Olympus 2006 Annual Report Download - page 21

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> The main products of the Life Science Business are clinical hem-
analysis systems, biological microscopes, and industrial micro-
scopes. Along with the organizational restructuring in April
2005, the industrial microscopes business was transferred from
the Industrial Systems Business.
Net sales edged up 6.5% to ¥107,915 million (US$938 million)
and operating income rose 12.8% to ¥7,559 million (US$66 mil-
lion). Olympus experienced increases both in revenue and earn-
ings due to sales expansion in the bioscience field.
B I O S C I E N C E
> Sales of in the bioscience field climbed 14.2% year on year to
¥42,919 million (US$373 million).
In the domestic market, sales and profit increased for biological
microscopes and other biological-related products. Sales for this
field were stagnant in the previous fiscal year, due to the intro-
duction of a new budget implementation system, along with the
incorporation of national universities and research institutes, but
they showed a recovery in fiscal 2006, reflecting the fact that the
system has taken root in these academic circles. Overseas, brisk
sales in the United States continued for the FLUOVIEW confocal
laser scanning microscope series, a strategic product targeted for
research institutes. The FLUOVIEW series was also launched in
Europe, contributing to significant sales increase.
D I A G N O S T I C S Y S T E M S
> Sales in the diagnostic systems field totaled ¥45,193 million
(US$393 million), up 8.7% year on year.
Domestic sales was on par with the previous fiscal year, due
to the impact from a cap placed on medical expenses, while
overseas sales was strong in Europe and Asia, contributing to an
overall increase in revenues.
During the fiscal year under review, Olympus actively culti-
vated new business in the immunoassay field and established a
system that can support both reagents and devices. Furthermore,
Olympus commenced a joint development project with Cangen
Biotechnologies, Inc. of the United States in April 2005, in pursuit
of a molecular diagnostic test for the early detection of lung can-
cer. Through this alliance, Olympus engaged in research activities
for the commercialization of molecular diagnostic tests.
I N D U S T R I A L M I C R O S C O P E S
> Sales of industrial microscopes decreased 10.6% to ¥19,803 mil-
lion (US$172 million). Revenues in this segment were down due
to the demand cycle for LCD inspection equipment.
O U T L O O K F O R F I S C A L 2 0 0 7
> In the fiscal year ending March 31, 2007, a new molecular
biology field will be incorporated into Olympus’ two principal
businesses: the micro-imaging business, centering on microscope
technologies, where Olympus’ roots lie, and the clinical testing
business, which boasts leading-edge capabilities in the devel-
opment of devices and reagents. Spurred by this integration,
Olympus will aim for business expansion, with forecasts of ¥120
billion in net sales and ¥9 billion in operating income.
Life
Sciencce
Business
Sales
(Millions of yen)
107,915
27,933
05 06
Overseas sales
Note: Indu strial Micro scopes , whic h was included in Olympus’
Industrial Business was transferred to the Life Science
Business in April 2005.
Domestic sales101,315
28,545
72,770
79,982
L I F E S C I E N C E
B U S I N E S S
OLYM PUS 20 06 19