Improving Gross Margin and Minimizing Costs
First written in FY2016. 20 of 32 entries say "Advanced", first in FY2017-Q1. Latest entry: 2026-10-26.
Taiyo Technolex moved to the "Worse" side of this theme in 2022, 2 years before the typical company in this theme (2024).
The whole theme swung hardest in 2022: 2 of 13 companies on the "Worse" side.
8 other companies' latest entry also says "Advanced".
- 2026-10-26AdvancedEarnings
「全事業セグメントの売上総利益率が上昇したことにより営業利益139百万円（前年同四半期は33百万円の営業損失）」
全事業セグメントで売上総利益率が上昇し、全社営業利益の改善として現れた。 - FY2026-H1AdvancedAnnual report
「In terms of earnings, although there was a negative impact from lower sales in the industrial machinery systems business, lower personnel costs resulting from the recruitment of voluntary retirees and other measures, together with higher gross profit margins in the electronic circuit boards, test systems and mirror polishing machines businesses, resulted in operating profit of ¥83 million, compared with an operating loss of ¥57 million in the same period of the previous year」
Lower personnel expenses and higher gross margins in the Electronic Circuit Board, Test System and Mirror Polishing Machine businesses resulted in an improvement in operating profit to ¥83 million. - FY2025AdvancedAnnual report
「The cost-of-sales ratio was 70.0%, down 1.3 percentage points from the same period of the previous year. Selling, general and administrative expenses were ¥981 million, down 7.8%, mainly due to lower personnel expenses. The SG&A-to-revenue ratio was 26.2%, down 4.0 percentage points from the same period of the previous year.」
The cost-of-sales and SG&A ratios declined, and improvements in the gross margin and costs were reflected in consolidated earnings. - FY2025-H1AdvancedAnnual report
「Profit increased due to lower labor costs and other expenses resulting from voluntary employee departures, as well as the impact of a higher gross margin resulting from increased revenue from internally manufactured products. As a result, revenue was ¥1,159 million, up 0.5% year on year, and segment profit was ¥213 million, up 30.2%.」
In the Electronic Circuit Board business, the gross margin rose as lower labor costs following voluntary employee departures and increased sales of internally manufactured products contributed to earnings, and segment profit increased 30.2% on 0.5% revenue growth. - FY2024AdvancedAnnual report
「The cost-of-sales ratio was 71.3%, down 1.0 percentage point from the same period of the previous year. Selling, general and administrative expenses were ¥1,064 million, down 2.0%, mainly due to lower personnel expenses. The SG&A-to-revenue ratio was 30.2%, down 1.6 percentage points from the same period of the previous year.」
The cost-of-sales and SG&A ratios declined, improving gross profit and costs from the previous year. The effect of cost minimization, including lower personnel expenses, was reflected in consolidated earnings. - FY2024-Q2WorsenedAnnual report
「Although revenue declined, profit decreased due to the impact of lower revenue and a rise in the labor-cost-to-revenue ratio resulting from wage increases and other factors. As a result, revenue was ¥1,152 million, down 12.4% year on year, and segment profit was ¥163 million, down 33.1%.」
In the Electronic Circuit Board business, profit declined as the labor-cost ratio rose due to wage increases and other factors and revenue fell, worsening performance in terms of cost minimization and gross-margin improvement. - FY2024-Q1AdvancedAnnual report
「Although revenue declined, profit increased due to improvements in the cost structure and the impact of a higher gross margin resulting from a decrease in products purchased for resale. As a result, revenue was ¥572 million, down 7.9% year on year, and segment profit was ¥102 million, up 3.9%.」
The gross margin in the Electronic Circuit Board business rose due to improvements in the cost structure and a decrease in products purchased for resale, and segment profit increased 3.9% despite a 7.9% decline in revenue. - FY2023RaisedAnnual report
「In the consolidated fiscal year under review, primarily because sales fell below the initial forecast, the gross profit margin was 27.7%, 0.7 percentage points below the target of 28.4% and 1.0 percentage point below the previous period. The target gross profit margin for the fiscal year ending December 2024 is 29.1%.」
The gross margin for the fiscal year was 27.7%, below the target of 28.4%, while the target for the following fiscal year was set at 29.1%. - FY2023-Q3WorsenedAnnual report
「Profit declined because the gross profit margin fell owing to lower sales and an increase in purchased products for resale, among other factors, and because personnel costs and expenses associated with higher sales at overseas bases increased.」
In the electronic circuit boards business, the gross profit margin declined owing to an increase in purchased products for resale and other factors, while personnel costs and expenses related to overseas bases also increased, worsening performance against the goals of gross profit margin improvement and cost minimization. - FY2023-Q2WorsenedAnnual report
「The decline in gross profit margins in the electronic circuit boards and test systems businesses, together with the impact of higher selling, general and administrative expenses, including personnel and advertising costs, resulted in an operating loss of ¥61 million, compared with an operating loss of ¥24 million in the same quarter of the previous year」
While setting improvement of the gross profit margin and cost minimization as goals, the operating loss widened because of lower gross profit margins in the electronic circuit boards and test systems businesses and higher SG&A expenses. - FY2023-Q1WorsenedAnnual report
