Maruwa Regulatory News (MAW)

9 May 2008 08:20

Maruwa Co Ld09 May 2008 9 May 2008MARUWA CO., LTD.3-83, Minamihonjigahara-cho, Owariasahi-city, Aichi-pref., 488-0044JAPAN Final Results for Fiscal 2008 MARUWA CO., LTD. today announced its consolidated business results for the full fiscal year ended 31 March,2008 as follows; The financial statements are prepared in conformity with the accounting principles generally accepted inJapan.*US dollar amounts are converted for convenience only at the rate of US$1 = 100.19 yen.*Consolidated subsidiaries:11 companies (Maruwa (Malaysia) Sdn. Bhd., Taiwan Maruwa Co., Ltd., MARUWAElectronics (Taiwan) Co., Ltd., Maruwa Europe Ltd., Maruwa America Corp., Maruwa Korea Co., Ltd., Maruwa(Shanghai) Trading Co., Ltd., Maruwa Electronics (Philippines), Inc. , MARUWA QUARTZ Co., Ltd., MARUWASHOMEI 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 31 March 31 March 31 March 2007 2008 2008Net sales 21,062 20,635 -2.0% 205,959Operating income 1,924 1,576 -18.1% 15,730Income before income taxes 1,912 1,584 -17.2% 15,810Net income 1,334 1,100 -17.5% 10,979 JPY USDNet income per share (Basic) 122.04 101.80 -16.6% 1.02(Diluted) 121.45 101.68 -16.3% 1.01*Average number of issued shares 10,932,798 10,809,627 (2) Summary of consolidated financial condition JPY million USD thousand As of 31 March As of 31 March Change % As of 31 March 2007 2008 2008Total Assets 33,872 32,850 -3.0% 327,877Total net assets 27,907 27,774 -0.5% 277,213Equity ratio 82.4% 84.5% 2.1% JPY USDTotal net assets per share 2,572.66 2,571.59 0.0% 25.67*Number of issued shares at the 10,847,360 10,800,410year end (3) Summary of consolidated statement of cash flows JPY million USD thousand For year ended For year ended Change % For year ended 31 March 31 March 31 March 2007 2008 2008Net cash provided by operating 1,422 2,590 82.1% 25,851activitiesNet cash used in investing (3,029) (1,921) 36.6% (19,174)activitiesNet cash used in financing (700) (416) 40.6% (4,152)activitiesCash and cash equivalents at end 5,939 6,146 3.5% 61,343of term III. Outlook for fiscal 2009 ending 31 March 2009II. Dividends JPY per share JPY million Fiscal 2008 Fiscal 2009 Half year Full year (forecast) Net sales 9,700 20,650Interim 12 14 Operating income 610 1,760Year-end 12 14 Net income 370 1,140Annual 24 28 Net income per share 34.26 105.55 *Cautionary statements: the above forecasts are forward-looking statements involving risks anduncertainties. Due to a number of factors, actual results may differ significantly from these estimates. Review of Operations and Financial Condition 1. Operating Results JPY million Fiscal 2007 Fiscal 2008 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4QNet sales 4,878 4,885 5,644 5,655 4,719 5,118 5,265 5,533Operating income 420 402 489 613 359 417 451 349Net income 357 274 331 372 272 295 329 204 JPY million Previous Current For year ended For year ended 31 March 2007 31 March 2008Net sales 21,062 20,635Operating income 1,924 1,576Net income 1,334 1,100 (1) Review of operations Japanese economy in this year has been solid, supported by brisk privateconsumption as well as continuous increasing trend of corporate profits led bythe strong export sector. The economy, however, gradually slowed down due toglobal credit shrinkage which has risen from the subprime loan crisis in the US,soaring energy and raw material prices, and decelerating trend of privateconsumption. Under these circumstances, the electronic components/semiconductor sector hasdecelerated; particularly after the new year, inventory adjustments in Asianmarkets and yen's sharp appreciation brought about intense competition amongcompanies, resulting a drop of product prices. Our consolidated net sales in this year were 20,635 million yen, down 2.0%compared to last year. Operating