| July 29, 2005 |
| |
| Summary Report on Financial and Business Results (Consolidated) for the First Quarter of the Fiscal year ending March, 2006 |
| List of Company |
Daiwabo Information System Co., Ltd. |
Listing Stock Exchange (Section)
Osaka Securities Exchange
Tokyo Stock Exchange (1st) |
| Code No. |
9912 |
|
| Location of Head Office |
2-5, 3 chome, Hommachi, Chuo-ku, Osaka |
| (URL http://www.pc-daiwabo.co.jp/english/index.html) |
| Representative |
Hirokazu Matsumoto,
President and CEO |
| Inquiry Section |
Osamu Koyama,
Director in charge of Personnel Dept. & Finance Dept. General Manager of Corporate Planning Dept. |
| PHONE |
+81-6-6281-1161 |
|
| 1.Matters concerning the preparation of summary report on performance for the first quarter |
| (1) |
Are any convenient accounting methods adopted?
The standard for allocating reserves are based on convenient method. |
YES |
| (2) |
Are there any changes in the accounting method compared to the one applied in the most recent fiscal year? |
NO |
| (3) |
Are there any changes in the scope of consolidation and the equity method? |
YES |
| |
Consolidated subsidiaries: New: 0, Excluded: 1
Firms accounted for under the equity method: New: 1, Excluded: 0
|
|
2.Summary of business results for the first quarter of the fiscal year ending March, 2006 (April 1, 2005 - June 30, 2005)
| (1)Progress in business results (consolidated) |
(Fraction less than 1 millions of yen omitted) |
| |
Net Sales |
Operating Income |
Ordinary Income |
Net Income |
|
| March 2006, first quarter |
| March 2005, first quarter |
|
| millions of yen |
% |
83,378 |
0.5 |
| 82,980 |
6.8 |
|
| millions of yen |
% |
| 433 |
- 24.5 |
| 574 |
- |
|
| millions of yen |
% |
| 367 |
- 26.0 |
| 497 |
- |
|
| millions of yen |
% |
| 252 |
57.5 |
| 160 |
- |
|
(Reference)
Fisical year ending March |
| 373,748 |
|
|
| 5,339 |
|
|
| 4,947 |
|
|
| 2,540 |
|
|
| |
Net Income per Share |
Net Income per Share(Diluted) |
|
| March 2006, first quarter |
| March 2005, first quarter |
|
|
|
(Reference)
Fisical year ending March |
|
|
| Note) |
Percentages shown in the columns of sales volume, operating profit, and others indicate the rate of increase/decrease relative to the same period of the preceding year. |
| [Qualitative information on the progress in operating results (consolidated)] |
The Japan's economy in the first quarter shows a slow recovery, supported by increased equipment investment due to the recovery of corporate earnings and firm personal spending. On the hand, there is fear of negative effects of rising oil prices on the economy.
According to the announcement by the Japan Electronics and Information Technology Industries Association (JEITA), the volume of domestic shipments of PCs have continued to grow for nine consecutive quarters up to the current quarter, increasing 22% over the same period of the preceding year. The reason for this growth in the PC industry is that investment for IT has expanded as a result of the recovery of business performance even in medium and small companies, , In terms of value, however, we had only a 12 percent increase due to a continuing decline in sales prices.
The DIS group aims to become a distributor loved and chosen by customers by focusing not only on larger volume but also on better quality in the provision of our products and services under the slogan "Challenge for new growth quality and quantity" and by pursuing our basic policies of customer first and community-focused sales and low-cost operations. Since last fiscal year, we have been promoting "Over The Million" sales campaign designed to achieve the goals of selling 1.2 million units of personal computers a year (1.11 million units for the previous fiscal year) and "take on the challenge of selling 50,000 server machines" campaign s (37,000 units for the previous fiscal year) to increase server sales. As part of better quality service, we have held a series of seminars for software solutions across the country. Furthermore, in line with the enforcement of the personal information protection law, we have also given new seminars on security.
During the consecutive holidays in May, we completed a switchover to a new sales management system (DIS-NET II), which had been under development. This is expected to enhance management functions, boost its capability for processing work and improve work efficiency, enabling us to definitely move toward the goals of achieving sales of over ¥500 billions. We believe the new system will make a great contribution to our growth.
On June 8, 2005, all the departments concerned have finally completed the acquisition of ISO14001 Certification, an international environmental management system standard, about three years after the introduction of this management method.
ZOA Corporation was listed on the Jasdaq market. With its public offering on June 17, we sold shares of this company. As a result, the ratio of our voting rights declined below 50 percent. ZOA Corporation has now changed from a consolidated subsidiary to an affiliate accounted for by the equity method.
As a result of the changes mentioned above, we posted consolidated net sales of ¥83.378 billions, a operating income of ¥433 millions, and an ordinary income of ¥367 millions for the first quarter of Fisical year 2006.
We also booked a net income of ¥252 millions for the first quarter, with extraordinary income of ¥79 millions from the sale of our shares of ZOA Corporation and equity earnings of ¥82 millions.
Starting from the first quarter of Fisical year 2006, our business will be segmented into three categories, excluding "Over-the-counter sales of information appliances." |
| (2) Changes in financial position (consolidated) |
| |
Total Assets |
Shareholder's Equity |
Ratio of Shareholders' Equity to Total Assets |
Shareholders' Equity per Share |
|
| March 2006, first quarter |
| March 2005, first quarter |
|
| millions of yen |
| 111,086 |
| 112,432 |
|
| millions of yen |
| 32,213 |
| 27,771 |
|
|
| Yen |
Sen |
| 1,778 |
57 |
| 1,698 |
76 |
|
(Reference)
Fisical year ending March |
136,012 |
31,154 |
22.9 |
|
| [Quantitative information concerning changes in financial position (consolidated)] |
| The financial position of the DIS group for the first quarter of the current fiscal year was marked by a sharp decline in total assets, compared with that at the end of the pervious consolidated accounting year. This is attributable to the concentration of sales at the end of the preceding fiscal year. Other factors are that trade receivables and account payables were at a high level at the end of the preceding fiscal year and that loans were recovered and account payables were settled in the first quarter of the current fiscal year. In addition, ZOA Corporation became an affiliate accounted for under the equity method, losing its status as a consolidated subsidiary. This is also partly responsible for a significant decrease in our assets. Corporate bonds with equity warrant worth ¥1.2 billions were converted into shares and the capital was increased by ¥600 millions to ¥10.5 billions. |
| 3. Forecast of consolidated business results for fiscal year ending March 2006(April 1, 2005 - March 31, 2006) |
| |
Net Sales |
Ordinary Income |
Net Income |
|
| Mid-term |
| Entire fiscal Year |
|
| millions of yen |
| 176,000 |
| 388,000 |
|
| millions of yen |
| 1,500 |
| 5,500 |
|
| millions of yen |
| 900 |
| 3,200 |
|
| Note) |
Estimated net income per share for the fiscal year (full year):¥171. 38 |
| |
* Actual business results may differ from estimates mentioned above due to various factors. |
| [Quantitative information concerning business forecast] |
We have not changed our estimate for business results released on June 8, 2005.
However, The estimated net profit per share, however, was corrected due to an increase in the number of shares issued following the conversion of the corporate bonds. |
|
