August 8, 2008

Consolidated Financial Review
for the First Quarter Ended June 30, 2008
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 first quarter ended June 30, 2008 (4/1/08- 6/30/08)(1) Operating results (Cumulative)
Note: Percentages indicate changes from the same period of the previous fiscal year.
Operating income

Net sales
Three months ended 6/30/08
Three months ended 6/30/07% Millions of yen% Millions of yen %Millions of yen
154,827
21,430- 22,263
212,494
18.6
43,03466.4
41,17554.0
Net income

Three months ended 6/30/08
Three months ended 6/30/07

Ordinary income

Net income per share

Millions of yen%
12,853
26,192
60.9

Fully diluted net
income per shareYen
71.83
146.45Yen
71.69
146.04(2) Financial position

As of 6/30/08
As of 3/31/08
Reference:
Equity:As of 6/30, 2008
As of 3/31, 2008

Total assets

Net assets

Millions of yen
753,206
792,817

Millions of yen
548,275
545,244537,891 million yen
534,953 million yen

1Equity ratio
%
71.4
67.5

Net assets
per shareYen
3,006.09
2,989.70

2. Dividend
1Q
Yen
-

Year ended 3/31/08
Year ending 3/31/09
Year ending 3/31/09 (Forecast)

Dividend per share
2Q
Yen
70.00
19.00

3Q
Yen
-

Dividend per share
TotalYenYen
Year ended 3/31/08
55.00
125.00Year ending 3/31/09
Year ending 3/31/09 (Forecast)
21.00
40.00
Note: Revision of dividend forecast for this period: Yes
4Q

3. Financial forecast for the year ending March 31, 2009 (4/1/08 - 3/31/09)
Percentage figures indicate changes from the previous year.
Net sales
Operating income
Ordinary income
Millions of yen% Millions of yen% Millions of yen %Six months ending 9/30/08
301,500- 22,500
25,000Year ending 3/31/09
630,000(30.5) 51,000(69.7)
55,000(68.2)

Six months ending 9/30/08Year ending 3/31/09

Net income
Net income per share
Millions of yen%
Yen
15,00083.83
33,000(68.9)
184.43

Note: Revision of consolidated earnings forecast for this period: Yes
4. Others
1) Important changes in subsidiaries (Changes on specific subsidiaries with changes in scope of consolidation): None
2) Use of simplified accounting method and special accounting policy for quarterly financial reporting: Yes
3) Changes in principles, procedures and display of accounting method concerning quarterly consolidated statement policies.
(Listed as changes in basis of presentation of consolidated financial statement )①Changes in accounting policies: Yes②Other changes: None4) Number of shares outstanding (common stock)①Number of shares issued as of:June 30, 2008 180,610,911 shares
March 31, 2008 180,610,911 shares②Number of shares of treasury stock as of:June 30, 2008 1,676,808 shares
March 31, 2008 1,678,927 shares③Average number of shares outstanding as of:June 30, 2008 178,932,452 shares
June 30, 2007 178,852,766 shares

Explanations on the appropriate use of earnings forecast:
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. Consequently, actual operating results may differ substantially from theprojections stated in the Financial Review.

2Qualitative Information, Financial Statements, etc.
1. Qualitative Information on Consolidated Operating Results
During the first quarter of the current fiscal year, consolidated net sales were 154,827
million yen (down 27.1% compared to the same period of the previous year),consolidated operating income was 21,430 million yen (down 50.2%), and consolidated
ordinary income was 22,263 million yen (down 45.9% ).
was 12,853 million yen (down 50.9% ).

Net income for the quarter

The overview of each business segment is as

described below.
(1) Industrial Electronic Equipment BusinessNet sales from external customers in this segment were 129,904 million yen (down30.7% compared to the same period of the previous year).
(a) Semiconductor production equipment
As the semiconductor market remained sluggish, sales for major regions such as
including Taiwan, declined due to the effects of semiconductor manufacturers’ reduced
capital investment, which became noticeable in the second half of the previous fiscalyear.

As a result, net sales from external customers in this segment were 112,546

million yen (down 32.1%).
(b) FPD production equipment
Net sales from external customers in this segment were 17,264 million yen (down19.3% compared to the same period of the previous year).

