Maruwa Regulatory News (MAW)

8 Nov 2007 07:00

Maruwa Co Ld08 November 2007 8 November 2007MARUWA CO., LTD.3-83, Minamihonjigahara-cho, Owariasahi-city, Aichi-pref., 488-0044 JAPAN Interim Results for Fiscal 2008 MARUWA CO., LTD. today announced consolidated interim results for the fiscal year ending 31 March 2008 asfollows; \* 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 = 115.43 yen.*Consolidated subsidiaries:10 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 QUARTZ Co., Ltd., MARUWA SHOMEI Co., Ltd., and Hokko Denshi Co., Ltd.) I. Summary of Consolidated Interim Results(1) Summary of consolidated statements of income JPY million JPY million USD thousand For 6-month For 6-month Change % For year ended For 6-month period period period 1 Apr. - 30 1 Apr. - 30 31 March 1 Apr. - 30 Sept. Sept. Sept. 2006 2007 2007 2007Net sales 9,763 9,837 0.8% 21,062 85,220Operating income 822 776 -5.6% 1,924 6,723Income before income 972 857 -11.8% 1,912 7,424taxesNet income 631 567 -10.1% 1,334 4,912Net income per share 57.60 JPY 52.40 -9.0% 122.04 USD 0.45(Basic)(Diluted) 57.29 52.25 -8.8% 121.45 0.45 *Average number of 10,960,935 10,816,794 10,932,798issued shares (2) Summary of consolidated financial condition JPY million JPY million USD thousand As of 30 Sept. As of 30 Sept. As of 31 March As of 30 Sept. 2006 2007 2007 2007Total assets 32,496 33,121 33,872 286,936Total net assets 27,037 28,218 27,907 244,460Equity ratio 83.2% 85.2% 82.4% JPY USDTotal net assets per 2,465.43 2,609.79 2,572.66 22.61share*Number of issued 10,966,660 10,812,510 10,847,360shares at the year end (3) Summary of consolidated statements of cash flows JPY million JPY million USD thousand For 6-month For 6-month For year ended For 6-month period period period 1 Apr. - 30 1 Apr. - 30 31 March 1 Apr. - 30 Sept. Sept. Sept. 2006 2007 2007 2007Net cash provided by 788 1,189 1,422 10,301operating activitiesNet cash used in (1,425) (886) (3,029) (7,676)investing activitiesNet cash used in (185) (265) (700) (2,296)financing activitiesCash and cash 7,226 6,026 5,939 52,205equivalents at end ofterm II. Dividends III. Outlook for fiscal 2008 ending 31 March 2008 JPY per share JPY million Fiscal 2007 Fiscal 2008 Full year Change %Interim 12 12 Net sales 21,480 2.0%Year-end 12 12 (forecast) Operating income 2,120 10.2%Annual 24 24 (forecast) Net income 1,400 4.9% Net income per share 129.43 *Cautionary statements: The above forecasts include forward-looking statements involving risks anduncertainties. Due to a number of factors, actual results may differ significantly from these estimates. Review of Operations 1. Analysis of operating results Consolidated operating results Quarterly JPY million Fiscal 2007 Fiscal 2008 1Q 2Q 3Q 4Q 1Q 2QNet sales 4,878 4,885 5,644 5,655 4,719 5,118Operating income 420 402 489 613 359 417Net income 357 274 331 372 272 295 Half year JPY million Fiscal 2007 Fiscal 2008 For 6-month period For 6-month period For 6-month period 1 Apr. - 30 Sept. 1 Oct.06 - 31 Mar. 1 Apr. - 30 Sept. 2007 2006 07Net sales 9,763 11,299 9,837Operating income 822 1,102 776Net income 631 703 567 Japanese economy in the first half of this fiscal year has generally been solidwith an increasing trend of export powered by high economic growth in Asia anddemands in emerging countries. This brisk economy, however, weakened to someextent since the uncertainty of the future economy prevailed as material priceshovered at a high level and the U.S market decelerated due to adjustments in ahousing market. Under these circumstances, in the IT-related markets, inventory adjustmentsprogressed in the beginning of this year. Demands are now in a moderaterecovering trend based on the global market expansion of flat panel TVs or PCs. Our consolidated net sales in this first half were 9,837 million yen, up 0.8%compared to the interim results of last year. As for profits, operating income decreased 5.6% to 776 million yen, compared tothe