Test | Measurement
Anritsu Benefits from Brisk Sales of Measuring Instruments for 5G
As the adoption of its base station simulator from global chipset makers, terminal manufacturers, and operations start to kick in, sales also climb up.
A

nritsu Corporation has seen steady increase in sales of its measuring instruments for the fifth-generation (5G) mobile communications system. The company posted an increase in income and a substantial increase in profit of its consolidated performance in Q3 of the fiscal year ending Mar. 2019, and has revised upward its predicted performance for the entire fiscal year.

As of the third quarter, Anritsu posted consolidated sales of ¥71.1 billion, an increase of 14 percent on the year; operating profit of ¥7.7 billion, an increase of 189 percent on the year; and profit in the current term of ¥6.3 billion, a significant increase of 326 percent on the year.

Moves toward Commercialization Accelerate
Hirokazu Hamada, President of Anritsu Corporation, says, “I see there is a clear demand for 5G. Moves toward commercialization have been accelerating and plans have been implemented ahead of schedule. Against this backdrop, we have also been expediting the development of products, from the development of 5G chipsets and terminals to conformance tests and mass-production tests. Anticipating that 5G will be widely used not only for smartphones but also for automobiles and internet of things (IoT), the market scale of 5G will become much bigger than those of 3G and 4G.”

In particular, sales of MT8000A base station simulator (radio communication test station) for 5G have been brisk, bolstered by adoption of leading global chipset manufacturers, terminal manufacturers, and operators. This particular equipment has been driving the company’s better performance.

On product development, Hamada says, “Moves to implement Long-Term Evolution (LTE) and 5G in a single chip have been accelerating, and the commercialization of smartphones incorporating such chips has been advancing. Specifications for Release 16 (Phase 2 with ultralow latency and expanded use cases for the simultaneous connection of multiple terminals) by the 3rd Generation Partnership Project (3GPP) will be established by the end of the year. 5G uses sub-6GHz millimeter wave bands globally. These moves related to 5G are expected to expand new demand for measuring instruments.”

In its mobile measurement business, its inventory business in which the company offers software as standard advances after the delivery of hardware, constitutes the pillar of the company’s earnings.

Anritsu has increased its development investment for the second half of FY2018 by ¥1 billion compared to the first half, and has been expanding its product portfolio for 5G at an accelerated pitch.

The company has increased its personnel at a development center in India, and has put into operation a development center in the Philippines, which was established in Apr. 2018, in order to strengthen its development capabilities.

Focuses also on Chinese Market
Hamada says, “Although the production of conventional smartphones has slowed in China, investments in the state-of-art 5G have been active,” focusing attention on the Chinese market as well.

For the entire fiscal year, Anritsu has revised upward its sales projection to ¥98 billion, an increase of 14 percent on the year; operating profit of ¥11 billion, an increase of 124 percent on the year; and profit in the current term of ¥8.5 billion, an increase of 193 percent on the year.