.0 billion, up 295% compared to the same period last year.
These results significantly surpassed market consensus estimates of ¥229.2 billion in sales and ¥83.6 billion in operating profit. The company’s core operating profit, which excludes goodwill amortization, reached ¥85.5 billion, exceeding the previous record high achieved in the fourth quarter of fiscal year 2025.
The company’s gross profit margin improved to 65.1% in the first quarter, an increase of 5.2 percentage points quarter-over-quarter. This margin improvement was driven by strong growth in SoC testers and increased licensing revenue.
By segment, SoC tester sales reached ¥191.3 billion, representing a 176% increase year-over-year and a 28% increase quarter-over-quarter. The company attributed this growth to strong customer demand, particularly for Generative AI applications, and noted that some sales were booked ahead of schedule.
Memory-related sales totaled ¥33.5 billion, up 5% year-over-year but down 4% quarter-over-quarter. Other systems sales, which include handlers, device interfaces, and SLT, were ¥15.8 billion, down 2% year-over-year and 22% quarter-over-quarter. Support and service sales reached ¥13.9 billion, up 6% year-over-year but down 3% quarter-over-quarter.
Advantest has revised its 2025 tester market outlook, now projecting the SoC tester market to reach $5.7-6.3 billion, up from the previous forecast of $4.2-4.8 billion. This represents approximately 46% year-over-year growth based on the mid-point of the range. The memory tester market is projected at $1.7-2.2 billion, unchanged from previous estimates.
For the full fiscal year 2026, Advantest has increased its sales and operating profit guidance by ¥80.0 billion and ¥58.0 billion respectively. The company now expects sales of ¥835.0 billion, up 7% year-over-year, operating profit of ¥300.0 billion, up 31%, and net profit of ¥221.5 billion, up 37%.
The company’s SoC tester sales are projected to reach ¥533.0 billion for fiscal year 2026, a 21% increase year-over-year, while memory tester sales are expected to be ¥139.0 billion, down 12% year-over-year.
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