first half of last year. The transfer and reorganization of productionequipment of the Machinery Ceramics division squeezed the profit. Net incomewas 567 million yen, down 10.1% due mainly to 193 million yen of loss ondisposal of fixed assets. By business segment JPY million Fiscal 2007 Fiscal 2008 For 6-month period For 6-month period For 6-month period 1 Apr. - 30 Sept. 1 Oct.06 - 31 Mar. 1 Apr. - 30 Sept. 2006 07 2007Ceramic Components:Net sales 8,843 9,498 9,286Operating income 1,294 1,282 1,186 Lighting Equipment:Net sales 920 1,801 551Operating income (124) 51 (131) Total:Net sales 9,763 11,299 9,837Operating income 1,170 1,333 1,055 Elimination:Net sales -- -- --Operating income (348) (231) (279) Consolidated:Net sales 9,763 11,299 9,837Operating income 822 1,102 776 Ceramic Component segment - sales by product division Quarterly JPY million Fiscal 2007 Fiscal 2008 1Q 2Q 3Q 4Q 1Q 2QCircuit Ceramics 1,778 1,908 2,227 1,690 1,692 1,868Machinery Ceramics 1,148 1,189 1,354 1,255 1,325 1,330RF Products 407 354 504 370 474 492EMC Components 1,046 1,013 1,069 1,029 1,041 1,064Total 4,379 4,464 5,154 4,344 4,532 4,754 Half year JPY million Fiscal 2007 Fiscal 2008 For 6-month period For 6-month period For 6-month period 1 Apr. - 30 Sept. 1 Oct.06 - 31 Mar. 1 Apr. - 30 Sept. 2006 07 2007Circuit Ceramics 3,686 3,917 3,560Machinery Ceramics 2,337 2,609 2,655RF Products 761 874 966EMC Components 2,059 2,098 2,105Total 8,843 9,498 9,286 Ceramic Components segment Total sales of this segment in the first half of this year were 9,286 millionyen, down 5.0% compared to the first half of the previous year. Operatingincome was 1,186 million yen, down 8.3%. After the first quarter which had been inactive due to inventory adjustments inmarkets, demands started to recover in the second quarter. Profits, however,decreased due to transfer and reorganization of production equipment in theMachinery Ceramics division to a manufacturing subsidiary in Malaysia 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 or automotive components. Total sales of this division were 3,560 million yen, down 3.4% compared to thesame period last year because demands for glazed substrates and large ceramicsubstrates, which had moved at a high level last year, decreased. Machinery Ceramics The Machinery Ceramics division includes quarts glass products especially forsemiconductor equipment, magnetic head-supporting blocks for PCs, ceramic faucetvalves, and ferrite magnet materials used for measuring equipment or medicalpurposes. Products in this division require high precision processingtechniques. Sales of quarts glass products increased; on the other hand, sales decreasedparticularly for the product for which demand comes to an end in a market.Total sales in this first half were 2,655 million yen, up 13.6% compared to thesame period last year. Radio Frequency Products The Radio Frequency Products division includes device products such as band passfilters used mainly for wireless communication industries, dielectric ceramicfilters required in mobile communication industries, thin film substrates usedfor optical information/communication industries, and multi-layer ceramicsubstrates for automotive components. Total sales of this division in the first half jumped 26.9% to 966 million yencompared to the first half last year due mainly to that sales of multi-layerceramic substrates started to be added in this division since this year. 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 in this period were 2,105 million yen, up 2.2% compared to the sameperiod last year. Some products, including EMI filters grew in Asia to increase revenues. 