Shortages of Semiconductors and Various Components and Surging Raw Material Prices

「If these risks materialize, our group will work to minimize their impact by strengthening coordination with our local subsidiaries in the United States, Germany and Singapore, accurately monitoring conditions in each region and strengthening the supply chain.」

「The company will diversify its supply chain to address geopolitical risks.」

「For the nine-month period ended 31 December, operating income or loss, ordinary income or loss, and net income or loss all improved substantially year on year, as revenue increased and gross profit improved significantly, helped by continued results from the second quarter of reviewing and revising selling prices in response to soaring raw material prices.」

「In Asia, sales of medical cameras increased substantially from the first quarter, helped by higher transaction volumes in the Chinese market and increased production resulting from the securing of hard-to-source components. This contributed to revenue substantially exceeding the same-period prior-year level.」

「For the three-month period ended 30 June, operating income or loss, ordinary income or loss, and net income or loss all improved substantially year on year, as revenue increased and the gross profit margin improved year on year due to the results of measures to minimize the impact of volatile raw material markets on cost of sales.」

「In the industrial systems business, medical sales fell below the prior-year period because component procurement difficulties continued to force restrictions on orders following the second quarter. However, security sales exceeded the prior-year period as camera sales remained solid, mainly to government customers, and inspection equipment sales also exceeded it as deliveries of tablet printing equipment and visual inspection equipment progressed smoothly.」

「In the cumulative first half of the current consolidated fiscal year, domestic sales in the broadcasting systems business exceeded those in the same period of the previous year, partly because sales of mobile outside-broadcasting systems, including large relay vehicles and SNG relay vehicles, increased substantially. In the industrial systems business, security sales increased to government agencies, but sales were roughly unchanged from the same period of the previous year because project schedules for deliveries to the plant market were postponed due to the COVID-19 pandemic. Medical business sales fell below the previous year's level because the company was forced to restrict orders due to difficulties in procuring components. Sales in the inspection equipment business also fell below the same period of the previous year, as deliveries of projects in the order backlog were concentrated in the second half and growth was less pronounced than in the previous fiscal year.」

「Revenue for the cumulative first quarter of the current consolidated fiscal year was lower than in the same period of the previous year. In addition to the continuing difficulty in procuring various components caused by supply chain disruptions and the impact of soaring prices, the timing of revenue recognition for some orders already received was pushed back to the second quarter or later, while the number of projects ordered and completed within the current period also declined.」

「The outlook remains uncertain due to shortages of semiconductors and other raw materials, rising costs, and the renewed increase in the number of infections caused by the Omicron variant in December. In the broadcasting systems business, sales were lower than in the same period of the previous year, partly because shortages of semiconductors and other components delayed product deliveries and extended the construction periods for projects.」