ITX Corporation (“ITX”) released its “Consolidated Earnings Report for the Second-Quarter Ended September 30, 2009” and “ITX Revises Forecasts for Fiscal 2010” and published the reports on this website.
Although there are various economic measures, mainly consumption incentive is carried out to plan for the recovery of a sluggish economic environment, the current situation is still uncertain. Under such economic environment, although there was sales increase factor by the expansion of sales channel in Telecommunications Service Business, sale of a subsidiary in the previous consolidated accounting fiscal year influenced results of revenues for second-quarter of fiscal 2010, which recorded \114,076 million (decrease 8.7% compared to the same period of the previous fiscal year.) In terms of profit, an operating loss and an ordinary loss were recorded in the same period of the previous year. However, operating income of \1,859 million and ordinary income of \1,296 million turned black. Implementation of “Corporate Structural Reform” resulted improvement of earning structure of Telecommunication Service Business, as well as carrying out promotion of efficiency of centralizing management resources and withdrawing from non-profitable business.
For the consolidated full-year forecasts for fiscal 2010, current revenue forecast is \258 billion, which is \39 billion more than the previous forecast. The main factor of the improvement is expansion of sales channel in the first half of this fiscal year by acceptance of a part of mobile phone retailing business from Panasonic Telecom Co., Ltd. and succession of mobile phone retailing business division from Sony Marketing (Japan) Inc., though decrease of revenue by the sale for share of Broadleaf Co., Ltd. (“Broadleaf”) and decrease of market demand for replacement of the handset due to change in sales methods adopted by each mobile communications carriers. Current operating income forecast is expected to be the same level as the previous forecast. Stable earnings of mobile phone retailing business that were positioned as a core business are bolstering and expanding. It is expected to recover from decrease in income from Broadleaf’s business by selling its share.
Current ordinary income forecast is expected to decrease from the previous forecast by increase of expenses for reorganization of business in ITX group. Current net income is \400 million more than the previous forecast mainly due to the profit by selling Broadleaf’s shares.
Concerning sales of Broadleaf’s share, it is essential for them to achieve development for expansion in overseas market, therefore, ITX decided to transfer shares of Broadleaf to The Carlyle Group which has global network worldwide.
By this transfer of shares, ITX’s financing base is strengthened by large reduction of Net interest bearing debt and goodwill, as well as concentrating strategic resources allocation on Telecommunications Service Business and Information Service Business which are the core business of ITX. This will accelerate more on optimizing business portfolio. At the same time, ITX will seek to develop new business in areas such as medical information services by taking full advantage of the strength of the Olympus Group.
ITX will continue to enhance corporate value of the whole group. We ask for your continued support as we pursue these initiatives.
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