Final Results

RNS Number : 8733K

Maruwa Co Ld

27 April 2010

 

								27 Apr. 2010
MARUWA CO., LTD.
3-83, Minamihonjigahara-cho, Owariasahi-city, Aichi-pref., 488-0044 JAPAN
Final Results for Fiscal 2010
MARUWA CO., LTD. today announced its consolidated business results for the full fiscal year ended 31st March, 2010 as follows;
*The financial statements are prepared in conformity with the accounting principles generally accepted in Japan.
*US dollar amounts are converted for convenience only at the rate of US$1 = 93.04 yen.
*Consolidated subsidiaries:11 companies  (Maruwa (Malaysia) Sdn. Bhd., Taiwan Maruwa Co., Ltd., MARUWA Electronics (Taiwan) Co., Ltd., Maruwa Europe Ltd., Maruwa America Corp., Maruwa Korea Co., Ltd., Maruwa (Shanghai) Trading Co., Ltd., MARUWA Electronic (India) Pvt.Ltd., MARUWA QUARTZ Co., Ltd., MARUWA SHOMEI Co., Ltd., and Hokko Denshi Co., Ltd.)
I. Summary of Consolidated Results
(1) Summary of consolidated statement of income
				JPY million				USD thousand
		For year ended		For year ended		Change %		For year ended
		31st March		31st March				31st March
		2009		2010				2010
Net sales		16,693		15,405		-7.7%		143,328
Operating income		(511)		1,289		--		11,993
Income before income taxes		(474)		1,231		--		11,453
Net income		(770)		1,105		--		10,281
				JPY				USD
Net income per share (Basic)		(71.68)		102.97		--		1.11
(Diluted)		--		--		--		--
*Average number of issued shares		10,736,613		10,730,160
(2) Summary of consolidated financial condition
				JPY million				USD thousand
		As of 31st March		As of 31st March		Change %		As of 31st March
		2009		2010				2010
Total Assets		28,749		30,689		6.7%		291,259
Total net assets		25,284		26,561		5.0%		247,120
Equity ratio		87.9%		86.5%		-1.4%
				JPY				USD
Total net assets per share		2,358.54		2,470.94		4.8%		26.56
*Number of issued shares at the year end		10,720,180		10,745,230
(3) Summary of consolidated statement of cash flows
				JPY million				USD thousand
		For year ended		For year ended		Change %		For year ended
		31st March		31st March				31st March
		2009		2010				2010
Net cash provided by operating activities		3,854		2,922		-24.2%		27,186
Net cash used in investing activities		(2,249)		(917)		59.2%		(8,532)
Net cash used in financing activities		(387)		(248)		35.9%		(2,307)
Cash and cash equivalents  at end of term		7,062		8,863		25.5%		82,461

II. Dividends							III. Outlook for fiscal 2011 ending 31 March 2011
			JPY per share										JPY million
		Fiscal 2010	Fiscal 2011							Half year			Full year
			(forecast)				Net sales			7,660			17,000
Interim		14	15				Operating income			720			1,780
Year-end		14	15				Net income			460			1,150
Annual		28	30				Net income per share			42.81			107.02
*Cautionary statements: the above forecasts are forward-looking statements involving risks and uncertainties.  Due to a number of factors, actual results may differ significantly from these estimates.
	Review of Operations and Financial Condition
	I. Operating Results
														JPY million
			Fiscal 2009					Fiscal 2010
			1Q	2Q	3Q		4Q	1Q		2Q	3Q			4Q
	Net sales		4,764	5,078	3,651		3,200	2,952		3,655	3,953			4,845
	Operating income		195	338	84		(1,128)	(72)		271	443			647
	Net income		132	238	106		(1,246)	(22)		313	328			486
							JPY million
			Previous		Current
			For year ended		For year ended			change
			31st March 2009		31st March 2010			amount			%
	Net sales		16,693		15,405			(1,288)			-7.7%
	Operating income		(511)		1,289			1,800			-352.3%
	Net income		(770)		1,105			1,875			-243.5%

（1）Review of Operations

The Japanese economy in fiscal 2010 has recovered due to increased export and production following the inventory adjustment, the effect of economic measures worldwide and the expansion of domestic demand in emerging countries. The recovery seen in this fiscal year is occurring despite extremely difficult circumstances, which were never experienced before, due to the world-wide recession in autumn 2009.

