Summary Report on Financial Results for the Second Quarter of the Year Ending March 2011
（Japan GAAP）
October 29, 2010
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:
November 8, 2010
Scheduled date for commencement of dividend payment:
December 6, 2010
Supplementary material development:
None
Financial results meeting:None(Amounts less than one million yen are discarded)
1. Consolidated financial results for the Second quarter of the year ending March 2011 (April 1, 2010 throughSeptember 30, 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
Second quarter of the
43,356
4.3
4,101
46.3
4,132
42.4
2,445
119.5
year ending March 2011
Second quarter of the
41,578
(2.9)
2,803
(9.6)
2,901
(8.4)
1,114
(32.8)
year ended March 2010

yen

Fully diluted net income
per shareyen

132.41

―

58.56

―

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

million yen

million yen

Shareholders'equity ratio％

Second quarter of theyear ending March 2011

101,820

76,90075.5

4,163.95

Year ended March 2010

102,909

76,04973.94,117.89

Total assets(Reference) Shareholders' equity:
Second quarter of the year ending March 2011:
Year ended March 2010:

Net assets

76,900 million yen
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 1, 2010 through March
31, 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

6.7

7,500

6.6

3,750

6.7

203.05

Note: There have been no 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)
Second 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:
Second quarter of the year ending March 2011: 1,119,867 sharesYear ended March 2010: 1,119,910 shares(iii) Average number of shares during the period (accumulated consolidated quarter)
Second quarter of the year ending March 2011: 18,468,102 shares
Second quarter of the year ended March 2010: 19,025,133 shares-2-* Implementation status of quarterly review procedures
At the time of disclosure of this report, review procedures for the quarterly financial statements pursuant to
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, 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

-4-

1. Qualitative Information about consolidated earnings results for the quarter under review(1) Qualitative Information about consolidated operating results
Although the Japanese economy showed signs of recovery during this second quarter of theconsolidated period due to an increase in exports and production resulting from expanded demand fromemerging economies, the effects of economic stimulus measures, and other factors, the situation remained
severe as employment conditions and the income environment continued to stagnate, the rapid
appreciation of the yen became a cause for concern, etc.
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 43,356 million yen (up4.3% on a
year-to-year basis), operating income of 4,101 million (up 46.3% on a year-to-year basis), ordinary incomeof 4,132 million yen (up 42.4% on a year-to-year basis) and a net income of 2,445 million yen (up 119.5 %on a year-to-year basis) in the second quarter.
A. Physiological diagnostic equipment segment
Sales of electrocardiographs and blood cell counters increased due to the introduction of new
products.
Sales of air sterilization and deodorization equipment decreased due to the backlash of the demand
for the new type of influenza during last fiscal year.
As a result, consolidated net sales were 11,933 million yen.
B. Patient monitoring equipment segment
Sales increased both domestically and abroad due to the introduction of new products.
As a result, consolidated net sales were 3,402 million yen.
C. Medical treatment equipment segment
The business of renting medical equipment for home treatment and the sales of ventilators
increased.
The sales of pacemakers decreased though the number of units sold slightly increased due to therevisions of the official reimbursement prices.
Sales of Automated External Defibrillators (AEDs) declined, affected by the business downturn.
As a result, consolidated net sales were 18,226 million yen.
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 9,794 million yen.
(2) Qualitative information about consolidated financial situation
Total assets were 101,820 million yen at the end of the second quarter under review, down 1,088 million
yen from the end of the previous fiscal year. The main factors are a decrease of 2,901 million yen in “tradenotes and account receivable” and a decrease of 436 million yen in “investment and other assets” despite
an increase of 1,509 million yen in “cash and deposits” and increase of 217 million yen in “tangible fixed
assets”.
Liabilities amounted to 24,920 million yen, down 1,939 million yen from the end of the previous fiscal
year. This is primarily because of a decrease of 1,569 million yen in “trade notes and account payable”
Net assets were 76,900 million yen, up 850 million yen from the end of the previous fiscal year.
The increase is primarily because of an increase of 1,701 million yen in “retained earnings” despite adecrease of 825 million yen in “evaluation difference on other securities”.
(3) Qualitative information about consolidated earnings forecast
In the medical equipment industry, while the business environment surrounding the medical institutions
is expected to improve due to the positive change in the remuneration for medical services, the industry’s
overall business environment will continue to be harsh. Under such circumstances, the Group has
developed its business so as to contribute to medical care while keeping the principle “customer-first” inmind at all times.

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As a result, we have amended the forecast of the financial results for the full fiscal year ending March
2011. For further details, please refer to the “Notice of an Amendment to the Forecast of the Financial
Results” which we announced separately on October 22, 2010.
The forecasted financial results described in this material are based on information available as of
October 22, 2010. Actual results may differ from the results projected and presented hereby for a variety ofreasons.
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 31, 2008) and the “Guidelines for the application of accounting standards
related to asset retirement obligations” (ASBJ Guidance No. 21, March 31, 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 second
quarter of the consolidated fiscal year.

-6-3. Consolidated quarterly financial statements(1) Consolidated quarterly balance sheets
End of the consolidated second
quarter under review(as of September 30, 2010)(Million yen)
Summarized balance sheets
related to the previous fiscal year
(as of March 31, 2010)

30,14028,63021,18024,082

1,199
7,091
114
1,451
3,546

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

(54)

(212)

64,671

65,28520,362
2,089

20,1442,344

15,015

15,405

(17)

(18)

(300)

(251)

14,69815,134

37,149101,820

37,623102,90912,267

13,836

1,716
1,951

1,950
1,497

1,862

1,654

268

303

58
2,207
20,332117
2,834
22,195

62

－

3,292

3,397

163
1,068
4,587
24,920

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 second
quarter under review(as of September 30, 2010)

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

4,621
9,982
65,376(2,501)
77,4794,621
9,982
63,674(2,501)75,777

(413)

411

(165)

(139)

(578)

272

76,900101,820

76,049102,909

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 (Second quarter of the consolidated term)
Second quarter of theprevious consolidated term(from April 1, 2009
to September 30, 2009)
41,57822,305
19,272(Million yen)
Second quarter of theconsolidated term(from April 1, 2010
To September 30, 2010)
43,35622,92920,427

16,46916,325

2,803

4,101

8
85
13
68
175

12
85
－
120
219

15
－

10
23

－

48

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

54
7
77
2,901

88
18
188
4,132

3

0

－

63

43

156

170
33
2
253

187
－
13
421

Loss on prior period adjustment

129
0
12
4

－
0
7
0

680

62

－

21

7
834
2,320

2
94
4,458

1,228

2,138

(22)
1,205

(125)
2,013

－

2,445

0

－

1,114

2,445

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
Provision of allowance forinvestment loss

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
Not applicable.

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