「In terms of earnings, although there was a positive impact from increased sales in the industrial machinery systems business, the decline in sales in the electronic circuit boards, test systems and mirror polishing machines businesses, the lower gross profit margin in the electronic circuit boards business, and the impact of higher selling, general and administrative expenses, including advertising costs, resulted in an operating loss of ¥73 million, compared with an operating loss of ¥29 million in the same quarter of the previous year.」
The decline in the gross profit margin in the electronic circuit boards business, lower sales in multiple businesses and higher SG&A expenses worsened performance against the goals of cost minimization and gross profit margin improvement. - FY2022-Q2WorsenedAnnual report
「In terms of earnings, although the gross profit margin declined because of higher outsourced processing costs and material costs as a percentage of sales resulting from increased orders for in-house mass-production projects, profit increased owing to the impact of higher sales.」
Although higher orders for in-house mass-production projects contributed to higher profit, the gross profit margin in the electronic circuit boards business declined because of higher outsourced processing and material costs as a percentage of sales. - FY2021-Q3AdvancedAnnual report
「In terms of earnings, although there was a negative impact from lower sales in the mirror polishing machines business, the loss narrowed as gross profit margins rose in the electronic circuit boards, test systems and industrial machinery systems businesses and selling, general and administrative expenses, including personnel costs, declined. As a result, the operating loss was ¥17 million, compared with an operating loss of ¥284 million in the same quarter of the previous year」
Higher gross profit margins in 3 businesses and lower SG&A expenses, including personnel costs, were confirmed, contributing to a substantial reduction in the company-wide operating loss. - FY2021-Q2AdvancedAnnual report
「In terms of earnings, profit increased as the gross profit margin rose owing to higher orders for high-margin prototype projects and improved production efficiency, including improved yield.」
The gross profit margin rose owing to higher orders for high-margin prototype projects, improved yield and higher production efficiency, contributing to higher profit in the electronic circuit boards business. - FY2021-Q1AdvancedAnnual report
「In terms of earnings, profit increased owing to a higher gross profit margin resulting from higher orders for prototype projects and improved production efficiency, including improved yield, as well as lower selling, general and administrative expenses, including personnel costs. As a result, sales were ¥588 million, down 3.9% year on year, and segment profit was ¥131 million, up 52.9%.」
The gross profit margin rose owing to higher orders for FPC prototype projects, improved yield, higher production efficiency and lower SG&A expenses, while segment profit rose 52.9% despite lower sales. - FY2020RaisedAnnual report
「The target gross profit margin for the fiscal year ending December 2021 is 28.6%.」
The target gross profit margin for the next fiscal year was set at 28.6%. Meanwhile, the actual margin for the consolidated fiscal year under review was 20.0%, 3.3 percentage points below the 2020 target of 23.3%. - FY2020-Q3WorsenedAnnual report
「Although lower selling, general and administrative expenses contributed to higher profit, lower sales in the test systems, electronic circuit board and mirror-surface polishing machine businesses and the lower gross profit resulted in an operating loss of ¥284 million, compared with ¥60 million in the same quarter of the previous year.」
While setting improvement of the gross profit margin and cost minimization as goals, the company-wide operating loss widened owing to lower sales in 3 businesses and a decline in gross profit. - FY2020-Q2AdvancedAnnual report
「In terms of earnings, profit increased as the gross profit margin rose owing to lower labor costs resulting from natural attrition and other factors, and efforts to reduce in-process defects. As a result, sales were ¥1,144 million, down 5.7% year on year, and segment profit was ¥173 million, up 0.6%.」
The company reduced labor costs through natural attrition and other measures and worked to reduce in-process defects. In the electronic circuit boards business, the gross profit margin rose despite lower sales, and segment profit increased 0.6%. - FY2020-Q1AdvancedAnnual report
「Profit increased as the gross profit margin rose owing to lower outsourced processing costs resulting from efforts to reduce in-process defects and other measures. As a result, sales were ¥612 million, up 1.0% year on year, and segment profit was ¥86 million, up 23.7%.」
The company reduced in-process defects and outsourced processing costs, achieving a higher gross profit margin and a 23.7% increase in segment profit in the electronic circuit boards business. - FY2019SoftenedAnnual report
「Although the company worked to improve yield and reduce costs through the in-house processing of outsourced work, the gross profit margin declined 1.5 percentage points from the previous period to 27.3%, compared with the target of 28.2%, due to the impact of lower sales.」
Although the company worked to improve yield and bring processing in-house, the gross profit margin was 27.3%, below the 28.2% target. The target for the fiscal year ending December 2020 was stated as 27.7%, lower than the previous target. - FY2019-Q3WorsenedAnnual report
「In terms of earnings, the decline in sales in the test systems, electronic circuit boards and industrial machinery systems businesses, together with the impact of a lower gross profit margin, resulted in an operating loss of ¥60 million, compared with operating profit of ¥115 million in the same quarter of the previous year.」
