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Advantest Urges Employees to Embark on "The Final Sprint to the Finish Line" in the Final Year of its Corporate Initiative, Activate21
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TOKYO, Japan, January 4, 2008 - Toshio Maruyama, president and CEO of Advantest Corporation (TSE: 6857, NYSE: ATE), has delivered a New Year message to employees and stakeholders, outlining the company's approach and goals for 2008.
Maruyama first spoke about the dark shadow hanging over the global economy in 2007, with the subprime mortgage crisis in the USA having sparked disarray in financial markets. "I think we have now entered an age where business expansion requires careful consideration of the global implications of risks originating in one particular area," he commented. Acknowledging the effect that this, as well as Japan's lingering deflationary economy, had on the company, he stated, "Advantest was affected by inventory adjustments, along with falling prices of semiconductors and LCD digital goods. Production of these items continued to flag from the beginning of 2007. This lull in production was not limited to the USA, it also spread to the Japanese domestic market and to Taiwan and, as a result, chip manufacturers remained reluctant to make capital investments." He went on to remark that predictions for growth in the semiconductor market from 2008 onwards have been made by World Semiconductor Trade Statistics (WSTS), and although figures show only a moderate 3.8% expansion for 2007, predictions are for a recovery to 9.1% in 2008, and a healthy growth of 6.2% in 2009.
Fiscal 2008 is the final year of Advantest's corporate initiative, Activate21, which began on October 1st, 2005. At the beginning of the initiative, the company set a clear income before tax target, and has been focusing on three factors key to achieving its goal: marginal profit ratio, inventory reduction and workplace productivity. On this point Maruyama states, "We have expanded the scope of the initiative throughout the whole company. Although our numerical targets are now beyond reach, I am certain that our methodology is absolutely correct. We will continue to clearly define the processes necessary to achieve our goals, and to take on the challenges involved."
"Advantest has achieved definite improvements since we implemented the just-in-time production system, following the bursting of the bubble of 2000 to 2001," the CEO notes. "The next step calls for inter-departmental activities to improve our products' competitiveness. This will be a combined effort by all parties involved in the manufacturing process, including our development, procurement and logistics, quality assurance, production, SE, CE, sales and administration departments." He then stated that targets must be set with the optimization of the entire process in mind, so that improvements are not limited to individual departments. Following this, he emphasized the company's commitment to customer satisfaction, commenting, "I think we now need to reconsider exactly what the aims of our manufacturing business are, as it is only once our customers are satisfied that we can rate our products and manufacturing methods as good."
In a positive conclusion to his address, Maruyama stated that it is at times like this, when the company is battling against a headwind, that new opportunities can be created. He urged employees not to settle too comfortably into their current role within the company, but to review their own actions with a critical eye, in order to develop themselves further. His message to management was to work to foster the skills of individual employees and to create from this a strong, vibrant organization. "Do not concentrate on one particular field or group," he said, "but look for optimal solutions that benefit the company as a whole, and that consider the needs of all stakeholders." He also emphasized the importance of employing management techniques that create a good balance between the strengths of the individual and the strengths of the organization. In his final comments, Maruyama asserted, "I think it is in times of adversity like now that we can see more clearly than ever what issues exist in our business, and what we need to improve. I have high hopes that 2008 will be a bumper harvest year."
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All information supplied in this release is correct at the time of publication, but may be subject to change without warning. |
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Advantest Corporation is the world’s leading automatic test equipment supplier to the semiconductor industry, and also produces electronic and optoelectronic instruments and systems. A global company, Advantest has long offered total ATE solutions, and serves the industry in every component of semiconductor test: tester, handler, mechanical and electrical interfaces, and software. Its logic, memory, mixed-signal and RF testers and device handlers are integrated into the most advanced semiconductor production lines in the world. Founded in Tokyo in 1954, Advantest established its first subsidiary in 1982, in the USA, and now has 40 subsidiaries worldwide. Among them, Advantest America, Inc. is based in Santa Clara, CA., and Advantest (Europe) GmBH is based in Munich, Germany. More information is available at www.advantest.co.jp. |
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