Pentax 2009 Annual Report Download - page 48

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46 HOYA Annual Report 2009
Information Technology (Electro-Optics Division)
In the Electro-Optics Division, net sales decreased 21.9%, to ¥163,902
million. In mask blanks for semiconductor production, sales fell amid
worsening business conditions in the semiconductor industry caused
by the economic slump, with demand dropping precipitously as com-
panies reduced development budgets and curbed capital expendi-
tures. In photomasks for semiconductors, although Hoya worked to
provide high-quality, state-of-the-art mask products, sales fell year on
year on account of deteriorating market conditions in the fourth quar-
ter. Downward price pressure on large-sized photomasks for LCDs
remained intense. In the first half of the year panel manufacturers,
Hoya’s customers, relaxed their focus on volume production from the
previous year and introduced new products and products for develop-
ment, resulting in firm sales. From the second half of the year, how-
ever, demand contracted suddenly as a result of increases in panel
inventories, and sales fell year on year accordingly. Sales of glass
memory disks for HDDs were affected significantly by the strong yen
and lower prices due to falling prices for HDDs, and in the fourth
quarter major inventory adjustments were seen in the market, leading
to a decline in sales. Sales of optical lenses also fell, as a worldwide
drop in demand for digital cameras during the second half of the
fiscal year caused a significant fall in orders for compact digital
camera lenses and lower market prices.
Segment operating income fell 41.1%, to ¥39,712 million. The
principal factors behind this decrease were a decline in orders amid a
rising sense that the world economy was slowing, coupled with the
impact of the strong yen and ongoing price declines.
Capital expenditures in this division came to ¥20,242 million, down
17.2% from the preceding term. These expenditures went toward up-
front production-related investment involving next-generation
semiconductor-related miniaturization projects and investment in boost-
ing production of the Company’s HDD glass disk plant in Vietnam.
Information Technology (Photonics Division)
The Photonics Division manufactures and sells defect correction
equipment and laser oscillators used in highly precise processing,
which are used by manufacturers of semiconductors, LCD panels, and
optical devices for producing flat panels and semiconductors. It also
manufactures and sells UV light source devices used to cure UV resins
in the bonding of optical parts, such as optical pickups and camera
modules. In addition, the division provides a wide range of specialty
glasses, including color filters for optical devices and electronic glass
for medical applications. During the fiscal year under review, a glass
polarizer was transferred from the R&D Center for the purpose of
full-fledged commercialization. Going forward, there are high expec-
tations for growth in the optical communications field.
During the fiscal year under review, sales of laser devices were
strong in the first half due to active capital expenditure by LCD panel
manufacturers. In the second half of the fiscal year, however, the eco-
nomic downturn led to a slowdown in customers’ capital expendi-
tures, resulting in significantly lower orders for Hoya’s products.
Although specialty glass materials propped up results, net sales
declined 30.0% to ¥6,367 million. Operating income dropped 64.0%
to ¥297 million.
(Millions of Yen) 2007 2008 2009
n Net sales 219,252 209,883 163,902
n Operating income 80,085 67,464 39,712
Operating margin
(%) Note 36.5 32.1 24.2
Assets 258,746 210,007 186,864
Depreciation 27,449 27,653 27,430
Capital expenditures 39,899 24,431 20,242
(Millions of Yen) (%)
Electro-Optics Division Each Year ended March 31
Note: The operating margin above is calculated using sales to customers plus intersegment sales. Please refer to details on page 45, Sales and Operating Income
by Segment.
Management’s Discussion and Analysis