Summary Report on Financial Results for the Third Quarter of the Year Ending March 31, 2009

February 4, 2009
Company name: Fukuda Denshi Co., Ltd.
Security code no.: 6960
(http://www.fukuda.co.jp)
Listing: JASDAQ
Representative: Kotaro Fukuda, President & CEO
Inquiries: Shuichi Fukuda, Executive Director and General Manager of Accounting & Finance
Department
Tel: +81-3-3815-2121
Scheduled date for filing the quarterly report: February 10, 2009

(Amounts less than one million yen are discarded)
1.

Consolidated financial results for the third quarter of the year ending March 31, 2009 (April 1, 2008
through December 31, 2008)(1) Consolidated operating results (cumulative)(Percentages represent increases or decreases from the previous year)

Third quarter ofthe year ending
March 31, 2009
Third quarter ofthe year ended
March 31, 2008

Net sales
millionyen%

62,507-4,401

62,425

0.2

3,652

yen

Fully diluted
net income per
share
yen

126.93-120.00-Net income
per share
Third quarter ofthe year ending
March 31, 2009
Third quarter ofthe year ended
March 31, 2008

Operating income
million%yen-1-Ordinary income
million%yen

Net income
million
%
yen

-

4,364

-

2,443

-

(20.0)

3,846(21.0)

2,308(10.7)

(2) Consolidated financial situation

million yen

million yen

Shareholders’ equity
ratio%

98,19673,86575.2

3,837.04

99,58573,83374.1

3,835.32

Total assets
Thirdquarter oftheyear
endingMarch 31,2009
Year ended
March 2008

Net assets

Net assets per shareyen(Reference) Shareholders’ equity:
Third quarter of the year ending March 31, 2009: 73,855 million yen
Year ended March 2008: 73,821 million yen

2.

Dividends

Record date

End of theFirst Quarteryen

End of theSecondQuarter
yen

-

Year
ended
March 2008
Year
endingMarch 2009
Year
endingMarch
2009(estimate)

Dividends per share
End of theThird QuarterEnd of theTerm

Annual

yen

yen

yen

40.00

-

40.00

80.00

-

40.00

-

-

-

-

-

-

40.00

80.00

Note: There have been no revisions of dividend projections in the current quarter.

3.

Forecast of consolidated financial results for the year ending March 2009 (April 1, 2008 throughMarch 31, 2009)(Percentages represent increases or decreases from the previous year for the full-year figures.)
Net sales

Full-year

millionyen
90,000%1.6

Operatingincomemillion%yen
5,300 (1.3)%

Net income
per share
yen

(4.9)

156.94

Ordinary income

Net income

millionyen
5,500

million
yen
3,020

%
(3.2)

Note: There have been no revisions of consolidated earnings projections’ numerical values in the current
quarter.

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Others(1) Change in significant subsidiaries during the term (change in specific subsidiaries involving change
in the scope of consolidation): None
(2) Application of simplified accounting method and accounting principles specific to the preparation of
consolidated quarterly financial statements: Yes
Note: For details, please refer to 4. Others in the “Qualitative Information and Financial Statements”
section on page 6.
(3) Change in accounting principles and procedures, presentation related to the preparation of
consolidated quarterly financial statements (described in changes in basic significant mattersregarding the preparation of consolidated quarterly financial statements)(i) Changes owning to adoption of revised accounting standards or such like: Yes(ii) Changes other than (i) above: Yes
Note: For details, please refer to 4. Others in the “Qualitative Information and Financial Statements”
section on page 6.
(4) Number of outstanding issues (common stock)1) Number of outstanding shares at the end of the period (including treasury stock)
Third quarter of the year ending March 31, 2009: 19,588,000 sharesYear ended March 31, 2008:

19,588,000 shares

2) Number of treasury shares at the end of the period
Third quarter of the year ending March 31, 2009: 340,025 sharesYear ended March 31, 2008:

340,139 shares

3) Average number of shares during the period (accumulated consolidated quarterly period)
Third quarter of the year ending March 31, 2009: 19,247,894 shares
Third quarter of the Year ended March 31, 2008:

19,241,033 shares*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 ofFebruary 4, 2009. Actual results may differ from the results projected and presented hereby for a varietyof reasons.
2.

With respect to the preconditions for the forecasts of financial results, please refer to “3.

Qualitative information about consolidated earnings forecast for the fiscal year ending March 2009” inthe “Qualitative Information and Financial Statements” section on page 6.
3.

