JVC Reports Business Results for Fiscal 2007.Tokyo Tokyo (tō`kēō), city (1990 pop. 8,163,573), capital of Japan and of Tokyo prefecture, E central Honshu, at the head of Tokyo Bay. , Japan, Apr 27, 2007 - (JCN JCN Japan Corporate News JCN Journal of Cognitive Neuroscience JCN Journal of Cardiovascular Nursing JCN Journal of Christian Nursing JCN Job Control Number JCN Journal of Child Neurology JCN joint communications network (US DoD) Newswire) - Victor Company of Japan, Limited (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). : 6792, 'JVC') today announced its consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: results for the fiscal year ended March 31, 2007. Total sales were 742.6 billion yen during the period, an 8% decrease year-on-year. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. posted a loss of 5.6 billion yen during the period, an improvement of 1.2 billion yen year-on-year. Net income posted a loss of 7.8 billion yen during the period, an improvement of 22.8 billion yen year-on-year. The main highlights of the fiscal year ended March 31, 2007 were as follows. Sales in the Consumer Electronics segment were sluggish. Although sales of camcorders were healthy, the company experienced a sharp decline in sales of televisions in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . In Japan, LCD (Liquid Crystal Display) A display technology that uses rod-shaped molecules (liquid crystals) that flow like liquid and bend light. Unenergized, the crystals direct light through two polarizing filters, allowing a natural background color to show. televisions failed to draw the interest of consumers while market-related costs were up. The Software & Media segment also struggled, with the second half of the fiscal year marked by a lack of major hit releases from Victor Entertainment Victor Entertainment (ビクターエンタテインメント株式会社 , Inc. Furthermore, sales of blank Lacking something essential to fulfillment or completeness; unrestricted or open. A space left empty for the insertion of one or more words or marks in a written document that will effectuate its meaning or make it legally operative. media were sluggish due to a rapid market shift in demand for camcorder media. However, Teichiku Entertainment, Inc. produced strong sales. Overall, the company's business results declined in Q4, causing it to record net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight and income that were lower than the forecast released on February February: see month. 19, 2007.
Selected Consolidated Operating Results
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FY2007 FY2008 Compared
(April 1, 2006- (April 1, 2005- with the
March 31, 2007) March 31, 2006) year before
----------------------------------------------------------------------
Total Sales 742,685 806,899 92%
Operating Income (loss) (5,656) (6,890) -
Ordinary Income (loss) (11,695) (15,038) -
Net Income (loss) (7,891) (30,607) -
Net Income (loss)
Per Share (31.07 yen) (120.50 yen) -
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*Amounts indicated in millions of yen, except net income per share
*1: There are 72 consolidated companies.
Sales by Segments
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FY2007 FY2008 Compared
(April 1, 2006- (April 1, 2005- with the
March 31, 2007) March 31, 2006) year before
----------------------------------------------------------------------
Consumer Electronics 543,254 (73%) 600,397 (74%) 90%
Professional Electronics 63,962 (8) 67,563 (8) 95
Components & Devices 35,613 (5) 30,247 (4) 118
Software & Media 95,182 (13) 103,943 (13) 92
Others 4,672 (1) 4,748 (1) 98
Total 742,685 (100) 806,899 (100) 92
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Domestic 229,578 (31) 259,115 (32) 89
Overseas 513,107 (69) 547,784 (68) 94
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*Amounts indicated in millions of yen
2. Non-consolidated Financial Highlights for FY2007 (April 1,2006 - March 31,2007)
Selected Non-consolidated Operating Results
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FY2007 FY2008 Compared
(April 1, 2006- (April 1, 2005- with the
March 31, 2007) March 31, 2006) year before
----------------------------------------------------------------------
Total Sales 369,589 433,121 85%
Operating Income (loss) (4,468) (3,363) -
Ordinary Income (loss) (6,955) (4,820) -
Net Income (loss) (24,455) (16,723) -
Net Income (loss)
Per Share (96.29 yen) (65.84 yen) -
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*Amounts indicated in millions of yen
Sales by Segments
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FY2007 FY2008 Compared
(April 1, 2006- (April 1, 2005- with the
March 31, 2007) March 31, 2006) year before
----------------------------------------------------------------------
Consumer Electronics 274,555 (74%) 332,063 (76%) 83%
Professional Electronics 53,676 (15) 51,789 (12) 104
Components & Devices 11,897 (3) 15,248 (4) 78
Software & Media 26,392 (7) 30,335 (7) 87
Others 3,066 (1) 3,684 (1) 83
Total 369,589 (100) 433,121 (100) 85
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Domestic 159,533 (43) 180,597 (42) 88
Overseas 210,056 (57) 252,523 (58) 83
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*Amounts indicated in millions of yen
Major products of each segment as follows:
Consumer Electronics: LCD TVs, rear projection TVs, PDP TVs,
CRT TVs, camcorders, video cassette
recorders, DVD players, DVD recorders,
audio related equipment such as MD,
CD, DVD components, etc. and car AV
systems
Professional Electronics: Surveillance video equipment, audio
equipment, professional video equipment,
and projectors
Components & Devices: Motors, optical pickups,
high-density printed wiring boards
(PWBs) and parts for display equipment
Software & Media: Music and video software, such as CDs,
videodiscs, and prerecorded music and
video tapes, and blank-media
Others: Home furniture*2, information systems*3,
and production facility, etc.