income in this year was 1,576 million yen, a decrease of 18.1% fromlast year, influenced by the increase of fixed expenses including depreciationcosts, falling product prices, and expenses for the transfer of manufacturingequipment. Net income in this year decreased 17.5% from last year to 1,100million yen due to a loss on disposal of fixed assets of 237 million yen, and aloss on dissolution of a subsidiary of 96 million yen. (2) Review of operating results by business segment JPY million Current For year ended For year ended 31 March 2007 31 March 2008Ceramic Components:Net sales 18,341 18,479Operating income 2,576 2,092 Lighting Equipment:Net sales 2,721 2,156Operating income (73) (6) Total:Net sales 21,062 20,635Operating income 2,503 2,086 Elimination:Net sales -- --Operating income (579) (510) Consolidated:Net sales 21,062 20,635Operating income 1,924 1,576 Quarterly sales results of Ceramic Components segment by product division JPY million Fiscal 2007 Fiscal 2008 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4QCircuit Ceramics 1,778 1,908 2,227 1,690 1,692 1,868 1,936 1,673Machinery Ceramics 1,148 1,189 1,354 1,255 1,325 1,330 1,258 1,186RF* Products 407 354 504 370 474 492 500 456EMC Components 1,046 1,013 1,069 1,029 1,041 1,064 1,138 1,046Total 4,379 4,464 5,154 4,344 4,532 4,754 4,832 4,361*Radio Frequency JPY million Previous Current For year ended For year ended 31 March 2007 31 March 2008Circuit Ceramics 7,603 7,169Machinery Ceramics 4,946 5,099RF Products 1,635 1,922EMC Components 4,157 4,289Total 18,341 18,479 Ceramic Components segment Total sales of the Ceramic Component segment were 18,479 million yen, up 0.8%,and operating income was 2,092 million yen, down 18.8% from last year,influenced by the increase of depreciation costs and other expenses mainly forthe reorganization of manufacturing equipment of our overseas manufacturingsubsidiaries. Circuit Ceramics The Circuit Ceramics division includes ceramic substrates for chip resistorswhich are essential for a wide range of electronic appliances, glazed substratesfor thermal printer head (TPH) used for FAX or bar code label printers, largeceramic substrates for hybrid ICs, and Aluminum Nitride (AlN) substrates usedfor power modules and automotive components. Total sales of this division were 7,169 million yen, down 5.7% compared to lastyear, reflected a decline in demand for information communication devices suchas PCs and mobile phones, and industrial equipment. As for our ceramic substrates for chip resistors, sales decreased since demandsharply fell down in Asia from early this term. Decreasing demand for glazedsubstrates and large ceramic substrates, which had been solid in the previousterm, was another factor for the downturn in sales. Machinery Ceramics The Machinery Ceramics division includes quarts glass products especially forsemiconductor equipment, ceramic faucet valves, and ferrite magnet materialsused for measuring equipment or medical purposes. Products in this divisionrequire high precision processing techniques. Total sales of this division increased 3.1% to 5,099 million yen from theprevious year due mainly to that the ferrite magnet products, which wereacquired in last year, posted sales throughout the year even though asemiconductor equipment-related market has slowed down since the second half ofthis year. Radio Frequency Products The Radio Frequency Products division includes device products such as band passfilters used for wireless communication industries, dielectric ceramic filtersrequired in mobile communication industries, thin film substrates used foroptical information/communication industries, and multi-layer ceramic substratesfor automotive components. Total sales of this division in this year were 1,922 million yen, up 17.6%compared to