Advantest Corporation’s (Advantest) FY 2009 results were slightly above our expectations, but reported significant deterioration. Management has not provided any guidance in view of ongoing weakness in the semiconductor industry and limited visibility in the near term. Accordingly, we maintain our grim outlook for Advantest, with a substantial erosion of its order book leading to no near term uptick in its business....

Advantest reported operating losses for the fourth straight quarter in 3Q 09. Capital spending cuts have damaged the company and other ATE (Automated Test Equipment) vendors substantially over the past year, with several leading ATE vendors including Verigy Limited and Teradyne Inc. guiding for a further steep drop in sales in CY 1H 09 as global economic uncertainty further taints the demand pattern. On 13 January 2009, Gartner Inc., forecast a 34.1% y-o-y decline in…

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Advantest Corporation’s (Advantest) 3Q 09 net sales and losses were below our and market expectations. With the industry entering into a seasonally slow quarter and a timeline for economic recovery still uncertain, semiconductor companies continue to hold back capital spending. As a result, Advantest has experienced a substantial contraction in its order book....