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Business results for the first quarter of the year ending March 31, 2011
Operating results
| Net sales | Operating income | Ordinary income | Net income | |||||
|---|---|---|---|---|---|---|---|---|
| Million yen | % | Million yen | % | Million yen | % | Million yen | % | |
| First quarter, year ending March 31, 2011 |
7,961 | -44.8 | 61 | -96.5 | 94 | -94.9 | -22 | − |
| First quarter, year ending March 31, 2010 |
14,413 | 21.2 | 1,756 | 59.1 | 1,827 | 59.5 | 971 | 73.1 |
| Net income per share | Diluted net income per share | |
|---|---|---|
| Yen | Yen | |
| First quarter, year ending March 31, 2011 |
-1.55 | − |
| First quarter, year ending March 31, 2010 |
65.69 | − |
Financial position
| Total assets | Net assets | Shareholders’ equity ratio |
Net assets per share |
|
|---|---|---|---|---|
| Million yen | Million yen | % | Yen | |
| First quarter, year ending March 31, 2011 |
43,750 | 26,467 | 60.4 | 1,787.13 |
| Year ended March 31, 2010 | 49,641 | 27,380 | 55.1 | 1,848.74 |
(Reference) Shareholders’ equity
First quarter of the year ended March 31, 2011: ¥26,420 million
First quarter of the year ended March 31, 2010: ¥27,331 million
Dividends
| Annual dividends | |||||
|---|---|---|---|---|---|
| First quarter-end |
Second quarter-end |
Third quarter-end |
Year-end | Annual | |
| Yen | Yen | Yen | Yen | Yen | |
| Year ended March 31, 2010 | − | 10.00 | − | 60.00 | 70.00 |
| Year ended March 31, 2011 | − | ||||
| Year ended March 31, 2011 (Forecast) |
10.00 | − | 30.00 | 40.00 | |
Forecast earnings for the year ending March 31, 2011
| Net sales | Operating income |
Ordinary income |
Net income | Net income per share |
|||||
|---|---|---|---|---|---|---|---|---|---|
| Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | |
| First half endin September, 2011 |
19,000 | -35.5 | 800 | -79.9 | 800 | -80.8 | 300 | -86.8 | 20.29 |
| Entire – year | 46,000 | -11.3 | 2,900 | -37.3 | 3,000 | -38.8 | 1,200 | -48.9 | 81.17 |
Qualitative Information Regarding the Consolidated Results for the First Quarter
Qualitative Information Regarding Consolidated Operating Results
During the cumulative consolidated first quarter, the Japanese economy remained in an unfavorable situation due to a mild deflation in prices, while corporate earnings had been back on the recovery track.
In the pachinko business in which the Daikoku Denki Group (“the Group”) is engaged, pachinko hall operators, our customers, have been struggling with low revenues due to sluggish personal consumption. Under these market environments, the business results of pachislot game machines continued to exceed those of the same period of the previous year. This stable business performance attracted pachinko hall operators’ attention and they stared to switch from pachinko to pachislot. On the other hand, low-priced rental ball services, such as 1-yen pachinko, have now spread all over Japan, and pachinko hall operators are trying to differentiate their services.
Under these market environments, the Information System Segment promoted proposals to utilize at halls, “BiGMO” for boosting the performance of pachislot games, and “Raku-pass” for differentiating amid the trend of a low-priced rental ball service.
The Control System Segment sought to improve the quality and efficiency of development operations aiming at reforms in manufacturing and strove to promote projects hardware and software of game machines.
As a result, the Company’s cumulative consolidated results for the first quarter were ¥7,961 million in net sales(down 44.8% year-on-year), ¥61 million in operating income (down 96.5%year-on-year), and ¥94 million in ordinary income (down 94.9% year-on-year).Consolidated net loss for the period amounted to ¥22 million (down ¥994 million year-on-year).
Business results by segment are as follows.
Information System Segment
During the consolidated first quarter, the Information System Segment presented proposals on an installation of the “C II” hall computing system with a focus on the “C II Desk” and “Maintenance Desk,” services for supporting hall management utilizing the MIRAIGATE network. The segment also released a fan trend analysis system serving hall management based on the number of visitors to pachinko halls.. However, large-scale capital investment, such as the opening of new halls, remained low. As a result, sales in the segment were ¥5,146 million (down 18.8% year-on-year), and operating income was ¥683 million (down 47.8% year-on-year).
Control System Segment
During the consolidated first quarter, the Control System Segment made efforts to propose projects of hardware and software in game machines. However, there were no new models launched in the market during the period. As a result, sales in the segment were ¥2,374 million (down 69.5% year-on-year), and operating loss amounted to ¥212 million (down ¥1,216 million year-on-year).
Amusement Content Segment
During the consolidated first quarter, orders for development in consumer games increased thanks to our highly rated game software for which we received the orders from overseas manufacturers last year. As a result, sales in the Amusement Content Segment were ¥442 million (up 50.4% year-on-year), and operating income amounted to ¥47 million (up ¥83 millionyear-on-year).
(Note) Figures of segment results include intersegment transactions.
Qualitative Information Regarding Consolidated Financial Position
Total assets at the end of the consolidated first quarter were ¥43,750 million, a decrease of ¥5,891 million from the end of the previous consolidated fiscal year, due mainly to payments of taxes and dividends.
Current assets were ¥27,719 million, a decrease of ¥6,862 million from the end of the previous consolidated fiscal year, due mainly to a decrease in cash and deposits and trade receivables.
Noncurrent assets were ¥16,030 million, an increase of ¥971 million from the end of the previous consolidated fiscal year, due mainly to investments in facilities.
Liabilities were ¥17,283 million, a decrease of ¥4,977 million from the end of the previous consolidated fiscal year, due mainly to a decrease in trade payables and income taxes payable.
Net assets were ¥26,467 million yen, a decrease of ¥913 million from the end of the previous consolidated fiscal year, due mainly to a decrease in retained earnings. The Group’s equity ratio was 60.4% (up 5.3 percentage point compared to the end of the previous consolidated fiscal year).