last year by including sales of multi-layer ceramic substrates fromthis year, and enjoying the market expansion of thin film substrates for opticalcommunication. EMC Components The EMC Components division includes multi-layer ceramic capacitors ofhigh-voltage/high-capacitance especially used for digital cameras, LCDbacklights, or power supply parts of electronic devices, and a product line as acountermeasure against noise/surge, including EMI filters, chip varistors, chipbeads and inductors. There are increasing demands for such components forvarious electronic appliances such as communication tools, including mobilephones and PCs, digital home appliances, amusement equipment or automotiveelectronic devices. Total sales of this division in this year were 4,289 million yen, up 3.2%compared to the previous year. The sales of EMI filters grew thanks to demand for flat screen TVs-related uses. Lighting Equipment segment This segment includes lighting equipment for public works such as roads andbridges, and most of sales are particularly posted in the end of a fiscal yearwhile expenses exceed sales until then. Total sales of this segment in this year decreased 20.8% to 2,156 million yenfrom last year, and operating loss was 6 million yen. Although sales of lighting equipment for public works significantly dropped,operating loss was lower than the previous results due to increasing sales ofour new LED lightings. (3) Outlook for the full fiscal 2008 JPY million For year ended For year ending Change 31 March 2008 31 March 2009 %Net sales 20,635 20,650 0.1%Operating income 1,576 1,760 11.7%Net income 1,100 1,140 3.6% Sales by business segment JPY million For year ended For year ending Change 31 March 2008 31 March 2009 %Ceramic Components 18,479 18,700 1.2%Lighting Equipment 2,156 1,950 -9.6%Total 20,635 20,650 0.1% There is concern about demand trends for digital/IT related products as a globaleconomic slowdown is now prevailing. Due to the uncertain market environment,we have a tight outlook for sales growth; however, we expect a profit increasebased on this year's reorganization of manufacturing equipment in the businessacquired through M&A in the past to reinforce our business foundation. For the Circuit Ceramic division, we forecast a revenue increase by expandingproduction capacity for Alumina substrates and enhancing product lineups ofAluminum Nitride substrates. According to these measures, forecast total salesof this division for next term are 7,980 million yen, up 11.3% compared to thecurrent year. As for the Machinery Ceramics division, demand for our core products, quartzglass products, is expected to decline in the semiconductor equipment-relatedindustry; forecast total sales of this division for next year are 4,610 millionyen, down 9.6% from this year. In the Radio Frequency Products division, the sales of multi-layer substratesfor automotive components are expected to grow. Therefore, total sales of thisdivision are expected to increase by 7.2% to 2,060 million yen from this year. The EMC Components division is expected to decrease its sales by 5.6% to 4,050million yen compared to this term because of concern for declining demand ofcomponents for digital/IT-related products. In the Lighting Equipment segment, sales are expected to significantly increasewith our sales enhancement as we shift our business model to the LED lightingsarea despite decreasing sales in other lighting equipment for public works.According to this outlook, forecast total sales in this segment are 1,950million yen, down 9.6% from this year. Operating income is expected to improvedue to a sales increase in new LED lightings. According to the above, forecast net sales are 20,650 million yen, up 0.1% fromlast year, forecast operating income is 1,760 million yen, up 