February 5, 2008

Consolidated Financial Review
for the Third Quarter Ended December 31, 2007
Company name:
URL:
Telephone number:
Stock exchange listing:Code number:Company representative:
Person-in-charge:

http://www.tel.com(03) 5561-7000
Tokyo Stock Exchange 1st Section
8035
Kiyoshi Sato, President & COO
Yukio Saeki, Director, Accounting Department

For reference only: The accompanying financial statements have been prepared in accordance with accounting
principles and practices generally accepted in Japan.
Note: All figures are rounded down to the nearest million yen.
1. Financial highlights for the third quarter ended December 31, 2007 (4/1/07- 12/31/07)(1) Operating results
Note: Percentages indicate changes from the same period of the previous fiscal year.
Net sales
Nine months ended 12/31/07
Nine months ended 12/31/06
Year ended 3/31/07

Operating income

Millions of yen% Millions of yen%
676,215
12.6
133,504
32.0
600,656
25.6
101,14590.1
851,975- 143,978
Net income

Nine months ended 12/31/07
Nine months ended 12/31/06
Year ended 3/31/07

Net income per share

Millions of yen%
88,06437.1
64,212
88.2
91,262-

Ordinary income
Millions of yen %135,557
35.1
100,320
86.7
143,940
Fully diluted net
income per shareYen
492.27359.91511.27

Yen
491.07358.87509.84(2) Financial position
Total assets

As of 12/31/07
As of 12/31/06
As of 3/31/07

Net assets

Equity ratio

Millions of yen
785,155
704,273770,513Millions of yen
531,331438,730
469,810

%
66.4
61.5
59.7

Cash flow fromoperating activities

Cash flow frominvesting activities

Cash flow fromfinancing activities

Net assets
per shareYen
2,914.44
2,422.68
2,573.72(3) Cash flow

Nine months ended 12/31/07
Nine months ended 12/31/06
Year ended 3/31/07

Millions of yen
41,25017,83654,296

Millions of yen(47,494)(24,768)(25,293)1

Millions of yen(26,826)(32,752)(34,719)

Cash and cash
equivalents at theend of the period
Millions of yen
101,176
100,576
134,389

2. Estimates for the year ending March 31, 2008 (4/1/07 - 3/31/08)
Estimates remain the same as those announced on May 11, 2007.
3. Others
1) Important changes in subsidiaries. (Changes on specific subsidiaries with changes in scope of consolidation): None
2) Adoption of simplified accounting method: None
3) Changes in the accounting method from the most recent fiscal year: NoneNote:
The performance forecasts and estimates stated in this Financial Review are based on certain
assumptions judged to be reasonable at the present time in light of information currently available
concerning economic conditions in Japan and overseas, fluctuations in exchange rates and otherfactors that may have an impact on performance.
They are therefore susceptible to the impact of many uncertainties, including market conditions,competition, the launching of new products and their success or failure, and global conditions in thesemiconductor production equipment business. Consequently, actual sales and profits may differ
substantially from the projections stated in this Financial Review.

2Operating Results and Financial Conditions
1. Overview of the Results(1) Nine Months Ended December 31, 2007 (April 1, 2007 – December 31, 2007)
During the April to December period, net sales were 676,215 million yen (up 12.6% from the same period of
the previous fiscal year), operating income was 133,504 million yen (up 32.0%), ordinary income was 135,557
million yen (up 35.1%), and net income was 88,064 million yen (up 37.1%).

Consolidated net sales by division were 539,990 million yen for semiconductor production equipment (up22.0% from the same period of the previous fiscal year), 53,648 million yen for FPD production equipment(down 31.7%), and 82,251 million yen for electronic components and computer networks (up 4.8%).

In thecompany’s mainstay semiconductor production equipment division, sales to memory manufacturers in Asia
were strong, but the FPD production equipment segment experienced a temporary market correction phase,following the high levels of the previous fiscal year.

Starting in the second half of the previous fiscal year, “Computer Systems and Networks” (previously classified
in the “Industrial Electronic Equipment” segment) have been included in the “Electronic Components andComputer Networks” segment (former “Electronic Components” segment).

With this change, theyear-on-year comparison of net sales for each segment are now based on the reorganized segments.