However, deterioration of employment, income and individual consumption lead further deflation, strengthened the yen and reduced capital investment, which suppressed the complete economic recovery.

Our electronic components sector has recovered due to an increase in export mainly to Asia from the first quarter of this year and due to economic measures. From the second quarter of this year an upturn for all sectors including semiconductor equipment has been observed. Further, expansion of LED lighting market is now in sight.

Under these circumstances Maruwa improved its profitability in order to be able to take appropriate countermeasures against rapid changes in market climate. This was achieved through improvement of production yield and lead time and through cost reduction as well as a further expansion of sales for newly developed environmental friendly products for areas such as LED lighting and hybrid cars.

As a result, our turnover for fiscal 2010 was significantly improved, 15,405 million yen (down 7.7% compared to last year). Operating profit, total revenue and net profit was 1,289 million yen (511 million loss last year), 1,384 million yen (128 million loss last year) and 1,105 million yen (770 million loss last year) respectively. These results were due to improvement of cost management and earning and expansion of sales for new products.

Quarterly sales results of Ceramic Components segment by product division
							JPY million
	Fiscal 2009				Fiscal 2010
	1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q
Circuit Ceramics	1,869	1,906	1,238	813	1,201	1,384	1,493	1,676
Machinery Ceramics	1,164	1,116	865	473	471	753	700	835
RF* Products	487	529	506	355	405	506	497	558
EMC Components	1,087	1,254	709	545	671	753	838	846
Total	4,607	4,805	3,318	2,186	2,748	3,396	3,528	3,915
*Radio Frequency

(2) Review of operating results by business segment
				JPY million
			Current
	For year ended		For year ended
	31st March 2009		31st March 2010
Ceramic Components:
Net sales		14,916		13,587
Operating income		(163)		1,705
Lighting Equipment:
Net sales		1,777		1,818
Operating income		22		104
Total:
Net sales		16,693	15,405
Operating income		(141)	1,809
Elimination:
Net sales		--	--
Operating income		(370)	(520)
Consolidated:
Net sales		16,693	15,405
Operating income		(511)	1,289

				JPY million
	Previous		Current
	For year ended		For year ended
	31st March 2009		31st March 2010
Circuit Ceramics		5,826		5,754
Machinery Ceramics		3,618		2,759
RF Products		1,877		1,966
EMC Components		3,595		3,108
Total	14,916		13,587

（2）Review of operating results by business segment

Ceramic Components

The total sales for this business segment was 13,587 million yen (down 8.9% compared to last year), and our operating profit was 1,704 million yen (163 million loss last year). Although sales did not reach the level of the previous period, operation profit has recovered together with an improvement in productivity, cost-cutting measures, contribution of new product offerings with high added value.

Circuit Ceramics

Total sales of the Circuit Ceramics segment were 5,754 million yen (down 1.2% compared to last year). Orders of ceramic substrates for chip resistors have been increased in China and other parts of Asia due to increased demand for digital appliances as well as power module substrates for hybrid cars.

Machinery Ceramics

Total sales for the Machinery Ceramics segment were 2,759 million yen (down 23.7% compared to last year). The improvement was made by strengthening the operational structure. Demand for fused quartz product, which is a major product in this segment, is on a recovery trail although there is still a slowdown of the semiconductor market and a delay in the recovery of the semiconductor equipment market.

Radio Frequency (RF) Products

Total sales of the RF Products segment were 1,966 million yen (Up 4.8% compared to last year). The recovery of digital equipments demand influenced the orders for thin film products positively. Device products have got increased orders from mobile phone market in China.

