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[ The Test and Measurement Business ] |
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Q1: |
What were the
first-half results and outlook for former NetTest A/S (Now Anritsu A/S),
which was acquired by Anritsu? |
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A1: |
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Over a year has elapsed since the acquisition,
and we have already reorganized operations and integrated
business divisions that overlap with Anritsu's. Therefore,
please understand that it is difficult to quote figures for this
company in the same form as it was at the time of acquisition. |
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1. |
Field-use Optical Measuring Instruments Business
Integration of the manufacturing division with our domestic
business division is also complete. Market demand is brisk, and
sales are growing steadily. |
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2. |
Service Assurance Business
Sales and income fell short of our plan in the first half. We
are working toward profitability in the second half by gaining
orders from tier 1 customers with advanced needs who are making
large-scale investments and by working to reform our business
processes. However, these efforts will take time. |
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Given the present situation, it may be somewhat difficult to
achieve profitability during the second half of fiscal 2006, but
we are confident that Anritsu A/S can do so in the next fiscal
year. |
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Q2: |
What factors led
to your better-than-expected first-half performance? |
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A2: |
We received two large-scale orders in the United States. |
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One, from a
telecommunications carrier, was for handheld measuring instruments for
base stations. More than seventy percent of this order was delivered in
the first half.
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The other order, from the U.S. government, was for handheld spectrum
analyzers. Delivery of this order was essentially completed in the first
half as well.
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We cannot expect reorders in either case during the second half or
thereafter. |
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Q3: |
What are the
domestic market trends for mobile communication measuring instruments? |
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A3: |
Factors including the
completion of an investment cycle in third-generation mobile
communications (3G) services led to a decline in sales compared to the
same period in the previous fiscal year. Moreover, the proportion of
handset manufacturing done overseas is expected to increase in the
future.
However, with factors such as the start of mobile number portability,
base station installation could increase in order to improve service
quality. Consequently, we have hopes for handheld measuring instruments
for base stations that are compatible with HSDPA, CDMA2000 EV-DO Rev. A,
WiMAX and other systems. |
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In
addition to keeping abreast of customer demand for replacements by
launching new higher-speed measuring instruments for mobile handset
production that are 3.5G-compatible, we will focus efforts on proposing
measurement solutions that are compatible with 3.9G and other
next-generation communications standards. |
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With handset manufacturers forming joint ventures, there is a risk of
sales loss due to the integration of their basic development operations.
At the same time, however, there is a trend toward the establishment of
independent companies that contract out handset design and development
and act as OEM suppliers for manufacturers. This is where we will
concentrate our efforts. |
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Through these measures, we aim to achieve our initial projections. |
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Q4: |
Are there any
changes to the full-year forecast for the Test and Measurement Business? |
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A4: |
Our strong performance in the first half
was backed by large-scale orders that were originally scheduled for the
second half. Although we would like to see further increases in the
second half, our initial forecast remains unchanged in consideration of
the completion of an investment cycle in 3G in Japan and the slight
delay in achieving profitability at Anritsu A/S. |
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[ Other ] |
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Q5: |
How much does the
optical device business contribute to income? |
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A5: |
The optical device business
was a factor in our stronger-than-anticipated performance in the first
half, due in part to an extremely robust FTTP market in Japan. However,
the impact of this business on Anritsu's overall income is small. Price
competition in this field is intense and investment trends of
telecommunications carriers are unclear. Our second-half forecast is
therefore rather conservative. |
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Q6: |
What is the
full-year outlook for R&D expenses? |
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A6: |
R&D expenses were slightly
lower than projected for the first half, but this was a matter of
timing. Our initial projection for the full fiscal year remains
unchanged. |
