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Tokyo Seimitsu operating profit seen down 25% for April-June

TOKYO -- Tokyo Seimitsu's group operating profit likely fell 25% on the year to slightly under 3 billion yen ($28.2 million) in the first quarter ended June as flagging global demand for smartphones depressed sales of chipmaking equipment.

Sales likely dropped 15% to around 15.5 billion yen, reflecting chipmakers' reluctance regarding capital spending.

Sales of wafer-dicing and chip-testing machines were down. Other equipment, including equipment used to make the 3-D NAND flash memory in demand for high-performance servers, sold better -- but not well enough to offset the smartphone-related slump.

Tokyo Seimitsu's business in precision measuring instruments lost momentum as orders from automotive-industry customers in China and Southeast Asia turned sluggish. Such instruments are used in designing engine and other components.

A stronger yen likely undercut operating profit by around 200 million yen. The Japanese currency averaged about 108 to the dollar during the April-June quarter, roughly 13 yen stronger than a year earlier.

Tokyo Seimitsu reports its first-quarter results Aug. 9. The company forecasts a full-year operating profit of 11.5 billion yen, down 13% on the year, and sees sales falling 2% to 69 billion yen.

(Nikkei)

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