July 27, 2007

Consolidated Financial Review
for the First Quarter Ended June 30, 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 first quarter ended June 30, 2007 (4/1/07- 6/30/07)(1) Operating results
Note: Percentages indicate changes from previous year.
Net sales
Three months ended 6/30/07
Three months ended 6/30/06
Year ended 3/31/07

Operating income

Millions of yen% Millions of yen% Millions of yen %212,494
18.6
43,03466.4
41,17554.0
179,205
12.0
25,86419.0
26,73923.1
851,975
143,978
143,940
Net income

Three months ended 6/30/07
Three months ended 6/30/06
Year ended 3/31/07

Ordinary income

Net income per share

Millions of yen%
26,19260.916,282
23.0
91,262

Fully diluted net
income per shareYen
146.4591.32
511.27Yen
146.0491.08
509.84(2) Financial condition
Total assets

As of 6/30/07
As of 6/30/06
As of 3/31/07

Net assets

Equity ratio

Millions of yen
750,501
648,590
770,513Millions of yen
486,360
391,668
469,810

%
63.6
59.6
59.7

Cash flow fromoperating activities

Cash flow frominvesting activities

Cash flow fromfinancing activities

Net assets
per shareYen
2,666.84
2,167.36
2,573.72(3) Cash flow

Three months ended 6/30/07
Three months ended 6/30/06
Year ended 3/31/07

Millions of yen(29,519)
3,849
54,296

Millions of yen(4,630)(4,269)(25,293)1

Millions of yen(14,277)(9,359)(34,719)

Cash and cash
equivalents at theend of the period
Millions of yen
85,942130,241
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: None3) 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.

Outline of Financial Results for the First Quarter (April 1 – June 30, 2007)

The Company’s consolidated performance for the first quarter showed net sales of 212,494 million yen (up18.6% from the same period of the previous year), operating income of 43,034 million yen (up 66.4%),
operating income to net sales of 20.3%, ordinary income of 41,175 million yen (up 54.0%), and net income of
26,192 million yen (up 60.9%).
Viewing consolidated net sales by segment, the semiconductor production equipment division had sales of
165,785 million yen (up 31.7% from the same period of the previous year), the FPD(Flat Panel Display)production equipment division had sales of 21,400 million yen (down 26.0%), and the electronic components
and computer networks division had sales of 25,175 million yen (up 4.7%). the Company’s mainstay
semiconductor production equipment division continued to enjoy brisk sales for the Asian memory makers.
(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

Note:

FY20081Q
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

FY2007Full Year
851,975
744,512642,625
175,731
105,61347,963
106,168
141,794
29,65035,702
100,766
1,120
107,462
143,978
143,940
91,262

1Q
179,205
155,152
125,925
33,22627,931
13,77418,02426,066
3,806
3,093
28,932294
24,052
25,864
26,73916,282

2Q
211,357
181,907
157,980
44,61525,252
10,86323,14936,337
10,487
7,275
23,636290
29,45032,376
31,46520,942

3Q
210,093
185,094
158,828
47,01721,513
12,217
23,16536,347
8,982
9,582
26,023242
24,99942,904
42,11626,987

4Q
251,318
222,358
199,891
50,87130,915
11,10841,82943,042
6,374
15,75022,173
293
28,96042,833
43,62027,0501. Offset elimination has been carried out on the dealing between segments.
2. Starting from the second half of the previous fiscal year, “Computer Networks,” which previously were included in the“Industrial Electronic Equipment” segment, was incorporated into the “Electronic Components” segment, which has
been renamed the “Electronic Components and Computer Networks” segment. In line with these changes, net sales
for the first and second quarters of the previous fiscal year are indicated according to the new segmentation.

2.

Financial Conditions for the First Quarter

Total assets at the end of the first quarter were 750,501 million yen, a decrease of 20,012 million yen comparedto the end of the previous fiscal year, mainly due to a decrease in cash and cash equivalents accompanying
the payment of income taxes and dividends.

