| [Test and Measurement Business Q&A] |
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Q1: |
What trends do you project concerning
the scale of FOMA terminal production? |
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A1: |
After aggregating various data, Anritsu expects production
volume in the range of 7 to 10 million units in fiscal 2004. We have already
received inquiries from manufacturers of mobile communications terminals,
and we expect that sales of measuring instruments for terminal production
will increase above the level of fiscal 2003. |
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Q2: |
What is the status of W-CDMA
development in Europe? |
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A2: |
In Europe, conditions including the acquisition of licenses
for third-generation mobile communications lead us to believe that the
number of providers initiating service will increase in 2004 and beyond.
Moreover, with full-scale service in each country, this market holds the
potential to become very large, and Anritsu will continue its aggressive
approach to the market. We expect signaling testers and conformance test
systems to be key measurement solutions in this market. |
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Q3: |
Please discuss trends in the Chinese
market. |
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A3: |
Short term, we think that demand for measuring instruments
for PHS in China has peaked. Looking forward, we can expect a contribution
from demand for tests for W-COMA connectivity and other secondary testing of
third-generation mobile communications, which begins in February 2004.
Moreover, third-generation mobile communications service is expected to
begin in 2005, and we will narrow our target markets to research and
development and the related investments in terminal production and
infrastructure. |
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Q4: |
What is your view of the apparent
trend in North America toward a recovery of investment in fixed-line
telecommunications? |
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A4: |
We think that it has not yet reached the anticipated level.
However, we are undertaking product development targeting the physical layer
and above.
As EoS* data transport becomes a reality, we are conducting aggressive
promotion of analyzer. We still do not expect significant growth in demand
for measuring instruments for the 40Gb/s public communication network from
the primary segment of university, government and other R&D applications. |
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*EoS: Ethernet over SONET |
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Q5: |
Please discuss IP tester
developments. |
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A5: |
At present, the move from 1G to 10G Ethernet is driving the
trend toward large-volume networks. Since high-speed signal measurement
technology is an area of strength for Anritsu, we will continue to grasp the
trend firmly. Moreover, we believe that the high-end IP tester market is
saturated in Japan and abroad, so we intend to target the mid-grade market. |
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Q6: |
What business opportunities does IPv6
present? |
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A6: |
We believe that IPv6 has the potential to become a primary
communications technology, and Anritsu must enhance its competitiveness to
make a serious effort in this sector. The consumer market of Japan offers
better prospects than North America, so we will target Japan first. |
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Q7: |
What is your outlook for the
measuring instruments market? |
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A7: |
The mobile communications segment is growing solidly, and
we expect growth to continue. The optical/digital segment has entered a
period of significant contraction, but we expect gradual growth in the
future. While we do not anticipate significant movement, particularly given
the severe conditions in the physical layer, we do expect growth in the
upper layers (IP). |
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| [Financial Position Q&A] |
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Q8: |
What impact will exchange rates have
on results? |
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A8: |
On an operating income basis, a change of one yen is
assumed to exert an impact of approximately 50 million yen. |
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Q9: |
Please comment on your full-year
results outlook and the potential for an upward revision in your
projections. |
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A9: |
Looking at quarterly performance up to now, the third
quarter has typically been the weakest, while sales in the fourth quarter
have tended to rise compared to other quarters. In the third quarter this
year, sales were relatively firm because of factors including investment in
connection with the introduction of "winter models" of FOMA. However, we are
not particularly confident about sales growth in the fourth quarter, and
costs will increase if sales do indeed rise. We also have to take the
appreciation of the yen into account. Therefore, we believe that current
full-year projections are reasonable. |
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Q10: |
What is your projection for
inventory? |
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A10: |
Our current goal is to limit inventory to about 25 percent
of net sales. Our goal for the future is to innovate production and achieve
six inventory turns per year. |
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