Olympus 2007 Annual Report Download - page 13

> The Imaging Systems Business is centered on digital
cameras, optical components, voice recorders and film
cameras.
In fiscal 2007, ended March 31, 2007, sales in this busi-
ness increased 15.6% year on year to ¥294,303 million
(US$2,453 million) and operating income jumped nearly
5.7 times to ¥27,208 million (US$227 million). This is par-
tially owing to the effects of structural reforms undertaken
in the Imaging Systems Business since November 2005 that
have contributed to more stable profitability. In addition
to our Platform Reform for greater efficiency on both the
product and operational fronts, the speedy implementation
of digital camera inventory reduction and other sweeping
measures supported a substantial improvement in the oper-
ating income ratio of the Imaging Systems Business.
Digital
Cameras
> Sales of digital cameras rose 17.6% year on year to
¥269,236 million (US$2,244 million). Demand for digital
cameras continued to expand, and new compact Olympus
models equipped with multiple features were well received
in the marketplace. Stronger sales of optical components,
especially lens barrel units, also contributed to signifi-
cant revenue growth in the digital cameras business. New
compact digital cameras that sold well in both Japan and
overseas markets included the µ[mju:]-SW (Stylus-SW in
the Americas) series, with improved “all-weather” design
for enhanced “waterproof,” “shockproof” and “dustproof”
features, as well as FE series models, which make picture-
taking easy even for beginners. Olympus also launched
sales of new digital SLR models in Europe.
Results in the digital cameras business, notably the
increased sales, maintenance of sales prices through
greater product strength and enhanced efficiency owing
to inventory reductions, contributed to the growth in overall
earnings in the Imaging Systems Business.
Voice Recorders
and Film Cameras
> Sales of voice recorders and film cameras declined 2.3%
year on year to ¥25,067 million (US$209 million). New
Voice-Trek V series digital voice recorders sold well in
Japan. Overseas, the switch to digital recorder models in
Europe spurred strong sales, led by recorders in the VN
series. However, overall sales of voice recorders and film
cameras edged down because of shrinking demand for film
cameras.
Outlook for
Fiscal 2008
> Having reaped the benefits of structural reforms undertaken
during fiscal 2007, Olympus will work to further entrench
the effects of reforms and strengthen competitiveness.
Olympus will pointedly allocate management resources to
establish a solid market position in digital SLR cameras,
enhance efficiency in its compact camera business to assure
stable profitability and endeavor to expand profitability
in lens barrel units and other optical components. Based
upon these initiatives, Olympus expects the release of new
products to lead to increased sales in the fiscal year ending
March 31, 2008. Profits, however, are expected to decline
temporarily owing mainly to initiatives to strengthen R&D
and sales promotions in the digital SLR camera business, as
Olympus has identified fiscal 2008 as an important year in
this business. By focusing management resources, Olympus
will shore up its structure to consistently deliver profits. In
the Imaging Systems Business, Olympus is forecasting net
sales of ¥330 billion and operating income of ¥25 billion
for the fiscal year ending March 31, 2008.
Imaging Systems Business
ging systems
ging systems
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