Effective from the consolidated fiscal year ending March 2009, the Company adopted the“Accounting Standard for Quarterly Financial Reporting” (Accounting Standards Board of Japan Report
No. 12) and the “Implementation Guidance on the Accounting Standard for Quarterly Financial
Reporting” (ASBJ Implementation Guidance No. 14). Consolidated quarterly financial statements areprepared in conformity with the “Regulations of Consolidated Quarterly Financial Statements.”-3-

Pursuant to the provision of Article 7, Paragraph 1, Item 5 of the Supplementary Provisions of the“Cabinet Office Ordinance on Partial Amendment of the Regulations on Terminology, Format andPreparation Method of Financial Statements, etc.” (Cabinet Office Ordinance No. 50, August 7, 2008),
the Company adopted the revised Regulations of Consolidated Quarterly Financial Statements for the
consolidated third quarter under review (from October 1, 2008 to December 31, 2008) and theaccumulated period up to the consolidated third quarter under review (from April 1, 2008 to December
31, 2008).

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Qualitative Information and Financial Statements
1.

Qualitative information about consolidated operating results
During the first three quarters of the consolidated term under review, the uncertainty of thefinancial market, originating in the U.S., expanded to the real economy. In Japan, the economy slowed
down, as exemplified by the influence that the worsening of corporate earnings had on capital investment,
production and the employment environment.
In the medical equipment industry, medical system reforms were pushed forward with, including
expansion of the comprehensive medical fee payment system, called DPC (diagnosis procedure
contribution), at medical institutions, which led to a further division of functions between hospitals andclinics and an expansion in the field of home medical treatment. There were also changes in theenvironment, including misgivings about the consolidation of and reduction in the number of public
hospitals and patients restraining their visit to hospitals to seek medical advice.
Under such circumstances, the Group posted consolidated net sales [P1] of 62,507 million yen (up0.1% from the corresponding period of the previous year), operating income of 4,401 million yen (up20.5%), ordinary income of 4,364 million yen (up 13.5%) and net income of 2,443 million yen (up 5.8%)
in the third quarter to date.

(1) Physiological diagnostic equipment segment
Sales of retinal cameras and systems to test respiratory function continued to increase.
However, sales of ultrasound diagnostic imaging systems fell both at home and abroad.
As a result, consolidated sales were 16,325 million yen (down 1.2% from the corresponding
period of the preceding year).
(2) Patient monitoring equipment segment
Sales declined both at home and abroad.
As a result, consolidated sales were 3,845 million yen (down 22.0%)(3) Medical treatment equipment segment
Sales in the business of renting medical equipment for home treatment (including
oxygen-concentrator devices, equipment used to treat sleep apnea syndrome and homecare
ventilators) and automated external defibrillators (AEDs) continued to increase. Turnover ofpacemakers dropped owing to a reduction in official reimbursement rates, though their sales volume
remained unchanged.
As a result, sales were 27,038 million yen (up 6.8%).
(4) Other products and accessories segment
In this segment, we mainly handle recording paper, disposable electrodes and accessories andconsumables used for devices handled by the other segments.
Sales of this segment were 15,297 million yen (down 2.2%)

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2.

Qualitative information about consolidated financial situation
Total assets were 98,196 million yen at the end of the third quarter under review, down 1,388

million yen from the end of the previous fiscal year.
The decrease is mainly due to a decline of 4,912 million yen in trade notes and accounts receivables,a drop of 373 million yen in raw materials and supplies, a decrease of 522 million yen in intangible fixed
assets and a fall of 1,299 million yen in investments and other assets despite an increase of 1,841 million
yen in cash and deposits, an increase of 1,350 million yen in merchandise and products and a rise of 1,234
million yen in tangible fixed assets.
Liabilities amounted to 24,331 million yen, down 1,421 million yen from the end of the previous
fiscal year.
The decrease is mainly due to a decline of 302 million yen in short-term borrowings and a drop of
791 million yen in allowance for bonuses to employees.
Net assets were 73,865 million yen, up 32 million yen from the end of the previous fiscal year.
The increase is primarily attributable to an increase of 893 million yen in retained earnings despite adecrease of 774 million yen in evaluation difference on other securities.

3.

Qualitative Information about consolidated earnings forecast for the fiscal year ending March 2009
There are misgivings about a further business downturn in Japan due to declines in production andexports, reflecting the worsening of the global economy resulting from the financial crisis that originatedin the U.S. and rapid foreign exchange fluctuations. The environment surrounding the medical service isgetting harsher, exemplified by the consolidation of and reduction in the number of public hospitals andpatients restraining their visits to hospitals to seek medical advice.
In consideration of this situation, there is no change in the forecast of financial results for the full
fiscal year, released on May 19, 2008.

