Presentation Transcripts

In the electronic devices and components business segment, net sales of HDD spindle motors increased by 19.2% compared to the same period last year, and by 0.9% from the previous quarter. Sales volume increased to 5.5 million units per month, including 1.3 million units of the 2.5 inch HDD spindle motors which also increased from the previous quarter, due to the robust HDD market which has been upbeat since last summer. However, profitability remained negative due partly to the appreciation of the Thai Baht against the US dollar despite our aggressive efforts to improve production yield and cut costs. We are aiming to break even on a monthly basis during the fourth quarter by continuing our current efforts.

In the information motors business, third quarter net sales decreased by 6.0% from the same period last year, and by 6.9% from the previous quarter. Profit decreased because of a fan motors sales decline due to the appreciation of the Chinese renminbi against the US dollar and intensified competition as well as a stepping motors sales decline as the peak Christmas holiday demand petered out despite our efforts to cut costs. We will continue our cost reduction efforts to make this business more profitable.

Net sales of keyboards decreased by 12.7% from the previous quarter as peak Christmas holiday demand of high-end retail desktop keyboards subsided despite the continuing strong demand for notebook PC keyboards. Profit declined from the previous quarter.

Net sales of the measuring components business increased 52.4% from the same period last year, and by 24.8% from the previous quarter, mainly due to an increase in sales of strain gage force sensors for Nintendo's Wii related business. Profit also increased.

Net sales of electronic devices decreased by 7.3% from the same period last year, but increased by 13.4% from the previous quarter. Inverters used in large flat-screen TVs sold very well. The sales volume for LED backlights also increased. Profit increased over the second quarter.

Net sales of speakers decreased 35.9% from the same period last year and 19.2% from the previous quarter, leaving operations in the red. We are currently shifting our production from Thailand to China to cut costs.

Third quarter net sales for the electronic devices and components business segment totaled 49.1 billion yen. Operating income reached 1.208 billion yen while the operating margin improved steadily to 2.5%.