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Modest 3Q13 for Fujifilm

Zacks Equity Research

Fujifilm Holdings Corporation (FUJIY), a Japan based producer of photographic imaging products, reported a net income of ¥23.1 billion ($294.9 million) for third quarter of fiscal 2013 (ending Dec 31, 2012), up 88.6% year over year, in local currency.

Revenue: Revenue in the reported quarter shot up 2.7% year over year to ¥549.6 billion ($6,773.8 million). It surpassed the Zacks Consensus Estimate of $6,170.0 million by a comfortable margin. However, revenue was negatively impacted by strong yen appreciation as well as economic meltdown in Europe.

Revenues from the Imaging Solutions segment accounted for 14.5% of total revenue at ¥79.9 billion ($984.9 million), Information Solutions segment contributed 40.9% of total revenue at ¥224.6 billion ($2,768.9 million) and Document Solutions generated 44.6% at ¥245.1 billion ($3,020.0 million).

Of the total revenue, domestic revenue accounted for 44.4% while international revenue generated 55.6% during the quarter.

Costs/Margins: As a percentage of revenue, cost of sales in the quarter inched up 4.8% year over year to ¥340.0 billion ($4,190.7 million). Gross margins stood at 38.1% versus 39.4% in the year-ago quarter. SG&A and R&D expenses together accounted for ¥186.5 billion ($2,298.5 million), representing 33.9% of total revenue compared with ¥184.2 billion ($2,382.3 million), representing 34.4% recorded in the year-ago quarter.

Balance Sheet: Cash and cash equivalents at the end of the period registered an increase of 36.2% over the previous sequential quarter, standing at ¥427.9 billion ($4,982.1 million).

Long-term debt of the company stood at ¥246.3 billion ($2,868.6 million) at Dec 31, 2012, up 114.6% from the end of Sep 30, 2012.

Cash flow: Net cash provided by operating activities for three months ended Dec 31, 2012, increased to ¥34.8 billion ($429.2 million) against ¥9.4 billion ($122.2 million) in the year-ago quarter.

Currently, the stock carries a Zacks Rank #3 (Hold). Other technology stocks worth a look are Interdigital Inc. (IDCC), Omnivision Technologies Inc. (OVTI) and On Semiconductor Corp. (ONNN); each holding a Zacks Rank #2 (Buy).


1. The effective currency exchange rates used for the US Dollars against yen for Income Statement and Cash Flow Statement were ¥81.13 and ¥77.31 for quarter ended December 2012 and December 2011, respectively.

2. The effective currency exchange rate used for the US Dollars against yen for Balance Sheet was ¥85.88 for quarter ended December 2012.

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