(2) Third Quarter (Three Months from October 1, 2007 to December 31, 2007)
On a consolidated basis during the third quarter, net sales were 199,837 million yen (down 4.9% from thesame period of the previous fiscal year), operating income was 38,499 million yen (down 10.3%), ordinary
income was 39,761 million yen (down 5.6%), and net income was 25,600 million yen (down 5.1%).
Consolidated net sales by division were 160,739 million yen for semiconductor production equipment (up1.2%), 10,048 million yen for FPD production equipment (down 61.4%), and 28,980 million yen for electronic
components and computer networks (up 15.9%).

3(For reference)
Consolidated(Millions of yen)

Net Sales
Industrial Electronic Equipment
Semiconductor Production Equipment
JapanU.S.
EuropeKorea
TaiwanChina
S.E.Asia
ＦＰＤ Production Equipment
Other
Electronic Components & Computer Networks
Operating Income
Ordinary Income
Net Income

FY20081H
476,377
423,106
379,251
94,62952,47914,447
41,122
141,934
20,525
14,11243,600254
53,271
95,005
95,79562,463

FY20083Q
199,837
170,857
160,739
52,24822,302
4,157
15,581
53,6394,188
8,620
10,04869
28,98038,49939,76125,600FY20081Q-3Q
676,215593,963
539,990
146,878
74,782
18,60456,703
195,573
24,71422,73253,648324
82,251
133,504
135,557
88,064

Note: Offset elimination has been carried out on the dealing between segments.

2. Financial Conditions at the end of the Third Quarter
Total assets at the end of the third quarter increased by 14,641 million yen from the end of the previous fiscal
year to 785,155 million yen as a result of higher trade notes and accounts receivable and other factors.

Totalliabilities were down 46,879 million yen from the end of the previous fiscal year to 253,823 million yen as aresult of lower trade notes and accounts payable and Income taxes payable.

Net assets were up 61,520

million yen from the end of the previous fiscal year to 531,331 million yen, this was the result of an increase
due to reporting net income of 88,064 million yen, and a decrease due to distribution from surplus earnings of23,431 million yen.

The equity ratio was 66.4%.

3. Cash Flow for the Nine Months Ended December 31, 2007 (April 1, 2007 – December 31, 2007)
The status of and factors affecting cash flow in the nine months ended December 31, 2007 were as follows.

Cash flow from operating activities was a positive 41,250 million yen.

Major positive factors included income

before income taxes of 138,217 million yen and depreciation and amortization of 15,375 million yen.

Major

negative factors included increases in trade notes and accounts receivables of 10,831 million yen, decreases
in accounts payable of 26,023 million yen, and income taxes paid of 72,459 million yen.

4Cash flow from investing activities was a negative 47,494 million yen, primarily as a result of the purchase of
tangible fixed assets for production and R&D of 14,710 million yen, and payment into time deposits of 34,000
million yen.

Cash flow from financing activities was a negative 26,826 million yen, chiefly due to the redemption of the fifth
issue of unsecured straight bonds with subscription rights worth 5,500 million yen and the payment ofdividends worth 23,431 million yen.

As a result, the balance of cash and cash equivalents at the end of the third quarter was 101,176 million yen, adecrease of 33,212 million yen compared to the end of the previous fiscal year.

5Consolidated Balance Sheet(Millions of yen)
As ofMarch 31, 2007

As of
December 31, 2007

AmountAmount

As ofDecember 31, 2006

Increase(decrease)
Amount(%)

Amount(Assets)
610,363

624,444

Cash and deposits

134,389

67,204

100,576

Trade notes and accounts receivable

228,688239,676

203,193

Securities

19

67,97219

Inventories

194,840

198,689

200,060

Others52,55150,991

43,771

(127)

(90)

(206)

160,150

160,710

Tangible fixed assets

104,930

105,778102,067

Intangible fixed assets

19,39918,494

19,771

Investments and other assets

36,11836,73335,333

Allowance for doubtful accounts

(297)

(297)

(313)

770,513785,155

Current assets

Allowance for doubtful accounts
Long-term assets

Total assets

6

14,081559

14,641

2.3

0.3

1.9

547,415

156,858

704,273

Consolidated Balance Sheet(Millions of yen)
As ofMarch 31, 2007

As of
December 31, 2007

AmountAmount

As ofDecember 31, 2006

Increase(decrease)
Amount(%)

Amount(Liabilities)
Current liabilities

225,854

205,959 (19,895)

83,8375,500
45,657
21,956
14,131
14,11440,65857,92230,00023,38439,810
6,009
9,630
39,202

