| Fiscal Year Ending March 2004 Summary of Third Quarter Results (consolidated) |
February 5, 2004 |
| 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 Third Quarter of Fiscal
Year Ending March 2004(April 1, 2003 to December 31, 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, third quarter |
| March 2003, third quarter |
|
|
|
|
|
| (Reference) March
2003 period |
|
|
|
|
|
Net
income per share |
Net
income per share after adjustments for potential
stocks |
|
| March 2004, third quarter |
| March 2003, third 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 third quarter, the Japanese economy saw a modest recovery such as an upward trend in private-sector capital investment due to thriving export-related companies and overall improvement in company earnings.
According to an announcement by the Japan Electronics and Information Technology Industries Association (JEITA), the computer industry continuously increased the number of Japanese domestic PC shipments in the third quarter (October to December 2003), recording positive growth for the third consecutive quarter. With the economy moving upward, IT investment recovering, and the use of the IT investment promotional tax policy expanding, the enterprise PC market saw a full-scale demand for replacements and additions. However, unit sales prices plummeted to a record low, resulting in an 8 % decrease in terms of monetary value.
Under these conditions, as the "Over The Million" campaign, the DIS group has been striving to increase its share of the PC (main unit) market, targeting at more than 1 million units as the number of the shipment in this fiscal year. With the profit rate dropping due to intensified sales competition, we have expended our efforts to realize thorough low-cost operations by launching a distribution-streamlining project for reviewing group-wide distribution cost.
Moreover, we have been promoting a project for designing the outlines of "DIS-NET II", the next version of sales and distribution management system that carries out our key operations. Finally, we placed an order with NEC for "DIS-NET II" at about 2 billion yen, aiming to improve the performance of our sales and distribution management system contributing to future sales expansion, optimize the group-wide system by integration, and enhance cooperation among dealers and manufacturers. |
| [Characteristics of Quarterly Results for DIS Group] |
| In Japan, many companies end their fiscal years in March and the installation and inspection for acceptance of systems tend to concentrate in the months of September and March. Likewise, the delivery of system equipment also tends to concentrate in the month of March. Accordingly, there is a tendency in the first quarter results (January to March) of the DIS Group to have a significant effect on the final results because the DIS Group results have seasonal variations and record higher in the first quarter than other quarters. |
| (2) Financial Trends (consolidated) |
|
Total assets |
Shareholder
capital |
Shareholder capital
percentage |
Shareholder capital
per share |
|
| March 2004, third quarter |
| March 2003, third 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 third quarter of this year are 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 third 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 third quarter were slightly below expectations, it is believed that a recovery can be achieved during the fourth quarter and no changes have been made to the final consolidated results prediction announced on November 6, 2003.
However, the actual results may differ from the predicted values due to the influence of various factors. |
|
