Expansion of the business portfolio through the acquisition of プリンストン as a subsidiary, including DX and videoconferencing businesses

「In the telework solutions business, sales of a new digital conferencing system launched in the previous fiscal year entered full swing. Sales and profit increased year on year for stationary digital conferencing systems and USB devices such as webcams.」

「In the telework solutions business, sales of a new digital conferencing system launched in the previous fiscal year entered full swing. Sales and profit increased year on year for stationary digital conferencing systems and USB devices such as webcams.」

「Demand for fixed conferencing systems began to recover in the second half of the fiscal year. However, sales performance fell below the level of the same period of the previous year due to the delayed launch of the new digital conferencing system introduced in the second half of the previous fiscal year and a decline in the average unit price of fixed terminals, among other factors.」

「In the remote-work solutions business, demand for fixed conferencing systems as a whole remained weak, while the launch of a new digital conferencing system introduced in the second half of the previous fiscal year was delayed. As a result, sales performance remained below the level of the same period of the previous year.」

「In the remote-work solutions business, demand for fixed conferencing system terminals for offices associated with the promotion of hybrid work had emerged, but some customers were seen hesitating to invest, resulting in steady sales performance. Sales of web-conferencing licenses, webcams and high-performance headsets also remained firm.」

「In the remote-work solutions business, as adaptation to the new social environment of living with COVID-19 progressed further, hybrid work, in which employees choose between office-based and remote work, began to take hold as a new business style. As a result, sales of fixed conferencing system terminals for offices, web-conferencing licenses, webcams and high-performance headsets remained firm.」

「In the remote-work solutions business, demand for fixed conferencing system terminals in offices recovered in earnest as people began returning to offices on a full-scale basis in response to changes in the social environment, including the reclassification of COVID-19 as a Class 5 infectious disease. Sales performance remained solid. Sales of web-conferencing licenses, webcams and high-performance headsets also remained solid, continuing from the previous fiscal year.」

「During the first nine months, licenses such as Webex, BlueJeans and Zoom, as well as peripherals for digital conferencing such as webcams and advanced headsets, continued to perform solidly. In addition, inquiries about fixed digital conferencing terminals for meeting rooms and other facilities increased as people began returning to offices. Delivery delays for procured products also improved, and the company continued to review its sales strategy and sales organization and reduce SG&A expenses. As a result, revenue in the remote-work solutions business was ¥1,479 million, down 24.2% year on year, and the segment recorded a loss of ¥73 million, compared with segment profit of ¥69 million in the same period of the previous year.」

「Demand has begun to emerge for fixed digital conferencing terminals for meeting rooms and other facilities, which are expected to be used in hybrid work combining office attendance with remote work. However, demand for remote-work-related equipment as a whole remained weak, while product delivery delays caused by the global semiconductor shortage continued. Accordingly, the company reviewed its sales strategy and sales organization and reduced SG&A expenses. As a result, revenue in the remote-work solutions business was ¥958 million, down 27.9% year on year, and the segment recorded a loss of ¥47 million, compared with segment profit of ¥18 million in the same period of the previous year.」

「Demand for fixed digital conferencing terminals for meeting rooms and other facilities has begun to emerge gradually. However, revenue and operating profit have remained under pressure due to delays in product deliveries caused by the global supply-demand shortage of semiconductor components, which has continued since the previous fiscal year, as well as higher transportation costs, exchange-rate fluctuations and other factors.」

「As a result, revenue in this segment was ¥2,754 million, and segment profit (operating profit) was ¥96 million.」

「During the first nine months, sales of licenses such as Webex, BlueJeans and Zoom, as well as peripherals for digital conferencing such as webcams and speakerphones with microphones, remained solid. Meanwhile, although fixed digital conferencing terminals for meeting rooms and other facilities were expected to be used in hybrid work combining office attendance with remote work, the adoption of hybrid work did not progress as expected, partly because the impact of COVID-19 continued, and orders remained sluggish.」

「As the adoption of remote work by companies continued, license sales for Cisco Webex, BlueJeans and Zoom, among others, remained solid, and the company also focused on expanding sales of digital conferencing items such as webcams and speakerphones with microphones. Meanwhile, as a state of emergency and other measures remained in effect, particularly in major metropolitan areas, through the end of September, the adoption of hybrid work combining office attendance with remote work progressed more slowly than expected, and orders for fixed digital conferencing terminals for meeting rooms and other facilities remained sluggish.」

「During the first quarter, demand for remote work continued to expand. License sales for Cisco Webex, BlueJeans and Zoom, among others, remained solid, while the company worked to develop new markets and customers by introducing new tools such as webcams and speakerphones with microphones to meet demand for better sound and image quality and greater convenience in remote work. In addition, anticipating that more companies would adopt hybrid work, combining office attendance with remote work and other arrangements, as a new way of working, the company strengthened its sales activities to promote the introduction of fixed digital conferencing terminals for office use. As a result, revenue in this segment was ¥637 million, and segment profit (operating profit) was ¥5 million.」

「As a result, revenue in this segment was ¥2,103 million, and segment profit (operating profit) was ¥115 million.」

「This was because the increase in revenue from including Princeton's results in the consolidated income statement from the third quarter exceeded the decline in revenue from the existing businesses as a whole.」

「We determined that making the target company a major subsidiary would contribute to increasing the corporate value of our group for the following reasons: ① In the video and audio conferencing systems business, which has grown significantly with the expansion of demand for remote work and is expected to see further use in DX and other fields, the target company can combine its sales, maintenance and support capabilities developed over many years with our group's network, human resources and financial strength, creating expectations for further business expansion and growth; ② because there is very little overlap between our group's customers and those of the target company, the range of products and services that can be proposed to each other's customers will expand, while the products and services handled by our group, including video-conferencing systems, memory products, products for the e-sports market, and IT-related products and services, will increase substantially, creating expectations for an expanded customer base and higher revenue and earnings power; and ③ adding the target company's growth-oriented business to our portfolio will strengthen businesses related to growth fields such as DX, 5G and IoT, creating expectations for improved consolidated performance and stronger medium- to long-term growth of the group. Accordingly, we decided to acquire all shares of the target company.」