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 yearas expenses exceed sales until then. Total sales in this period decreased 40.1% to 551 million yen from the sameperiod last year, and operating loss was 131 million yen. Although lighting equipment for public works significantly dropped, operatingloss increased only by 7 million yen due to our cost reduction efforts. Outlook for fiscal 2008 Outlook for fiscal 2008 was announced today in "Notice regarding the revision ofoperating results forecast for fiscal 2008." JPY million For year ended For year ending Change 31 March 2007 31 March 2008 %Net sales 21,062 21,280 1.0%Operating income 1,924 2,120 10.2%Net income 1,334 1,400 4.9% Sales by business segment JPY million For year ended For year ending Change 31 March 2007 31 March 2008 %Ceramic Components 18,341 19,180 4.6%Lighting Equipment 2,721 2,100 -22.8%Total 21,062 21,280 1.0% In this fiscal year, sales of the Ceramic Component segment recovered in thesecond quarter from a slowdown in the first quarter influenced by inventoryadjustments from the last year-end. On the other hand, in the second half ofthis year, sales growth will gradually slow down due to uncertainty in thesemiconductor-equipment market. According to the above, net sales forecast is 21,280 million yen, 1.0% up fromthe last year, operating income are 2,120 million yen, up 10.2%, and net incomeare 1,400 million yen, up 4.9% million yen. Sales forecast for the Ceramic Component segment JPY million For year ended For year ending Change 31 March 2007 31 March 2008 %Circuit Ceramics 7,603 7,610 0.1%Machinery Ceramics 4,946 5,150 4.1%RF Products 1,635 1,970 20.5%EMC Components 4,157 4,450 7.0%Total 18,341 19,180 4.6% *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. Analysis of financial condition JPY million JPY million As of 30 As of 31 March As of 30 September Change September 2006 2006 2007 Amount %Total assets 32,496 33,872 33,121 -751 -2.2%Total liabilities 5,459 5,965 4,903 -1,062 -17.8%Total shareholders' 27,037 27,907 28,218 311 1.1%equityShareholders' equity 83.2% 82.4% 85.2% 2.8ratio JPY million JPY million For 6-month For 6-month For 6-month period Change period period 1 Apr. - 30 Sept. 1 Oct.06 - 31 1 Apr. - 30 Sept. Amount % 2006 Mar. 2007 2007Net cash provided by 788 634 1,189 401 50.9% operating activitiesNet cash used in (1,425) (1,604) (886) 539 -37.8% investing activitiesNet cash used in (185) (515) (265) -80 43.2% financing activitiesCash and cash 7,226 5,939 6,026 -1,200 -16.6%equivalents at end ofterm Net sales 9,763 11,299 9,837 74 0.8%Capital investment 1,155 1,195 1,647 492 42.6%Depreciation 805 935 894 89 11.1% Total assets at the end of this interim period were 33,121 million yen, adecrease of 751 million yen from the last year-end as a result of operatingactivities in this period. It is mainly due to a decrease of trade notes andaccounts receivable particularly from MARUWA SHOMEI Co., Ltd. Inventoriesincreased 562 million yen, and net property, plant and equipment also increased452 million yen due to an increase of machinery through investments. Liabilities were 4,903 million yen, down 1,062 million yen compared to the lastyear-end also due particularly to a decrease of trade notes and accounts payableat MARUWA SHOMEI. Total net assets increased 311 million yen due to net income and other factors,in spite of a decrease due to dividend payment. As a result, equity ratio was 85.2%, up 2.8 points from the last year-end. Net cash provided from operating activities was 1,189 million yen, an increaseof 401 million yen compared to the last interim period especially because of adecrease of trade notes and accounts receivable due to the improvement of tradeterms and conditions. Net cash used in investing activities decreased 539 million yen to 886 millionyen from the same period last year as loans provided to subsidiaries decreasedwhile payments for purchase of property, plant and equipment increased. Net cash used in financing activities was 265 million yen, down 80 million yencompared to the interim period last year, mainly used for purchase of ownshares, 87 million yen, and dividends paid by the parent company, 130 millionyen. As a result, cash and cash equivalents at