News Release Dated January 9, 2009 Company: INTER ACTION Corporation President: Hideo Kiji Listing: The Tokyo Stock Exchange Mothers Market Stock code: 7725 Contact: Takao Kiji, Director, General Manager of Operation Department Tel: +81-45-788-8373 URL:
http://www.inter-action.co.jp/Eng
Notice of Revisions to Operating Forecasts
INTER ACTION Corporation is revising its forecasts due to recent trends in operating results. These forecasts replace the figures that were announced on July 15, 2008.
Revisions to consolidated forecasts for the first half of fiscal year ending May 31, 2009 (June 1, 2008 – November 30, 2008)
Sales
Operating
income
Ordinary
income
Net income
Net income
per share
(Million yen)
(Million yen)
(Million yen)
(Million yen)
(Yen)
Previous forecast (A)
816
(27)
(44)
(31) (509.52)
Revised forecast (B)
563
(118)
(161)
(102) (1,695.84)
Change (B - A)
(253)
(91)
(117)
(71) -
Percentage change (%)
(31.0)
-
-
- -
(For reference) Previous first half results
692
(160)
(199)
(140) (2,314.63)
Revisions to consolidated forecasts for the fiscal year ending May 31, 2009 (June 1, 2008 – May 31, 2009)
Sales
Operating
income
Ordinary
income
Net income
Net income
per share
(Million yen)
(Million yen)
(Million yen)
(Million yen)
(Yen)
Previous forecast (A)
1,710
65
25
10 164.36
Revised forecast (B)
802
(301)
(389)
(256) (4,260.63)
Change (B - A)
(908)
(366)
(414)
(266) -
Percentage change (%)
(53.1)
-
-
- -
(For reference) Previous fiscal year results
1,724
(159)
(226)
(169) (2,782.20)
Revisions to non-consolidated forecasts for the first half of fiscal year ending May 31, 2009 (June 1, 2008 – November 30, 2008)
Sales
Operating
income
Ordinary
income
Net income
Net income
per share
(Million yen)
(Million yen)
(Million yen)
(Million yen)
(Yen)
Previous forecast (A)
699
(22)
(35)
(22) (361.60)
Revised forecast (B)
515
(84)
(125)
(61) (1,004.79)
Change (B - A)
(184)
(62)
(90)
(39) -
Percentage change (%)
(26.3)
-
-
- -
(For reference) Previous first half results
623
(118)
(153)
(95) (1,565.54)
Revisions to non-consolidated forecasts for the fiscal year ending May 31, 2009 (June 1, 2008 – May 31, 2009)
Sales
Operating
income
Ordinary
income
Net income
Net income
per share
(Million yen)
(Million yen)
(Million yen)
(Million yen)
(Yen)
Previous forecast (A)
1,592
71
34
19 312.29
Revised forecast (B)
746
(245)
(328)
(190) (3,162.19)
Change (B - A)
(846)
(316)
(362)
(209) -
Percentage change (%)
(53.1)
-
-
- -
(For reference) Previous fiscal year results
1,526
(98)
(158)
(127) (2,101.27)
Reasons for revisions (1) Consolidated and non-consolidated forecasts for the first half of the fiscal year
Sales of testing illuminators for testing CCD/C-MOS imagers, the Company’s core product, were strong in the first quarter as companies in Korea resumed investments in these illuminators.
However, demand for these illuminators started declining in the second quarter because of global economic weakness that originated with the U.S. subprime mortgage problem. Declining demand and other factors caused sales to decrease. In response, the Company cut selling, general and administrative expenses and other expenses. However, due to lower sales along with foreign exchange losses as the yen appreciated, first half earnings were lower than the forecast at the beginning of the fiscal year.
In the semiconductor industry, which is the primary source of demand for the Group’s electronics testing equipment, capital expenditures remained weak as sales and earnings declined at many companies due to the global economic downturn along with strengthening yen In response, the Group made progress in developing new businesses, achieving its goal for first half sales of testing equipment to solar panel manufacturers. However, sales in the core illuminator category fell short of the first half goal mainly because of lackluster demand in the second quarter.
Due to these factors, INTER ACTION has revised its consolidated and non-consolidated forecasts for the first half of the current fiscal year.
(2) Consolidated and non-consolidated forecasts for the fiscal year
The global economic downturn is making the outlook for the fiscal year increasingly difficult. Most significant is the decline in capital expenditures in the semiconductor industry, which is the primary source of demand for the Group’s products. As a result, the previous outlook for orders has been replaced with a forecast based solely on orders that have already been received or that the Group is confident it will receive. Second half sales and gross profit projections have been adjusted based on this revised outlook. The Group will continue to examine its cost structure and make further cuts in selling, general and administrative expenses. But these actions will not be sufficient to offset the expected downturn in sales and gross profit. The result is a challenging outlook for fiscal year operating income, ordinary income and net income.
In accordance with this outlook, the Group has revised its consolidated and non-consolidated forecasts for the fiscal year.
*The above forecasts are based on judgments using information available at the time this release
was prepared. Since these forecasts incorporate risks and uncertainties, actual results may differ from these forecasts for a number of reasons.
