Oki 2004 Annual Report Download

Download and view the complete annual report

Please find the complete 2004 Oki annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 46

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46

A New Stage of Growth
ANNUAL REPORT 2004 Year ended March 31, 2004

Table of contents

  • Page 1
    ANNUAL REPORT 2004 Year ended March 31, 2004 A New Stage of Growth

  • Page 2
    ...has strengths in the fields of information systems, telecommunications and electronic devices that set it apart from other manufacturers, and in recent years it has used those strengths to supply unique products and services. Oki is also actively working to bring about the convergence of information...

  • Page 3
    ...(Loss) per Share Number of Employees ¥ 2.17 20,960 ¥ (10.72 ) 22,520 -% (6.9)% $ 0.02 Note: U.S. dollar amounts in this annual report are translated from yen, for convenience only, at the rate of ¥105=US$1.00, the approximate exchange rate prevailing on March 31, 2004. Net Sales (Billions...

  • Page 4
    ...Oki is realizing its vision "Oki, Network Solutions for a Global Society," through the creation of unique and powerful technologies, products and services Consolidated Performance in the Year Ended March 31, 2004... also have seven internal venture companies which specialize in 4 ANNUAL REPORT 2004

  • Page 5
    ...sound generator LSIs for GSM mobile telephones. Other key products include driver LSIs for liquid crystal displays (LCDs), and system memories, for which Oki has established an ultra-fast delivery capability. In the year ended March 2004, our sales grew at a faster rate than the semiconductor market...

  • Page 6
    ...wide spectrum of services can be used. Based on this belief, Oki has integrated its diverse and powerful hardware and software technologies and combined ... and support of our shareholders, customers and friends. Katsumasa Shinozuka, President and Chief Executive Officer 6 ANNUAL REPORT 2004

  • Page 7
    ...of resources P12 Information Systems Expansion of software and services Telecommunications Systems Electronic Devices Establishment of alliances Development of the Chinese market 1998 Establishment of the Phoenix 21 plan Under its corporate vision "Oki, Network Solutions for a Global Society...

  • Page 8
    ...of Information and Telecommunications Customers Users Customer contact Operational system Partner contact Partner companies Voice data switching to VoIP AP@PLAT Multi-service contact ® IP-based integration of information networks Solution models Ubiquitous network linkage Communication assist...

  • Page 9
    ... In line with its corporate vision "Oki, Network Solutions for a Global Society," Oki has focused on the creation of unique information systems, network equipment and services. Particularly in the area of the integration of voice and data networks using VoIP technology, Oki offers various one-stop...

  • Page 10
    ..., Oki supplies technology to Shanghai's Grace Semiconductor Manufacturing Corporation Ltd. (GSMC) and is actively building a partnership to meet demand in the expanding Chinese market. Miyagi Oki Miyazaki Oki Oki Thailand In house fabrication UMC GSMC Partners' facilities 10 ANNUAL REPORT 2004

  • Page 11
    ... and system technology. It has used that expertise to develop many unique products that other manufacturers cannot match. The company has also strengthened its customer support by increasing the number of field application engineers throughout the world, and by opening new custom design centers. Oki...

  • Page 12
    Features Expanding Our Share of the Color Printer Market Asia Japan 270% Europe U.S.A 2001 2002 2003 Years ended March 31 2004 2005 Number of color LED printers sold Oki's original technology has received acclaim all over the world 12 ANNUAL REPORT 2004

  • Page 13
    ...Shenzhen, China and Ayutthaya, Thailand. Oki has rapidly increased its markets share to third place in Europe and fourth in North ... Color ® system A color page printer for high-speed, high-resolution printing (color printing speed: 30 ppm) Four cycle color printing system ANNUAL REPORT 2004 13

  • Page 14
    ...Cre Payment Service," an Internet credit payment service that supports the latest identity verification services. High-resolution live video distribution system with minimal delay The demand for video distribution systems is rapidly increasing along with the spread of broadband ® networks. Oki has...

  • Page 15
    ...VoIP market with products that include the BV Series of VoIP ® ® ® gateways, IP-PBX systems, such as IPstage EX100 and DISCOVERY01 , and software switches, such as CenterStage . Oki leads the world in the volume of software switches produced for telecommunications carriers. ANNUAL REPORT 2004 15

  • Page 16
    ... networks. Oki also commercialized a lithium niobate (LN) modulator driver designed to meet the need for increased miniaturization and reduced power consumption, as well as an electro absorption (EA) modulator , driver with the world s smallest package, measuring 4 mm square. 16 ANNUAL REPORT 2004

  • Page 17
    ...system allows falsification of the documents to be identified and detected with more than 99% accuracy. Oki has also commenced sales of a software product that applies the Secure print technology same technology to automate data entry based on handwritten questionnaire responses. ANNUAL REPORT 2004...

  • Page 18
    ..., which are vulnerable to heat. This method has been applied to Oki's electronics manufacturing services (EMS) business. Oki further strengthened its environment-friendly manufacturing technology by introducing a system of lead-free soldering qualifications as a framework for the training of...