Since demand for display

panels continued to be high, however, capital investment by panel manufacturers(particularly for large substrates) has recovered.

Sales for this segment also continued

to grow compared to the second half of the previous fiscal year, which coincided with amarket correction.
(c) Others
Net sales from external customers in this segment were 93 million yen (down 29.5%
compared to the same period of the previous year).
(2) Electronic Components and Computer Networks Business
Sales for the fields of semiconductors and electronic devices continued to be firm, but
due to decreased investment in the field of computer systems, sales from externalcustomers in this segment were 24,923 million yen (down 1.0%).

3(For reference）
Consolidated（Millions of yen）
FY 2009
1Q

FY 2008
Full Year

1Q

2Q

3Q

4Q

Net Sales
154,827
Industrial Electronic Equipment
129,904
Semiconductor Production Equipment
112,546
Japan
32,896
U.S.
18,909Europe
7,900
Korea
14,842
Taiwan25,724
China
3,788
S.E.Asia
8,484
17,264
ＦＰＤ Production Equipment
Others93
24,923
Electronic Components & Computer Netwo
Operating Income
21,430Ordinary Income
22,263Net Income
12,853906,091
794,910
726,439
191,934
108,708
36,92973,212
254,972
29,86430,81968,016454
111,181
168,498
172,713106,271

212,494
187,318
165,785
31,614
21,111
7,922
21,43262,517
13,848
7,338
21,400132
25,17543,034
41,17526,192

263,883
235,787
213,465
63,01531,367
6,524
19,68979,417
6,677
6,773
22,200121
28,09551,97054,62036,270199,837
170,857
160,739
52,24822,302
4,157
15,581
53,6394,188
8,620
10,04869
28,98038,49939,76125,600229,876
200,947
186,449
45,05533,92518,324
16,50859,3985,150
8,086
14,367130
28,92934,99337,155
18,207

Note:
Offset elimination has been carried out on the dealing between segments.
2. Qualitative Information on Consolidated Financial Conditions(1) Financial Conditions
Total assets at the end of the first quarter of the current fiscal year were down 39,610
million yen compared to the end of the same period of the previous fiscal year, to753,206 million yen, mainly due to decreases in accounts receivable.

Total liabilities

dropped by 42,641 million yen, to 204,931 million yen, due to the payment for income
taxes, decreases in accounts payable, and other factors.

Net assets rose by 3,030

million yen, to 548,275 million yen, because of increases due to reporting quarterly net
income of 12,853 million yen, decreases due to dividends from surplus earnings of
9,841 million yen, and other factors.

The equity ratio was 71.4%.

(2) Cash Flow
Cash and cash equivalents at the end of the first quarter was up 24,149 million yen
compared to the end of the same period of the previous fiscal year, to 217,642 millionyen.

The overall situation affecting cash flow in the first quarter was as follows.

Cash flow from operating activities was a positive 34,660 million yen.

Major positive

factors included quarterly income before income taxes of 22,253 million yen,depreciation expenses and amortization of 5,110 million yen, and decreases in tradenotes and accounts receivable of 45,665 million yen.
the payment for income taxes of 26,563 million yen.

4

Major negative factors included

Cash flow from investing activities was a negative 635 million yen.

Major negative

factors were expenditures of 6,300 million yen due to the acquisition of tangible fixed
assets for production and R&D and other factors.

Major positive factors included

incomes of 8,969 million yen due to decreases in time deposits.
Cash flow from financing activities was a negative 10,047 million yen, mainly due topayment of dividends of 9,841 million yen.
3. Qualitative Information on Forecasts for Consolidated Financial Results
In terms of the future business climate, there is a growing risk of an economic downturn
due to the effects of the sharp rises in the prices of energy and raw materials, as well asthe subprime mortgage problems in the United States. In the semiconductor-related
market, due to sluggish sales of DRAMs and flash memory chips, the prospect is that
capital investments by semiconductor manufacturers will recover later than initiallyforecast.

Under

these

circumstances,salesofsemiconductor

production

equipment—the Company’s key segment—are expected to be lower than initiallyprojected.

