JVC 2007 Annual Report Download - page 15

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13
Anchored with high-value-added products fea-
turing proprietary, differentiating technologies,
this segment specializes in three areas—
security products, professional audio systems,
and professional creation products. We will bol-
ster our sales foundation for security products
and professional audio systems and strengthen
collaboration with the consumer video camera
business in professional creation products. In
fiscal 2007, although sales were just 95% of the
level a year earlier, at ¥64.0 billion, operating
income increased ¥300 million, to ¥1.0 billion.
In fiscal 2007, security products stood as one of the Professional
Electronics segment’s mainstay businesses, and greater safety needs
worldwide continued to spur demand growth. The emergence, howev-
er, of Asian makers based in China, South Korea, and other countries
as well as the entry into this product category of makers from other
sectors continued to drive price competition and an attendant decline
in selling prices. Amid this environment, sales of security products rose
year on year thanks to a strong showing in security systems for
pachinko gaming parlors and brisk worldwide sales of analog cameras.
In professional audio systems, such as speakers and amplifiers,
although construction investment in Japan was flat, demand from
rural areas shrank, sparking stiffer price competition. In the face of
these trends, our sales in this product category edged down, as we
were slow to shift the product development focus to private-sector
demand and improve our sales capabilities in major urban centers.
In professional creation products, supported by a steep climb in
the use of high-definition (HD) technologies in the professional mar-
ket, worldwide sales of Pro HD camcorders and creation products
were solid thanks to a stronger lineup and the addition of new fea-
tures and functions. Domestic demand for encoders for terrestrial
digital broadcasting fell back, however, and overall sales in this
product category dropped.
Share of Total FY2007 Sales
8.6%
Professional Electronics
3-CCD Pro HD Camcorder (New Model)
Using 720p 50/60 recording formats to deliver even smoother
video imaging, our new-model professional HDV camcorders
offer HD-SDI output, a serial digital interface used for
broadcast-grade video, and other improvements
for television broadcasters.
Sales (Billions of yen)
In fiscal 2008, for security products, we will continue to push hard
in Internet protocol (IP) security systems through our alliance with
Belgium-based Milestone Systems A/S and other avenues and
develop business with large users worldwide in particular.
In professional audio systems, we will apply sales synergies
through joint marketing with our security products. We will strength-
en merchandise targeted at the private sector to boost sales of inter-
com systems in particular.
In professional creation products, we will harness our video cam-
era technologies in consumer electronics, our sound and imaging
technologies, and our network technologies to cement the market
foundation we have built in professional Pro HD camcorders and
boost synergies with other categories.