4.

Others(1) Change in significant subsidiaries during the term (change in specific subsidiaries involving change
in the scope of consolidation)
Not Applicable.

(2) Application of simplified accounting method and accounting principles specific to the preparation of
consolidated quarterly financial statements
1)

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.

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Corporate tax adjustments are included in corporate, inhabitants’ and enterprise taxes.
2)

Accounting principles specific to the preparation of consolidated quarterly financial statements
Not Applicable.

(3) Change in accounting principles and procedures, presentation related to the preparation of
consolidated quarterly financial statements:(i) Effective from the consolidated fiscal year ending March 2009, the Company adopted the“Accounting Standard for Quarterly Financial Reporting” (Accounting Standards Board of Japan
Report No. 12, March 14, 2007) and the “Implementation Guidance on the Accounting Standard
for Quarterly Financial Reporting” (ASBJ Implementation Guidance No. 14, March 14, 2007).
Consolidated quarterly financial statements are prepared in conformity with the “Regulations ofConsolidated Quarterly Financial Statements.”
Pursuant to the proviso of Article 7, Paragraph 1, Item 5 of the Supplementary Regulationsof the “Cabinet Office Ordinance on Partial Amendment of the Regulations on Terminology,
Format and Preparation Method of Financial Statements, etc.” (Cabinet Office Ordinance No. 50,
August 7, 2008), the Company adopted the revised Regulations of Consolidated Quarterly
Financial Statements for the consolidated third quarter under review (from October 1, 2008 to
December 31, 2008) and the accumulated period up to the consolidated third quarter underreview (from April 1, 2008 to December 31, 2008).
(ii) Change in valuation standards and methods for inventories
Previously, ordinary inventories held for the purpose of sales were mainly stated at cost
determined by the first-in, first-out method. With the application of the “Accounting Standards
for Measurement of Inventories” (ASBJ Report No. 9, July 5, 2006), inventories are primarily
stated at cost determined by the first-in first-out method (with regard to the amounts stated in thebalance sheets, the method of book value devaluation based on decline in profitability is used),effective from the first quarter.
The effect of this change on operating income, ordinary income and quarterly net income
before taxes in the accumulated period up to the third quarter under review is insignificant.
(iii) Application of the “Practical Solution on Unification of Accounting Policies Applied to Foreign
Subsidiaries for Consolidated financial Statement”
Effective from the first quarter, the Company adopted the “Practical Solution on Unificationof Accounting Policies Applied to Foreign Subsidiaries for Consolidated financial Statement”(ASBJ Practical Solution No. 18, May 17, 2006), and made revisions necessary for consolidated
settlement of accounts.
The effect of this change on operating income, ordinary income and quarterly net income
before taxes in the accumulated period up to the third quarter under review is insignificant.
(iv) Application of accounting standard for lease transactions-7-

Previously, finance lease transactions in which the ownership of the leased properties did
not transfer to the lessees underwent the same accounting treatment as ordinary leasetransactions. Since the “Accounting Standard for Lease Transactions” (ASBJ Report No. 13,
June 17, 1993 (First Sectional Committee of the Business Accounting Council), amended on
March 30, 2007) and the “Implementation Guidance on the Accounting Standard for Lease
Transactions” (ASBJ Implementation Guidance No. 16, January 18, 1994 (Accounting
Committee of the Japanese Institute of Certified Public Accountants), amended on March 30,2007) became applicable from the consolidated quarterly financial statements concerning theconsolidated fiscal years starting on or after April 1, 2008, the Company adopted theseaccounting standards and used the accounting method for ordinary lease transactions, effectivefrom the first quarter under review.
Depreciation of leased assets concerning finance lease transactions in which the ownershipof the leased properties does not transfer to the lessees is calculated using the straight-line
method over the lease terms without residual value.
Finance lease transactions in which the ownership of the leased properties does not transfer
to the lessees and that started before the first year of the application of the lease accounting
standards and similar regulations, undergo the same accounting treatment as ordinary leasetransactions, the same as they did before.
The effect of this change on operating income, ordinary income and quarterly net income
before taxes in the accumulated period up to the third quarter under review is insignificant.

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5.