For this reason, we have revised our forecast of consolidated financial

results for the first six months of the current fiscal year and for the full year.

Consolidated forecast
Net SalesIndustrial Electronic Equipment
Semiconductor Production Equipment
FPD Production Equipment
OthersElectronic Components & Computer Network
Operating Income

Ordinary Income
Net Income(Billions of yen, Y/Y change)
InterimFull Year
301.5
630.0
-30.5%-36.7%
517.0-35.0%
248.0-41.4%
206.8
420.5-42.1%-45.5%
96.0
41.1%
41.0
-6.0%
0.2
0.5
10.0%
-21.5%
53.5
113.0
1.6%
0.4%
51.0
-69.7%
22.5-76.3%
25.0
55.0-68.2%-73.9%
15.0
33.0-68.9%-76.0%

Note: The content of the financial forecast as described in this financial statement isbased on certain reasonable assumptions, drawing on the information currently
available such as the economic situation in Japan and throughout the world and othervariable factors that have impact on the financial results of the Company.
These assumptions may be influenced by market conditions, competitive conditions, theintroduction of new products and their success or failure, the global condition of thesemiconductor industry and other uncertainties.

Therefore, actual sales and profit may

differ significantly from the forecasts provided in this financial statement.

55. Quarterly Consolidated Financial Statement(1) Consolidated Balance Sheet(Millions of yen)
As ofJune 30, 2008

As ofMarch 31, 2008

AmountAmount(Assets)
Current assets
Cash and cash equivalents

50,05067,540Trade notes and accounts receivable

179,427

224,170

Securities

168,681

136,022

Merchandise and finished goods

102,872

101,053Work in process

41,53642,123

Raw materials and supplies

17,63017,974

Others36,42851,411(58)(62)

596,567

640,233

105,672

104,105

Goodwill

667

727

Others12,24012,525

Total intangible fixed assets

12,907

13,25338,36035,526

Allowance for doubtful accounts

(301)

(301)

Total investments and other assets

38,05935,224

156,638

152,584753,206

792,817

Allowance for doubtful accounts
Total current assets
Long-term assets
Tangible fixed assets
Intangible fixed assets

Investments and other assets
OthersTotal long-term assets
Total assets

6(1) Consolidated Balance Sheet(Millions of yen)
As ofJune 30, 2008

As ofMarch 31, 2008

AmountAmount(Liabilities)
Current liabilities
Trade notes and accounts payable
Short-term debt
Income taxes payable
Accured warranty expenses
Other allowance
OthersTotal current liabilities

46,934
6,007
10,9928,886
2,946
79,765
155,534

55,332
6,069
28,239
9,815
13,701
85,662
198,820

Long-term liabilities
Accrued pension and severance costs
Other allowance
OthersTotal long-term liabilities

44,439639
4,317
49,39743,704665
4,382
48,752204,931247,572

54,961
78,392
413,324(11,357)
535,320

54,961
78,392
410,866(11,369)
532,850

1,531
(93)
1,133
2,571

2,172
460
(529)
2,102

590

483

9,792

9,807

Total net assets

548,275

545,244

Total liabilities and net assets

753,206

792,817

Total liabilities(Net assets)
Shareholders' equity
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity
Valuation and translation adjustments
Valuation difference on available-for-sale secur
Deferred gains or losses on hedges
Translation adjustments
Total valuation and translation adjustments
Subscription rights to shares
Minority interests7(2) Consolidated Statement of Income(Millions of yen)Three months ended June 30, 2008
AmountNet sales

154,827

Cost of sales

102,729

Gross profit

52,098Selling, general & administrative expenses
Research and development expenses

14,562Others

16,106

Total selling, general & administrative expense

30,668Operating income

21,430Non-operating income
Interest expenses

403

Revenue from development grants

529

Others310
1,242

Total non-operating income
Non-operating expenses
Foreign currency transaction loss

