Summary Report on Financial Results for the Third Quarter of the Year Ending March 2011
（Japan GAAP）
January 31st, 2011
Listing: Osaka Securities Exchange
Company name:
Fukuda Denshi Co., Ltd.
Code No.:
6960 (http://www.fukuda.co.jp)
Representative:
Kotaro Fukuda, President & CEO
Inquiries:
Shuichi Fukuda, Executive Director/ Senior Manager of Accounting & Finance Department– Senior Manager of Information Technology DepartmentTel:+81-3-3815-2121
Scheduled date for filing the quarterly report:
February 7th, 2011
Scheduled date for commencement of dividend payment:
Supplementary material development:
None
Financial results meeting:None(Amounts less than one million yen are discarded)
1. Consolidated financial results for the third quarter of the year ending March 2011 (April 1st, 2010 throughDecember 31st, 2010)(1) Consolidated operating results (cumulative)(% represents increases or decreases from the previous year)
Operating
Net sales
Ordinary income
Net income
incomemillionmillionmillionmillion
%
%
%
%
yen
yen
yen
yen
Third quarter of the year
64,070
5.0
5,892
46.2
5,969
41.4
3,565
69.3
ending March 2011
Third quarter of the year
61,030
(2.4)
4,030
(8.4)
4,222
(3.2)
2,105
(13.8)
ended March 2010

yen

Fully diluted net income
per shareyen

195.74―111.67―

Net income per share
Third quarter of theyear ending March 2011
Third quarter of theyear ended March 2010
(2) Consolidated financial situation

million yen

million yen

Shareholders'equity ratio％

Third quarter of theyear ending March 2011

98,82075,15076.0

4,370.04

Year ended March 2010

102,909

76,04973.94,117.89

Total assets

Net assets(Reference) Shareholders' equity:
Third quarter of the year ending March 2011: 75,150 million yen
Year ended March 2010:
76,049 million yen-1-

Net assets per
share
yen

2. Dividends
Record date

End of the firstquarteryenYearly Dividends per share
End of the
End of the
End of thesecond quarter
third quarter
term
yen
yen
yen

Annualyen

Year ended
―
40.00
―
40.00
March 2010
Year ending
―
40.00
―
March 2011
Year ending
March 2011
40.00
(estimate)
Note: There have been no revisions of dividend projections in the current quarter.

80.00

80.00

3. Forecast of consolidated financial results for the year ending March 2011 (April 1st, 2010 through March
31st, 2011)(Percentages represent increases or decreases from the previous year)
Operating
Ordinary
Net income
Net sales
Net income
incomeincomeper share
millionmillionmillionmillion
%
%
%
%
yen
yen
yen
yen
yen
Full-year

88,000

(0.2)

7,500

7.1

7,500

7.0

4,300

22.9

236.08

Note: There have been revisions of consolidated earnings projections’ numerical values in the current quarter.
4. Others (For details, please refer to “2. Other information” on page 6)(1) Change in significant subsidiary companies during the quarter under review: None
Note: Possible changes in a specified subsidiary company with a changes of scope of consolidation
for the accounting period of this quarter.
(2) Application of a simplified and specified accounting procedure: Yes
Note: Possible application of a simplified and a specified accounting procedure to the preparationof consolidated quarterly financial statements(3) Change in accounting principles, procedures, and presentation(i) Changes owing to the adoption of revised accounting standards or such like: Yes(ii) Changes other than (i) above: Yes
Note: Possible changes in accounting principles, procedures, presentation, etc related to the
preparation of consolidated quarterly financial statements (described in changes in basis ofpreparation for the consolidated quarterly financial statements)(4) Number of outstanding issues (common stock)(i) Number of outstanding shares at the end of the period (including treasury stock)
Third quarter of the year ending March 2011: 19,588,000 sharesYear ended March 2010: 19,588,000 shares(ii) Number of shares of treasury stock at the end of the period:
Third quarter of the year ending March 2011: 2,391,304 sharesYear ended March 2010: 1,119,910 shares(iii) Average number of shares during the period (accumulated consolidated quarter)
Third quarter of the year ending March 2011: 18,213,826 shares
Third quarter of the year ended March 2010: 18,858,007 shares* Implementation status of quarterly review procedures
At the time of disclosure of this report, review procedures for the quarterly financial statements pursuant to-2-the Financial Instruments and Exchange Law had not been completed.
* Explanation about appropriate use of the forecasts of financial results, and other noteworthy matters
1. The forecasted financial results described above are based on information available as of July 30 th, 2010.
Actual results may differ from the results projected and presented hereby for a variety of reasons.
2. With respect to the preconditions for the forecast of financial results, please refer to “(3) Qualitative
information about earnings forecast” under the “1. Qualitative Information about consolidated earnings
results for the quarter under review" section on page 6.

