Fujifilm's Q1 Earnings Rise; Revenues Drop Year over Year
Fujifilm Holdings Corporation (FUJIY) reported net income of ¥15.4 billion ($150.5 million) for the first quarter of fiscal 2015 (ended Jun 30, 2014), up 2.8% year over year, in local currency. Earnings per American Depositary Receipt (:ADR) were recorded at roughly 31 cents for the quarter.
Revenues
Revenues inched down 1.8% year over year to ¥558.4 billion ($5,467.7 million). The decline was attributable to reduced sales in the electronic imaging business, which was however, partially offset by an increase in sales in the photo imaging business, documents business and the electronics material business.
Revenues from the Imaging Solutions segment came in at ¥79.0 billion ($773.7 million), accounting for 14.1% of total revenue. The Information Solutions segment contributed ¥204.8 billion ($2,005.8 million) or 36.7% of total revenue; while the Document Solutions segment generated ¥274.5 billion ($2,688.2 million) or 49.2% of total revenue.
Of the total revenue, domestic revenues accounted for 40.3%, while international revenues contributed the remaining 59.7%.
Costs/Margins
Gross margin in fiscal first-quarter 2015 was 39.1%, up 30 basis points from the year-ago quarter. Selling, general and administrative (SG&A) and R&D expenses, together, accounted for ¥188.5 billion ($1,845.4 million), representing 33.8% of the total revenue.
Balance Sheet
Exiting fiscal first quarter, cash and cash equivalents of Fujifilm were ¥632.2 billion ($6,235.0 million) increasing 4.6% from the previous quarter. The company’s long-term debt stood at ¥314.7 billion ($3,103.5 million) as of Jun 30, 2014, down 0.1% sequentially.
Cash flow
Net cash from operating activities came in at ¥100.5 billion ($984.0 million) versus ¥91.7 billion ($928.4 million) in fiscal first-quarter 2014. Capital expenditure was ¥16.0 billion ($157.0 million), as against ¥19.6 billion ($198.7 million) in the comparable last-year period.
Outlook
Fujifilm reiterated its revenue guidance of ¥2,460.0 billion for fiscal 2015, reflecting a marginal year-over-year hike of 0.8%. Operating income is expected at ¥160.0 billion, projecting an increase of 13.6% from fiscal 2014. Moreover, Fujifilm estimates its net income for the coming fiscal at ¥85.0 billion, climbing 4.9% year over year. This will lead to earnings of ¥176.36 per share.
Other Stocks to Consider
Fujifilm currently carries a Zacks Rank #2 (Buy). Some other technology stocks worth considering in the industry include MKS Instruments, Inc. (MKSI), Aixtron SE (AIXG) and Nikon Corporation (NINOY). While MKS Instruments sports a Zacks Rank #1 (Strong Buy), Aixtron and Nikon Corporation carry the same rank as Fujifilm.
Note:
1. The effective currency exchange rates used for the US Dollar against Japanese Yen for Income Statement and Cash Flow Statement were ¥102.12 and ¥98.75 for quarter ended Jun 2014 and Jun 2013, respectively.
2. The effective currency exchange rate used for the US Dollar against Japanese Yen for Balance Sheet was ¥101.40 for the quarter ended Jun 2014.
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