74,84847,863 (26,984)

Straight bonds
Accrued pension and severance costs
Accrued pension and severance costs
for directors
Others

30,00040,01842,94530,00038,870

666
4,162

657
4,260

661
8,067

Total liabilities

300,702

253,823 (46,879)(15.6)

265,543

Shareholders' equity

449,166

514,630

65,463

14.6

421,596

Common stock
Capital surplus
Retained earnings
Treasury stock

54,961
78,346
328,026(12,167)

54,961
78,393392,659(11,383)

11,008

6,848(4,159)(37.8)

11,366

584

374

(209)

(35.9)

548

9,051

9,478

426

4.7

5,219

Total net assets

469,810531,331

61,52013.1

438,730

Total liabilities and net assets

770,513785,155

14,641

1.9

704,273

Trade notes and accounts payable
Bonds due within 1 year
Income taxes payable
Customer advances
Accrued employees' bonuses
Accured warranty expenses
OthersLong-term liabilities(8.8)

187,943
72,7275,500
22,51133,264
6,188
13,25534,496(36.1)

77,600(Net assets)

Valuation and translation adjustments
Subscription rights to shares
Minority interests

754,961
78,309300,976(12,650)

Consolidated Statement of Income(Millions of yen)
Nine months ended Nine months ended
December 31,
December 31,
2006
2007
AmountIncrease(decrease)

Ratio toRatio toAmountAmountnet sales
net sales(%)

Year ended
March 31, 2007

AmountRatio tonet sales

Net sales

600,656

100.0 676,215

100.0

75,55812.6 851,975

100.0

Cost of sales

407,32167.8 438,429

64.8

31,107

7.6 579,325

68.0

193,33432.2 237,78635.2

44,45123.0 272,649

32.0

92,18915.4 104,281

15.5

12,091

13.1 128,670

15.1

Operating income

101,145

16.8 133,504

19.7

32,35932.0 143,97816.9

Non-operating income

3,371

3,669

4,908

Non-operating expenses

4,195

1,616

4,946

Ordinary income

100,320

16.7 135,557

Unusual or infrequent profi

753

3,057

2,721

Unusual or infrequent loss

458

397

2,247

100,615

16.8 138,217

20.4

36,034

6.0

49,406--

Minority interests

368

Net income

64,212Gross profit
Selling, general & administrative expense

Income before income taxes
Provision for income taxes and enterprise taxe
Deferred income taxes

20.0

35,236

16.9

37.4 144,414

17.0

7.3

60,132

7.1--(7,534)

(0.9)

0.1

747

0.1

553

0.1

10.7

88,06413.0

91,26210.7

837,60235.1 143,940

23,85137.1

Segment Information
Information by business segment(Millions of yen)
Nine months ended December 31, 2006 (4/1/06 - 12/31/06)
Industrial
electronicequipment

Electronic
components
and computer
networks522,154

78,501600,656-2,029867

2,896(2,896)524,183

79,369603,553(2,896)

600,656

Operating expenses

425,563

76,515502,078(2,566)

499,511

Operating income

98,6202,854

101,475(329)

101,145

Total

Eliminations
andConsolidated
corporate

Net sales(1) Sales to external customers(2) Intersegment sales or transfers
Total

600,656-(Millions of yen)
Nine months ended December 31, 2007 (4/1/07 - 12/31/07)
Industrial
electronicequipment

Electronic
components
and computer
networks593,963

82,251

676,215

-824

756

1,580

(1,580)594,788

83,008

677,796(1,580)676,215

Operating expenses

464,06680,248

544,315(1,604)

542,710

Operating income

130,7212,759

133,48024133,504

Total

Eliminations
andConsolidated
corporate

Net sales(1) Sales to external customers(2) Intersegment sales or transfers
Total

676,215-(Millions of yen)
Year ended March 31, 2007 (4/1/06 - 3/31/07)
Industrial
electronicequipment

Electronic
components
and computer
networks744,512

107,462

851,975

-

2,381

1,247

3,628

(3,628)746,893108,709855,603(3,628)851,975

Operating expenses

606,539

104,739711,279(3,282)707,996

Operating income

140,354

3,969

144,324(345)

143,978

Total

Eliminations
andConsolidated
corporate

Net sales(1) Sales to external customers(2) Intersegment sales or transfers
Total9851,975-