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Contents of the Attached Materials
1. Qualitative information about consolidated earnings results for the quarter under review -----------

5(1) Qualitative information about consolidated operating results -----------------------------------------

5(2) Qualitative information about consolidated financial situation--------------------------------------

5(3) Qualitative information about consolidated earnings forecast -----------------------------------------

5

2. Other information-----------------------------------------------------------------------------------------------

6(1) Change in significant subsidiaries during the year under review --------------------------------------

6(2) Application of a simplified and specified accounting procedure --------------------------------------

6(3) Change in accounting principles, procedures, and presentation ---------------------------------------

6

3. Consolidated quarterly financial statements ----------------------------------------------------------------

7(1) Consolidated quarterly balance sheets --------------------------------------------------------------------

7(2) Consolidated quarterly statements of income------------------------------------------------------------

9(3) Note concerning premise of going concern-------------------------------------------------------------

10(4) Note when there is a significant fluctuation in the amount of shareholders’ equity ----------------

10

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1. Qualitative Information about consolidated earnings results for the quarter under review(1) Qualitative Information about consolidated operating results
Although the profits of the company shows signs of recovery during this third quarter of theconsolidated period due to an increase in exports and production resulting from the high demand fromemerging economies, the situation remained severe as the deflation trend continued, employment
conditions continued to stagnate, and the rapid appreciation of the yen became a cause for concern.
In the medical environment industry, the remuneration for medical services was positively changed forthe first time in ten years, and the business environment surrounding medical institutions is expected to
improve. However, concern that patients may become less likely to seek medical treatment posed by the
self-pay ratio increased, the future of the industry still remains uncertain.
Under such circumstances, the Group posted consolidated net sales of 64,070 million yen (up 5.0% on a
year-to-year basis), operating income of 5,892 million yen (up 46.2% on a year-to-year basis), ordinary
income of 5,969 million yen (up 41.4% on a year-to-year basis) and a net income of 3,565 million yen (up69.3 % on a year-to-year basis) in the third quarter.
A. Physiological diagnostic equipment segment
Sales of electrocardiographs and vascular screening systems continued to increase.
Sales of database system products increased due to the recovery of capital investment of thehospitals caused by the revision of the official reimbursement prices.
As a result, consolidated net sales were 17,194 million yen (up 7.4% on a year-to-year basis).
B. Patient monitoring equipment segment
Sales continued to increase due to the release of new products.
As a result, consolidated net sales were 5,072 million yen (up 24.3% on a year-to-year basis).
C. Medical treatment equipment segment
The business of renting medical equipment for home treatment continued to increase. But the salesof ventilators decreased due to the backlash of demand for the new type of influenza during last
fiscal year.
The sales of pacemakers decreased though the number of sales remained roughly constant due to therevisions of the official reimbursement prices.
Sales of Automated External Defibrillators (AEDs) showed a slight recovery during the third
quarter.
As a result, consolidated net sales were 27,378 million yen (up 0.5% on a year-to-year basis).
D. Consumables and other products segment
In this segment, we mainly handle recording paper, disposable electrodes, and consumables used for
devices handled by the above segments, as well as maintenance and repair services.
Consolidated net sales for this segment were 14,425 million yen (up 5.3% on a year-to-year basis).
(2) Qualitative information about consolidated financial situation
Total assets were 98,820 million yen at the end of the third quarter under review, down 4,088 million
yen from the end of the previous fiscal year.
The main factors are a decrease of 5,458 million yen in “cash and deposits” and a decrease of 4,744
million yen in “trade notes and account receivable” despite an increase of 4,922 million yen in “investment
and other assets”.
Liabilities amounted to 23,670 million yen, down 3,189 million yen from the end of the previous fiscal
year.
This is primarily because of a decrease of 2,283 million yen in “trade notes and account payable” and adecrease of 681 million yen in “allowance for bonuses to employees” despite an increase of 372 million
yen in “long-term borrowings”
Net assets were 75,150 million yen, down 899 million yen from the end of the previous fiscal year.
The decrease is primarily because of an increase of 2,546 million yen in “treasury stock” and a decreaseof 403 million yen in “evaluation difference on other securities” despite an increase of 2,082 million yen
in “retained earnings”.

