Epson 2012 Annual Report Download - page 22

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21
Fiscal year net sales were ¥877,997 million ($10,682,528 thousand), down 9.8% year over year. Also on a year
over year basis, operating income was down 24.7% to ¥24,626 million ($299,622 thousand), ordinary income
declined 13.3% to ¥27,022 million ($328,774 thousand), and net income fell 50.9% to ¥5,032 million ($61,223
thousand).
A breakdown of the financial results in each reporting segment is provided below. Note that, from the first
quarter, in addition to consolidating the transferred small- and medium-sized displays business under the "Other"
segment, the old electronic devices segment and precision products segment have been combined and are being
reported together as the Devices and Precision Products Segment. Further, as of the third quarter, the visual
instruments business, which was under the information-related equipment segment, and the HTPS-TFT panels
for 3LCD projectors business, which was under the devices and precision products segment, were merged to
form the visual products business. The visual products business results are now reported under the
information-related equipment segment. The financial results corresponding to last fiscal year have been restated
in accordance with these segment changes for comparison purposes.
Information-Related Equipment Segment
Net sales in the Printer business as a whole declined. Consumer inkjet printer sales, including both hardware
units and consumables, as in all printer discussions below, declined. Although sales in Japan were brisk, sales in
other regions declined due to aggressive pricing by rivals and because Epson curtailed promotions in the
aftermath of the earthquake and tsunami. Unit shipments of large-format printers for enterprise were tempered
by the earthquake and tsunami yet still grew thanks to the launch of attractive new products in Europe and
America. Meanwhile, sales of consumables declined in conjunction with a lower rate of printer use in the
aftermath of the disaster in Japan and in a slowing economy. Page printer net sales suffered as the market shifted
toward entry-level models, causing average selling prices to drop. Page printer net sales were also hurt by a
decrease in consumables sales, the result of a smaller install base in the aftermath of the earthquake and tsunami.
SIDM printer unit shipments increased due to demand associated with China’s tax collection system. POS
system product unit shipments increased due to growth in sales of low- and medium-priced units to small- and
medium-sized retailers. The printer business as a whole was significantly impacted by the strong yen.
Net sales in the visual products business as a whole increased.
In visual instruments, unit shipments of 3LCD business projectors grew in general, but growth was especially
solid in Asia. Unit shipments of 3LCD home theatre projectors were buoyed by higher demand for full-HD and
3D models in the U.S. and Europe. The visual instruments business as a whole saw net sales increase, as unit
shipment growth more than offset falling average selling prices and the effects of yen appreciation.
The visual products business reported higher unit shipments of HTPS-TFT panels for 3LCD projectors, yet net
sales shrank under the weight of the strong yen and falling average selling prices.
Segment income in the information-related equipment segment declined. It was hurt by yen appreciation and the
effects of lower revenue resulting from decreased volume.
As a result of the foregoing factors, net sales in the information-related equipment segment were ¥691,801
million ($8,417,094 thousand), down 3.1% year over year, while segment income was ¥64,888 million
($789,488 thousand), down 8.7% year over year.
Devices and Precision Products Segment
Devices business net sales were down sharply. Quartz device sales were negatively impacted by ongoing price
erosion in AT-cut and tuning-fork crystals and by a drop in volume of high-speed crystal products in the
aftermath of the earthquake and tsunami. Net sales in this business were also lower as a result of some
opto-devices being transferred to the visual products business. Semiconductor shipments declined mainly due to
a decline in sales of LCD controllers and silicon foundry products, in part because of the effects of the disaster.
Precision product net sales declined slightly. In watches, net sales increased due to a rise in average selling
prices. Plastic eyeglass lens net sales were flat year on year because, while volume increased, average selling
prices plunged along with an increase in the share of low-price models. In factory automation systems, sales of