11.7%, andforecast net income is 1,140 million yen, up 3.6% million yen. Forecast netincome includes an expected loss on disposal of fixed assets of 120 million yen. *Cautionary statements: the above forecasts are based on the present businessenvironment and currently-available information, and include forward-lookingstatements involving risks and uncertainties. The reader is cautioned not toplace reliance entirely on the above forecasts for making investment decisions.Due to a number of factors such as future economic situations and marketenvironment changes, actual results may differ significantly from theseestimates. 2. Financial Condition JPY million As of 31 March As of 31 March As of 31 March Change 2006 2007 2008 Amount %Total assets 33,044 33,872 32,850 -1,022 -3.0%Total liabilities 6,487 5,965 5,076 -889 -14.9%Total net assets 26,557 27,907 27,774 -133 -0.5%Equity ratio 80.4% 82.4% 84.5% 2.1% JPY million For year ended For year ended For year ended Change 31 March 2006 31 March 2007 31 March 2008 Amount %Net cash provided by 2,036 1,422 2,590 1,168 82.1% operating activitiesNet cash used in (1,234) (3,029) (1,921) 1,108 -36.6% investing activitiesNet cash used in 51 (700) (416) 284 -40.6% financing activitiesCash and cash equivalents 7,899 5,939 6,146 207 3.5% at end of year Net sales 20,278 21,062 20,635 -427 -2.0%Capital expenditure 1,737 2,350 3,097 747 31.8%Depreciation 1,614 1,740 1,910 170 9.8% Total assets at the end of this year were 32,850 million yen, a decrease of1,022 million yen from the last year-end as a result of operating activities inthis year. It is due to a decrease of current assets by 924 million yen,including trade notes and accounts receivable. Fixed assets decreased by 98million yen as investments decreased according to a decrease in stocks ofconsolidated subsidiaries due to new consolidation, despite an increase of netproperty, plant and equipment with capital expenditure. Liabilities were 5,076 million yen, down 889 million yen compared to the lastyear-end due particularly to a decrease of trade notes and accounts payable. Total net assets decreased 133 million yen due to a decrease in foreign currencytranslation adjustment, in spite of a increase in retained earnings. As a result, equity ratio was 84.5 %, up 2.1 points from the last year-end. Net cash provided from operating activities was 2,590 million yen, an increaseof 1,168 million yen compared to last year especially because of a decrease oftrade notes and accounts receivable. Net cash used in investing activities decreased 1,108 million yen to 1,921million yen from last year mainly because proceeds from withdrawal of timedeposits were greater than net increase in payments for purchase of property,plant and equipment. Net cash used in financing activities was 416 million yen, down 284 million yencompared to last year, mainly used for purchase of own shares, 107 million yen,and dividends paid by the parent company, 259 million yen. As a result, cash and cash equivalents at the end of this year were 6,146million yen, an increase of 207 million yen from last year. Trends of cash-flows indices JPY million For year ended For year ended For year ended For year ended For year ended 31 March 31 March 31 March 31 March 31 March 2004 2005 2006 2007 2008Equity ratio 87.9% 87.9% 80.4% 82.4% 84.5%Equity ratio at market 62.8% 80.3% 100.8% 76.2% 39.8%valueInterest-bearing debt 0.3 0.1 0.2 0.1 0.1to cash flows ratio(year)Interest coverage 967.7 316.1 251.9 374.2 497.2ratio 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 flowsfrom operating activities Interest coverage ratio : Cash flows from operating activities / Interestpayment *Each index is calculated with the consolidated financial figures. \* Total market value of shares is calculated by multiplying the share value as ofthe end of the fiscal year by the total number of issued shares after deductionof own shares at the end of the year. *For cash flows from operating activities, figures in the consolidated cashflows statements are used. Interest-bearing debt includes all debts for whichinterests are paid among the liabilities booked in the consolidated balancesheets. 