Decline in Domestic Profit Due to Increased New Product Development Costs
First written in FY2016-Q3. 4 of 9 entries say "Reframed", first in FY2017-Q1. Latest entry: FY2019-Q2.
Optoelectronics moved to the "Worse" side of this theme in 2017.
0 other companies' latest entry also says "Advanced".
- FY2019-Q2AdvancedAnnual report
「During the first six months of the fiscal year under review, in addition to the increase in revenue described above, the Company continued its efforts to reduce selling, general and administrative expenses, as it had in the first quarter. As a result, operating income was ¥483 million, up 301.0% year on year, ordinary income was ¥474 million, up 354.5%, and quarterly net income attributable to owners of the parent was ¥446 million, compared with ¥36 million in the same period of the previous year.」
In place of the previous explanation that higher research and development expenses caused earnings to decline, reductions in selling, general and administrative expenses continued to be described as a factor behind higher earnings. The improvement in earnings was demonstrated by figures including a 301.0% increase in operating profit. - FY2019-Q1ReframedAnnual report
「In terms of earnings, efforts to reduce the cost of sales and selling, general and administrative expenses resulted in operating profit of ¥273 million, up 168.0% year on year, ordinary profit of ¥268 million, up 202.4%, and profit attributable to owners of the parent of ¥241 million, up 828.7%.」
Unlike the previous explanation that higher research and development expenses caused earnings to decline, this time reductions in the cost of sales and selling, general and administrative expenses were described as factors improving earnings. - FY2018Explaining higher research and development expenses as resource concentration on two-dimensional product development rather than as a factor behind lower earningsAnnual report
「The company has been streamlining development projects and focusing on the development of products compatible with two-dimensional codes, discontinuing sales of legacy products with low profit margins, disposing of their inventories, reviewing sales prices, and reducing the manufacturing costs of new products.」
Although research and development expenses continued to increase, this time they were described not primarily as a cause of lower profit margins but as part of a management reform to streamline development projects and concentrate resources on products compatible with two-dimensional codes. - FY2018-Q2WorsenedAnnual report
「In terms of earnings, although profit for the six-month period ended in the second quarter of the current fiscal year exceeded the initial plan, operating profit was ¥120 million, down 45.6% year on year, ordinary profit was ¥104 million, down 48.6%, and profit attributable to owners of the parent was ¥36 million, down 73.2%. Research and development expenses for products intended for local markets in Europe, Asia and other regions also increased year on year.」
The explanation regarding higher research and development expenses continued, with this time the expenses specified as relating to products for local markets in Europe, Asia and other regions. Earnings declined substantially year on year. - FY2018-Q1ReframedAnnual report
「In terms of earnings, operating profit was ¥101 million, down 17.9% year on year, ordinary profit was ¥88 million, down 24.2%, and profit attributable to owners of the parent was ¥26 million, down 61.3%, mainly due to higher research and development expenses associated with advancing new product development.」
The explanation that higher research and development expenses were a factor behind the decline in earnings continued, but this time they were described not as a domestic-only factor but as a company-wide factor associated with advancing new product development. - FY2017-Q3WorsenedAnnual report
「In terms of earnings, the decline in U.S. sales and the increase in research and development expenses caused the profit margin to decline, although domestic sales edged up from the previous fiscal year. As a result, for the nine-month period ended in the third quarter of the current fiscal year, operating profit was ¥211 million, down 51.0% year on year, ordinary profit was ¥187 million, down 51.0%, and profit attributable to owners of the parent was ¥94 million, down 58.1%.」
The increase in research and development expenses continued to be cited as a factor behind the decline in the domestic profit margin, and the decreases in operating profit, ordinary profit and net profit all widened from the previous quarter. - FY2017-Q2WorsenedAnnual report
「Although domestic sales edged up from the previous fiscal year, the increase in research and development expenses caused the profit margin to decline. As a result, for the six-month period ended in the second quarter of the current fiscal year, operating profit was ¥221 million, down 43.1% year on year, ordinary profit was ¥203 million, down 41.0%, and profit attributable to owners of the parent was ¥137 million, down 37.2%.」
The increase in research and development expenses continued to be cited as a factor behind the decline in the domestic profit margin, and the domestic segment recorded a loss of ¥24 million. - FY2017-Q1ReframedAnnual report
「In terms of earnings, operating profit was ¥124 million, down 32.4% year on year, ordinary profit was ¥117 million, down 19.4%, and profit attributable to owners of the parent was ¥67 million, up 0.1%, due to lower overseas sales and higher research and development expenses.」
Unlike the previous explanation that domestic earnings declined due to new product development expenses, this time lower overseas sales and higher research and development expenses were identified as factors behind the decline in company-wide operating profit. - FY2016-Q3First statedAnnual report
「In Japan, earnings declined because expenses related to new product development increased.」
In Japan, the increase in expenses related to new product development was a factor behind the decline in earnings.