Presentation Transcripts

Second quarter net sales for the Electronic Devices and Components business segment totaled 125.8 billion yen, a whopping increase of 57% from the same period last year and up 46% from the previous quarter. Operating income in the meantime was down 6% from the same period last year but up 20% from the previous quarter to total 6.7 billion yen while the operating margin fell 1.1 percentage points from the previous quarter to hit 5.4%.
Sales of motors increased 11% year on year and 6% quarter on quarter to reach 42.0 billion yen. Compared to the June quarter, sales of HDD spindle motors were back up but down at Moatech, which was in the middle of restructuring. Profitability steadily improved quarter on quarter for many motor products as cost cutting measures paid off. We will continue to focus on ways to bring costs down.
Despite no change in shipment volumes to Chinese smartphone manufacturers, sales of electronic devices increased 92% over the same period last year and 94% over the previous quarter to reach 73.3 billion yen. The increase came as we began shipping our new higher priced LED backlights with more functions to high-end smartphones. Monthly sales of LED backlights hit record highs in August and September while operating income missed the target, falling year on year as well as quarter on quarter due to a delay in ramping up new component production and increased start-up costs. We expect to see significant increases in sales and profits in the December quarter when we enter the peak demand period.
Sales of measuring components totaled 9.7 billion yen. That's 3.5 times higher than what they were for the same period last year and up 18% from the previous quarter. This increase comes from adding in three months of results from Sartorius Mechatronics T&H and steadily climbing sales at our other business operations. Despite making the acquisition, we were able to keep our profit margin high.