SEGA Sammy Holdings : Notice of Extraordinary Loss and Adjustment to the Forecast of Operating Results
03/30/2012| 04:02am US/Eastern
Recommend:
Notice of Extraordinary Loss and Adjustment to the
Forecast of Operating Results
It is hereby notified that SEGA SAMMY HOLDINGS INC.
(the "Company") is expected to record extraordinary
loss in the year ending March 2012 as described below, in
accordance with its determination at the meeting of the Board
of Directors held on March 30, 2012 to implement structural
reform of the Consumer Business of its subsidiary SEGA
CORPORATION.
Furthermore, adjustment has been made to the forecast of its
full-year consolidated operating results for the year ending
March 2012 publicized on October 31, 2011 in consolidation of
the recent development of its business performance.
Description
Adjustment to the forecast of full-year consolidated
operating results for the year ending March 31,
2012 (from April 1, 2011 to March 31, 2012)
(Unit: million yen unless otherwise indicated)
|
|
Net sales
|
Operating income
|
Ordinary income
|
Net income
|
Net income per share
(yen)
|
|
Previously publicized forecast (A)
|
440,000
|
77,000
|
75,500
|
38,000
|
151.03
|
|
Adjusted forecast (B)
|
394,000
|
60,000
|
59,500
|
20,000
|
79.49
|
|
Amount of increase or decrease
(B-A)
|
(46,000)
|
(17,000)
|
(16,000)
|
(18,000)
|
|
|
Rate of increase or decrease (%)
|
(10.5)
|
(22.1)
|
(21.2)
|
(47.4)
|
|
|
(For reference)
Operating results for the previous year (from
April 1, 2010 to March
31, 2011)
|
396,732
|
68,750
|
68,123
|
41,510
|
163.19
|
1. Reasons for recording extraordinary loss
The Consumer Business centered on SEGA CORPORATION is
expected to post operating loss in the year ending March
2012, given the severe economic environment in the U.S. and
Europe and rapid change in market environment of home video
game software. Amid such business environment, the Company
decided to implement structural reform of the Consumer
Business at SEGA CORPORATION to strive for a shift to a
structure corresponding to the market environment for the
purpose of earnings recovery in the following period and
after.
In accordance with the decision, the Company is expected to
record extraordinary loss totaling around 7.1 billion yen,
including costs in line with the streamlining of
organizations and the canceling of development of some game
software and costs for processing inventory. As for the
Consumer Business in the following period and after, the
Company projects decreases in operating expenses due to the
reform.
Please refer to "Concerning Structural Reform of
Consumer Business at SEGA CORPORATION" announced on the
same day for details of the reform.
2. Reasons for the adjustment to the forecast of operating
results
In the Pachislot and Pachinko Machines Business, the
pachislot business is currently seeing strong order receipts
for Rodeo brand's "Monster Hunter" for which
installment started at the end of March. However, since
shipment is planned to be conducted from the current period
to the next
period due to sales schedule, and since sales of some titles
were postponed to the next period due to the impact of the
flooding in Thailand last year, the pachislot machine sales
volume for the full year ending March 2012 is projected to be
301,000 units (previously publicized forecast: 310,000
units). As for the pachinko business, the market has slightly
weakened with the background of heightened demand for
pachislot machines, and the pachinko machine sales volume for
the full year is
projected to be 332,000 units (previously publicized
forecast: 400,000 units).
The Amusement Machine Business and Amusement Center
Operations Business are expected to post strong results,
while the Consumer Business is expected to record operating
loss as indicated in "1. Reasons for recording
extraordinary loss." Furthermore, the Company will post
approximately
4.9 billion yen as costs in the fourth quarter as the Company
book impairment loss on work in process of some titles
currently being developed after reevaluating the
profitability of game software to be sold from the end of the
current period to the next period in consideration of the
market environment.
As a result of the above, consolidated net sales of 394.0
billion yen (down 46.0 billion yen from the previously
publicized forecast), operating income of 60.0 billion yen
(down 17.0 billion yen from the previously publicized
forecast), ordinary income of 59.5 billion yen (down 16.0
billion yen from the previously publicized forecast), and net
income of 20.0 billion yen (down 18.0 billion yen from the
previously publicized forecast) are projected for the full
year ending March 2012.
Concerning dividend forecasts, there is no change in forecast
of year-end dividends at 20 yen per share and an annual total
of 40 yen per share.
*The above figures and forecasts of operating results
are based on information available to management as of the
date hereof. In the future, actual results may differ from
the projected figures due to various factors.
-END-
- 2 -
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This press release was issued by Sega Sammy Holdings Inc. and was initially posted at http://www.segasammy.co.jp/english/pdf/release/20120330gyoseki_e_final.pdf . It was distributed, unedited and unaltered, by noodls on 2012-03-30 09:52:45 AM. The issuer is solely responsible for the accuracy of the information contained therein.
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