the end of this interim period were6,026 million yen, a decrease of 1,200 million yen from the same period lastyear. Trends of cash-flows indices are as follows; JPY million For year ended For year ended For year ended 31 March 2006 31 March 2007 31 March 2008 Interim Final Interim Final InterimEquity ratio 82.8% 80.4% 83.2% 82.4% 85.2%Equity ratio at market 104.7% 100.8% 97.2% 76.2% 63.8%valueInterest-bearing debt to 0.5 0.2 0.2 0.1 0.1cash flows ratio (year)Interest coverage ratio 101.7 251.9 233.0 374.2 1,088.1 Note) Equity ratio : Total net assets / 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 *Interim cash flows are doubled for index calculation. 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 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 this interim period will be 12 yen per share, the same amount asthe previous interim dividend, as announced in May. Consolidated Balance Sheets JPY million USD thousand As of 30 As of 30 September Change As of 31 Change As of 30 September March September 2006 2007 2007 2007ASSETSCurrent assets:Cash & deposits 7,247 6,169 (1,078) 6,593 (424) 53,444Trade notes and 6,542 6,550 8 7,797 (1,247) 56,744accounts receivableInventories 3,080 4,121 1,041 3,559 562 35,701Other current assets 667 694 27 688 6 6,013Allowance for doubtful (9) (42) (33) (16) (26) (364) accountsTotal current assets 17,527 17,492 (35) 18,621 (1,129) 151,538 Fixed assets:(Property, plant & equipment)Land 3,454 3,436 (18) 3,434 2 29,767Buildings & structures 3,842 4,014 172 4,146 (132) 34,774Machinery & equipment 4,132 4,658 526 4,300 358 40,353Other 945 1,070 125 846 224 9,270Net property, plant & 12,373 13,178 805 12,726 452 114,164equipment (Investments & other assets)Investment securities 749 467 (282) 612 (145) 4,046Other 1,847 1,984 137 1,913 71 17,188Total investments & 2,596 2,451 (145) 2,525 (74) 21,234 other assets Total fixed assets 14,969 15,629 660 15,251 378 135,398 Total assets 32,496 33,121 625 33,872 (751) 286,936 JPY million USD thousand As of 30 As of 30 September Change As of 31 Change As of 30 September March September 2006 2007 2007 2007LIABILITIESCurrent liabilities:Trade notes & accounts 1,639 1,353 (286) 2,289 (936) 11,721 payableAccrued bonus 344 384 40 351 33 3,327Other current 2,149 2,207 58 2,243 (36) 19,120liabilitiesTotal current 4,132 3,944 (188) 4,883 (939) 34,168liabilities Long-term liabilities:Long-term debt 114 132 18 135 (3) 1,144Accrued retirement 177 -- -- -- -- --benefitsOther 1,036 827 (209) 947 (120) 7,164Total long-term 1,327 959 (368) 1,082 (123) 8,308liabilities Total liabilities 5,459 4,903 (556) 5,965 (1,062) 42,476 NET ASSETSShareholders' equity:Common stock 6,710 6,710 -- 6,710 -- 58,130Capital surplus 9,747 9,747 -- 9,747 -- 84,441Retained earnings 10,954 12,019 1,065 11,521 498 104,124Treasury stock, at cost (232) (619) (387) (537) (82) (5,363)Advance on subscription 1 -- -- -- -- -- of own sharesTotal shareholders' 27,180 27,857 677 27,441 416 241,332equity Valuation and translation adjustments:Net unrealized gains (0) (16) (16) 8 (24) (138)(losses) on available-for-salesecuritiesForeign currency (143) 377 520 458 (81) 3,266 translation adjustmentTotal valuation and (143) 361 504 466 (105) 3,128 translation adjustmentsMinority interests -- 0 -- -- --Total net assets 27,037 28,218 1,181 27,907 311 244,460Total liabilities & net 32,496 33,121 625 33,872 (751) 286,936assets Consolidated Statements of Income JPY million USD thousand For 6-month For 6-month Change For year ended For 6-month period period period 1 Apr. - 30 1 Apr. - 30 Sept. 31 March 1 Apr. - 30 Sept. Sept. 2006 2007 2007 2007Net sales 9,763 9,837 74 21,062 85,220Cost of sales 6,919 7,011 92 15,003 60,738Gross profit 2,844 2,826 (18) 6,059 24,482Selling, general & 2,022 2,050 28 4,135 17,759 administrative expensesOperating income 822 776 (46) 1,924 6,723Other income(expenses):Interest & dividend 22 40 18 52 347incomeInterest expenses (3) (1) 2 (5) (9)Foreign exchange gain 41 11 (30) (196) 95 (loss), netOther, net 90 31 (59) 137 268Other income 150 81 (69) (12) 701(expenses), netIncome before income 972 857 (115) 1,912 7,424taxes Income taxes:Current 331 252 (79) 448 2,183Deferred 10 38 28 130 329 341 290 (51) 578 2,512Minority interests -- 0 -- (0) 0Net income 631 567 (64) 1,334 4,912 Consolidated Statements of Changes in Net Assets JPY million 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 6,710 9,747 11,521 (537) 27,441 8 458 466 27,907March 2007 Net income 567 567 567Cash dividends (130) (130) (130)Decrease on new 62 62 62consolidationChanges in (1) (82) (83) (83)treasury stock,netOther changes (24) (81) (105) (105)Total changes 498 (82) 416 (24) (81) (105) 311during the periodBalance at 30 6,710 9,747 12,019 (619) 27,857 (16) 377 361 28,218September 2007 USD thousand 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 58,130 84,441 99,809 (4,652) 237,728 69 3,968 4,037 241,766March 2007 Net income 4,912 4,912 4,912Cash dividends (1,126) (1,126) (1,126)Decrease on new 537 537 537consolidationChanges in (8) (711) (719) (719)treasury stock,netOther changes (207) (702) (909) (909)Total changes 4,315 (711) 3,604 (207) (702) (909) 2,695during the periodBalance at 30 58,130 84,441 104,124 (5,363) 241,332 (138) 3,266 3,128 244,460September 2007 Consolidated Statements of Cash Flows JPY million USD thousand For 6-month For 6-month period Change For year For 6-month period period ended 1 Apr. - 30 1 Apr. - 30 Sept. 31 March 1 Apr. - 30 Sept. Sept. 2006 2007 2007 2006Cash flows from operating activitiesIncome before income 972 857 (115) 1,912 7,424taxesAdjustments for:Depreciation 805 894 89 1,740 7,745Amortization of (107) (101) 6 (208) (875) negative goodwillIncrease (decrease) in (9) 27 36 (2) 234 allowance for doubtful accountsIncrease(decrease) in (300) -- -- (477) --accrued retirement benefitsLoss on disposal of 55 193 138 108 1,672 property, plant & equipmentInterest & dividend (22) (40) (18) (52) (347)incomeForeign exchange (gain) (35) 2 37 (12) 17lossGain (loss) on sales of -- (2) -- (14) (17) investment securities(Increase) decrease in 610 1,287 677 (557) 11,150 trade notes & accounts receivableDecrease (increase) in (143) (569) (426) (550) (4,929) inventoriesDecrease in trade notes (1,081) (1,016) 65 (448) (8,802)& accounts payableOther 267 (75) (342) 338 (650)Sub-total 1,012 1,457 445 1,778 12,622Interest & dividend 21 40 19 52 347income receivedInterest expenses paid (3) (1) 2 (4) (9)Income taxes paid (242) (307) (65) (404) (2,659)Net cash provided by 788 1,189 401 1,422 10,301 operating activities JPY million USD thousand For 6-month For 6-month period Change For year For 6-month period period ended 1 Apr. - 30 1 Apr. - 30 Sept. 31 March 1 Apr. - 30 Sept. Sept. 2006 2007 2007 2006Cash flows from investing activitiesIncrease in time -- (121) -- (653) (1,048)depositsDecrease in deposits -- 629 -- -- 5,449Payments for purchase (1,023) (1,444) (421) (2,285) (12,510)of property, plant & equipmentProceeds from sales of 165 157 (8) 349 1,360 property, plant & equipmentPayments for purchase (198) (30) 168 (246) (260)of investment securitiesProceeds from sales of -- 32 -- 242 277 investment securitiesPurchase of new (34) (21) 13 (63) (182)subsidiary's shares and investments in capitalPayments for (33) -- -- (33) --acquisitionof new consolidated subsidiariesIncrease of loans (286) (148) 138 (354) (1,282)Proceeds from -- 121 -- -- 1,048collections of loansPayments for guarantee -- (50) -- -- (433)deposits(Increase) decrease in (4) (4) 0 14 (35) intangible fixed assetsOther (12) (7) 5 (0) (60)Net cash used in (1,425) (886) 539 (3,029) (7,676)investing activities Cash flows from financing activitiesPayments of long-term (74) (51) 23 (147) (442) debtCash dividends paid (132) (130) 2 (263) (1,126)Payments for purchase (3) (87) (84) (328) (754)of treasury stockProceeds from sales of 23 3 (20) 38 26 treasury stockAdvance on