Shortages of Key Devices and Components and Delays in New Product Launches

「In the B2C business, steady demand for high-value-added products in the mid- to high-price ranges continued, but supply was constrained by changes to production plans in response to US trade policy and the implementation of shipment restrictions, and demand could not be met fully.」

「During the fiscal year, revenue and operating profit decreased year on year because difficulties procuring electronic components, particularly semiconductors, and the decline from the previous year's strong stay-at-home demand in the B2C business outweighed the recovery trend in the B2B business, which had remained sluggish during the COVID-19 pandemic.」

「During the cumulative third quarter, revenue and operating profit decreased year on year because difficulties procuring electronic components, particularly semiconductors, and the decline from the previous year's strong stay-at-home demand in the B2C business outweighed the recovery trend in the B2B business, which had remained sluggish during the COVID-19 pandemic.」

「During the cumulative second quarter, revenue and operating profit increased despite the impact of difficulties procuring electronic components, particularly semiconductors, and longer transportation times resulting from disruption on both the Chinese and North American sides. However, quarterly profit attributable to owners of the parent decreased year on year because foreign exchange losses of ¥170 million were recorded as a result of exchange-rate fluctuations, despite the recovery trend in the B2B business, which had remained sluggish during the COVID-19 pandemic.」

「During the cumulative first quarter, although results were affected by difficulties procuring electronic components, particularly semiconductors, and longer transportation times caused by disruptions on both the China and North America sides, revenue increased as the BtoB business, which had remained sluggish amid the COVID-19 pandemic, showed signs of recovery. The quarterly loss attributable to owners of the parent improved compared with the same period of the previous year.」

「The situation in which high demand in Western markets cannot be met due to port congestion and difficulties procuring components continues.」

「Prolonged port congestion has prevented the resolution of product supply delays, and the situation in which high demand in Western markets cannot be met continues.」

「However, supply delays caused by port congestion have not been resolved, and the situation in which high demand in North America and Europe cannot be met continues.」

「Product supply has been delayed by congestion at ports in China, and the situation in which high demand cannot be met continues.」

「Cases have arisen in which difficulties obtaining electronic components, particularly semiconductors, worldwide have delayed the ability to respond to increased market demand.」

「In addition, delays in starting up the Chinese factory resulted in order backlogs due to supply shortages.」

「Revenue from aircraft-mounted recording and playback equipment declined because shipments to overseas customers were sluggish and sales of a new in-flight entertainment server were postponed to the fourth quarter.」

「In the BtoB business, solid-state recorders for the equipment market remained firm globally. However, the overall business was sluggish due in part to delays in launching new products and the completion of demand for professional playback equipment at domestic broadcasters.」

「While carrying out reforms aimed at shifting the business toward BtoB, a goal established at the beginning of the period, overall sales of music production and professional audio equipment declined due in part to sluggish BtoC operations and delays in launching new products. However, profit increased as a result of measures including fixed-cost reductions.」

「In the high-end audio equipment business (the ESOTERIC brand), the launch of a new network player planned for the third quarter was postponed to the fourth quarter. In addition, production delays prevented sufficient inventory of popular new imported speakers, resulting in weak domestic sales.」

「Sales of measuring instruments remained sluggish because a major project planned for sale of data recorders was postponed.」

「Demand for integrated record player systems and standalone turntables was strong in each market, but supply was unable to keep pace.」

「Production of linear PCM recorders failed to keep pace with some orders, resulting in a backlog of orders.」

「If an unexpected event beyond our group's sole control occurs and delays the market launch of a new product, or if shortages of production components prevent us from meeting demand, our group's operating results and financial position could be adversely affected.」