Olympus 2008 Annual Report Download - page 32

30 OLYMPUS 2008
CONSOLIDATED RESULTS OF OPERATIONS
Net Sales
In fiscal 2008, the fiscal year ended March 31, 2008, total net
sales rose 6.3% from the previous fiscal year to ¥1,128,875 million
(US$10,751 million), marking the 14th consecutive fiscal year of
growth.
Sales in the Imaging Systems Business totaled ¥320,589 million
(US$3,053 million), an increase of 8.9% from the previous fiscal year.
This was attributed to steady growth across each of this segment’s
operating fields. In digital cameras, sales surged thanks to the release
of the small, lightweight E-410 and E-510 single-lens reflex cameras,
offering Live View and other features attractive to a wide spectrum of
users. In compact cameras, the release of the µ[mju:] 1020, with its
small, slim, stylish body and 7x optical zoom lens, and robust sales of
the CAMEDIA SP series, which realizes 18x optical, high-magnification
shots, contributed to the significant upswing in performance. In the
voice recorders field, sales grew both domestically and overseas. In
Japan, the slender, large-volume memory Voice-Trek V-13 performed
extremely well, its “separate design” enabling it to be connected
directly to a personal computer. In addition, the Company’s entry into
the Linear PCM Recorder market was well received thanks to its high
sound quality uncompressed digital recording format. Finally, optical
component sales also increased, underpinned by steady results in
lens barrel units.
In the Medical Systems Business, sales climbed 13.3% to
¥353,269 million (US$3,364 million). The EVIS LUCERA SPECTRUM,
which enables observations by using specific light spectra that con-
tribute to the early detection of minute lesions, including cancers, and
the upper gastrointestinal endoscope, which can be inserted either
through the nasal tract or the mouth, performed well in the domestic
medical endoscope market. Overseas, the EVIS EXERA II, a high-res-
olution HDTV endoscope system that also features observation using
specific light spectra, sold well in the United States, Europe, Oceania
and Latin America. In the Minimally Invasive Product (MIP) and endo-
therapy product fields, the number of units sold increased for clips
and other haemostatic system products, biopsy forceps and other
sampling products as well as for guidewires and other pancreatico-
biliary therapeutic devices. Overseas, the previously mentioned EVIS
EXERA II sold well to surgeons, while the launch of the Company’s
VISERA Pro multi-compatible endoscopic video imaging system in
Asia and continued robust sales—mostly in the United States and
Asia—of Olympus’ high-definition videoscopes for abdominal and
chest cavities contributed to a solid performance.
Sales in the Life Science Business were ¥131,446 million
(US$1,252 million), an increase of 6.3% over the previous fiscal year.
In the micro-imaging (microscopes) field, sales expanded thanks to
robust results in biological microscopes in the United States and
Europe and an upswing in the number of BX Series research system
microscopes sold in the expanding markets of Asia, the Middle East
and Latin America. For industrial microscopes, despite intensifying
price competition owing to the downward trend in business invest-
ment in Japan and overseas, Olympus continued to promote sales
expansion in regions such as Asia, which are exhibiting signs of partial
recovery. Through these endeavors, net sales in this category were on
par with those of the previous fiscal year. In the diagnostic systems
field, sales increased on the back of the simultaneous launch in Japan
of Olympus’ blood analyzer (clinical chemistry analyzer) and new fully
automated chemiluminescent enzyme immuno-analyzer as well as
growth in the clinical diagnostics and testing business. Increased
sales of new blood testers in the United States as well as a favorable
performance in China for clinical biochemistry analyzers also contrib-
uted to strong results.
The Information & Communication Business recorded sales
of ¥254,312 million (US$2,422 million). This represented a 5.0%
decrease over the previous fiscal year. In its efforts to realize the
“establishment of a stable consolidated business earnings structure,”
Olympus increased the direct sales ratio and streamlined costs in
mobile handset sales, promoted computerization and expanded its
component interests in the automobile aftermarket business. The
Company also reshuffled a portfolio valued at around ¥10 billion,
assessing business possibilities based on its investment securities
ownership policy. Despite these endeavors, segment sales declined
due to lower returns, reflecting changes in the sales fee plans of com-
munications service providers involved in mobile handset sales by IT
Telecom Inc.
In the Others business, sales amounted to ¥69,259 million (US$660
million), an increase of 7.6% over the previous fiscal year. In the non-
destructive testing equipment field, strong sales in portable flaw
detectors and highly functional ultrasonic phased-array instruments
as well as the new highly durable, highly functional, high-definition
IPLEX FX portable industrial endoscope contributed to a significant
improvement in performance. Sales in the domestic information
equipment field saw an upswing in the shipment volume of printers
and printer components manufactured in collaboration with Riso
Kagaku Corporation. In the biomedical materials field, the Company
strove to strengthen its business by establishing a new company,
Olympus Terumo Biomaterials Corp., as a joint venture with Terumo
Corporation in April 2007. As a result, the launch of this new venture
as well as collagen-related products, the commencement of full-scale
marketing in overseas markets for existing products including bone
prostheses, and the acquisition of ITX Corporation contributed signifi-
cantly to sales growth.
FINANCIAL REVIEW
Net Sales
(Millions of yen)
04 05 06 07 08
1,128,875
633,622
813,538
978,127 1,061,786
28,564
Net income (loss)
Operating income
Operating Income/Net Income (Loss)
(Millions of yen)
04 05 06 07 08
98,729
112,623
62,997
23,153
62,523
–11,827
57,969
33,564
47,799
Equity
Total assets
334,210 356,351
252,179 240,837 290,656
Total Assets/Equity
(Millions of yen)
04 05 06 07 08
1,091,800
1,358,349
682,673
858,083
976,132