| Summary of 3rd Quarter Consolidated Financial Results and Business Performance for Fiscal Year Ending in March 2005 |
February 3, 2005 |
| Company name |
Daiwabo Information System Co., Ltd. |
(Code No. 9912, First
Section of Tokyo Stock Exchange/Osaka Securities
Exchange) |
| (URL http://www.pc-daiwabo.co.jp/english/index.html) |
|
| Company representative |
Hirokazu Matsumoto, President |
|
| Contact person |
Osamu Koyama,
Director of Finance and General Manager of Corporate Planning |
(PHONE: +81-6-6281-1161) |
| 1.Matters Related to Preparation of Quarterly Results Summary |
| (1) |
Are there differences between the accounting methods used in this report and the methods recognized in recent consolidated accounting years?
In some cases, simplified accounting standards were used for allowance reserves. |
YES |
| (2) |
Are there any changes in the accounting method from the one used in the last consolidated accounting year? |
NO |
| (3) |
Are there any changes within the scope of consolidated and equity methods used in this report? |
NO |
2.
Summary of Results for 3rd Quarter of Fiscal Year Ending in March 2005(April 1, 2004 ~ December 31, 2004)
| (1)Progress of Corporate Results (consolidated) |
(All
amounts below 1 million yen are rounded off.) |
|
Sales volume |
Operating
profit |
Ordinary
income |
Net income
(for quarter) |
|
| March 2005, third quarter |
| March 2004, third quarter |
|
|
MMYen |
% |
| 257,665 |
7.4 |
| 239,974 |
- |
|
|
MMYen |
% |
| 2,201 |
92.9 |
| 1,141 |
- |
|
|
MMYen |
% |
| 1,862 |
147.6 |
| 752 |
- |
|
|
| (Reference) March
2004 period |
|
|
|
|
|
Net
income per share |
Net
income per share after adjustments for potential
stocks |
|
| March 2005, third quarter |
| March 2004, third quarter |
|
|
|
| (Reference) fiscal
year ending March 2004 |
|
|
| Note) |
The percentages shown for Sales, Operating Profit and other columns indicate the rate of increase/decrease relative to the same period of the preceding year. |
| Qualitative Information Concerning the Progress of Business Performance (Consolidated) |
The Japanese economy in the 3rd quarter was underscored by a slow recovery seen by an improvement in business earnings and increased private sector investment in plants and equipment, however economical fears in the USA and oil and materials prices rose and economy-driving IT and digital sectors saw some restraints, which created a sense of an economic slowdown.
According to the Japan Electronics and Information Technology Industries Association (JEITA), the domestic computer industry continued to perform well in the 3rd quarter at 2.84 million units (113% compared to the same period last year), marking the seventh straight quarter of positive growth on a volume base. Sales prices fell a bit yet the industry still grew on a monetary base. The corporate user market continued healthily on repressed demand for PCs introduced because of the Y2K problem. Investment in security also stood out because of the intertwining of the Personal Information Protection Act that will be enforced in April 2005.
Given the situation, the DIS Group continued "Over The Million" campaign from last year setting a target of 1.10 million computers for the group in this fiscal year. Furthermore, we are promoting a campaign to increase server sales on the slogan of "take on the challenge of selling 40,000 server machines". Most of our sales routes are directed at medium size business users and, because of an improved position on equipment investment amongst medium size businesses, sales increased at a good pace. In the 3rd quarter, web communication sales to consumers increased.
In October, we integrated and relocated offices in the Tokyo area to Ohi, Shinagawa-ku, and opened the Tokyo Brunch Office. We also concentrated sales operations, purchasing operations and some subsidiaries into core hubs and worked closely within the group, which made it possible to provide better proposals to customers.
System integrator DIS System Trading Co., Ltd is a wholly owned subsidiary of ours. To improve profits, delivery and other operations were reexamined, activities were done to level off performance and structural changes, which included personnel reductions, were implemented, as a result of which the company returned to the black. They relocated to the same building as our Tokyo Brunch Office and are strengthening activities through cooperation. In order to reorganize and strengthen the solution business, dormant subsidiary Osaka Internet Co., Ltd. was reorganized and started operations as DIS Solution Co., Ltd. in Ohi, Shinagawa-ku. |
| [Features of Quarterly Results for the DIS Group] |
| Many businesses in Japan stipulate March as the end of the business year and tend to concentrate system introductions and acceptances in September and March. Also, equipment deliveries tend to concentrate in March at the end of the business year. Group performance, therefore, fluctuates on a seasonal basis with most sales registered in the 4th quarter (January ~ March), hence 4th quarter trends tend to greatly affect performance for the year. |
| (2) Financial Trends (consolidated) |
|
Total assets |
Shareholder
capital |
Shareholder capital
percentage |
Shareholder capital
per share |
|
| March 2005, third quarter |
| March 2004, third quarter |
|
|
|
|
| Yen |
Sen |
| 1,726 |
11 |
| 1,620 |
35 |
|
| (Reference) fiscal
year ending March 2003 |
133,192 |
27,873 |
20.9 |
|
| [Qualitative Information Regarding Financial Trends] |
| Compared to the same period last year, the financial status of the DIS Group in the current 3rd quarter is as follows. In order to procure capital for internal system equipment investment, we issued 5 billion Yen worth of convertible bonds with pre-emptive right in October. This increased both cash and savings, resulting in an increase in total assets. Short-term loans were reduced to 7.3 billion Yen. |
| 3.
Consolidated Results Forecast for Fiscal Year Ending in March 2005 (April 1, 2004 ~ March 31, 2005) |
| Because the current 3rd quarter results are proceeding as planned for the most part, the projected consolidated performance for the year has not been revised from that announced on November 4, 2004. However, the actual results may differ from the projected results due to various factors. |
|