EMC Components

Total sales of the EMC Components segment was 3,108 million yen (down 13.6% in comparison with the previous year), rising demand in the digital appliance in China and other parts of Asia increased the orders.

Lighting Equipment Segment

Total sales of the Lighting Equipment segment was 1,818 million yen (up 2.3% in comparison with the previous year), operating profit was 104 million yen (up 373% compared to the previous year).

The sales for traditional lighting equipment are decreasing. However sales for LED lighting equipment are rising and new product development in this area and expansion of sales are improving operating profit. There is increased demand for environmentally friendly products like LED lighting.

(3) Outlook of the Full Fiscal 2011
				JPY million
		For year ended		For year ending	Change
		31st March 2010		31st March 2011	%
Net sales	15,405		17,000			10.4%
Operating income	1,289		1,780			38.1%
Net income	1,105		1,150			4.1%
Sales by segment				JPY million
		For year ended		For year ending	Change
		31st March 2010		31st March 2011	%
Ceramic Components		13,587		14,971		10.2%
Lighting Equipment		1,818		2,029		11.6%
Total		15,405		17,000		10.4%
*Cautionary statements: the above forecasts are forward-looking statements involving risks and uncertainties.
Due to a number of factors, actual results may differ significantly from these estimates.

Outlook for the future economy is still uncertain due to shrinkage in the financial markets, instability in the currency exchange market, stagnation of private consumption, decrease of public works and also a concern about stagnant employment. 　　　　However there is an overall prospect of recovery because of continuous emergency economic packages in various countries, increase of export due to recovery of oversea economies, mainly in China and increase of capital investment together with improvement of corporate profit.

In our electronic component sector, we expect a solid growth of orders due to the above mentioned economic environment.

For capital investment, we will invest actively on growing business areas especially for environmental friendly products. Targeted areas are ceramics for power devices, LED lighting, high temperature co-fired ceramics (HTCC) for medical and communication applications, and thin film product and others. Also we will invest in new R&D, with additional staff, for the development of new products with high added value.

In the ceramic component segment we will promote products with high added value, this requires elemental ceramic technologies such as ceramic substrates for power modules used in hybrid cars, electric vehicles and wind power energy conversion, also multi layer ceramic substrates for computerized automotive and medical application. For LED lighting segment we will expand our business through development of new LED modules that utilize specific properties of ceramic and by promoting LED lighting line-up.

We forecast that consolidated sales for next fiscal year will be 17,000 million yen (up 10.4% compared with the current fiscal year). Operating profit, ordinary earning and net income are expected to be 1,780 million yen (up 38.1%), 1,900 million yen (up 37.3%) and 1,150 million yen (up 4.1%), respectively.

We will strengthen the corporate structure and improve profitability, which will benefit all stake holders including share holders.

Cautionary statements: the above forecasts are based on the present business environment and currently-available information, and include forward-looking statements involving risks and uncertainties. The reader is cautioned not to place reliance entirely on the above forecasts for making investment decisions. Due to a number of factors such as future economic situations and market environment changes, actual results may differ significantly from these estimates.

Financial Condition
					JPY million		JPY million
		As of 31st March		As of 31st March			Change
		2009		2010			Amount	%
Total assets			28,749		30,689		1,940	6.7%
Total liabilities			3,465		4,128		663	19.1%
Total net assets			25,284		26,561		1,277	5.0%
Equity ratio			87.9%		86.5%		-1.4%
					JPY million		JPY million
		For year ended		For year ended			Change
		31st March 2009		31st March 2010			Amount	%
Net cash provided by  operating activities			3,854		2,922		-932	-24.2%
Net cash used in  investing activities			(2,249)		(917)		1,332	59.2%
Net cash used in  financing activities			(387)		(248)		139	35.9%
Cash and cash equivalents  at end of year			7,062		8,863		1,801	25.5%
Net sales			16,693		15,405		-1,288	-7.7%
Capital expenditure			1,482		1,209		-273	-18.4%
Depreciation			1,982		1,637		-345	-17.4%

Total assets at the end of fiscal year 2010 were 30,689 million yen, up 6.7 percent from the end of last fiscal year due especially to an increase in current assets; increase of cash and deposits (1,800 million yen) as well as shrinkage of inventory assets.

