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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
MMYen %
239,974 -
- -
MMYen %
1,141 -
- -
MMYen %
752 -
- -
MMYen %
275 -
- -
(Reference) March 2003 period
334,541
2,879
2,623
1,012

Net income per share Net income per share after adjustments for potential stocks
March 2004, third quarter
March 2003, third quarter
Yen Sen
16 83
- -
Yen Sen
- -
- -
(Reference) fiscal year ending March 2003
56 03
- -

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
MM Yen
117,667
-
MM Yen
26,494
-
%
22.5
-
Yen Sen
1,620 35
- -
(Reference) fiscal year ending March 2003 122,912 26,609 21.7
1,621 18

[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.


Direct inquiries to
Osamu Koyama, Finance Department
PHONE +81-6-6281-1161
FAX +81-6-6258-2636

DAIWABO INFORMATION SYSTEM CO., LTD.