Total liabilities were 264,140 million yen, a decrease of 36,562

million yen compared to the end of the previous fiscal year, due to the payment of income taxes.

Net assets

were 486,360 million yen, a increase of 16,550 million yen compared to the end of the previous fiscal year,
chiefly due to an increase from reporting net income of 26,192 million yen and a decrease from cash dividendsof 10,906 million yen, and the equity ratio was 63.6%.
33.

Cash Flow for the First Quarter

Cash and cash equivalents at the end of the first quarter were 85,942 million yen, down 48,447 million yen
compared to the end of the previous fiscal year.

The overall situation affecting cash flow in the first quarter

was as follows.

Cash flow from operating activities was negative, at 29,519 million yen.

The main positive factors included

income before income taxes of 42,483 million yen, depreciation and amortization of 4,642 million yen, and anincrease of 10,571 million yen in customer advances received. The main negative factors were payment of
45,635 million yen in income taxes, an increase in inventories of 27,235 million yen, an increase in trade notes
and accounts receivable of 4,463 million yen, and a decrease in trade notes and accounts payables of 11,432
million yen.

Cash flow from investing activities was 4,630 million yen, attributed mainly to the acquisition of tangible fixed
assets for use in production and R&D.

Cash flow from financing activities was 14,277 million yen, mainly due to payment of dividends of 10,906
million yen, and redemption of the fifth issue of unsecured straight bonds with warrants worth 5,500 million yen.

4Consolidated Balance Sheet
As ofMarch 31, 2007

As ofJune 30, 2007

AmountAmount(Millions of yen)
As ofJune 30, 2006

Increase(decrease)
Amount(%)

Amount(Assets)
610,363

588,069

Cash and cash equivalents

134,389

85,942130,241

Trade notes and accounts receivable

228,688234,260

164,066

Inventories194,840

222,390

175,553

Others52,57145,61533,894(127)

(139)

(158)

160,150

162,432

Tangible fixed assets

104,930

107,496

95,676

Intangible fixed assets

19,39918,661

15,902

Investments and other assets

36,11836,57033,759Allowance for doubtful accounts

(297)

(297)

(346)

770,513750,501

Current Assets

Allowance for doubtful accounts
Long-term Assets

Total Assets

5(22,293)

2,281(20,012)

(3.7)

1.4

(2.6)

503,597

144,992

648,590

Consolidated Balance Sheet
As ofMarch 31, 2007

As ofJune 30, 2007

AmountAmount(Millions of yen)
As ofJune 30, 2006

Increase(decrease)
Amount(%)(37,786)(16.7)

Amount(Liabilities)
Current liabilities

182,635

225,854

188,068

83,8375,500
45,657
21,956
14,131
14,11440,65873,08418,08132,805
6,345
14,17543,57574,84876,072

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

30,00040,01830,00040,85030,00038,275

666
4,162

644
4,577

691
5,317

Total liabilities

300,702

264,140(36,562)(12.2)

256,921

Shareholders' equity

449,166

465,093

15,926

3.5

378,701

Common stock
Capital surplus
Retained earnings
Treasury Stock, at cost

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

54,961
78,413
343,312(11,593)

Valuation and translation adjustments

11,008

11,999

990

9.0

7,775

584

156

(427)

(73.2)

483

9,051

9,111

60

0.7

4,708

Total net assets

469,810486,360

16,5503.5

391,668

Total Liabilities and net assets

770,513750,501(20,012)(2.6)

648,590

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

65,85425,50010,92635,701
3,986
12,86827,7981,224

1.6

74,285(Net assets)

Share subscription rights
Minority interests

654,961
78,102
260,540(14,902)

Consolidated Statement of Income(Millions of yen)Three months
ended June 30,2006
AmountThree months
ended June 30,
2007

Increase(decrease)

Ratio toRatio toAmountAmountnet sales
net sales(%)

