1
SUMMARY OF COSOLIDATED FINANCIAL STATEMENTS
For FY 2008 (from July 1, 2007 to June 30, 2008)

August 14, 2008

The English Edition is digested translation of Japanese financial statements, which are prepared in accordance with generally accepted accounting principles in Japan.
Company Name:
Precision System Science Co., Ltd.
Listed on:
Hercules Market at Osaka Securities Exchange
Code Number:
7707
1. Consolidated financial data for fiscal year of 2008 ended June 30, 2008
(From July 1, 2007 to June 30, 2008)
(1) Consolidated operating results

(Million yen, fractional amounts rounded down to the nearest million yen)

Sales
Operating income
Ordinary income

Million yen %
Million yen %

Million yen %

Fiscal year ended June 30, 2008
3,397 ( 8.1)
(141) -
(248) -
Fiscal year ended June 30, 2007
3,698 1.7
(57) -
(65) -
Net income
Net income per share
Net income per share
adjusted for full
dilution

Million yen %
Yen
Yen
Fiscal year ended June 30, 2008
(400) -
(9,350.09)
-
Fiscal year ended June 30, 2007
(143) -
(3,357.11)
-
Return on equity
Ordinary income
ratio over total assets
Operating income
ratio over net sales

%
%
%
Fiscal year ended June 30, 2008
(15.2)
(5.3)
(4.2)
Fiscal year ended June 30, 2007
(5.0)
(1.3
(1.6)
(Ref.) Loss in equity method investment: 16 million yen.

(2) Consolidated financial condition
Total assets
Net Assets
Equity ratio
Net Assets per
share of common
stock
Million yen
Million yen
%
Yen
As of June 30, 2008
4,224
2,423
57.4 56,573.08
As of June 30, 2007
5,169
2,854
55.2 66,629.42

(3)

Consolidated cash flow
Net cash flow
from operating
activities
Net cash flow
from investing
activities
Net cash flow
from financing
activities
Cash and cash
equivalents at end
of the period
Million yen
Million yen
Million yen

Million yen
Fiscal year ended June 30, 2008
199
238
(457)
1,459
Fiscal year ended June 30, 2007
(51)
(123)
420 1,478

2
2.

Forecasts for fiscal year ending June 30, 2008 (from July 1, 2008 to June 30, 2009)

Sales
Operating
income
Ordinary
income
Net income
Net income per
share

Million yen %
Million yen %
Million yen %
Million yen %
For 6 months ending
December 31, 2008
1,750 18.4
20 -
10 -
0 -
0.00
For fiscal year ending
June 30, 2009
3,700 8.9
100 -
80 -
40 -
933.71
3.

Others
(1)

Change in scope of consolidated subsidiaries: None
(2)

Changes in accounting procedures relating to consolidated financial statements:
a)

Changes according to accounting regulations: None
b)

Other than a): Yes
(3) Number of outstanding stocks (common stocks)
a)

Number of outstanding stocks as of June 30, 2008 (including treasury stock)
42,840 (42,840 as of June 30, 2007)
b)

Number of treasury stocks as of June 30, 2007
None (none as of June 30, 2007)

* The above forecast contains forward-looking statements based on information currently available.
Consequently the Company’s actual results may differ materially from the projected values due to various future factors.

3
Operating results and financial conditions

I. Analysis of operating results
1. Operating results
In the fiscal 2008 ended June 30, 2008, there was change in accounting method on sales recognition for an
oversea OEM client from FOB to DDU standard. Due to this change, there was 40 million yen reduction in
sales in the fiscal year compared to the amount in previous accounting method. As the timing of upgrading
for major instruments is approaching, shipment of DNA extractors to OEM clients was slower than expected.
Due to the those negative effects for sales, which are unusual factors limited to this fiscal year, net sales for
the fiscal year declined to 3,397 million yen (down 8.1% compared with same period in previous year).
Affected by sales decline, the gross profit decreased to 1,455 (down 7.4% yoy)

Selling, general and administrative expenses reduced by 2.0% to 1,596 million yen; as a result, operating loss
expanded to 141 million yen.

Due to 76 million yen loss on revaluation of inventories along with losses of interest and foreign exchange,
ordinary loss was 248 million yen.

As extraordinary loss, 73 million yen due to loss on disposal of equipment and 34 million yen due to loss on
revaluation of inventories, were recognized, net loss for the fiscal year was 400 million yen (the amount in
previous year was 143 million yen loss)

4

Net sales according to customer are as follows:
(Unit: Thousand yen, units)
Fiscal year ended
June 30, 2007
Fiscal year ended
June 30, 2008
Year-on-
year
changes

Amount Percentage Amount Percentage
Million yen
%
Million yen
%
%
ROCHE Group
1,653 44.7
1,324
39.0
(19.9)
QIAGEN Group
1,022 27.7
910
26.8
(11.0)
Mitsubishi Kagaku Medience, Inc.
251 6.8
402
11.8
60.2
Others
770 20.8
760
22.4
(1.3)
Total
3,698 100.0
3,397
100.0
(8.1)

As for the ROCHE Group, the sales were affected by the sales recognition change. Furthermore, the sales of
DNA extractor (current models) to both ROCHE Group and QIAGEN Group became slow as the introduction
of new models was expected soon; consequently, the overall sales to the both groups declined compared to
the previous year. As for Mitsubishi Kagaku Medience, Inc., the sales increase just as expected, while sales to
other customers were almost same level as the previous year.
Information by business segments is as follows:
From the fiscal year 2007, we disclose information by business segments as investment business started.

In bio-related business, the net sales decreased 8.0% to 3,372 million yen, while operating loss was
recorded as 9 million yen.

The sales of bio-related business by each product category:

Fiscal year ended
June 30, 2007
Fiscal year ended
June 30, 2008
Year-on-year
changes

Amount Percentag
e
Amount Percentage

Million yen
%
Million yen
%
%
DNA auto extractors
1,805
49.3
1,524
45.2
(15.5)
Other laboratory equipment
293
8.0
191
5.7
(34.8)
Other products
401
10.9
510
15.1
27.3
Merchandise (plastic consumables)
1,165
31.8
1,145
34.0
(1.7)
Total
3,665
100.0
3,372
100.0
(8.0)

1) DNA auto-extractors
This category consists of automated systems utilizing the Company’s internationally patented Magtration
Ⓡ

Technology. In addition to DNA auto-extractors, this category includes immunochemical luminescent
measuring system and Purelumn, auto protein purification system, for which we have had exclusive sales
agreement with GE Healthcare Bio Science Inc.

5
During the fiscal year ended June 30, 2008, the sales on this category declined 15.5% to 1,524 million yen
due to the change of sales recognition for an OEM client and sluggish sales of current models in expecting
entries of new models. The new model instruments for QIGEN Group have been shipped from the fourth
quarter. The new model shipment for ROCHE is expected to start from the first quarter of next fiscal year.
Quarterly sales of automated systems are shown in below charts.

(Unit: Thousand yen, units)

Fiscal year ended
June 30, 2007

First quarter
Second quarter
Third quarter
Fourth quarter
Units sold
190 231
191
258
Amount
389,197 486,681
421,369
507,934
Unit price
2,048
2,106
2,206
1,968
Fiscal year ended
June 30, 2008

First quarter
Second quarter Third quarter Fourth quarter
Units sold
113 220
209
216
Amount
210,315 383,145
384,498
546,934
Unit price
1,861
1,741
1,839
2,532