3. Dividend policy and dividend of this year and next year MARUWA considers allocating acquired cash flows from business operations foractive investment into new growing fields, dividends calculated throughcomprehensive analysis of consolidated business results, and saving for internalreserves to control flexibly changes in a business environment. While we secureinternal reserves for strategic investment necessary for sustainable expansionof our core business, we focus on profit returns to our shareholders. Dividend for next year will be 28 yen per share, up 4 yen from this year(interim: 14 yen, year-end: 14yen). Consolidated Balance Sheets JPY million USD thousand As of 31 March As of 31 March Change As of 31 March 2007 2008 2008ASSETSCurrent assets:Cash & deposits 6,593 6,263 (330) 62,511Trade notes and accounts 7,797 6,649 (1,148) 66,364receivableInventories 3,559 4,137 578 41,292Deferred tax assets 277 236 (41) 2,356Other current assets 411 414 3 4,132Allowance for doubtful accounts (16) (2) 14 (21)Total current assets 18,621 17,697 (924) 176,634 Property, plant & equipment:Land 3,434 3,215 (219) 32,089Buildings & structures 4,146 4,231 85 42,230Machinery & equipment 4,300 4,473 173 44,645Other 654 641 (13) 6,398Construction in progress 192 423 231 4,222Net property, plant & 12,726 12,983 257 129,584equipment Investments & other assets:Investment securities 612 445 (167) 4,442Deferred tax assets 149 103 (46) 1,028Property & equipment for 961 945 (16) 9,432 investmentsOther 807 684 (123) 6,827Allowance for doubtful accounts (4) (7) (3) (70)Total investments & other assets 2,525 2,170 (355) 21,659 Total assets 33,872 32,850 (1,022) 327,877 LIABILITIESCurrent liabilities:Trade notes & accounts payable 2,289 1,708 (581) 17,048Current portion of 53 5 (48) 50 long-term debtAccrued income taxes 256 110 (146) 1,098Accrued bonus 351 357 6 3,563Accrued bonus for directors 7 -- -- --Notes payable for property 635 898 263 8,963 acquisitionsOther current liabilities 1,292 1,190 (102) 11,877Total current liabilities 4,883 4,268 (615) 42,599 Long-term liabilities:Long-term debt 135 130 (5) 1,298Deferred tax liabilities 234 248 14 2,475Negative goodwill 314 112 (202) 1,118Other 399 318 (81) 3,174Total long-term liabilities 1,082 808 (274) 8,065 Total liabilities 5,965 5,076 (889) 50,664 NET ASSETSShareholders' equity:Common stock 6,710 6,710 -- 66,973Capital surplus 9,747 9,747 -- 97,285Retained earnings 11,521 12,324 803 123,006Treasury stock, at cost (537) (639) (102) (6,378)Total shareholders' equity 27,441 28,142 701 280,886 Valuation and translation adjustments:Net unrealized gains (losses) 8 (72) (80) (719) on available-for-sale securitiesForeign currency 458 (296) (754) (2,954) translation adjustmentTotal valuation and 466 (368) (834) (3,673) translation adjustmentsMinority interests -- 0 -- 0Total net assets 27,907 27,774 (133) 277,213Total liabilities & net assets 33,872 32,850 (1,022) 327,877 Consolidated Statements of Income JPY million USD thousand For year ended For year ended Change For year ended 31 March 31 March 31 March 2007 2008 2008Net sales 21,062 20,635 (427) 205,959Cost of sales 15,003 15,214 211 151,852Gross profit 6,059 5,421 (638) 54,107Selling, general & 4,135 3,845 (290) 38,377 administrative expensesOperating income 1,924 1,576 (348) 15,730Other income (expenses):Interest 46 79 33 789Interest expenses (5) (5) 0 (50)Foreign exchange gain (loss), net (196) 88 284 