Rebuilding the Earnings Base of the Existing Device Business
First written in FY2016. 14 of 28 entries say "Advanced", first in FY2018-Q1. Latest entry: FY2026.
0 other companies' latest entry also says "Other".
- FY2026Higher sales alongside lower profitabilityAnnual report
「However, in addition to the decline in the gross margin resulting from changes in the sales mix, higher SG&A expenses resulted in segment profit of ¥2.694 billion, down 2.8% from the previous fiscal year.」
Although revenue increased due to products from overseas manufacturers and new automotive-related businesses, the decline in the gross margin resulting from changes in the sales mix and higher SG&A expenses weakened the earnings improvement benefits of the existing device business. - 2026-05-14AdvancedFinancial results presentation
「Build a stable earnings base through the electronic devices business」
Regarding the restructuring of the existing Device Business, the company explicitly stated that it would build a stable earnings base through the electronic devices business, with customer expansion, the use of SFA and digital marketing, and operational efficiency through AI and DX identified as measures. - FY2024ReframedAnnual report
「Expanding the existing business and establishing new earnings platforms in the device business」
The rebuilding of the existing device business is described in V76 as improving profitability and stability through consolidation and efficiency gains and shifting resources to growth markets, in addition to conventional gross-margin improvements and SG&A reductions. - FY2024-Q3Continued decline in earnings improvement benefits for the existing device businessAnnual report
「During the cumulative period through the third quarter, sales declined from the year-earlier period, while the loss of some high-margin projects caused gross profit to fall. In addition, increases in non-operating expenses, including interest expenses, affected profit and loss. As a result, net sales were ¥9,831.3 million, down 16.8% year on year, and segment profit was ¥172.2 million, down 53.7%.」
Although we are pursuing profitability improvements in the existing device business, segment profit fell 53.7% year on year due to lower sales, the loss of some high-margin projects and higher interest expenses and other costs. - FY2024-Q2Continued decline in earnings improvement benefits for the existing device businessAnnual report
「During the cumulative period through the second quarter, sales performed strongly against the initial plan, but declined from the year-earlier period. The loss of some high-margin projects and increases in non-operating expenses, including interest expenses, also affected profit and loss. As a result, net sales were ¥6,769.1 million, down 12.9% year on year, and segment profit was ¥131.7 million, down 50.4%.」
Although we are pursuing profitability improvements in the existing device business, segment profit fell 50.4% year on year due to lower sales, the loss of some high-margin projects and higher interest expenses and other costs. - FY2024-Q1Decline in earnings improvement benefits for the existing device businessAnnual report
「During the cumulative period through the first quarter, sales remained firm against the initial plan, but declined from the year-earlier period. The loss of some high-margin projects and increases in non-operating expenses, including interest expenses, also affected profit and loss. As a result, net sales were ¥3,027.1 million, down 9.8% year on year, and segment profit was ¥53.6 million, down 55.5%.」
Although we are pursuing profitability improvements in the existing device business, segment profit fell 55.5% year on year due to lower sales, the loss of some high-margin projects and higher non-operating expenses. - FY2023-Q3AdvancedAnnual report
「During the nine months ended the third quarter, sales of electronic components remained firm, while sales of overseas semiconductors increased due to expanded distribution rights and strong sales to the home video game console market. As a result, revenue was ¥118.220 billion, up 45.3% year on year. Although SG&A expenses increased, the benefit of higher revenue resulted in segment profit of ¥3.716 billion, up 141.9% year on year.」
In the existing device business following the termination of the Renesas authorized distributor agreement, sales of overseas semiconductors and distribution rights continued to expand, substantially increasing revenue and segment profit in the device business. - FY2023-Q2AdvancedAnnual report
「During the cumulative period through the second 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 ¥7,775.2 million, up 50.0% year on year. Despite an increase in selling, general and administrative expenses, the effect of higher sales resulted in segment profit of ¥265.8 million, up 216.4% year on year.」
In connection with rebuilding the existing device business following the termination of the Renesas agreement, distribution rights expanded and sales of overseas semiconductors continued to increase, substantially boosting revenue and segment profit in the device business. - FY2023-Q1AdvancedAnnual 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 rebuilding the existing device business following the termination of the Renesas agreement, sales of overseas semiconductors increased, resulting in revenue of ¥33.565 billion and segment profit of ¥1.205 billion in the device business. - FY2022-Q3AdvancedAnnual report
「During the cumulative period through the third quarter, sales of products made by Renesas Electronics Corporation declined following the termination of the exclusive distributor agreement with the company in June of the previous fiscal year. However, overall sales remained strong owing to growth in sales of products made by overseas semiconductor manufacturers, expansion of sales rights for existing suppliers, and acquisition of sales rights for new suppliers. As a result, net sales were ¥8,135.9 million, up 6.8% year on year. In terms of profit and loss, the effect of higher sales and the containment of selling, general and administrative expenses resulted in segment profit of ¥153.6 million, up 628.3% year on year.」