Total liabilities, especially due to an increase in trade note and accounts payable, increased 375 million yen to 4,128 million yen, up 21.0% from the previous year-end.

Total net assets were 25,561 million yen.

As a result, the capital asset ratio became 86.5%, down 1.4 points from the last year-end.

Cash flow from operating activities is 2,922 million yen, down 932 million yen in comparison with the previous year. The main reason for the decreased cash flow was the increase of trade receivable to 3,099 million yen, which was due to economic recovery.

Cash flow from investment activities was 917 million yen, down 1,332 million yen compared with the previous year. Overall there was a decrease in spending, 787 million yen was spent for the acquisition of tangible fixed assets in capital expenditure.

Cash flow from financing activities was 248 million yen, down 139 million yen compared with the last year-end.

As a result of above cash flows, cash and cash equivalents at the end of fiscal 2010 were 8,863 million yen, an increase of 1,801 million yen from the previous year.

Trends of cash-flows indices
							JPY million
		For year ended		For year ended		For year ended
		31st March 2008		31st March 2009		31st March 2010
Equity ratio			84.5%		87.9%		86.5%
Equity ratio at market value			39.8%		36.4%		69.5%
Interest-bearing  debt to cash flows ratio (year)			0.0		0.0		0.0
Interest coverage ratio			497.2		1,809.3		1,419.8

Note)

Equity ratio : (Total net assets - Minority interests) / Total assets

Equity ratio at market value : Total market value of shares / Total assets

Interest-bearing debt to cash flows ratio : Interest-bearing debts / Cash flows from operating activities

Interest coverage ratio : Cash flows from operating activities / Interest payment

*Each index is calculated with the consolidated financial figures.

*Total market value of shares is calculated by multiplying the share value as of the end of the fiscal year by the total number of issued shares after deduction of own shares at the end of the year.

*For cash flows from operating activities, figures in the consolidated cash flows statements are used.  Interest-bearing debt includes all debts for which interests are paid among the liabilities booked in the consolidated balance sheets.

Dividend policy and dividend of this year and next year

MARUWA considers allocating acquired cash flows from business operations for active investment into new growing fields, dividends calculated through comprehensive analysis of consolidated business results, and saving for internal reserves to control flexibly changes in a business environment.  While we secure internal reserves for strategic investment necessary for sustainable expansion of our core business, we focus on profit returns to our shareholders.

Dividend for next year will be 30 yen per share (interim: 15 yen, year-end: 15yen) as much as dividends for this year, 28 yen per share.

Consolidated Balance Sheets
	JPY million	JPY million		USD thousand
	As of 31st March	As of 31st March	Change	As of 31st March
	2009	2010		2010
ASSETS
Current assets:
Cash & deposits	7,505	9,305	1,800	76,402
Trade notes and accounts  receivable	4,304	5,314	1,010	43,816
Inventories	3,069	2,728	(341)	31,243
Deferred tax assets	157	294	137	1,598
Other current assets	264	114	(150)	2,687
Allowance for doubtful	(8)	(12)	(4)	(81)
accounts
Total current assets	15,291	17,743	2,452	155,665
Property, plant & equipment:
Land	3,160	3,161	1	32,169
Buildings & structures	3,796	3,941	145	38,644
Machinery & equipment	3,950	3,488	(462)	40,212
Other	360	280	(80)	3,665
Construction in progress	443	314	(129)	4,510
Net property, plant &	11,709	11,184	(525)	119,200
equipment
Investments & other assets:
Investment securities	455	427	(28)	3,973
Deferred tax assets	16	12	(4)	112
Property & equipment for investments	931	932	1	8,671
Other	382	417	35	3,880
Allowance for doubtful accounts	(35)	(26)	9	(242)
Total investments & other assets	1,749	1,762	13	16,394
Total assets	28,749	30,689	1,940	291,259

