Advantest Shares Rise After It Lays out Plan to Boost Earnings

By Kosaku Narioka

Advantest shares rose sharply after the Japanese chip-testing equipment maker projected market growth and laid out a plan to boost earnings in the coming years.

Shares were recently 6.6% higher at 6,200 yen on Wednesday morning after rising as much as 6.8% earlier.

Advantest said Tuesday after market close that it aimed to increase average net profit over the next three years to Y93.0 billion-Y147.0 billion ($582.4 million-$920.5 million), from an average over the previous three years of Y93.3 billion.

Despite a current cyclical downturn, the chip-testing equipment maker projected market growth in the coming years, driven partly by an increase in demand for artificial intelligence, electric vehicles and edge computing.

Advantest aims to boost average revenue for the coming three years to Y560.0 billion-Y700.0 billion, from an average over the past three years of Y487.9 billion, it said.

The Japanese company expects to spend Y100.0 billion in total on mergers, tie-ups and other strategic investments for the next three years, it said.

Write to Kosaku Narioka at kosaku.narioka@wsj.com

(END) Dow Jones Newswires

June 25, 2024 23:19 ET (03:19 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.