June 13, 2014 12:05 am JST

Advantest sets sights higher for fiscal 2014 margin

TOKYO -- Advantest Corp. is now targeting a 10% operating margin for the year through March 2015, better than the 7% it forecast in April.

     Rising orders for mainline chip-testing equipment are seen pushing profitability up. Increasing orders for maintenance and repairs will likely also help.

     April-June orders were initially projected at 40 billion yen to 45 billion yen ($388 million to 436 million). They could now come close to 50 billion yen, according to President Haruo Matsuno.

     Demand is on the rise for equipment to test such items as processors amid the popularization of smartphones in China and elsewhere. "Now we are more confident that we can achieve the projected operating profit of 10 billion yen," Matsuno says.

     This fiscal year, the company plans to roll out many revamped products and to cut parts costs. Wider margins from consumables are likely to push up overall profitability as well.