LIABILITIES
Current liabilities:
Trade notes & accounts payable	1,352	1,727	375	16,068
Current portion of long-term debt	5	5	0	47
Accrued income taxes	30	265	235	2,466
Accrued bonus	241	313	72	2,912
Accrued bonus for directors	4	11	--	102
Notes payable for property acquisitions	390	352	(38)	3,275
Other current liabilities	789	918	129	8,541
Total current liabilities	2,811	3,591	780	33,411
Long-term liabilities:
Long-term debt	125	120	(5)	1,116
Deferred tax liabilities	191	158	(33)	1,470
Negative goodwill	58	-	-	--
Other	280	259	(21)	2,410
Total long-term liabilities	654	537	(117)	4,996
Total liabilities	3,465	4,128	663	38,407
NET ASSETS
Shareholders' equity:
Common stock	6,710	6,710	--	62,430
Capital surplus	9,747	9,747	--	90,686
Retained earnings	11,252	12,051	799	112,123
Treasury stock, at cost	(742)	(689)	53	(6,410)
Total shareholders' equity	26,967	27,819	852	258,828
Valuation and translation adjustments:
Net unrealized gains (losses)	(201)	(128)	73	(1,191)
on available-for-sale securities				0
Foreign currency  translation adjustment	(1,482)	(1,140)	342	(10,607)
Total valuation and translation  adjustments	(1,683)	(1,268)	415	(11,797)
A subscription warrant　and　Minority stockholders share	-	10	-	90
Total shareholders' equity	0	10	10	90
Total net assets	25,284	26,561	1,277	247,120
Total liabilities & net assets	28,749	30,689	1,940	285,527

Consolidated Statements of Income
	JPY million	JPY million		USD thousand
	For year ended	For year ended	Change	For year ended
	31st March	31st March		31st March
	2009	2010		2010
Net sales	16,693	15,405	(1,288)	143,328
Cost of sales	13,952	11,005	(2,947)	102,391
Gross profit	2,741	4,400	1,659	40,938
Selling, general & administrative expenses	3,252	3,111	(141)	28,945
Operating income	(511)	1,289	1,800	11,993
Other income (expenses):
Interest and dividend income	69	58	(11)	540
Interest expenses	(2)	(2)	0	(19)
Amortization of negative goodwill	80	58		540
Foreign exchange gain (loss), net	164	(102)	(266)	(949)
Gain on sales of property, plant and equipment	59	54		502
Loss on disposal or sales of property, plant and equipment	(68)	(165)		(1,535)
Gain on sales or valuation  of investment securities	(31)	25		233
Loss on valuation of inventories	(28)	--		--
Early extra retirement payments	(208)	(16)		(149)
Other, net	2	32	30	298
Other income (expenses), net	37	(58)	(95)	(540)
Income before income taxes	(474)	1,231	1,705	11,453
Income tax expenses:
Current	69	288	219	2,680
Deferred	227	(162)	(389)	(1,507)
Total income taxes	296	126	(170)	1,172
Net income	(770)	1,105	1,875	10,281

