On July 29, Fujifilm Holdings Corporation (FUJIY.PK) reported improved financial results for the first quarter ended June 30, 2011. During the first quarter, the company reported an income of ¥14.5 billion ($177.9 million), down from ¥17.8 billion ($192.8 million) in the prior-year quarter.
Revenue
Revenue in the first quarter plummeted 3.2% year over year to ¥530.1 billion ($6.5 billion) due to depressed results from the company’s three operating segments.
Of the total revenue, domestic revenue accounted for 44.4% while international revenue came in at 55.6% of total revenue.
Revenues from the Imaging Solutions segment reached ¥81.7 billion ($1 billion), down 1.8% year over year due to the negative impact of yen appreciation as well as a surge in raw material prices like silver and aluminum. Revenue from the Information Solutions segment decreased 3.4% year over year to ¥218 billion ($2.7 billion) in the reported quarter.
Revenues from the Document Solutions reached ¥230.4 billion ($2.8 billion), down 3.4% year over year, due to the decreased domestic sales following Japan’s economic deterioration after the devastating earthquake.
Margins
As a percentage of revenue, cost of sales in the first quarter increased 170 basis points. The gross margins stood at 40.1% versus 41.8% in the year-ago quarter. SG&A and R&D expenses together accounted for 34.6% of total revenue. Operating margin fell from 8.6% in the year ago quarter to settle at 5.5% in 1Q12.
Balance Sheet
Exiting first quarter ended June 30, 2011, cash, cash equivalents and marketable securities also registered a rise of 2.5% over the sequential quarter ended March 31 2011, reaching ¥ 344.7 million ($4.3 million). Long-term debt of the company stood at ¥118.8 million ($1.5 million) in the present quarter ended June 30, 2011, down 0.5% in the quarter ended March 31 2011.
Cash Flow
Net cash provided by operating activities in fiscal year 2011 decreased 39.5% year over year to ¥50.7 billion ($0.6 billion).
Capital Expenditure increased to ¥24.3 billion ($0.3 billion) in the three months quarter ended June 30, 2011, up 54.4% year over year.
Fujifilm is a leading global producer of photographic imaging products. The company develops, manufactures, and markets traditional and digital imaging products.
Fujifilm has a Zacks # 3 Rank, which translates into a short-term Hold rating (1-3 months).
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