*2: Only included in a consolidated level.
*3: Only included in a non-consolidated level.
Overview of results for the fiscal year ending March 2007 Consolidated results for the period are as follows:
Total Sales 742.6 billion yen
[Down 8.0% year-on-year from 806.8 billion
yen in fiscal 2006]
Operating Income (5.6)
[A loss of 6.8 billion yen in fiscal 2006]
Ordinary Income (11.6)
[A loss of 15.0 billion yen in fiscal 2006]
Net Income(loss) (7.8)
[A loss of 30.6 billion yen in fiscal 2006]
Consolidated net sales in Japan during the fiscal year ended March 31, 2007 were 229.5 billion yen, down 11% year-on-year by 29.5 billion yen. Although sales were up in the Electronic Components & Devices segment, it was offset by lower sales in the Consumer Electronics segment and sluggish sales in the Software & Media segment. Consolidated net sales outside of Japan were 513.1 billion yen, down 6% year-on-year by 34.6 billion yen. The decline was mainly due to sluggish sales in the Americas A·mer·i·cas , the See America. . As a result, total sales were 742.6 billion yen in the fiscal year ended March 31, 2007, down 8% year-on-year by 64.2 billion yen. Segment Information By segment, sales in the Consumer Electronics segment declined year-on-year in Japan. Sales of hard disk camcorders were strong, but the segment was impacted by the elimination of available DVD recorders (1) A recordable or rewritable DVD drive that is connected to the computer. It may be an internal or external device. See DVD drives, DVD-R, DVD-RW, DVD+R and DVD+RW. (2) and slump Slump A temporary fall in performance, often describing consistently falling security prices for several weeks or months. of audio products. Lower sales of LCD televisions due to a lack of draw for consumers were also a contributing factor. In markets outside of Japan, sales of hard disk camcorders made rapid gains in the Americas, but sales of CRT (1) (C RunTime) See runtime library. (2) (Cathode Ray Tube) A vacuum tube used as a display screen in a computer monitor or TV. The viewing end of the tube is coated with phosphors, which emit light when struck by electrons. televisions declined sharply in local currency terms, due to contraction contraction, in physics contraction, in physics: see expansion. contraction, in grammar contraction, in writing: see abbreviation. contraction - reduction of the market. Sales of D-ILA See LCoS. hybrid hybrid (hī`brĭd), term applied by plant and animal breeders to the offspring of a cross between two different subspecies or species, and by geneticists to the offspring of parents differing in any genetic characteristic (see genetics). projection TVs See rear-projection TV and front-projection TV. were sluggish due to sharp declines in market selling prices at the end of the calendar year, while sales of audio products were also sluggish. In Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). , sales of hard disk camcorders and LCD televisions were
up significantly, but regional sales were significantly impacted by
sluggish sales of DVD recorders and audio products. In Asia, sales of
hard disk camcorders and LCD televisions were up significantly, but
sales of CRT televisions and audio products were sluggish. As a result,
total sales in the Consumer Electronics segment were 543.2 billion yen
in the fiscal year ended March 31, 2007, down 10% year-on-year by 57.1
billion yen.
