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[Questions Regarding the Test and Measurement Business] |
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Q1: |
What are the reasons for the 1.0
billion yen improvement in operating income after the downward revision in
July? In addition, what is the reason for the downward revision of the
profit outlook for the full fiscal year? |
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A1: |
Analyzing the first half, sales were weak in the first
quarter, but rebounded in the second quarter.
The main reason for this was strong sales of handheld measuring instruments
at our U.S. subsidiary. In the outlook for the
full fiscal year, we have factored in a market environment in which there is
a delay in the rise in demand for measuring instruments for use in mass
production of handsets. |
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Q2: |
How will
the acquisition of NetTest (now Anritsu A/S) impact results? |
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A2: |
We expect the addition of Anritsu A/S to the scope of
consolidation in the second half to increase
net sales by 5.0 billion yen and reduce operating income by 1.0 billion yen.
At the current level of sales, an operating loss will result, so we will
carry out management structure reforms at Anritsu A/S in tandem with
management integration with the Anritsu Group. Goodwill totals 5.8 billion
yen, which we amortize on a straight-line basis over nine years. The effect
on profit and loss for the second half includes amortization expense of 0.3
billion yen. |
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Q3: |
What is
the outlook for results at NetTest for next fiscal year and beyond? |
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A3: |
We intend to transform NetTest into a break-even structure,
including amortization expenses, through the
management structure reforms and management integration we will implement in
the second half. We will put specific figures into the budget for the next
fiscal year. |
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Q4: |
What are
some specific measures in the management structure reforms of NetTest? |
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A4: |
NetTest consists of three business units, but is operated as
if each one were an independent company. As a
result, there is still room for streamlining from the standpoint of
efficient operations. In addition, by optimizing business operations between
the Anritsu Group and NetTest Group and integrating sales organizations, we
will create an efficient operating structure for the whole Anritsu Group by
March 31, 2006. |
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Q5: |
What
are the prospects for measuring instruments for
third-generation mobile communications? |
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A5: |
Sales of measuring instruments for W-CDMA development did
not reach projections made at the beginning of
the period. This was due to factors such as the delay in software
development, which we had been dividing with our U.K. subsidiary. Currently
we are unifying our Japan-U.K. organization to establish a system that
facilitates smooth development, and we can expect to regain sales in the
second half of the year. Moreover, we are also expecting sales of measuring
instruments with cdma2000 Rev.A capability to start contributing to results. |
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Q6: |
What
about measuring instruments for optical IP
networks? |
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A6: |
This area has been in a prolonged market slump since the
collapse of the IT bubble. However, optical
lines such as so-called fiber-to-the-home can now be brought into homes, and
with services offered through these lines expected to grow, the market is
showing signs of an upturn. Looking forward, we expect sales expansion of up
to eight percent, and also anticipate earnings improvement from the
introduction of new products. |
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Q7: |
What
are your thoughts on the Next-Generation
Network (NGN)? |
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A7: |
The NGN, which fuses wireline and wireless communications
using IP technology, will greatly expand the services that companies can
offer. Anritsu has a full lineup of measuring
instruments such as IP testers that measure the data that flows through
networks, and wireless measuring instruments that measures networks between
base stations, but our ability to build systems using software will become
important in the NGN-related market. This was the main impetus behind our
acquisition of NetTest, which we expect to not only expand our business
domain, but also create synergy in this area. |
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