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| [Company-wide Results Q&A] |
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Q1: |
The outlook for the fiscal year
ending March 31, 2003 (FY2002) is unchanged from the outlook issued at
the end of the first quarter. How accurate is this forecast? Were there
any causes for concern in leaving the outlook unchanged? |
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A1: |
For the second half of FY2002, we forecast net sales of
53.2 billion yen, approximately 10 percent of which could fluctuate
depending on future orders. Principal factors in this possible
fluctuation include the level of orders to the Chinese market, which
will depend on investment to build the communications infrastructure in
the western part of the country, as well as trends in U.S. and European
markets, which remain sluggish. |
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Q2: |
What is your outlook for orders
in the third and fourth quarters? |
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A2: |
We anticipate that total orders, as well as net sales,
will increase 38 percent over the first half. Seasonal factors also
particularly raise the importance of the fourth quarter. |
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Q3: |
Since FY2001, the Company has
reduced fixed costs by a total of 10 billion yen. What are the Company's
projections for fixed costs for FY2002 and FY2003 |
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A3: |
Fixed costs for FY2002 are projected at 62.5 billion yen.
For FY2003, fixed costs are projected at 60.0 billion yen. |
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Q4: |
The cost of sales ratio for the
first half of FY2002 is at an all-time high. Is this because the profit
margin for products has deteriorated or is it due to some special
factors? |
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A4: |
The primary components of cost of sales are product
costs (materials and labor), production overhead, and R&D expenses.
Consequently, although the Company's efforts to cut personnel and reduce
investment, because net sales declined by approximately 50 percent
compared to the interim period of the previous fiscal year, the ratio of
fixed production expenses and R&D expenses to net sales rose. The rise
in the cost of sales ratio has not been due to particularly strong
downward pressure on product sales prices. |
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Q5: |
Are there plans to include Cisco
Systems in Anritsu's Global Account Program (GAP)? |
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A5: |
Cisco is one of the Company's most important customers,
and is currently contacted in top-level communications as one of the
approximately 50 companies involved in the Key Account Program (KAP).
Introducing Cisco to GAP will require developing a closer partnership
between each division of the two companies. |
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| [Test and Measurement Business Q&A] |
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Q6: |
What are the results of the Test
and Measurement business broken down by the two internal companies
Photonic Measurement Solutions (hereafter, the "Photonic Division") and
Wireless Measurement Solutions (hereafter, the "Wireless Division")? |
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A6: |
For FY2001, net sales were 39.5 billion yen for the
Photonic Division, 22.5 yen billion for the Wireless Division and 26.6
billion yen for business divisions within overseas subsidiaries, for an
overall total of 86.6 billion yen in net sales for the Test and Measurement
business. For FY2002, we forecast net sales of 16 billion yen for the
Photonic Division, 26 billion yen for the Wireless Division and 20 billion yen
for business divisions within overseas subsidiaries, for an overall
total of 62 billion yen in net sales for the Test and Measurement business.
As for the outlook for profit and loss, although we expect severe
conditions in the Photonic Division, the profitability of the Wireless
Division and divisions at overseas subsidiaries support a projection of
0.3 billion yen in operating income for the Test and Measurement business. |
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Q7: |
At the financial results
presentation, there was discussion of a shift from the R&D applications
phase to the manufacturing applications phase for test equipment for W-CDMA[*1].
For FY2003, how many orders do you anticipate for test equipment for
manufacturing? |
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[*1] |
W-CDMA (Wideband Code
Division Multiple Access): Part of the IMT-2000 (International Mobile
Telecommunications 2000), which is one of the global standards for
next-generation mobile communications systems. |
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A7: |
Anritsu presently holds the top share (60%) of the
market for W-CDMA test equipment. Demand for signaling testers, a core
product, increased as customers began initial investment into W-CDMA-related
research and development. Since that period, demand has continued for
systems that combine a signaling tester with the Protocol Test System
(PTS) software Anritsu provides, as well as extensions. Combined with
products for manufacturing applications, we expect to maintain a strong
level of orders in the future. |
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Q8: |
What are the most recent
conditions in the W-CDMA market in China, and what is the forecast for
FY2002 and FY2003? |
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A8: |
In the mobile communications market in China, GSM
currently has strong momentum, but at the same time, PHS is spreading
rapidly in the central and western regions of the country. In the
future, we will see a shift from GSM to GPRS[*2]
(which began service in May 2002), and the next trend will center not on
W-CDMA, but on CDMA2000[*3] applications, such as CDMA
1x. As a result, we expect that W-CDMA will be in widespread use by
FY2004. |
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[*2] |
GPRS (General Packet Radio Service): A Packet Radio
Service on the network of GSM (Global System for Mobile Communication). |
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[*3] |
CDMA2000: One of standards for third-generation mobile
communications proposed by U.S., which makes the transition to broadband
based on cdmaOne, a second-generation mobile communications standard. |
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Q9: |
How many IP(Internet
Protocol)-related engineers does the Company currently employ? What are
your future personnel targets for engineers? |
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A9: |
Approximately 60 percent of the engineers in the
Photonics Division are involved in the development of LANs (Local Area
Networks) and other networks related equipment, which requires knowledge
of IP technology. In the future, we will work to increase the number of
engineers and to raise their expertise. |
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Q10: |
Why have orders for the MD1230A
Data Quality Analyzer lagged six months behind the previous target? |
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A10: |
It took much longer to penetrate the market than we had
originally anticipated, but we are currently implementing Value Added
Retail (VAR) and have made considerable progress. |
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