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(3) Qualitative information about consolidated earnings forecast
We have amended the forecast of the net income for the full fiscal year ending March 2011 released on
October 22nd, 2010 from 3,750 million yen to 4,300 million yen due to the steady sales achievement till thethird quarter.
The forecasted financial results described in this material are based on information available as ofJanuary 31st, 2011. Actual results may differ from the results projected and presented hereby for a varietyof reasons.
2. Other information(1) Change in significant subsidiaries during the year under review
Not applicable.
(2) Application of a simplified and specified accounting procedure(i) Simplified accounting treatment
Tax expenses of consolidated subsidiaries are calculated by multiplying the quarterly net income
before taxes by the effective income tax rate after tax effect accounting application in the statementof income of the previous fiscal year.
Corporate tax adjustments are included in corporate, inhabitants’ and enterprise taxes.
(ii) Specific accounting procedure
Not applicable.
(3) Change in accounting principles, procedures, and presentation(i) Application of accounting standards - Accounting standards related to asset retirement obligations
From this first quarter of the consolidated accounting period, we have applied the “Accounting
standards related to asset retirement obligations” (Accounting Standards Board of Japan (ASBJ)
Statement No. 18, March 31st, 2008) and the “Guidelines for the application of accounting standards
related to asset retirement obligations” (ASBJ Guidance No. 21, March 31st, 2008).
The influence on the operating income, ordinary income and quarterly net income before taxes
according to this revision is negligible.
(ii) Changes in accounting policies - Allowance for product warranty
Previously, the expenses for the free repair were booked as they arose. Following theimplementation of the ERP system, it has been made possible to make a reasonable estimation of theexpenses to be incurred in the future on the basis of the previous records of such expenses. To
optimize the period of profit/loss and make the financial structure healthier, the estimated amount ofexpenses to be incurred in the future was reserved as allowance starting from the consolidated fiscal
year under review.
The influence on the gross profit, operating income, ordinary income and quarterly net income
before taxes according to this revision is negligible.
As a reasonable estimation of the above expenses was made possible at the end of the previous
consolidated fiscal year, allowance for product warranty was not calculated for the previous third
quarter of the consolidated fiscal year.

-6-3. Consolidated quarterly financial statements(1) Consolidated quarterly balance sheets
End of the consolidated third
quarter under review(as of December 31st, 2010)(Million yen)
Summarized balance sheets
related to the previous fiscal year
(as of March 31st, 2010)

23,171

28,63019,33824,082

1,199
7,540
139
1,729
3,847

1,099
6,920
86
1,664
3,015

(54)

(212)

56,911

65,285

19,935
1,915

20,144
2,344

20,373

15,405

(15)

(18)

(300)

(251)