Consolidated Statements of Changes in Net Assets
																						JPY million
			Shareholders' equity
			Common stock							Capital surplus				Retained earnings					Treasury stock			Total shareholders' equity
Balance at 31 March 2009			6,710							9,747				11,252					(742)			26,967
Effect of changes in accounting policies applied to foreign subsidiaries
Cash dividends														(300)								(300)
Net income														1,105								1,105
Change of scope of consolidation
Purchase of treasury stock																			(1)			(1)
Disposal of treasury stock														(5)					53			48
Other changes
Total changes during the year														800					52			852
Balance at 31 March 2010			6,710							9,747				12,051					(689)			27,819
																									JPY million
				Valuation and translation adjustment
				Net unrealized gains on available-for-sale securities								Foreign currency translation adjustment				Total valuation and translation adjustment				A subscription warrant　and　Minority stockholders share					Total net assets
Balance at 31 March 2009				(201)								(1,482)				(1,683)				-					25,284
Effect of changes in accounting policies applied to foreign subsidiaries																									0
Cash dividends																									(300)
Net income																									1,105
Change of scope of consolidation
Purchase of treasury stock																									(1)
Disposal of treasury stock																									48
Other changes				72								342				415				10					424
Total changes during the year				72								342				415				10					1,276
Balance at 31 March 2010				(128)								(1,140)				(1,268)				10					26,561
																					USD thousand
					Shareholders' equity
					Common stock						Capital surplus				Retained earnings				Treasury stock		Total shareholders' equity
Balance at 31 March 2009					62,430						90,686				104,689				(6,904)		250,901
Effect of changes in accounting policies applied to foreign subsidiaries
Cash dividends															(2,793)						(2,793)
Net income															10,280						10,280
Change of scope of consolidation
Purchase of treasury stock															--				(3)		(3)
Disposal of treasury stock															(50)				493		446
Other changes
Total changes during the year															7,437				490		7,930
Balance at 31 March 2010					62,430						90,686				112,123				(6,410)		258,828
																								USD thousand
						Valuation and translation adjustment
						Net unrealized gains on available-for-sale securities							Foreign currency translation adjustment				Total valuation and translation adjustment			A subscription warrant　and　Minority stockholders share				Total net assets
Balance at 31 March 2009						(1,870)							(13,789)				(15,659)			-				235,242
Effect of changes in accounting policies applied to foreign subsidiaries																								0
Cash dividends																								(2,791)
Net income																								10,281
Change of scope of consolidation																								0
Purchase of treasury stock																								(9)
Disposal of treasury stock																								447
Other changes						674							3,184				3,858			90				3,871
Total changes during the year						674							3,184				3,858			90				11,872
Balance at 31 March 2010						(1,191)							(10,607)				(11,797)			90				247,120
Consolidated Statement of Cash Flows
									JPY million					JPY million									USD thousand
									For year ended					For year ended					Change				For year ended
									31st March					31st March									31st March
									2009					2010									2010
Cash flows from operating activities:
Income before income taxes									(474)					1,231					1,705				11,453
Adjustments for:
Depreciation									1,982					1,637					(345)				15,231
Amortization of negative goodwill									(80)					(58)					22				(540)
Impairment loss									79					--									--
Decrease in allowance for doubtful accounts									34					(5)					(39)				(47)
Loss on disposal of property, plant & equipment									8					72					64				670
Interest & dividend income									(69)					(58)					11				(540)
Foreign exchange (gain) loss									74					5					(69)				47
Gain on sales of investment securities									10					(14)					(24)				(130)
Decrease (increase) in trade notes & accounts receivable									2,151					(948)					(3,099)				(8,820)
Increase in inventories									938					393					(545)				3,656
Decrease in trade notes & accounts payable									(297)					355					652				3,303
Other									(460)					226					686				2,103
Sub-total									3,896					2,836					(1,060)				26,386
Interest & dividend income received									68					59					(9)				549
Interest expenses paid									(2)					(3)					(1)				(28)
Income taxes paid									(108)					(58)					50				(540)
The amount of corporation tax return									--					88					-				819
