Consolidated Results for the First Quarter Ended June 30, 2010

Q&A summary

Click on the appropriate question to view the answer.

Q1
Can you explain why you managed to exceed your initial outlook in the first quarter?
A
Although the market for electronic devices was recovering rapidly when we made the initial plan, we took a cautious stance as it wasn't clear how long this situation would continue.
After we entered the first quarter we received more orders than expected, especially in semiconductors. In addition, we felt the benefits of lower fixed costs, the results of our business structure reforms. The result of all this was that profitability significantly surpassed the initial plan. While the market environment for printers was unclear, we were able to boost profit levels thanks to strong sales of profitable models for enterprise.
Another reason for surpassing our plan was because we postponed certain expenses so that we could spend more effectively at the right time as we begin gearing up for the upcoming year-end shopping season in the second and third quarters.

Q2
Looking forward from the current situation through to the year-end shopping season, how do you see prospects for inkjet printers?
A
We are currently building up supplies of inkjet printers as we look towards the shopping season. Preparations are on track, but we will make sure we move appropriately by keeping a close eye on exchange rates and the competitive environment.
Q3
In business systems, I understand serial impact dot matrix (SIDM) printers and point-of-sale (POS) equipment are selling well. How do you see things going forward?
A
Sales of products for enterprise are progressing well in each business. Looking ahead, we believe demand will be solid, although we understand there will be some currency impact.

Q4
In electronic devices, which businesses did well compared to the initial plan?
A
Profitability in displays and semiconductors both surpassed the initial plan, while quartz devices were on target. In semiconductors, profitability was boosted because of orders we received on top of our cost-efficient business structure. In displays, sales of high-temperature polysilicon (HTPS) panels were driven largely as a result of strong sales of projectors.
Q5
How are the business structure reforms progressing in the electronic devices businesses?
A
In semiconductors, structural reforms are progressing according to plan, as are the synergies with the quartz business. Although we cannot go into details, we are looking to come to a final decision about the small- and medium-sized displays within the course of the current fiscal year.
Q6
How do the quartz device and sensing device businesses look right now?
A
Sales aimed at mobile phones, PCs, digital appliances, base stations, automotive applications and basically all other markets are going well. Buoyed by strong demand, we are working at near full capacity for tuning fork-type crystals, AT, and sensing devices.