In the Professional Electronics segment, sales in Japan declined year-on-year. Sales of security products including surveillance camera systems were strong, but sales of pofessional audio products were sluggish. In markets outside of Japan, sales of security products grew steadily, while sales of professional HDV (High Definition Video) The high-definition, wide screen version of the DV magnetic tape format. Like DV, HDV recording moves at a constant data rate and stores data on the same DV and MiniDV tapes as SD camcorders. camcorders were up significantly. As a result, total sales in the Professional Electronics segment were 63.9 billion yen in the fiscal year ended March 31, 2007, down 5% year-on-year by 3.6 billion yen. The Electronic Components & Devices segment improved its performance year-on-year due to growth in sales of motors for hard disk drives and automobile automobile, self-propelled vehicle used for travel on land. The term is commonly applied to a four-wheeled vehicle designed to carry two to six passengers and a limited amount of cargo, as contrasted with a truck, which is designed primarily for the transportation of optical pickups. Total sales in the Electronic Components & Devices segment were 35.6 billion yen in the fiscal year ended March 31, 2007, up 18% by 5.3 billion yen. In the Software & Media segment, sales were down year-on-year. In the Software segment, major artists produced hit releases in the first half of the fiscal year, but the second half was marked by a lack of notable major hit releases from Victor Entertainment, Inc. In the Media segment, the market for digital video camcorder tapes shrank shrank v. A past tense of shrink. shrank Verb a past tense of shrink shrank shrink , while selling prices for DVD-RW (DVD-Read Write) A rewritable (re-recordable) DVD disc for both movies and data from the DVD Forum. Also called "DVD Dash RW" and "DVD Minus RW," DVD-RW uses phase change recording. The media hold 4.7GB per side and can be rewritten 1,000 times. media continued to decline sharply. As a result, total sales in the Software & Media segment were 95.1 billion yen in the fiscal year ended March 31, 2007, down 8% year-on-year by 8.7 billion yen. Other segments recorded total sales of 4.6 billion yen in the fiscal year ended March 31, 2007, down 2% year-on-year The consolidated profit and loss statement posted an overall operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of 5.6 billion yen in the fiscal year ended March 31, 2007, an improvement of 1.2 billion yen year-on-year. Selling prices for blank media and consumer digital electronics including LCD televisions and D-ILA hybrid projection TVs were down significantly, while declines in sales of audio products and CRT televisions also negatively impacted profits. However, the company took steps to improve its business position by shifting to high added-value products such as hard disk camcorders. In addition, the company engaged in initiatives to reduce fixed expenses and lower costs by driving down purchase costs. Ordinary income posted a loss of 11.6 billion yen in the fiscal year ended March 31, 2007, an improvement of 3.3 billion yen year-on-year. The performance was partly due to a non-operating loss of 6.0 billion yen. Net income posted a loss of 7.8 billion yen in the fiscal year ended March 31, 2007, an improvement of 22.7 billion yen year-on-year due to a partial reversal reversal n. the decision of a court of appeal ruling that the judgment of a lower court was incorrect and is reversed. The result is that the lower court which tried the case is instructed to dismiss the original action, retry the case, or is ordered to change its of differed tax assets though there was profit from differed property sales. Non-consolidated results for the period are as follows:
Total Sales 369.5 billion yen
[Down 14.7% year-on-year from 433.1 billion
yen in fiscal 2006]
Operating Income (5.6)
[A loss of 6.8 billion yen in fiscal 2006]
Ordinary Income (11.6)
[A loss of 15.0 billion yen in fiscal 2006]
Net Income(loss) (7.8)
[A loss of 30.6 billion yen in fiscal 2006]
Outlook for Fiscal 2008 Forecast of Consolidated Results for Fiscal Year Ending March 31, 2008 Looking forward, the company anticipates that it will continue to face tough business conditions in the next fiscal year. The market for digital consumer electronics both in Japan and outside of Japan is expected to become even more competitive. Other contributing factors include the impact of rising prices for raw materials and concerns over deceleration deceleration /de·cel·er·a·tion/ (de-sel?er-a´shun) decrease in rate or speed. early deceleration in economic growth in Europe and the US. Under the circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or , the JVC JVC Victor Company of Japan (or Japan's Victor Company) JVC Jewelers Vigilance Committee JVC Jesuit Volunteer Corps JVC Jet Vane Control (directs VLS-launched missiles) JVC Jonker-Volgenant-Castanon will strive to take position and boost sales centering on its "Only One Niche Top" strategy in order to restore its business results. Taking into account the operating results from the fiscal year ended March 31, 2007, the JVC will review poor-performing business segments such as US display business ,and considerations are currently being advanced. Consequently, JVC will make the announcement of its business plans for the next fiscal year at the end of May 2007. About JVC Victor Company of Japan, Ltd. (TSE: 6792; US: VJAPY), known worldwide as JVC, is well-known well-known adj. 1. Widely known; familiar or famous: a well-known performer. 2. Fully known: well-known facts. for its development of the VHS (Video Home System) A half-inch, analog videocassette recorder (VCR) format introduced by JVC in 1976 to compete with Sony's Betamax, introduced a year earlier. video standard, and has developed as an international company in the fields of audio, visual (A&V), information-related equipment, components, and entertainment for the domestic consumer market, as well as in the business market as a comprehensive provider of both hardware and software. JVC has received high praise in both domestic consumer and business markets. Visit the JVC home page at www.jvc.co.jp . Source: JVC Contact: Toshiya Ogata, Senior Staff Manager Akiko Sakakibara, Manager Public Relations Group Corporate Communications Department Victor Company of Japan, Limited (JVC) Tel: +81-45-450-2951, 2952 Fax: +81-45-450-2959 E-mail: ogata-toshiya@jvc-victor.jp sakakibara-akiko@jvc-victor.jp URL: http://www.jvc.co.jp/english Copyright [c] 2007 JCN Newswire. All rights reserved. A division of Japan Corporate News Network K.K. |
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