Net cash provided by operating activities									3,854					2,922					(932)				27,186
Cash flows from investment activities:
Payments into time deposits									(395)					(57)					338				(530)
Proceeds from withdrawal of time deposits									19					78					--				726
Payments for purchase of									(1,983)					(1,196)					787				(11,128)
property, plant & equipment																							0
Proceeds from sales of									322					162					(160)				1,507
property, plant & equipment																							0
Payments for purchase of									(270)					(282)					(12)				(2,624)
investment securities																							0
Proceeds from sales of									91					412					321				3,833
investment securities																							0
Purchase of investments in subsidiaries									(10)					--					-				--
Payments of loan receivable									--					--									--
Purchase of intangible assets									(6)					(51)					(45)				(475)
Other									(17)					17					34				158
Net cash used in investing activities									(2,249)					(917)					1,332				(8,532)
Cash flows from financing activities:
Payments of long-term debt									(5)					(5)					0				(47)
Cash dividends paid									(280)					(300)					(20)				(2,791)
An income by the publication of the subscription warrant									--					9					0				84
Payments for purchase of treasury stock									(102)					0					102				0
Proceeds from sales of treasury stock									--					48									447
Net cash used in financing activities									(387)					(248)					139				(2,307)
Effect of exchange rate									(312)					44					356				409
changes on cash & cash equivalents
Net increase (decrease) in									906					1,801					895				16,757
cash & cash equivalents
Cash and cash equivalents									6,146					7,062					916				65,705
at beginning of year																							0
Increase in cash and cash equivalents									10					--					-				--
from newly consolidated subsidiary																							0
Cash and cash equivalents at end of year									7,062					8,863					1,801				82,461
Segment Information
(1) business segments
	JPY million
	For year ended 31 March 2009
	Ceramic Components						Lighting Equipment						Total					Eliminations or corporate					Consolidated
Net sales:
External customers	14,916						1,777						16,693					--					16,693
Inter-segment	30						--						30					(30)					--
Total net sales	14,946						1,777						16,723					(30)					16,693
Operating expenses	15,109						1,755						16,864					340					17,204
Operating income (loss)	(163)						22						(141)					(370)					(511)
	JPY million
	For year ended 31 March 2010
	Ceramic Components						Lighting Equipment						Total					Eliminations or corporate					Consolidated
Net sales:
External customers	13,587						1,818						15,405					--					15,405
Inter-segment	37						7						44					(44)					--
Total net sales	13,624						1,825						15,449					(44)					15,405
Operating expenses	11,919						1,721						13,640					475					14,115
Operating income (loss)	1,705						104						1,809					(519)					1,290
(2) Geographic segments
	JPY million
	For year ended 31 March 2009
	Japan						Asia						Europe & America					Total					Eliminations or corporate					Consolidated
Net sales:
External customers	13,013						2,413						1,267					16,693					--					16,693
Inter-segment	1,118						1,261						2					2,381					(2,381)					--
Total net sales	14,131						3,674						1,269					19,074					(2,381)					16,693
Operating expenses	14,271						3,739						1,210					19,220					(2,016)					17,204
Operating income	(140)						(65)						59					(146)					(365)					(511)
	JPY million
	For year ended 31 March 2010
	Japan						Asia						Europe & America					Total					Eliminations or corporate					Consolidated
Net sales:
External customers	12,817						2,188						400					15,405					--					15,405
Inter-segment	463						1,150						51					1,664					(1,664)					--
Total net sales	13,280						3,338						451					17,069					(1,664)					15,405
Operating expenses	11,572						3,212						460					15,244					1,128					16,372
Operating income	1,708						126						(9)					1,825					(536)					1,289
(3) Net overseas sales by customer's geographic location
		JPY million
		For year ended 31 March 2009
		Asia						Europe					Other					Total
Overseas sales		5,061						766					837					6,664
Consolidated net sales																		16,693
Percentage (%)		30.3%						4.6%					5.0%					39.9%
		JPY million
		For year ended 31 March 2010
		Asia						Europe					Other					Total
Overseas sales		5,037						692					498					6,227
Consolidated net sales																		15,405
Percentage (%)		32.7%						4.5%					3.2%					40.4%
*Countries are divided in geographical vicinity.
*Principal countries or jurisdictions in each geographic segment are as follows:
Asia: Malaysia, Taiwan, Korea, and China
Europe: Germany and the United Kingdom
Other: The United States
END.

 

END

 

 

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