In the existing device business following the termination of the Renesas agreement, the shift to products from overseas manufacturers, expansion of distribution rights for existing suppliers and acquisition of distribution rights for new suppliers progressed, resulting in revenue of ¥81.359 billion and segment profit of ¥1.536 billion. - FY2022-Q2AdvancedAnnual report
「Although sales of Renesas Electronics Corporation products declined following the termination of the authorized distributor agreement with the company in June of the previous year, sales overall remained strong, led by growth in products from overseas semiconductor manufacturers. As a result, revenue was ¥51.851 billion, up 7.9% year on year. Segment profit was ¥840 million, compared with a segment loss of ¥65 million in the same period of the previous year.」
Following the termination of the agreement with a major supplier, products from overseas semiconductor manufacturers continued to grow, increasing revenue in the existing device business and turning segment results from a loss to a profit. - FY2022-Q1AdvancedAnnual report
「During the nine months ended the first quarter, the global spread of the novel coronavirus led to stagnation in customer and supplier production activities in the same period of the previous year. Against this backdrop, sales to the home video game console market increased, and strong recovery in semiconductor demand also supported revenue, which rose to ¥22.343 billion, up 15.4% year on year. The increase in revenue and improvement in the gross margin also resulted in segment profit of ¥369 million, compared with a segment loss of ¥143 million in the same period of the previous year.」
Higher sales to the home video game console market, recovery in semiconductor demand, the benefit of higher revenue and improved gross margins improved segment results in the device business from a loss to a profit. - FY2021-Q3Continued decline in earnings improvement benefitsAnnual report
「During the nine months ended the third quarter, the strategic device business, which mainly handles IoT-related businesses and new overseas products, increased year on year. However, the core device business declined due to the spread of COVID-19 and changes in suppliers’ distribution channels. In addition, volume-business sales fell substantially following the optimization of sales scale as part of business portfolio reform, resulting in revenue of ¥76.206 billion, down 12.3% year on year. Although we worked to reduce SG&A expenses, the decline in gross profit resulted in segment profit of ¥211 million, down 63.1% year on year.」
Although reductions in SG&A expenses continued, gross profit declined due to decreases in the core device business and volume business, and segment profit in the device business fell 63.1% year on year. The earnings improvement benefits of the existing device business continue to diminish. - FY2021-Q2Reversal of earnings improvement benefitsAnnual report
「Although we worked to reduce SG&A expenses, the decline in gross profit resulted in a segment loss of ¥65 million, compared with segment profit of ¥488 million in the same period of the previous year.」
Despite continued reductions in SG&A expenses, the device business shifted from segment profit of ¥488 million in the same period of the previous year to a loss of ¥65 million, undermining the earnings improvement benefits of the existing device business. - FY2021-Q1AdvancedAnnual report
「In the Devices business, following the termination of the exclusive distributor agreement with Renesas Electronics Corporation, previously a major supplier, at the end of June this year, the Group shifted human resources toward expanding sales of products made by overseas semiconductor manufacturers. It also worked to fundamentally transform its earnings structure by developing new products and business models focused on automotive applications and AI/IoT.」
The authorized distributor agreement with a major supplier was terminated at the end of June 2020, and we are shifting human resources toward expanding sales of products from overseas semiconductor manufacturers. The rebuilding of the existing device business has reached the stage of shifting to new suppliers and products. - FY2020ReframedAnnual report
「Following the termination of the authorized distributor agreement with Renesas Electronics Corporation, we will allocate personnel who have previously worked to expand sales of the company’s products to expanding sales of products from other companies.」
Measures to improve the profitability of the existing device business are shifting from conventional gross-margin and SG&A improvements to reorganizing personnel and distribution channels following the termination of the agreement with a major supplier. - FY2020-Q3Earnings improvement benefits offset by lower revenueAnnual report
「Although we worked to improve the gross margin and reduce SG&A expenses by advancing business portfolio reform, these efforts were insufficient to offset lower revenue. Segment profit was ¥571 million, down 7.5% year on year.」
Although we advanced gross-margin improvements and reduced SG&A expenses, these efforts were insufficient to offset lower revenue in the device business, and segment profit fell from ¥617 million in the same period of the previous year to ¥571 million. - FY2020-Q2AdvancedAnnual report
「In terms of profit and loss, the gross profit margin improved through business portfolio reform, while selling, general and administrative expenses also declined. As a result, segment profit was ¥48.8 million, up 81.0% year on year.」
In the device business, segment profit increased from ¥270 million in the same period of the previous year to ¥488 million as a result of improved gross margins and lower SG&A expenses following portfolio reform. - FY2020-Q1AdvancedAnnual report
「Meanwhile, improvements in the gross margin and reductions in SG&A expenses resulted in segment profit of ¥59 million, compared with segment profit of ¥5 million in the same period of the previous year.」