  • Page 19
    ... year ended March 2002, Oki has supported the National School Biotope* Competition. In February 2004, Oki Customer Adtech Co., Ltd. (OCA), which has over 300 offices throughout Japan, used 14 of its offices to provide live video coverage of the presentations by using a system for video delivery over...

  • Page 20
    ... Sato* Harushige Sugimoto* Chief Technology Officer General Manager, Corporate Research and Development Center Chairman & President, Manufacturing Service Compamy Chairman, Multimedia Messaging Company Director Minoru Morio Advisor of Sony Corporation (As of June 29, 2004) 20 ANNUAL REPORT 2004

  • Page 21
    ... Summary Financial Review Consolidated Balance Sheets Consolidated Statements of Operations Consolidated Statements of Shareholders' Equity Consolidated Statements of Cash Flows Notes to Consolidated Financial Statements Report of Independent Auditors 22 23 26 28 28 29 30 42 ANNUAL REPORT 2004 21

  • Page 22
    ...Oki Electric Industry Co., Ltd. and consolidated subsidiaries Years ended March 31 Thousands of U.S. dollars Millions of yen 2004...share Cash dividends per share Number of shareholders Number of employees Ratios (%): Return...Note: U.S. dollar amounts in this annual report are translated from yen, for ...

  • Page 23
    ...number of financial institutions, the economy remained basically on a recovery track. Oki... capable of handling Japan's new banknotes, ...2004 2002 2003 2004 2002 2003 2004 Information Systems Telecommunications Systems Electronic Devices Other Operations Net Income (Loss) ROE ANNUAL REPORT 2004...

  • Page 24
    ...) Interest-Bearing Debt (Billions of yen) 651.6 (10.72) 16.7% 622.9 609.6 355.8 355.4 291.4 16.3% 18.1% 109.1 (55.66) 2002 101.3 2003 110.5 2003 2004 2002 2004 2002 2003 2004 Total Assets Total Shareholders' Equity Shareholders' Equity Ratio 24 ANNUAL REPORT 2004

  • Page 25
    ... a priority for Oki. Management information is promptly disclosed to shareholders and investors through management briefings and meetings to present the annual accounts, and also through web sites and other media. Policy Implementation The Board of Directors meets monthly to set basic policies, make...

  • Page 26
    Financial Section Consolidated Balance Sheets Oki Electric Industry Co., Ltd. and consolidated subsidiaries As of March 31, 2004 and 2003 Thousands of U.S. dollars (Note 2) Millions of yen ASSETS Current ...4,583,778 2,622 5,904,016 (4,764,374) 1,139,641 490,356 $ 5,805,340 26 ANNUAL REPORT 2004

  • Page 27
    ...liabilities (Note 16) Total liabilities and shareholders' equity The accompanying notes are an integral part of these statements. 2004 ¥ 86,658 58,103 6,742 98,015 1,820 42,375 17,960 311,676 2003 ¥107,307 ... 677,627 (282,719) 104,123 (91,615) (1,350) 1,052,374 $ 5,805,340 ANNUAL REPORT 2004 27

  • Page 28
    ... 741 - ¥ (31,004) 2002 ¥ 67,862 ¥ 67,862 ¥ 71,150 ¥ 71,150 ¥ 12,231 (34,077) (274) - (3,061) ¥ (25,180) 2004 $ 646,308 $ 646,308 $ 677,627 $ 677,627 $ (295,285) 12,651 (85) - - $ (282,719) ¥ 67,862 ¥ 67,862 ¥ 71,150 ¥ 71,150 ¥ (31,004) 1,328 (8) - - ¥ (29,685) 28 ANNUAL REPORT 2004

  • Page 29
    ... Cash Flows Oki Electric Industry Co., Ltd. and consolidated subsidiaries Years ended March 31, 2004, 2003 and 2002 Thousands of U.S. dollars (Note 2) Millions of yen 2004 Cash flows from... 278,993 358 $ 553,101 ¥ 7,509 2,858 ¥ 7,669 1,092 ¥ 8,254 3,406 $ 71,515 27,225 ANNUAL REPORT 2004 29

  • Page 30
    ...as a component of shareholders' equity in the accompanying consolidated financial statements. (h) Intangible assets and amortization Intangible assets, including capitalized computer software costs, are amortized by the straight-line method over their estimated useful lives. 30 ANNUAL REPORT 2004

  • Page 31
    ... is within the estimated average remaining years of service of the Group's participants in the plan. The...Interest-rate swaps which meet the required criteria are accounted for by a special method... ¥ 1,130 1,101 ¥ 1,101 (28) ¥ (28) 6,000 5,998 $ 10,761 $ 10,791 (1) $ 29 ANNUAL REPORT 2004 31

  • Page 32
    ... affiliates at March 31, 2004 and 2003 were as follows: Millions of yen Thousands of U.S. dollars 2004 Investments stated: By the equity method At cost or less Advances ¥ 4,407 3,648 2,697 ¥ 10,753 2003 ¥ 4,510 3,282 2,175 ¥ 9,969 2004 $ 41,972 34,745 25,691 $ 102,409 32 ANNUAL REPORT 2004

