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Notice of Recording Operating Loss, Non-operating Expenses and the Difference between Forecast and Actual Financial Results for the Fiscal Year Ended March 31, 2017

TOKYO, May 12, 2017 -- Oki Electric Industry Co., Ltd. (TOKYO:6703) today announced it has recorded operating loss and non-operating expenses for the fiscal year ended March 31, 2017. OKI also announced the difference between the financial results forecast disclosed on October 28, 2016 and the actual financial results for the fiscal year ended March 31, 2017.

1. Recording of operating loss

As announced on November 2, 2015, OKI subsidiary Oki Banking Systems (Shenzhen) Co., Ltd. has filed for arbitration against Shenzhen Yihua Computer Industrial Co., Ltd., an ATM sales partner in China, demanding payment of notes and accounts receivable of RMB 1,115,463,000 (approx. JPY18.2 billion, converted at year-end exchange rates). Though the discussion continued, this issue has not met its resolution until today and is unlikely to be solved in the immediate future. Accordingly, OKI decides to record the provision of allowance for doubtful accounts of 10.9 billion yen. There is no change in our policy of collecting the total amount of notes and accounts receivable.

2. Recording of non-operating expenses

OKI records currency exchange loss of 4.8 billion yen in non-operating expenses due to the appreciation of the yen.

3. Difference between forecast and actual financial results for the year ended March 31, 2017 (From April 1, 2016 to March 31, 2017)

  Net sales Operating income Ordinary income Profit attributable to owners of parent Net income per share
  billion yen billion yen billion yen billion yen yen
Previous projections (A) 465.0 15.0 6.0 3.0 34.55
Results (B) 451.6 2.5 -2.4 4.7 54.03
Changes (B-A) -13.4 -12.5 -8.4 1.7
Percent change (%) -2.9 -83.0 56.4
Reference: Results for the full-year of the fiscal year ended March 31, 2016 490.3 18.6 11.4 6.6 76.10

Reasons of Difference

Operating income fell below the previous announcement due to the provision of allowance for doubtful accounts, though the performance of each business segment was roughly in line with its plan.

Ordinary income was lower than the previous announcement because of the impact of currency exchange loss of 4.8 billion yen in non-operating expenses other than the factor mentioned above.

Profit attributable to owners of parent exceeded from the previous announcement due to recording extraordinary income of 12.6 billion yen because of the share transfer of an affiliated company, profit of 7.8 billion yen due to the partial cancellation of retirement benefit trust, extraordinary loss of 2.5 billion yen related to the Antimonopoly Act and loss of 2.4 billion yen due to the transfer of fixed assets.

For details, refer to the Financial Results for the Fiscal Year ended March 31, 2017 announced today.

  • Amounts are rounded to the nearest hundred million.
  • OKI consolidated every ten shares of its common stock into one share on October 1, 2016. In accordance with this, each value of net income per share is figured out under the assumption that the consolidation of common stock was executed at the beginning of the previous fiscal year.
  • The projections and plans on this release are subject to change depending upon the changes of business environments and other conditions.
Press Contact:
Public Relations Division
Phone: +81-3-3501-3835
  • * Information in the press releases is current on the date of the press announcement, but is subject to change without prior notice.

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