subscription 1 -- -- -- -- of own sharesNet cash (used in) (185) (265) (80) (700) (2,296)provided by financing activities Effect of exchange rate 55 (10) (65) 253 (86) changes on cash & cash equivalentsNet increase (decrease) (767) 28 795 (2,054) 243in cash & cash equivalentsCash & cash equivalents 7,899 5,939 (1,960) 7,899 51,451 at beginning of yearIncrease in cash & cash 94 59 (35) 94 511equivalents from newly consolidated subsidiaryCash & cash equivalents 7,226 6,026 (1,200) 5,939 52,205 at end of year Segment Information (1) Business segments JPY million For 6-month period 1 April - 30 September 2006 Ceramic Lighting Total Eliminations or Consolidated Components Equipment corporateNet sales:External customers 8,843 920 9,763 -- 9,763Inter-segment -- -- -- -- --Total net sales 8,843 920 9,763 -- 9,763Operating expenses 7,549 1,044 8,593 348 8,941Operating income 1,294 (124) 1,170 (348) 822(loss) JPY million For 6-month period 1 April - 30 September 2007 Ceramic Lighting Total Eliminations or Consolidated Components Equipment corporateNet sales:External customers 9,286 551 9,837 -- 9,837Inter-segment 11 0 11 (11) --Total net sales 9,297 551 9,848 (11) 9,837Operating expenses 8,111 682 8,793 268 9,061Operating income 1,186 (131) 1,055 (279) 776(loss) USD thousand For 6-month period 1 April - 30 September 2007 Ceramic Lighting Total Eliminations or Consolidated Components Equipment corporateNet sales:External customers 80,447 4,773 85,220 -- 85,220Inter-segment 95 -- 95 (95) --Total net sales 80,542 4,773 85,315 (95) 85,220Operating expenses 70,267 5,908 76,175 2,322 78,497Operating income 10,275 (1,135) 9,140 (2,417) 6,723(loss) 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 14 0 14 (14) --Total net sales 18,355 2,721 21,076 (14) 21,062Operating expenses 15,779 2,794 18,573 565 19,138Operating income 2,576 (73) 2,503 (579) 1,924(loss) (2) Geographic segments JPY million For 6-month period 1 April - 30 September 2006 Japan Asia Europe & Total Eliminations or Consolidated America corporateNet sales:External customers 6,992 1,994 777 9,763 -- 9,763Inter-segment 904 745 1 1,650 (1,650) --Total net sales 7,896 2,739 778 11,413 (1,650) 9,763Operating expenses 7,122 2,309 743 10,174 (1,233) 8,941Operating income 774 430 35 1,239 (417) 822 JPY million For 6-month period 1 April - 30 September 2007 Japan Asia Europe & Total Eliminations or Consolidated America corporateNet sales:External customers 7,367 1,757 713 9,837 -- 9,837Inter-segment 637 687 3 1,327 (1,327) --Total net sales 8,004 2,444 716 11,164 (1,327) 9,837Operating expenses 7,243 2,105 693 10,041 (980) 9,061Operating income 761 339 23 1,123 (347) 776 USD thousand For 6-month period 1 April - 30 September 2007 Japan Asia Europe & Total Eliminations or Consolidated America corporateNet sales:External customers 63,822 15,221 6,177 85,220 -- 85,220Inter-segment 5,518 5,952 26 11,496 (11,496) --Total net sales 69,340 21,173 6,203 96,716 (11,496) 85,220Operating expenses 62,747 18,236 6,004 86,987 (8,490) 78,497Operating income 6,593 2,937 199 9,729 (3,006) 6,723 JPY million For year ended 31 March 2007 Japan Asia Europe & Total Eliminations or Consolidated America 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 (3) Net overseas sales by customer's geographic location JPY million For 6-month period 1 April - 30 September 2006 Asia Europe Other TotalOverseas sales 3,240 320 316 3,876Consolidated net sales 9,763Percentage (%) 33.2% 3.3% 3.2% 39.7% JPY million For 6-month period 1 April - 30 September 2007 Asia Europe Other TotalOverseas sales 3,708 393 329 4,430Consolidated net sales 9,837Percentage (%) 37.7% 4.0% 3.3% 45.0% USD thousand For 6-month period 1 April - 30 September 2007 Asia Europe Other TotalOverseas sales 32,123 3,405 2,850 38,378Consolidated net sales 85,220 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% END This information is provided by RNS The company news service from the London Stock Exchange