While setting improvement of the gross profit margin and cost minimization as goals, the gross profit margin declined this quarter, resulting in a company-wide operating loss. - FY2019-Q2WorsenedAnnual report
「The gross profit margin declined because of higher outsourced processing costs associated with handling large machines, resulting in a loss.」
While setting improvement of the gross profit margin and cost minimization as goals, the document states that the gross profit margin declined this quarter because of higher outsourced processing costs associated with handling large machines. - FY2018AdvancedAnnual report
「Primarily as a result of cost reductions through restrained capital investment and the in-house processing of outsourced work, the gross profit margin rose 1.8 percentage points from the previous period to 28.8%, compared with the target of 27.6%.」
The company continued to reduce costs by restraining capital investment and bringing outsourced processing in-house, raising the gross profit margin to 28.8%, above the 27.6% target. - FY2018-Q3AdvancedAnnual report
「Profit increased as the gross profit margin rose owing to restrained capital investment, the in-house processing of outsourced work and other cost-reduction measures. As a result, sales were ¥1,973 million, up 2.7% year on year, and segment profit was ¥301 million, up 15.9%.」
The company continued to reduce costs by restraining capital investment and bringing outsourced processing in-house, achieving a higher gross profit margin and a 15.9% increase in segment profit in the electronic circuit boards business. - FY2018-Q2AdvancedAnnual report
「Profit increased as the gross profit margin rose owing to higher orders for FPC prototype projects, restrained capital investment and cost reductions through the in-house processing of outsourced work and other measures. As a result, sales were ¥1,310 million, up 4.7% year on year, and segment profit was ¥218 million, up 52.3%.」
The gross profit margin rose owing to measures including higher FPC orders, restrained capital investment and the in-house processing of outsourced work, while segment profit rose 52.3% year on year. - FY2018-Q1AdvancedAnnual report
「Profit increased as the gross profit margin rose owing to higher orders for FPC projects, restrained capital investment and cost reductions through the in-house processing of outsourced work and other measures. As a result, sales were ¥655 million, up 1.4% year on year, and segment profit was ¥107 million, up 53.2%.」
The gross profit margin rose owing to higher orders for FPC projects, restrained capital investment and the in-house processing of outsourced work, among other measures, while segment profit rose 53.2% year on year. - FY2017-Q3AdvancedAnnual report
「Sales to display manufacturers and FPC manufacturers increased, mainly for FPC prototypes, because demand for automotive equipment remained firm. However, sales to other set manufacturers declined because of fewer orders for FPC prototypes and mass-production projects, resulting in lower sales. In terms of earnings, profit increased as the cost of sales ratio fell as a result of efforts to reduce costs through the in-house processing of outsourced work and other measures. As a result, sales were ¥1,922 million, down 14.7% year on year, and segment profit was ¥260 million, up 15.9%.」
The company continued to reduce costs through the in-house processing of outsourced work and other measures, lowering the cost of sales ratio despite a 14.7% decline in sales, while segment profit rose 15.9%. - FY2017-Q2AdvancedAnnual report
「Sales to display manufacturers increased on firm demand for automotive equipment, but sales to other set manufacturers, including camera manufacturers, declined because of fewer orders for FPC prototypes and mass-production projects, resulting in lower sales. In terms of earnings, although there was a negative impact from lower sales, profit increased as the cost of sales ratio fell as a result of efforts to reduce costs through the in-house processing of outsourced work and other measures. As a result, sales were ¥1,251 million, down 12.0% year on year, and segment profit was ¥143 million, up 19.5%.」
The company pursued cost reductions through the in-house processing of outsourced work and other measures, lowering the cost of sales ratio despite lower sales, while segment profit rose 19.5% year on year. - FY2017-Q1AdvancedAnnual report
「In terms of earnings, although sales declined, profit increased as the cost of sales ratio fell as a result of efforts to reduce costs through the in-house processing of outsourced work and other measures. As a result, sales were ¥646 million, down 5.8% year on year, and segment profit was ¥69 million, up 7.0%.」
The company pursued cost reductions through the in-house processing of outsourced work and other measures, lowering the cost of sales ratio in the electronic circuit boards business, while segment profit rose 7.0% year on year despite lower sales. - FY2016First statedAnnual report
「We will pursue technological development aimed at improving functionality, quality and yield, while rebuilding our manufacturing structure and optimizing capital investment to improve productivity. As a result, we will improve the gross profit margin by thoroughly minimizing costs, including by curbing raw material costs and reducing expenses through the in-house processing of work previously outsourced.」
Measures to improve the gross profit margin through technological development, the rebuilding of the manufacturing structure, the optimization of capital investment and the in-house processing of outsourced work.