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Victor Company of Japan, Limited 19
In fiscal 2006, although sales fell 30%, to ¥30.2 billion, the Components & Devices seg-
ment generated operating income of ¥0.1 billion, reflecting a ¥1.8 billion improvement
and a return to profitability for the first time in five years. The segment’s mainstay motors
gained substantial ground, encouraged by such factors as strong sales of motors for
3.5-inch hard disk drives (HDDs) and expansion of retail channels for motors for slim
optical disk drives (ODDs). In addition, we succeeded in beating our revenue targets for
optical pickups, mainly owing to robust sales of optical pickups for car CD receivers and
the launch of optical pickups for car DVD receivers. Meanwhile, we consolidated manu-
facturing bases for deflection yokes in response to contraction in the market for these
products and took other steps to shore up the segment’s foundation. In addition, we
resolved manufacturing issues pertaining to multi-layer build-up boards, regaining cus-
tomer confidence and substantially reducing the operating loss for boards.
In fiscal 2007, we will work to further expand operations, focusing on motors.
Specifically, we will strive to boost sales of motors for 3.5-inch HDDs and develop
motors for 2.5-inch HDDs and slim ODDs as mainstay products.
In addition, JVC will proactively develop optical pickups for car CD and DVD receivers
equipped with its original hologram device. In deflection yokes, we will push ahead with
structural adjustments in response to changes in demand amid a shrinking market. As
for build-up boards, we will introduce module boards that leverage our high-density lam-
inate technologies while breaking into new territory with the aim of turning a profit for the
year. Furthermore, we will shore up the segment’s development framework by increas-
ing the number of engineers to work on motors and optical pickups to accelerate our
growth strategies.
Motors for Hard Disk Drives
JVC has leveraged ultrahigh precision bear-
ings and assembly technology to create low-
noise, long-life, shock-resistant motors for
hard disk drives.
Optical Pickups for Car CD Receivers
This high-performance optical pickup offers
industry-leading heat and vibration resistance
and outstanding reliability.
Components & Devices
20040 60 80
’06
’05
’04
’03
’02
43.2
62.0
47.6
49.7
30.2
Sales (Billions of yen)
% of Total FY2006 Sales
3.7%
The Components & Devices segment enjoys a strong reputation in the market for its high-performance, high-quality parts that
leverage JVC’s original technologies and manufacturing processes. Going forward, this segment will support the Company’s
core Consumer Electronics segment, mainly through the provision of key components, while making the most of this strength.