Year ended
March 31, 2007

AmountRatio tonet sales

Net sales

179,205

100.0 212,494

100.0

33,28818.6 851,975

100.0

Cost of sales

124,765

69.6 135,907

64.0

11,142

8.9 579,325

68.0

54,43930.4

76,58636.0

22,14640.7 272,649

32.0

28,57516.0

33,551

15.7

4,976

17.4 128,670

15.1

Operating income

25,86414.4

43,03420.3

17,16966.4 143,97816.9

Non-operating income

1,257

1,061

4,908

Non-operating expenses

382

2,920

4,946

Ordinary income

26,739Gross profit
Selling, general & administrative expense

14.9

41,17519.4

14,43654.0 143,940

Unusual or infrequent profi

597

1,380

2,721

Unusual or infrequent loss

1672

2,247

Income before income taxes
Provision for income taxes and enterprise taxe
Deferred income taxes
Minority interest
Net income

27,32015.2

42,48320.0

10,954

6.1

16,088--83
16,28255.5 144,414

17.0

7.6

60,132

7.1--(7,534)

(0.9)

0.0

202

0.1

553

0.1

9.1

26,192

12.3

91,26210.7

7

15,163

16.9

9,910

60.9

Segment Information
Information by business segment(Millions of yen)Three months ended June 30, 2006 (4/1/06 - 6/30/06)
Eliminations
andConsolidated
corporate

Industrial
electronicequipment

Electronic
components

158,162

21,042

179,205

-

221

256

478

(478)

Total

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

179,205-

158,384

21,298

179,683(478)

179,205

Operating expenses

132,994

20,841

153,835(495)

153,340

Operating income

25,390457

25,84717

25,864(Millions of yen)Three months ended June 30, 2007 (4/1/07 - 6/30/07)
Industrial
electronicequipment

Electronic
components
and computer
networks

187,318

25,175

Total

Eliminations
andConsolidated
corporate

Net sales(1) Sales to external customers

212,494-

212,494

273

281

554

(554)

187,592

25,456

213,048(554)

212,494

Operating expenses

145,427

24,591

170,019(560)

169,459

Operating income

42,164864

43,0295

43,034(2) Intersegment sales or transfers
Total-(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
Total

851,975-Note: Starting from the second half of the previous fiscal year, “Computer Networks”, which previously were included in the “Industrial
Electronic Equipment” segment, was incorporated into the “Electronic Components” segment, which has been renamed the“Electronic Components and Computer Networks” segment. Also about three months ended June 30, 2006 (4/1/06 - 6/30/06),
they are indicated according to the previous segmentation.

8Segment Information
Information by geographic segment(Millions of yen)Three months ended June 30, 2006 (4/1/06 - 6/30/06)
Japan

Otherregions

Total

Eliminations
andConsolidated
corporate

Net sales(1) Sales to external customers

153,573

25,631

179,205-(2) Intersegment sales or transfers

15,915

10,434

26,349(26,349)

169,488

36,066

205,554(26,349)

179,205

Operating expenses

145,982

33,538

179,520(26,180)

153,340

Operating income

23,505

2,528

26,033(169)

25,864

Total

179,205-(Millions of yen)Three months ended June 30, 2007 (4/1/07 - 6/30/07)
Japan

Other
regions

Total

Eliminations
Consolidated
andcorporate

Net sales
212,494(1) Sales to external customers

188,848

23,645

212,494-(2) Intersegment sales or transfers

19,361

12,74832,109(32,109)208,20936,393244,603(32,109)

212,494

Operating expenses

165,438

33,680199,118(29,659)

169,459

Operating income

42,771

2,713

45,484(2,449)43,034

Total-(Millions of yen)
Year ended March 31, 2007 (4/1/06 - 3/31/07)
Eliminations
andConsolidated
corporate

Japan

Other
regions

Total(1) Sales to external customers

749,281

102,693

851,975-(2) Intersegment sales or transfers

69,93648,525

118,461(118,461)

819,218

151,219

970,437(118,461)

851,975

Operating expenses

683,388

140,782

824,171(116,174)

707,996

Operating income

135,829

10,436146,266(2,287)

143,978

Net sales

Total

9

851,975-