JVC 2004 Annual Report Download - page 36

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Victor Company of Japan, Limited34.
2000
0
200
400
600
800
1,000
20042001 2002 2003
(Billions of yen)
Overseas
Domestic
2000
–40
–20
0
20
40
20042001 2002 2003
–60
(Billions of yen)(
Billions of yen)
2000
–20
–10
0
10
20
30
20042001 2002 2003
NET SALES OPERATING INCOME (LOSS) NET INCOME (LOSS)
Software & Media
Segment sales dropped 11.6%, or ¥19.5 billion, to ¥148.0
billion, primarily due to an industry-wide drop in sales of
music, video and videogame software, as well as lower
sales of software consigned from other companies. Despite
the effects of the downturn in the music industry, operating
income grew 260.0%, or ¥3.4 billion, to ¥4.7 billion,
buoyed by a number of hit titles and the growing shift to
digital formats in the recording media market. Initiatives to
restructure this business segment in fiscal 2002 and 2003
also contributed to an improved performance by JVC overall.
Other
Sales declined 1.5%, or ¥0.1 billion, to ¥6.4 billion, while
operating income increased ¥0.1 billion, to ¥1.3 billion.
Other Income (Expenses)
For the year under review, the company recorded other
expenses, net of ¥11.0 billion. This was mainly attributable
to restructuring charges of ¥3.8 billion, related to the
closure of a tape factory in the US and rationalization at a
US sales subsidiary and device business, interest expense of
Professional Electronics
Sales in this segment declined 4.9%, or ¥3.4 billion, to
¥67.5 billion. Although the operating loss narrowed by
¥1.9 billion compared to the previous fiscal year, this
segment still posted an operating loss of ¥1.8 billion. In
Japan, sales of presentation systems had a tough year, but
double-digit growth of security products such as surveillance
camera systems fueled a year-on-year increase in overall
sales. Overseas, this segment struggled in both the US and
Europe. By product, standout performers were D-ILA
projectors and PDP TVs, but weak sales of security and
presentation systems dragged down overall sales.
Components & Devices
Sales jumped 30.3%, or ¥14.5 billion, to ¥62.0 billion, in
line with the inclusion of certain subsidiaries in consoli-
dated results. However, the previous fiscal year’s operating
loss widened by ¥2.4 billion, to ¥3.1 billion. Key factors
behind this result included a contraction in the market for
deflection yokes that was more severe than expected,
resulting in weaker demand for these components, and
lower year-on-year sales of motors and optical pickups.