JVC 2003 Annual Report Download - page 24

Victor Company of Japan, Limited
22 Annual Report 2003
Professional Electronics
Preset Dome Color Cameras
Easy-to-install, high-resolution security cameras
offering comprehensive manned or automatic
surveillance of indoor environments
High-definition Digital Camcorders
The first affordable high-definition professional
camcorder on the market. 720/30p HD recording
on Mini-DV tape; 1080i/720p/NTSC playback; XLR
x 2 audio inputs
D-ILA Ultra-High Resolution (QXGA)
Projector
The world’s first projector able to deliver the long-
awaited ultra-high resolution images that match the
depth and true-to-life presence of film
Toyoharu Honda
General Manager, Professional Products, Systems &
Network Sector
must offer products backed by core
technologies that meet each of these
demands, including the ability to func-
tion as an integral part of a network.
One such product is our 16-channel
digital video recorder, which features
MPEG2 compression technology, a
JVC strength, and high-resolution im-
age storage. Another is a digital cam-
era, scheduled for release later in
2003, which can generate clear im-
ages even when shooting in strong
light conditions. Supported by this ini-
tial progress, we will develop more
products and systems that clearly set
us apart in the surveillance equipment
market.
Presentation Systems
We have a high profile in the presenta-
tion equipment market. Our flagship
product is the D-ILA projector, an “Only
One” product boasting outstanding reso-
lution and vivid color imaging. New pro-
jector products launched in March 2003
generated sales well above our forecasts
and were well received by the market.
Other operating highlights included
market share gains by two important
products: digital signal encoding/decod-
ing systems for broadcasters, a tradi-
tional JVC strength, ahead of the rollout
of digital terrestrial broadcasting in
Rebuilding and Refocusing
The professional equipment segment
struggled during fiscal 2003. At the
heart of the problem was a strategy out
of synch with market trends. To correct
the problem, we launched a three-year
program that will tightly focus resources
on newly rebuilt business domains. We
already announced our intention to es-
tablish solid positions in the security and
presentation markets. In conjunction
with this decision, we are consolidating
the domestic manufacturing of these
products at a single location and in-
creasing overseas production. In another
move to boost profitability, we cut the
number of professional equipment mod-
els we supply from 2,200 to 1,100.
Security Systems
We believe security systems represent
the next growth opportunity for our
professional equipment. One reason is
that demand for surveillance systems
continues to expand. Another is that
our superior audio and video technolo-
gies dovetail well with requirements
for security systems. This market is di-
versifying as systems incorporate more
advanced data management technol-
ogy, become network integrated, and
adopt a range of other new functions
to meet user demands. To succeed, we
Japan at the end of 2003; and DV video
camcorders due to a broader lineup.
With digital broadcasting now becom-
ing a reality in Japan, local governments,
universities and other institutions are
looking into adopting sophisticated, in-
teractive video systems. Another prom-
ising growth market for these systems
is online education, which makes use
of fiber-optic LAN technology. This form
of education is currently being promoted
by two Japanese Government ministries.
In both the security and presentation
markets, we plan to set ourselves apart
from our rivals by supplying products
built around sophisticated technology,
as well as by offering total system solu-
tions that incorporate our new products.
The current fiscal year will see an up-
graded product line, making possible
even more attractive solutions for appli-
cation-specific systems and, ultimately,
driving a turnaround in this segment.
This segment develops, manufactures and sells cameras, video decks, audio equipment, displays and a range of other
audio and visual equipment for professional users. Business activities also extend to designing and providing complete
systems made up of this equipment. In fiscal 2003, segment sales were down year on year due to delays in introducing
some new products and other factors that impacted on sales. As a result, the segment posted an operating loss, while
segment sales fell to 7% of total sales.