OKI Announced Revised Earnings Projections and Revised Dividends Projections for the Fiscal Year ending March 31, 2007
Tokyo, Japan, February 15, 2007 -- Oki Electric Industry Co., Ltd. (TSE: 6703) announced today that the company revised its earnings projections for the fiscal year ending March 31, 2007, which was announced on October 26, 2006. OKI also revised the projections of dividends per share for the same fiscal year.
1. Revised Projections for the FY ending March 31, 2007 (Consolidated)
(Million yen)
| Net sales | Operating income | Recurring income | Net income | |
|---|---|---|---|---|
| Previously announced projections (A) | 730,000 | 15,000 | 8,000 | 2,500 |
| Revised projections (B) | 720,000 | -6,000 | -14,000 | -38,000 |
| Changes (B-A) | -10,000 | -21,000 | -22,000 | -40,500 |
| % of changes | -1.4 | — | — | — |
| (Ref.) FY ended Mar. 31, 2006 | 680,526 | 10,593 | 7,240 | 5,058 |
2. Revised Projections for the FY ending March 31, 2007 (Non-consolidated)
(Million yen)
| Net sales | Operating income | Recurring income | Net income | |
|---|---|---|---|---|
| Previously announced projections (A) | 440,000 | 7,000 | 6,000 | 2,000 |
| Revised projections (B) | 410,000 | -16,500 | -18,000 | -37,000 |
| Changes (B-A) | -30,000 | -23,500 | -24,000 | -39,000 |
| % of changes | -6.8 | — | — | — |
| (Ref.) FY ended Mar. 31, 2006 | 409,100 | 3,751 | 4,674 | 2,217 |
3. Reasons for revisions in earnings projections for the FY ending March 31, 2007
In the Info-telecom Systems segments, net sales is expected to decrease from the previous projections. Reasons include telecom carriers' postponed investment on new services and declined investment on fixed networks, and OKI's delay in new product development in the telecom carrier market. Decline in orders due to fiercer price competition and delay in developing new business in public sectors, and delay in developing new sales channels for enterprise communication systems will also impact the decrease in sales. Operating income decreases largely due to decrease in sales of OKI original products, which has larger profitability, and due to delay in cost reduction.
In the Semiconductor segment, net sales is expected to decrease from the previous projections, largely due to decrease in driver LSI sales, impacted from inventory adjustments for LCD panels. Operating income will worsen due to decrease in sales and impact from price down.
In the Printer segment, net sales is expected to increase due to impact from weakening yen exchange rate. However, operating income will decrease due to delay in OKI's shift from low-price models to mid/high-end models, and delay in cost reduction.
OKI expects to post a net loss of 38.0 billion yen in a consolidated basis, and 37.0 billion yen loss for the non-consolidated base, caused by the reversal of deferred tax assets.
4. Revised Projections for Dividends for the FY ending March 31, 2007
(yen)
| First half | Second half | Total year | |
|---|---|---|---|
| Previously announced projections | 0.00 | not determined | not determined |
| Revised projections | 0.00 | 0.00 | 0.00 |
| (Ref.) Dividends per share in the previous fiscal year | 0.00 | 3.00 | 3.00 |
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