  • Page 33
    ...and equipment which amounted to ¥2,561 million ($24,391 thousand). As is customary in Japan, both short-term and long-term bank loans are made under general agreements which provide ... credit available to the Group at March 31, 2004 was ¥120,229 million ($1,145,039 thousand). ANNUAL REPORT 2004 33

  • Page 34
    ...Oki...2004 $ (1,683,587) 634,632 (1,048,954) 455,666 283,001 - (310,286) (310,286) $ (1) In accordance with an enforcement of the Corporate Defined Benefit Pension Insurance Law of Japan... prior service cost ...2004 $ 75,059 76,853 (42,118) 56,838 64,493 (5,339) $ 225,787 $ 78,878 34 ANNUAL REPORT 2004

  • Page 35
    ... and their net periodic pension cost has been included in service cost of benefits earned during the year. (4) As to...234 (5,968) (1,058) (22) (7,049) ¥ 36,184 2004 $ 294,529 50,753 111,972 12,067 54,506 523,829 (152,420) 371,408 (204) (71,955) (419) (72,579) $ 298,829 ANNUAL REPORT 2004 35

  • Page 36
    ...the statutory tax rate. 9. Shareholders' equity The Commercial Code of Japan (the "Code") provides that an amount equal to at least ...2004, 2003 and 2002 were as follows: Millions of yen Thousands of U.S. dollars 2004 ¥ 24,441 2003 ¥ 29,958 2002 ¥ 37,593 2004 $ 232,780 36 ANNUAL REPORT 2004

  • Page 37
    ... of Miyagi Oki Electric Industry Co., Ltd., a subsidiary of the Company which manufactures semiconducters, were...2004 Machinery and equipment Other Less: Accumulated amortization ¥ 12,140 133 5,727 ¥ 6,546 2003 ¥ 15,083 908 8,701 ¥ 7,290 2004 $ 115,623 1,273 54,549 $ 62,348 ANNUAL REPORT 2004...

  • Page 38
    ... number ...2004 $ 0.02 0.02 U.S. dollars 2004 Net assets ¥ 180.66 2003 ¥ 165.63 2004 $ 1.72 Diluted net income (loss) per share for the years ended March 31, 2003 and 2002 has not been presented because a net loss was recorded for both years ended March 31, 2003 and 2002. 38 ANNUAL REPORT 2004

  • Page 39
    ...Millions of yen Year ended March 31 Information systems Telecommunications systems Electronic devices 2004 Other Total Corporate and eliminations Consolidated Sales to third parties ...,252 ¥ 2,158 ¥ 159 ¥ 585,473 - 585,473 584,104 ¥ 1,368 ¥ 622,891 ¥ 39,927 ¥ 26,507 ANNUAL REPORT 2004 39

  • Page 40
    ...systems Telecommunications systems Electronic devices 2004 Other Total Corporate... the nature of the products or services rendered and the similarity of sales ...2004, 2003 and 2002 is outlined as follows: Millions of yen Year ended March 31 Japan North America Europe 2004...,560 40 ANNUAL REPORT 2004

  • Page 41
    ...,581 Thousands of U.S. dollars Year ended March 31 Japan North America Europe 2004 Other Total Eliminations Consolidated Sales to third parties Interarea sales... final price of the Company's common stock traded on the Tokyo Stock Exchange in the month prior to the date of the...ANNUAL REPORT 2004 41

  • Page 42
    ... March 31, 2004 are presented solely for convenience. Our audit also included the translation of yen amounts into U.S. dollar amounts and, in our opinion, such translation has been made on the basis described in Note 2 to the consolidated financial statements. June 29, 2004 42 ANNUAL REPORT 2004

  • Page 43
    ... production of electronic equipment Experimental manufacturing services Consignment production for mechatronics and electronic equipment Staging services Solutions to heat dissipation Oki Customer Adtech Maintenance support services IT management services System network equipment and printer sales...

  • Page 44
    ... Network Technologies Oki Optical Components Oki Telecom, Inc. Oki Data Americas, Inc. Oki Data do Brasil, Ltda. Oki Data de Mexico, S.A. de C.V. Europe Oki Europe Ltd. Oki (UK) Ltd. Oki Systems Holding Co., Ltd. Oki Systems (UK) Ltd. Oki Systems (Danmark) a·s Oki Systems (Holland) b.v. Oki Systems...

  • Page 45
    ... 1, 1949 Number of Shares of Common Stock Authorized: 2,400,000,000 Issued: 612,221,797 Stock Exchange Listings Tokyo, Osaka Transfer Agent The Mizuho Trust & Banking Co., Ltd. 2-1, Yaesu 1-chome, Chuo-ku, Tokyo 103-8670, Japan Contact for Further Information Public Relations Division Oki Electric...

  • Page 46
    Head Office 7-12, Toranomon 1-chome, Minato-ku, Tokyo 105-8460, Japan TEL: +81-3-3501-3111 URL: http://www.oki.com This annual report is printed on 100% recycled paper with soy-based ink. Printed in Japan