| Fiscal Year Ending March 2004 Summary of First Quarter Results
(consolidated) |
August 12, 2003 |
| 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, General Manager, Finance Department
|
(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? |
YES |
|
-In some cases simplified
accounting standards were used for allowance reserves. |
| (2) |
Are there any changes within
scope of consolidated and equity methods used in this report? |
NO |
2.Summary of Results for First Quarter of Fiscal
Year Ending March 2004(April 1, 2003 to June 30, 2003)
| (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 2004,first quarter |
| March 2003, first quarter |
|
| million yen |
% |
| 77,724 |
- |
| - |
- |
|
|
|
|
| (Reference) March 2003 period |
|
|
|
|
|
Net income per share |
Net income per share after
adjustments for potential stocks |
|
| March 2004, first quarter |
| March 2003, first quarter |
|
|
|
| (Reference) fiscal year ending March
2003 |
|
|
| Note) |
The percentages shown for the sales volume, operating
profit, etc., indicate the percentage increase or decrease relative
to the same quarter of the previous year. Since publication of quarterly
results was begun with the first quarter of this fiscal year, there
are no entries for the results of or increases/decreases relative
to the same quarter of the previous year. |
| [Qualitative Information
Regarding Progress of Corporate Results] |
During this first quarter, the Japanese
economy was marked by continuing deflation and stagnant personal
income. The SARS epidemic intensified the uncertainty regarding
the future of the world economy and the Japanese economy remained
in difficult straits.
According to an announcement by the Japan Electronics and Information
Technology Industries Association (JEITA), the computer industry
saw an increase in demand for replacements in view of an IT investment
promotional tax policy and the number of Japanese domestic PC shipments
increased by 4% relative to the previous year, the first increase
in two years. However, while the same quarter of last year saw a
trend of adding the increase in materials cost to the sales price,
that trend did not occur this year and unit sales prices fell, resulting
in an 8% decrease in terms of monetary value. The willingness of
corporations to invest in IT is returning and consumer demand got
off to a good start during the summer sales. Thus, demand is coming
around.
Under these conditions of stagnant demand for computers, the DIS
Group has striven to maintain sales by focusing on expanding the
sales of peripheral equipment, software, support, and service.
On April 1 we reorganized and divided the Metropolitan Sales Department
into the Tokyo Sales Department and the Kanto Sales Department in
order to create a sales arrangement with closer ties to local communities.
On June 25 our Tokyo Head Office acquired certification under the
international environmental management system standard ISO 14001.
We plan to expand the certification to the entire company in the
future. |
| [Characteristics of Quarterly
Results for DIS Group] |
| There is a tendency in the system integration
business for the installation and inspection for acceptance of systems
concentrate in the months of September and March. The DIS Group
as a whole records its poorest results of the year in the first
quarter partly because of the increased personnel costs resulting
from hiring new graduates. |
| (2) Financial Trends (consolidated) |
|
Total assets |
Shareholder capital |
Shareholder capital percentage |
Shareholder capital per share |
|
| March 2004, first quarter |
| March 2003, first quarter |
|
|
|
|
|
| (Reference) fiscal year ending March
2003 |
122,912 |
26,609 |
21.7 |
|
| [Qualitative Information
Regarding Financial Trends (consolidated)] |
| The total assets of the DIS Group in
the first quarter of this year are greatly reduced in comparison
with the end of the previous consolidated fiscal year. This is the
result of concentrated sales at the end of the quarter. More specifically,
the sales credits and procurement debts were both at high levels
at the end of the previous period and the recovery of credits and
payment of procurement debts took place during the first quarter
of this year. |
| 3. Consolidated Results Forecast
for Fiscal Year Ending March 2004 (April 1, 2003 to March 31, 2004) |
Although the results for the first quarter
were slightly below expectations, it is believed that a recovery
can be achieved during the second quarter and no changes have been
made to the interim and final consolidated results predictions announced
on May 15, 2003.
However, the actual results may differ from the predicted values
due to the influence of various factors. |
|
