Sumary of Fiscal Year Ending March 2005 First Quarter Consolidated
Financial Result and
Business Performance |
August 4, 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?
-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 scope of
consolidated and equity methods used in this report? |
NO |
2.Summary of Results for First Quarter of Fiscal
Year Ending March 2005(April 1, 2004 to June 30, 2004)
| (1)Progress of Corporate Results (consolidated) |
(All amounts below
1 million yen are rounded off.) |
|
Sales volume |
Operating profit |
Ordinary income |
The first quarter
(current) net income |
|
| March 2005,first quarter |
| March 2004, first quarter |
|
| million yen |
% |
82,980 |
6.8 |
| 77,724 |
- |
|
|
| million yen |
% |
| 497 |
- |
| -77 |
- |
|
| million yen |
% |
| 160 |
- |
| -223 |
- |
|
| (Reference) March 2004 period |
| 347,394 |
|
|
| 3,800 |
|
|
| 3,331 |
|
|
| 1,605 |
|
|
|
Net income per share |
Net income per share after
adjustments for potential stocks |
|
| March 2005, first quarter |
| March 2004, first quarter |
|
| Yen |
Sen |
| 9 |
79 |
| -13 |
68 |
|
|
| (Reference) fiscal year ending March
2004 |
|
|
| 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. |
| [Qualitative Information
Regarding Progress of Corporate Results] |
In the first quarter 2004, corporate
profits showed discernible evidence of recovery as a whole promoted
by the growth in demand for digital household electronics and brisk
export, which encouraged improvement in Japan's economy. Corporate
capital investments also showed the upward trend in this period.
Japan Electronics and Information Technology Industries Association
(JEITA) announced that, contributed by the broadened demand from
small-to-medium-sized businesses, the growth of the personal computer
industry remained solid with the demand in replacement and addition
as an engine of the growth. The total number of units shipped in
Japan posted the fifth consecutive quarterly rise including this
quarter, rising 2 percent from the same period a year ago. However,
it fell 5 percent in terms of money value owing to the continuous
fall in per-unit price though the percentage was narrower than the
previous one.
Under such market conditions, the DIS group has been and will implement
a sales campaign to expand the sales of server machines in this
fiscal year with the phrase "take on a challenge of selling
40,000 server machines" as a motto, implementing the customer
first policy and practicing community-based marketing approach as
usual. We also focused on expanding the sales of peripheral equipment
and software as well as increasing the number of customers who use
our support service.
We concluded an agreement to create an alliance with Tomen Cyber
Business, which became one of our affiliated companies in March
2004 with the acquisition of a 29.9 percent stake in the Tomen group,
in order to sell VDSL modem and middleware products, the bread-and-butter
products of Tomen Cyber Business, as well as launching the maintenance
service of those products through our nation-wide sales locations.
On June 25 this year, we successfully extended the scope of ISO
14001 certification, the international standards for environmental
management system, to cover our Osaka Head Office, Tokyo Head Office,
Tokyo Sales Department and Kansai Sales Department, following the
achievement of the certification by the Procurement and Sales Promotion
Division and Sales Planning Department in June 2003. We intend to
achieve the company-wide ISO certification in the future. |
| [Characteristics of Quarterly
Results for DIS Group] |
There is a general tendency for most
of the system installation and inspection to be done in March and
September in the system integration business. However, our efforts
to level out performance by reviewing delivery schedule and to reform
that business structurally brought the company to profitability.
The first quarter sees the lowest level of performance in a whole
fiscal year for the DIS group as a whole, to which the increase
in labor costs owing to the joining of newly graduated students
contributes. |
| (2) Financial Trends (consolidated) |
|
Total assets |
Shareholder capital |
Shareholder capital percentage |
Shareholder capital per share |
|
| March 2005, first quarter |
| March 2004, first quarter |
|
| million yen |
| 112,432 |
| 106,739 |
|
| million yen |
| 27,771 |
| 26,130 |
|
|
| Yen |
Sen |
| 1,698 |
76 |
| 1,597 |
91 |
|
| (Reference) fiscal year ending March
2004 |
133,192 |
27,873 |
20.9 |
|
| [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.
Comparing with the same period last year, the net income rose indexed
to the rate of increase in total assets. |
| 3. Consolidated Results Forecast
for Fiscal Year Ending March 2005 (April 1, 2004 to March 31, 2005) |
| There has been no revision in the projected
consolidated results for both fiscal and mid-fiscal year 2004, announced
on May 13, 2004, because the first quarter performance has been,
and is, proceeding according to our plan. However, the actual results
may differ from the projected ones due to the influence of various
factors. |
|
