Test | Measurement
Anritsu Posts Favorable Business Results from 5G Solutions
Leveraging strong lineup of 5G test solutions, financial results were positive, while future results have been revised upward.
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riven by test solutions for fifth-generation (5G) communications, Anritsu Corporation posted strong business results for the 2Q for the term ending March 2020. During the period, the company posted increases in consolidated income and profit. The company has also revised upward its forecasts for test and measurement (T&M) business, targeting sales to top ¥100 billion in the term ending Mar. 2020.

For Q2 of the term ending Mar. 2020, Anritsu posted sales of ¥53.6 billion, an increase of 12 percent, operating profit of ¥6.6 billion, an increase of 90 percent, and current income of ¥4.7 billion, an increase of 49 percent, from the same period of the previous year, marking substantial growth.

By department, it reported sales of ¥352 billion, an annual increase of 21 percent for the T&M business, and ¥10.7 billion, an annual decrease of 6 percent sales of the Products Quality Assurance (PQA) business, which includes X-ray foreign substance inspection equipment.

Hirokazu Hamada, Representative Director, President, Group Chief Executive Officier at Anritsu Corporation
Hirokazu Hamada, Representative Director, President, Group Chief Executive Officier at Anritsu Corporation
Following the United States and Korea, 5G services started in Europe as well. In China, pre-services started and 5G services are spreading into Southeast Asian countries. In Japan, 5G pre-services were offered at Rugby World Cup held in September. Operators in many countries have been making steady progress in their scheduled launch of commercial 5G services.

Anritsu has captured initial demand, resulting from the development of 5G chipsets, through the development of solutions, leading to improved business results.

Hirokazu Hamada, Representative Director, President, Group Chief Executive Officer, says, “At present, investments are made accompanying 5G’s ultrahigh communications based on the release of 3GPP Release 15. 3GPP Release 16, which is planned for release in Mar. 2020, is expected to expand use cases with its ultralow delay and multiple simultaneous connections, and further expand the 5G market. We expect that the development of chipsets to implement Release 16 will become active in the second half of 2020, and the application of 5G will expand into the automotive and industrial fields.”

Hamada continues, “Although the effects of U.S.-China trade tensions surely exist, we expect that it is also the United States and China that will drive 5G. We intend to firmly capture the demand.”

Anritsu has also revised upward its forecasts for the business results of the T&M business for the term ending Mar. 2020. It now expects sales of ¥103 billion, an annual increase of 3 percent; operating profit of ¥111.5 billion, an annual increase of 2 percent; and current income of ¥8.5 billion, an annual decrease of 5 percent.

5G-Related Measuring Tools
In the 5G measuring instruments market, Anritsu has offered the MT8000A radio communication test station to major vendors, including Qualcomm Inc., for the development of chipsets, and has expanded sales.

Standard adaptability tests by terminal manufacturers and test houses have shifted to carriers. Amid this trend, Anritsu has increased the delivery of the Conformance Test System ME7873NR 5GNR (standard test and adaptability test of radio performance) and the Mobile Device Test Platform ME7834NR 5GNR (communications standard adaptability test), which has contributed to its business results.

Anritsu has also been putting strengths into the supply of the Universal Wireless Test Set MT8870A for mass production tests. In addition, orders for the Field Master Pro MS2090A for use in the construction and maintenance of 5G base stations have also been increasing.

Furthermore, adaptability tests for Global Certification Forum (GCF), an organization, which mainly operates terminal adaptability tests in Europe and Asia; PCS Type Certification Review Board (PTCRB), an organization that operates terminal adaptability tests in Americas; and Carrier Acceptance Testing (CAT), terminal adaptability tests for telecommunications carriers, are also necessary.

Following the establishment of R&D centers in Japan, India, and the Philippines, Anritsu has opened an R&D Center in San Diego in the United States as a development base of its mobile business in an aim to create a Japan-quality R&D system.