Risk of a shift in the core device earnings structure following termination of the Renesas distributor agreement
First written in FY2020. 3 of 6 entries say "Mitigated", first in FY2022-Q2. Latest entry: FY2023-Q1.
0 other companies' latest entry also says "Mitigated".
- FY2023-Q1MitigatedAnnual report
「During the cumulative period through the first quarter, sales of electronic components remained firm, while sales of overseas semiconductors increased owing to expanded sales rights and strong sales for home video game consoles. As a result, net sales were ¥3,356.5 million, up 50.2% year on year. Despite an increase in selling, general and administrative expenses, the effect of higher sales resulted in segment profit of ¥120.5 million, up 226.3% year on year.」
In connection with the transformation of the earnings structure following termination of the Renesas distributor agreement, expansion of business rights and higher sales of overseas semiconductor products continued, resulting in substantial increases in device business sales and profit. - FY2022-Q3MitigatedAnnual report
「During the nine months ended the third quarter, although sales of Renesas Electronics Corporation products declined following the termination of the authorized distributor agreement with the company in June of the previous fiscal year, sales overall remained strong due to growth in products from overseas semiconductor manufacturers, expansion of distribution rights for existing suppliers and acquisition of distribution rights for new suppliers.」
Although sales of Renesas products continue to decline, the transformation of the earnings structure following termination of the agreement is progressing, supported by expansion of business rights with existing suppliers and acquisition of business rights from new suppliers, as well as growth in products from overseas semiconductor manufacturers. - FY2022-Q2MitigatedAnnual report
「Although sales of Renesas Electronics products declined following the termination of the distributor agreement with the company in June last year, sales overall remained strong, led by growth in products from overseas semiconductor manufacturers.」
Although the decline in sales of Renesas products following termination of the agreement continued, overall sales remained strong owing to growth in products from overseas semiconductor manufacturers, and segment profit in the device business reached ¥840 million. - FY2021-Q2WorsenedAnnual report
「The core-device business declined due to the spread of COVID-19 and changes in suppliers' distribution channels,」
Changes in suppliers' distribution channels following termination of the Renesas distributor agreement were explicitly identified as a factor behind the decline in the core-device business. The impact of transforming the earnings structure following termination of the agreement was reflected in a 19.1% decline in device business sales and a ¥65 million segment loss for the six months ended [the second quarter]. - FY2021-Q1MaterialisedAnnual report
「The Company terminated the following agreement effective 30 June 2020. Partner: Renesas Electronics Corporation; Products handled: semiconductor products and related products; Type of agreement: distributor agreement」
The distributor agreement with Renesas Electronics, whose termination had been scheduled in the previous filing, was terminated on 30 June 2020. The Company is shifting human resources to products from overseas semiconductor manufacturers and transforming its earnings structure, but there is no statement attributing the device business loss for the quarter solely to the termination of the agreement. - FY2020First statedAnnual report
「The termination of the distributor agreement with Renesas Electronics, formerly a major supplier, at the end of June 2020 made a fundamental transformation of the earnings structure an urgent priority.」
The decision to terminate the distributor agreement with Renesas Electronics, a major supplier, was made, with termination scheduled for the end of June 2020. The need to transform the earnings structure of the core-device business was identified for the first time as a standalone management issue. Sales of its products were approximately ¥13.9 billion, or 11.3% of consolidated net sales.