Difficulty Securing Profits Due to Price Competition in Medical Imaging Systems
First written in FY2017. 8 of 10 entries say "Worsened", first in FY2019-Q1. Latest entry: FY2023.
ImageONE moved to the "Worse" side of this theme in 2019.
1 other company's latest entry also says "Worsened".
- FY2023WorsenedAnnual report
「In the traditional healthcare solutions business, the decline in gross profit caused by price competition with rival companies is identified as an issue.」
The decline in gross profit caused by price competition with rival companies remains an issue, and this has appeared in the results as a 51.5% decline in revenue and a segment loss for the healthcare solutions business. - FY2022WorsenedAnnual report
「The business model of installing the company's traditional core electronic medical records business and peripheral systems across a wide range of hospital departments, then securing stable revenue through maintenance services and other offerings after installation, is already entering a period of transformation due to intensifying competition.」
Intensifying competition has put the traditional revenue model centred on electronic medical records and peripheral systems into a period of transformation. - FY2021WorsenedAnnual report
「Several large, low-margin projects arose. Although orders for i-HIS, a cloud-based electronic medical records system, were trending higher than in the previous fiscal year, the segment reported a loss mainly because costs increased as the period from order receipt to completion of installation was prolonged.」
In addition to price competition and the mature market for PACS and other products, low-margin large projects and higher costs from longer installation periods have emerged as actual factors behind the healthcare solutions business's loss. - FY2020-Q1WorsenedAnnual report
「The penetration rate of the core medical imaging system products is high, making this a replacement market. In addition, there were no large projects like those in the previous fiscal year, resulting in lower revenue and lower profit for the segment.」
In addition to being a replacement market with high penetration of medical imaging systems, the absence of large projects caused the healthcare solutions business to move from profit in the same period of the previous year to a loss. The difficulty of securing profits amid price competition in a mature market is reflected in the results. - FY2019WorsenedAnnual report
「The VNA market is expanding, and product recognition is gradually gaining ground as a result of sales-enhancement measures undertaken to date. However, the penetration rate of the core medical imaging system products is already high, making this a replacement market, and the segment reported lower revenue and lower profit.」
Although the VNA market is expanding and product recognition is spreading, the high penetration of PACS and other products has made this a replacement market, resulting in lower revenue and lower profit for the healthcare solutions business. - FY2019-Q3WorsenedAnnual report
「Although the market has increasingly recognised the value of the products and cooperation with manufacturers has begun to produce results, price competition for “medical imaging system products” continues to accelerate, resulting in lower revenue and lower segment profit for this segment.」
Although product recognition and cooperation with manufacturers have begun to produce results, accelerating price competition resulted in revenue of ¥839 million and segment profit of ¥69 million for the healthcare solutions business, representing year-on-year declines in both revenue and profit. - FY2019-Q2WorsenedAnnual report
「As a result of sales-enhancement measures undertaken to date, the market has increasingly recognised the value of PACS (picture archiving and communication systems) products as VNA (Vendor Neutral Archive) products, and cooperation with modality manufacturers and medical information system manufacturers has begun to produce results. However, price competition for “medical imaging system products” continues to accelerate, resulting in lower revenue and lower segment profit for this segment.」
Although sales-enhancement measures and cooperation with manufacturers continued to produce results, accelerating price competition for medical imaging system products caused the healthcare solutions business to report a 4.9% decline in revenue and a 19.6% decline in segment profit. The risk from price competition has translated into actual declines in revenue and profit. - FY2019-Q1WorsenedAnnual report
「However, price competition for “medical imaging system products” continues to accelerate, resulting in a decline in segment profit.」
Price competition for medical imaging system products continued to accelerate, and segment profit in the healthcare solutions business fell 15.8% year on year. - FY2018-Q1RestatedAnnual report
「Price competition for “medical imaging system products” continues to accelerate. However, earnings for the healthcare solutions business as a whole improved as large projects became operational and the benefits of cooperation with modality manufacturers, which began in the previous fiscal year, started to emerge.」
Price competition for medical imaging system products continues to accelerate. Meanwhile, business earnings for the quarter improved as large projects became operational and cooperation with modality manufacturers began to produce results. The risk itself is not described as having been eliminated. - FY2017First statedAnnual report
「Price competition for “medical imaging system products”, which has continued from the previous fiscal year, is accelerating. Particularly in large sales projects concentrated in the second half of the current fiscal year, a series of negotiations made it difficult to secure profits at previous levels, resulting in severe earnings for the healthcare imaging business as a whole.」
Price competition for medical imaging systems accelerated, and actual earnings reflected cases in which it became difficult to secure profits at previous levels on large projects.