Epson 2011 Annual Report Download - page 22

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21
79.5% from the prior year. Ordinary income was ¥31,174 million ($374,912 thousand), up 124.7% from the
prior year. And net income was ¥10,239 million ($123,138 thousand), compared to a net loss of ¥19,791 million
in the previous year.
A breakdown of the financial results in each reporting segment is provided below. Please note that, with the
application on March 27, 2009 of Accounting Standard No. 17, “Revised Accounting Standard for Disclosures
about Segments of an Enterprise and Related Information,” Epson has changed the method it uses to account for
segment information, effective from the current fiscal year. The main change is that expenses associated with
corporate R&D are consolidated under corporate expenses instead of being apportioned to reporting segments as
they were in the past.
Information-related equipment
Net sales in the printer business as a whole declined slightly. Inkjet printer (including consumables, as in all
printer discussions below) unit shipments increased, as sales of consumer models in the U.S. remained steady
throughout the first half. Unit shipments of large-format printers for enterprise grew, largely due to business
wins in the U.S. photo and signage markets and expanded demand in the robust Chinese market. Meanwhile,
consumables units shipments declined along with changes in the model mix, while average selling prices rose.
Office inkjet printer sales were firm, thanks to a series of business wins. SIDM printer unit shipments rode
higher on the back of increased demand associated with China’ s tax collection system, while shipments of POS
system products grew, owing mainly increased demand from small- and medium-sized retailers. Page printer
hardware shipments increased as a result of successful tenders, but net sales were adversely affected by ongoing
price erosion, as well as by a decline in sales of consumables due to a smaller page printer install base. Net sales
of the printer business were largely canceled out by gains in the yen.
The visual instruments business as a whole reported increased net sales. Although tempered to some extent by
the strong yen, unit shipments of 3LCD business projectors increased, as demand for education models remained
firm in Europe, America, and Asia. Moreover, average selling prices rose as a result of the popularity of
short-throw lens projectors and other higher-end models. Increased demand for full-HD home-theater projectors
also contributed to higher net sales.
Segment income in the information-related equipment segment declined compared to the same period last year,
when last year’ s segment income is recalculated using the accounting method applied this year (as with all
segments below). The decline was due to yen appreciation and price erosion, which outweighed increased unit
shipments of SIDM printers and 3LCD projectors.
As a result of the foregoing factors, full-year net sales in the information-related equipment segment were
¥702,918 million ($8,453,626 thousand), down 1.4% from the prior year. Segment income was ¥70,151 million
($848,630 thousand), compared to operating income of ¥38,030 million in the previous year. Segment income in
the same period last year, recalculated using the accounting method applied this year, was ¥71,748 million.
Electronic devices
The quartz device business reported higher net sales. Although hurt by yen appreciation, net sales were boosted
by increases in shipments of most products due to the economic recovery, which buoyed demand for electronic
devices in general.
The semiconductor business as a whole saw net sales increase. Unit shipments of silicon foundry products,
analog ICs, and monochrome LCD drivers for automotive applications increased due to firm demand for
electronic components in general. Higher average selling prices brought about by changes in the model mix were
also seen to boost revenue.
The displays business as a whole posted sharply lower net sales. Unit shipments of high-temperature polysilicon
TFT liquid-crystal panels for 3LCD projectors (“HTPS panels”) increased due to increased demand, especially in
the first half, for education and other projectors. However, net sales were hurt by the effects of the strong yen
and price erosion. The small- and medium-sized displays business is in the process of being transferred and thus