20,057

15,134

41,90898,82037,623102,909

11,553

13,836

1,600
1,454

1,950
1,497

972

1,654

271

303

88
2,839
18,779117
2,834
22,195

372

－

3,225

3,397

173
1,119
4,890
23,670

173
1,094
4,664
26,859AssetsCurrent assets
Cash and deposits
Trade notes and accountreceivable
Securities
Merchandise and products
Work in progress
Raw materials and supplies
Other
Allowancefordoubtfulaccounts
Total current assets
Fixed assets
Tangible fixed assets
Intangible fixed assets
Investments and other assets
Other
Allowance for doubtful
accounts
Allowance for investment
loss
Total investments andother assets
Total fixed assets
Total assets
Liabilities
Current liabilities
Trade notes and accountpayableShort-term borrowings
Income tax payable, etc.
Allowance for bonuses to
employees
Allowanceforproduct
warranty
Other allowances
Other
Total current liabilities
Long-term liabilities
Long-term borrowings
Allowance for retirement
benefits
Other allowances
Other
Total long-term liabilities
Total liabilities-7-

End of the consolidated third
quarter under review(as of December 31st, 2010)

Summarized balance sheets
related to the previous fiscal year
(as of March 31st, 2010)

4,621
9,982
65,757(5,047)75,313

4,621
9,982
63,674(2,501)75,777

8

411

(171)

(139)

(163)

272

75,15098,82076,049102,909

Net assets
Shareholders' equity
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity
Valuationandtranslation
adjustments
Evaluation difference onother securities
Foreign currency translation
adjustment accountTotal
valuationandtranslation adjustments
Total net assets
Total liabilities and net assets-8-(2) Consolidated quarterly statements of income (Third quarter of the consolidated term)

Net sales
Cost of sales
Gross profit
Selling, general and administrative
expenses
Operating income
Non-operating income
Interest income
Dividend income
Foreign exchange profit
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses

Third quarter of theprevious consolidated term(from April 1st, 2009
to December 31st, 2009)
61,03032,39728,632(Million yen)
Third quarter of theconsolidated term(from April 1st, 2010
to December 31st, 2010)
64,07033,70730,362

24,602

24,470

4,030

5,892

15
151
17
95
279

29
121
－
160
311

22
－

15
58

－

48

54
10
87
4,222

88
23
234
5,969

4

1

－

63

56

155

270
33
2
367

195
－
13
429

129
0
14
5

－
6
10
2

665

8

－

21

51
866
3,723

2
52
6,347

1,598

2,866

18
1,617

(84)
2,781

－

3,565

0

－

2,105

3,565

Provision of allowance forinvestment loss

Loss of investment in partnership
Other
Total non-operating expenses
Ordinary income
Extraordinary gains
Gains on sale of fixed assets
Gains on sale of investment
securities
Gains on reversal of allowancefor doubtful accounts
Gains on insurance surrender
Gain on insurance adjustment
Other
Total extraordinary gains
Extraordinary losses
Loss on prior period adjustment

Losses on sale of fixed assets
Losses on disposal of fixed assets
Impairment losses
Loss on valuation of investment
securities
Losses on application of
accounting standards related toasset retirement obligations
Other
Total extraordinary losses
Quarterly net income before taxes
Corporate, inhabitants' andenterprise taxes
Corporate tax adjustments
Total income taxes
Quarterly net income before
minority interests in earnings ofconsolidated subsidiaries
Minority interests in earnings ofconsolidated subsidiaries
Net income-9-(3) Note concerning premise of going concern
Not applicable.
(4) Note when there is a significant fluctuation in the amount of shareholders’ equity
The Board of Directors approved on the acquisition of Fukuda Denshi’s own shares under the Article
156 of the Companies Act of Japan applied as mutatis mutandis stipulated under the Article 165(3) of thesame Law during its meeting held on November 4th, 2010, and as of November 5th, 2010, 1,271,300
common shares have been acquired through a fixed price trading at J-NET Market of Osaka Securities
Exchange which amounted to 2,546 million yen.
As a result, the treasury stocks were 5,047 million yen in the third quarter.

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