While revenue in the device business fell 11.5% year on year due to lower volume-business sales and the end of production for certain products, segment profit increased from ¥5 million to ¥59 million as a result of improvements in the gross margin and reductions in SG&A expenses. - FY2019Diminishing full-year earnings improvement benefitsAnnual report
「Although improvements in the gross margin and reductions in SG&A expenses lifted operating profit above the previous consolidated fiscal year, higher non-operating expenses, including increased working capital and higher interest expenses resulting from rising interest rates, resulted in segment profit of ¥465 million, down 35.8% year on year.」
Although improvements in the gross margin and reductions in SG&A expenses continued, segment profit in the device business fell 35.8% year on year due to increased working capital and higher interest expenses resulting from rising interest rates. - FY2019-Q3Continued reduction in the improvement effectAnnual report
「Although we worked to improve the gross margin and reduce SG&A expenses, these efforts were insufficient to offset the impact of lower revenue. Segment profit was ¥617 million, down 18.0% year on year.」
Despite continued improvements in the gross margin and reductions in SG&A expenses, these were insufficient to offset lower revenue. Segment profit in the device business fell 18.0% year on year. - FY2019-Q2Continued reduction in the improvement effectAnnual report
「Although we worked to improve the gross margin and reduce SG&A expenses, these efforts were insufficient to offset the impact of lower revenue. In addition, interest expenses increased due to higher overseas interest rates, resulting in segment profit of ¥270 million, down 16.5% year on year.」
Despite continued improvements in the gross margin and reductions in SG&A expenses, these were insufficient to offset lower revenue and higher interest expenses resulting from rising overseas interest rates. Segment profit in the device business fell 16.5% year on year. - FY2019-Q1Reduced quarterly earnings improvement effectAnnual report
「In terms of profit and loss, the decline in net sales could not be offset by the improvement in the gross profit margin or containment of selling, general and administrative expenses. In addition, higher interest expenses resulting from rising overseas interest rates contributed to segment profit of ¥5 million, down 96.3% year on year.」
Although the Group continued to improve the gross profit margin and contain selling, general and administrative expenses, these efforts could not offset the decline in net sales and increase in interest expenses. Segment profit in the Devices business was therefore ¥5 million, down 96.3% year on year. - FY2018AdvancedAnnual report
「The Group has achieved some results from improving operational efficiency to maximize the effect of fixed-cost reductions and will continue pursuing these cost structure reforms. It will also continue strengthening foreign exchange and inventory risk management under an appropriate management framework. In the existing business, the acquisition of new sales rights and expansion of sales of devices for automotive applications are progressing smoothly. Going forward, the Group will continue efforts to improve the gross profit margin while seeking to acquire service-based businesses by strengthening alliances.」
The Group stated that operational efficiency initiatives had achieved some results and specified measures involving foreign exchange and inventory management, acquisition of new sales rights, expanded sales of automotive devices, and stronger alliances. The Devices business turned a segment loss into profit of ¥72.4 million. - FY2018-Q3AdvancedAnnual report
「As a result, net sales were ¥11,166.2 million, down 4.0% year on year. In terms of profit and loss, the improvement in the gross profit margin, significant reductions in inventory valuation losses and foreign exchange losses, and the effect of reducing fixed costs, including through the consolidation and closure of business sites, resulted in segment profit of ¥75.2 million, compared with a segment loss of ¥168.3 million in the year-earlier period.」
The improvement in the gross profit margin, reductions in inventory valuation losses and foreign exchange losses, and reductions in fixed costs, including through the consolidation and closure of business sites, improved the existing device business's profit and loss from a year-earlier loss to profit. - FY2018-Q2AdvancedAnnual report
「In terms of profit and loss, the improvement in the gross profit margin and significant reductions in inventory valuation losses and foreign exchange losses resulted in segment profit of ¥32.3 million, compared with a segment loss of ¥200.3 million in the year-earlier period.」
The improvement in the gross profit margin and reductions in inventory valuation losses and foreign exchange losses improved the existing device business's profit and loss from a year-earlier loss to profit. - FY2018-Q1AdvancedAnnual report
「In terms of profit and loss, segment profit was ¥13.7 million, compared with a loss of ¥147.3 million in the year-earlier period, owing to an improvement in the gross profit margin and significant reductions in foreign exchange losses and inventory valuation losses incurred in the year-earlier period.」
Improved profitability in the existing device business through reductions in foreign exchange and inventory losses, improvement in the gross profit margin, and greater operational efficiency has been reflected in the shift from segment loss to profit. - FY2016First statedAnnual report
「For the semiconductor and electronic component distribution business, the Group will work to improve profitability by selecting priority products through strategic alignment with suppliers and developing its sales structure. It will also work to build an earnings base resilient to changes in the operating environment by broadening its customer base.」
The Group identifies selecting priority products, developing its sales structure, and expanding its customer base as measures to rebuild the existing business.