Epson 2015 Annual Report Download - page 24

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23
Information-Related Equipment Business Segment
Printing systems revenue increased, helped in part by foreign exchange effects.
We succeeded in sharply expanding inkjet printer revenue despite a decline in ink cartridge printer shipments
because a reinforced lineup of printers with high-capacity ink tanks had strong sales especially in emerging
markets. We also reinforced our business inkjet printer lineup for a resolute entry into the business market. At
the same time, we launched a managed print services business in Japan. Under this new business model,
customers pay a flat fee for a package that includes printer, ink, and maintenance service. In addition, revenue
from consumables also rose due to an improved composition of the install base.
In large-format inkjet printers we saw ongoing firm demand in the large-photo and color calibration (proofing)
markets. In the professional photo market we increased revenue by launching compact, high-performance new
models. In the inkjet textile printing market, the range of applications expanded to encompass everything from
apparel to small personal items and interior goods. Meanwhile, we expanded the territories where we sell
direct-to-garment printers to capture opportunities created by a rise in demand for custom and original T-shirts.
Page printer revenue decreased due to a decline in unit shipments, the result of Epson’s focus on selling
high-added-value models.
SIDM printer revenue was flat year over year because the effects of a temporary lull in demand in China and a
decline in unit shipments in the Americas and Europe were offset by foreign exchange effects and increased
sales of low-priced models in Asia.
POS system product revenue increased because of unit shipment growth in Europe and expanded sales of label
printers for on-demand, in-house printing.
Visual communications revenue increased, owing in part to foreign exchange effects. 3LCD projector revenue
grew sharply in the Americas and Asia. This growth was the result of an expanded and improved lineup of
high-performance products, the special demand generated by the FIFA World Cup, and increased sales in the
education market.
Segment profit in the information-related equipment segment increased due to a combination of revenue growth
from major products and foreign exchange effects.
As a result of the foregoing factors, revenue in the information-related equipment segment was ¥907.2 billion
($7,550,105 thousand), up 7.9% year over year. Segment profit was ¥133.6 billion ($1,112,299 thousand), up
8.0% year over year.
Devices and Precision Products Business Segment
Revenue in the micro-devices business increased, in part due to foreign exchange effects.
Crystal device revenue fell due to ongoing price erosion in the markets for AT-cut crystal and tuning-fork crystal
products. Semiconductor revenue increased due to growth in internal demand and external sales, including
silicon foundry orders.
Precision products revenue increased owing to factors such as increased sales of premium watches, which lifted
average selling prices, and foreign exchange effects.
Segment profit in the devices and precision products segment increased, in part due to revenue gains
resulting from foreign exchange effects.
As a result of the foregoing factors, revenue in the devices and precision products segment was ¥156.2 billion
($1,300,632 thousand), up 5.1% year over year. Segment profit was ¥14.8 billion ($123,508 thousand), up
36.7% year over year.
Sensing and Industrial Solutions Business Segment
Revenue in the sensing and industrial solutions segment increased.
In factory automation systems, industrial robot net sales grew on increased orders from Asia, while IC handler
net sales grew on increased orders from manufacturers of semiconductors for smartphones.
Segment profit in the sensing and industrial solutions segment increased primarily due to increased revenue
from sales of industrial robots.
As a result of the foregoing factors, revenue in the sensing and industrial solutions segment was ¥23.3 billion
($194,690 thousand), up 44.6% year over year. Segment loss was ¥9.0 billion ($75,193 thousand), compared to
a segment loss of ¥9.9 billion in the same period last year.
The loss in this new segment comprises strategic investment and up-front expenses for development of new
products and markets. We will continue to work to strengthen this segment, which we see as a key area in which
we can leverage our strengths to deliver innovative products and services.