Olympus 2006 Annual Report Download - page 28

26 OLYMPUS 2006
CONSOLIDATED RESULTS OF OPERATIONS
Net Sales
> In fiscal 2006 ended March 31, 2006, total net sales rose
20.2% from the previous fiscal year to ¥978,127 million
(US$8,505 million), marking the 12th consecutive fiscal year of
growth.
Sales in the Imaging Systems Business were ¥254,541 million
(US$2,213 million), down 8.3% from the previous fiscal year.
Despite steady sales of SLR cameras and favorable sales of voice
recorders, including the Voice-Trek series in Japan and the VN
series in the United States and Europe, overall sales of the seg-
ment were affected by ongoing severe market competition in the
compact camera field and shrinkage of the film camera market
both in Japan and overseas.
In the Medical Systems Business, sales increased 15.5% to
¥266,317 million (US$2,316 million). The launch of new prod-
ucts such as the multipurpose GIF TYPE N260 videoscope for
upper digestive tract use, the EVIS EXERA II high-definition endo-
scopic system in the United States and Europe, and the HF
Surgery System for Transurethral Resection (TUR) principally con-
tributed to this result. The increase in the number of medical
facilities that adopted the Value per Procedure (VPP) program, a
special program designed to promote the installation of medical
devices without initial investment, and Olympus solid sales pro-
motion efforts in Asia and Central and South America also con-
tributed to the sales increase. Furthermore, the sales increase in
this sector reflected favorable demand for therapeutic devices to
arrest bleeding, sampling therapeutic devices, and the V-System
pancreaticobiliary duct endotherapy device.
In the Life Science Business, sales were up 6.5% year on year
to ¥107,915 million (US$938 million). This was attributable to
increased sales of biological microscopes and other biological-
related products, as well as brisk sales of the FLUOVIEW con-
focal laser scanning microscope series, a strategic product
targeted for U.S. research institutes and for commercialization in
Europe.
In the Information & Communication Business, sales jumped
74.5% to ¥284,908 million (US$2,477 million), mainly due to
addition of ITX Corporation’s consolidation as a subsidiary. In
addition, there was strong demand for computer peripherals in
the U.S. market and for mobile handsets in the Japanese market.
In the Others Business, sales surged 58.1% to ¥64,446 mil-
lion (US$560 million), reflecting the acquisition of R/D Tech Inc.
in Canada and ITX Corporation’s entry into the field as a con-
solidated subsidiary in the second half of fiscal 2005. These fac-
tors resulted in steady sales expansion of ultrasound defect
detection devices and the vigorous launch of a new product in
the network-capable industrial videoscope IPLEX II series, along
with the growth in sales of high-speed printers.
Net Income
> Operating income leaped 170.0% to ¥62,523 million (US$544
million) from the previous fiscal year, owing to Olympus’ effec-
tive cost reduction measures. The ratio of selling, general and
administrative expenses to net sales improved from 33.7% in the
previous fiscal year to 30.2%. As a result, Olympus recorded net
income of ¥28,564 million (US$248 million) in the fiscal year
under review, compared to a net loss of ¥11,827 million in the
previous fiscal year, reflecting gain on the sale of investment in
affiliated companies and the trust beneficiary right, and the off-
set of provision for losses on business restructuring.
FINANCIAL REVIEW
Net Sales
(Millions of yen)
02 03 04 05 06
528,415 564,343
633,622
813,538
978,127
–11,827
Net income (loss)
Operating income
Operating Income / Net Income (Loss)
(Millions of yen)
02 03 04 05 06
62,523
42,283
62,346 62,997
23,153
33,564
10,279
24,348 28,564
Shareholders’ equity
Total assets
290,656
201,547 222,432 252,179 240,837
Total Assets and Shareholders’ Equity
(Millions of yen)
02 03 04 05 06
976,132
562,078 605,768
682,673
858,083
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