878Other, net 143 (154) (297) (1,537)Other income (expenses), net (12) 8 20 80Income before income taxes 1,912 1,584 (328) 15,810 Income tax expenses:Current 448 311 (137) 3,104Deferred 130 173 43 1,727 578 484 (94) 4,831 Minority interests (0) 0 0 0Net income 1,334 1,100 (234) 10,979 Consolidated Statements of Changes in Net Assets JPY million Shareholders' equity Valuation and translation adjustment Common Capital Retained Treasury Total Net Foreign Total Total stock surplus earnings stock shareholders' unrealized currency valuation net equity gains on translation and assets available- adjustment translation for-sale adjustment securities Balance at 31 6,710 9,747 11,521 (537) 27,441 8 458 466 27,907March 2007 Net income 1,100 1,100 1,100Cash dividends (259) (259) (259)Increase due to 62 62 62new consolidationDecrease due to (99) (99) (99)new consolidationChanges in (1) (102) (103) (103)treasury stock,netOther changes (80) (754) (834) (834)Total changes 803 (102) 701 (80) (754) (834) (133)during the yearBalance at 31 6,710 9,747 12,324 (639) 28,142 (72) (296) (368) 27,774March 2008 USD thousand Shareholders' equity Valuation and translation adjustment Common Capital Retained Treasury Total Net Foreign Total Total net stock surplus earnings stock shareholders' unrealized currency valuation assets equity gains on translation and available- adjustment translation for-sale adjustment securities Balance at 31 66,973 97,285 114,992 (5,360) 273,890 80 4,571 4,651 278,541March 2007 Net income 10,979 10,979 10,979Cash dividends (2,585) (2,585) (2,585)Increase due to 619 619 619new consolidationDecrease due to (989) (989) (989)new consolidationChanges in (10) (1,018) (1,028) (1,028)treasury stock,netOther changes (799) (7,525) (8,325) (8,324)Total changes 8,014 (1,018) 6,996 (799) (7,525) (8,325) (1,328)during the yearBalance at 31 66,973 97,285 123,006 (6,378) 280,886 (719) (2,954) (3,673) 277,213March 2008 Consolidated Statements of Cash Flows JPY million USD thousand For year ended For year ended Change For year ended 31 March 31 March 31 March 2007 2008 2008Cash flows from operating activities:Income before income taxes 1,912 1,584 (328) 15,810Adjustments for:Depreciation 1,740 1,910 170 19,064Amortization of (208) (202) 6 (2,016) negative goodwillDecrease in allowance (2) (11) (9) (110) for doubtful accountsDecrease in accrued (477) -- -- -- retirement benefitsLoss on disposal of 108 192 84 1,916 property, plant & equipmentInterest & dividend income (52) (83) (31) (828)Foreign exchange (gain) loss (12) 0 12 0Gain on sales of (14) (4) 10 (40) investment securitiesDecrease (increase) in (557) 1,111 1,668 11,089 trade notes & accounts receivableIncrease in inventories (550) (643) (93) (6,418)Decrease in trade notes & (448) (616) (168) (6,148) accounts payableOther 338 (230) (568) (2,295)Sub-total 1,778 3,008 1,230 30,024Interest & dividend income 52 80 28 798 receivedInterest expenses paid (4) (5) (1) (50)Income taxes paid (404) (493) (89) (4,921)Net cash provided by 1,422 2,590 1,168 25,851 operating activities Cash flows from investment activities:Payments into time deposits (653) (101) 552 (1,008)Proceeds from withdrawal of -- 629 -- 6,278 time depositsPayments for purchase of (2,285) (2,780) (495) (27,747) property, plant & equipmentProceeds from sales of 349 503 154 5,020 property, plant & equipmentPayments for purchase of (246) (156) 90 (1,557) investment securitiesProceeds from sales of 242 99 (143) 988 investment securitiesPayments for investments (96) (21) 75 (210) in subsidiariesPayments of loan receivable (354) (68) 286 (679)(Increase) decrease in 14 (6) (20) (60) intangible fixed assetsOther 0 (20) (20) (199)Net cash used in investing (3,029) (1,921) 1,108 (19,174) activities Cash flows from financing activities:Payments of long-term debt (147) (53) 94 (529)Cash dividends paid (263) (259) 4 (2,585)Payments for purchase of (328) (107) 221 (1,068) treasury stockProceeds from sales of 38 3 (35) 30 treasury stockNet cash used in financing (700) (416) 284 (4,152) activities Effect of exchange rate 253 (127) (380) (1,267) changes on cash & cash equivalentsNet increase (decrease) in (2,054) 126 2,180 1,258 cash & cash equivalentsCash and cash equivalents 7,899 5,939 (1,960) 59,277 at beginning of yearIncrease in cash and cash 94 81 (13) 808equivalents from newly consolidated subsidiaryCash and cash equivalents 5,939 6,146 207 61,343 at end of year Segment Information (1) Business segments JPY million For year ended 31 March 2007 Ceramic Lighting Total Eliminations or Consolidated Components Equipment corporateNet sales:External customers 18,341 2,721 21,062 -- 21,062Inter-segment -- 19 19 (19) --Total net sales 18,341 2,740 21,081 (19) 21,062Operating expenses 15,765 2,813 18,578 560 19,138Operating income 2,576 (73) 2,503 (579) 1,924(loss) JPY million For year ended 31 March 2008 Ceramic Lighting Total Eliminations or Consolidated Components Equipment corporateNet sales:External customers 18,479 2,156 20,635 -- 20,635Inter-segment 20 -- 20 (20) --Total net sales 18,499 2,156 20,655 (20) 20,635Operating expenses 16,407 2,162 18,569 490 19,059Operating income 2,092 (6) 2,086 (510) 1,576(loss) USD thousand For year ended 31 March 2008 Ceramic Lighting Total Eliminations or Consolidated Components Equipment corporateNet sales:External customers 184,440 21,519 205,959 -- 205,959Inter-segment 199 -- 199 (199) --Total net sales 184,639 21,519 206,158 (199) 205,959Operating expenses 163,759 21,579 185,338 4,891 190,229Operating income 20,880 (60) 20,820 (5,090) 15,730(loss) (2) Geographic segments JPY million For year ended 31 March 2007 Japan Asia Europe & Total Eliminations Consolidated America or corporateNet sales:External customers 15,426 4,162 1,474 21,062 -- 21,062Inter-segment 1,536 1,266 167 2,969 (2,969) --Total net sales 16,962 5,428 1,641 24,031 (2,969) 21,062Operating expenses 15,390 4,474 1,571 21,435 (2,297) 19,138Operating income 1,572 954 70 2,596 (672) 1,924 JPY million For year ended 31 March 2008 Japan Asia Europe & Total Eliminations Consolidated America or corporateNet sales:External customers 15,515 3,712 1,408 20,635 -- 20,635Inter-segment 1,366 1,430 3 2,799 (2,799) --Total net sales 16,881 5,142 1,411 23,434 (2,799) 20,635Operating expenses 15,310 4,635 1,351 21,296 (2,237) 19,059Operating income 1,571 507 60 2,138 (562) 1,576 USD thousand For year ended 31 March 2008 Japan Asia Europe & Total Eliminations Consolidated America or corporateNet sales:External customers 154,856 37,050 14,053 205,959 -- 205,959Inter-segment 13,634 14,273 30 27,937 (27,937) --Total net sales 168,490 51,323 14,083 233,896 (27,937) 205,959Operating expenses 152,810 46,263 13,484 212,557 (22,328) 190,229Operating income 15,680 5,060 599 21,339 (5,609) 15,730 (3) Net overseas sales by customer's geographic location JPY million For year ended 31 March 2007 Asia Europe Other TotalOverseas sales 6,434 933 629 7,996Consolidated net sales 21,062Percentage (%) 30.5% 4.4% 3.1% 38.0% JPY million For year ended 31 March 2008 Asia Europe Other TotalOverseas sales 7,305 813 623 8,741Consolidated net sales 20,635Percentage (%) 35.4% 3.9% 3.1% 42.4% USD thousand For year ended 31 March 2008 Asia Europe Other TotalOverseas sales 72,911 8,115 6,218 87,244Consolidated net sales 205,959 *Countries are divided in geographical vicinity.*Principal countries or jurisdictions in each geographic segment are as follows:Asia: Malaysia, Taiwan, Korea, and ChinaEurope: Germany and the United KingdomOther: The United States END This information is provided by RNS The company news service from the London Stock Exchange