211

Others197

Total non-operating expenses

409

Ordinary income

22,263

Unusual or infrequent profit
Gain on sale of fixed assets

25

Others1

Total unusual or infrequent profit

26

Unusual or infrequent lossLoss on proceeds or disposal of fixed assets

35

Total unusual or infrequent loss

35

Income before income taxes

22,253

Provision for income taxes and enterprise taxes

9,237
163

Minority interests
Net income

12,8538

(3) Consolidated Statement of Cash Flows(Millions of yen)Three months ended
June 30, 2008
AmountCash flow from operating activities
Income before income taxes
Depreciation and amortization
Increase in accrued pension and severance costs (decrease)
Increase in accured employees' bonuses (decrease)
Increase in accrued warranty expenses (decrease)
Interest and dividend revenue
Decrease in trade notes and accounts receivable (increase)
Decrease in inventories (increase)
Increase in accounts payable (decrease)
Decrease in prepaid consumption tax (increase)
Increase in accured consumption tax (decrease)
Increase in customer advances (decrease)
Others

22,253
5,110
732(9,913)(1,069)(451)
45,665(550)(8,996)
13,612(4,012)764(2,428)Subtotal
Receipts from interest and dividends
Interest paid
Income taxes paid
Net cash generated by operating activities

60,716536(28)(26,563)
34,660Cash flow from investing activities
Decrease in time deposits (increase)
Payment for purchase of tangible fixed assets
Payment for acquisition of intangible fixed assets
Payment for purchase of investment securities
OthersNet cash used in investing activities

8,969(6,300)(376)(2,783)
(144)
(635)

Cash flow from financing activities
Net increase in short-term borrowings (decrease)
Dividends paid
OthersNet cash generated by financing activities(62)(9,841)(144)(10,047)

Effect of exchange rate changes on cash and cash equivalentsNet increase in cash and cash equivalents (decrease)
Cash and cash equivalents at the beginning of the period
Cash and cash equivalents from newly consolidated subsidiaries
Cash and cash equivalents at the end of the period

105
24,082
193,49267
217,6429

(4) Note regarding premise of a going concerns: None
(5) Segment Information
1. Information by business segment(Millions of yen)

Net sales

Three months ended June 30, 2008 (4/1/08 - 6/30/08)
Electronic
components
Industrial
Totaland
electronic
computerequipment
networks
130,175
25,062
155,237
20,765

Operating income656Eliminations
andConsolidated
corporate(410)

154,827

721,430

21,422

Note:1. Method of classifying businesses: Businesses are classified after considering similarities in type of product,function, or method of sale.
2. Major products in each business segment:
Business segment
Industrial electronic equipment
Electronic components and computer networks

Major products
Semiconductor production equipment, FPD production equipment,
otherSemiconductor products, computer systems and networks, middlewareand software, other electronic components

2. Information by geographic segment(Millions of yen)Three months ended June 30, 2008 (4/1/08 - 6/30/08)

Japan

Otherregions

Total

Eliminations
andConsolidated
corporateNet sales

147,308

32,690179,998(25,171)

154,827

Operating income

19,0342,014

21,048381

21,430Note:1. National and regional categories are determined on the basis of geographic proximity.
2. Main countries and territories in other regions: U.S., Europe, South Korea

3. Foreign sales(Millions of yen)Three months ended June 30, 2008 (4/1/08 - 6/30/08)
TaiwanForeign sales

31,249Korea
21,187

U.S.
18,918Others24,136

Consolidated net sales

Total
95,491
154,827

Proportion of foreign sales
in consolidated net sales ( % )

20.2

13.7

12.2

Note:1. National and regional categories are determined on the basis of geographic proximity.
2. Main countries in other regions: Singapore, China, Taiwan
3. Foreign sales indicates net sales in countries and territories except Japan.

(6) Note of significant variation of shareholders' equity: None

10

15.6

61.7

Reference
Consolidated Statement of Income of the same period of the previous fiscal year
(Millions of yen)Three months ended June 30, 2007
AmountNet sales

212,494

Cost of sales

135,907

Gross profit

76,586

Selling, general & administrative expenses

33,551

Operating income

43,034Non-operating income

1,061

Non-operating expenses

2,920

Ordinary income

41,175

Unusual or infrequent profit

1,380

Unusual or infrequent loss

72

Income before income taxes

42,483

Provision for income taxes and enterprise taxes

16,088Deferred income taxes―

Minority interests

202

Net income

26,19211