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38 Victor Company of Japan, Limited
NET SALES BY SEGMENT
Billions of yen
Consumer Professional Components
electronics electronics & Devices Software & Media Other
business business business business business Total
2006
Sales ¥600.4 ¥67.6 ¥30.2 ¥103.9 ¥4.8 ¥806.9
Percentage 74.4% 8.4% 3.7% 12.9% 0.6% 100.0%
Change (4.3)% (1.1)% (29.9)% 8.4% (19.2)% (4.0)%
Domestic Sales ¥118.8 ¥44.6 ¥2.2 ¥ 88.8 ¥4.7 ¥259.1
Change (12.2)% (4.5)% (40.5)% 8.8% (17.5)% (5.1)%
Overseas Sales ¥481.6 ¥23.0 ¥28.0 ¥ 15.1 ¥0.1 ¥547.8
Change (2.1)% 6.5% (29.1)% 5.6% (50.0)% (3.5)%
2005
Sales ¥627.3 ¥68.3 ¥43.2 ¥95.9 ¥5.9 ¥840.6
Percentage 74.6% 8.1% 5.1% 11.4% 0.8% 100.0%
Major Products LCD TVs, Professional Motors, Audio and visual Interior furniture
projection TVs, surveillance optical pickups, software production facilities
Plasma TVs, equipment, “VIL” PWBs, and including CDs,
CRT TVs, professional audio components for DVDs and
camcorders, VCRs, equipment, use in computer videotapes, and
DVD players, professional video displays recording media
DVD recorders, equipment, and
audio systems, and professional
car AV systems projectors
Financial Review
Cost of sales decreased 2.4%, to ¥551.3 billion, and the
gross profit margin declined from 32.8% in the previous fis-
cal year to 31.7%. Selling, general and administrative
(SG&A) expenses slipped 1.0%, to ¥262.5 billion.
The Components & Devices segment regained its oper-
ating profitability, and operating profit rose in the
Professional Electronics and Software & Media segments.
However, sales in the Consumer Electronics segment were
negatively affected by such factors as quality problems with
certain DVD recorder models that led to a drop in the num-
ber of products in the DVD recorder product lineup and a
fall in DVD recorder sales, a delay in LCD TV development
during the interim period that led to the loss of marketing
opportunities, and the intensification of market competition
Overview of Fiscal 2006
In fiscal 2006, ended March 31, 2006, consolidated net
sales declined 4.0%, to ¥806.9 billion. In Japan, rising sales
of LCD TVs, video cameras, and other consumer electron-
ics products and hit releases of entertainment software
products had a positive effect on net sales, but lower sales
of DVD recorders and professional electronics products
caused domestic sales to contract 5.1%, to ¥259.1 billion.
Regarding overseas sales, sales were up in the United
States, and increased overseas sales were recorded of
such products as LCD TVs, D-ILA hybrid projection TVs,
and camcorders, but these factors were more than offset
by drops in overseas sales of CRT TVs, DVD recorders, and
audio products, causing total overseas sales to shrink
3.5%, to ¥547.8 billion.