Consolidated Quarterly Financial Statements(1) Consolidated quarterly balance sheets
In million yen
End of the consolidated third
quarter under review(As of December 31, 2008)
AssetsCurrent assets
Cash and deposits
Trade notes and accounts
receivable
Securities
Merchandise and products
Work in progress
Raw materials and supplies
Other
Allowance for doubtful
accounts
Total current assets
Fixed assets
Tangible fixed assets
Intangible fixed assets
Investments and other assets
Other
Allowance for doubtful
accounts
Total investments andother assets
Total fixed assets
Total assets
Liabilities
Current liabilities
Trade notes and accounts
payableShort-term borrowings
Income tax payable, etc.
Allowance for bonuses to
employees
Other allowance
Other
Total current liabilities
Fixed liabilities
Long-term loans borrowings
Allowance for retirement
benefits
Other allowance
Negative goodwill
Other
Total fixed liabilities
Total liabilities-9-

Summarized balance sheets
related to the previous fiscal year
(As of March 31, 2008)

24,381
18,79822,54023,710998
12,005
173
2,272
4,268
(203)

999
10,655
84
2,646
3,168
(308)

62,69663,497

19,7302,773

18,496
3,295

13,045(49)

14,345(49)

12,996

14,29635,50098,19636,08899,585

12,415

12,465

3,197
795
875

3,500
884
1,666

89
2,509
19,883210
2,620
21,347

66
3,202

183
3,097

180
0
998
4,448
24,331

197
1
925
4,404
25,752

In million yen
End of the consolidated third
quarter under review(As of December 31, 2008)
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
Minority interests
Total net assets
Total liabilities and net assets- 10 -

Summarized balance sheets
related to the previous fiscal year
(As of March 31, 2008)

4,621
9,982
60,366(766)
74,204

4,621
9,982
59,473(766)
73,311

(327)

447

(21)

63

(349)

510

10
73,86598,196

11
73,833
99,585

(2) Consolidated quarterly statements of income(First three quarters of the consolidated term)
In million yen

Net sales
Cost of sales
Gross profit
Selling,
generalandadministrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income
Extraordinary gains
Gains on sale of fixed assets
Gains on insurance surrender
Gains on reversal of allowancefor doubtful accounts
Gains on reversal of allowance
for loss on business liquidation
Other
Total extraordinary gains
Extraordinary losses
Losses on sale of fixed assets
Losses on disposal of fixed
assets
Losses on devaluation of
investment securities
Impairment losses
Other
Total extraordinary losses
Quarterly net income before
taxes
Corporate,
inhabitants’ andenterprise taxes
Corporate tax adjustments
Total corporate taxes, etc.
Minority interests in earnings ofconsolidated subsidiaries
Quarterly net income

First three quarters of theconsolidated term
(April 1, 2008 to December 31,
2008)
62,50734,35828,14923,747
4,401
15
155
161
332
45
282
42
369
4,364
7
590
27
59
1
685
16
114
767
14
1
913
4,136
1,678
13
1,691
1
2,443

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Effective from the fiscal year ending March 2009, the Company adopted the “Standard for Quarterly
Financial Reporting” (ASBJ Report No. 12, March 14, 2007) and the “Implementation Guidance on theStandard for Quarterly Financial Reporting” (ASBJ Implementation Guidance No. 14, March 14, 2007).
Consolidated quarterly financial statements are prepared in conformity with the “Regulations ofConsolidated Quarterly Financial Statements.”
Pursuant to the provision of Article 7, Paragraph 1, Item 5 of the Supplementary Regulations of the“Cabinet Office Ordinance on Partial Amendment of the Regulations on Terminology, Format andPreparation Method of Financial Statements, etc.” (Cabinet Office Ordinance No. 50, August 7, 2008), theCompany adopted the revised Regulations of Consolidated Quarterly Financial Statements for the
consolidated third quarter under review (from October 1, 2008 to December 31, 2008) and theaccumulated period up to the consolidated third quarter under review (from April 1, 2008 to December 31,2008).

(3) Note concerning premise of going concern
Not applicable.

(4) Segment informationa.

Segment information by business typeFirst three quarters of the consolidated term under review (from April 1 to December 31, 2008)
Segment information by business type is omitted because the amounts of sales and operating

income of the medical electronic equipment business account for over 90 percent of the total sales
and total operating income of all segments.

b.

Segment information by geographic area
First three quarters of the consolidated term under review (from April 1 to December 31, 2008)
Segment information by geographic area is omitted because the amount of sales in Japanaccounts for over 90 percent of the total sales of all segments.

c.

Overseas sales
First three quarters of the consolidated term under review (from April 1 to December 31, 2008)
Overseas sales are omitted because such sales accounted for less than 10 percent of consolidated

sales.

(5) Note when there is a significant fluctuation in the amount of shareholders’ equity
Not applicable.

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Reference
Financial statements related to the corresponding quarter of the previous fiscal year
(1) (Summary) Consolidated quarterly statements of income

CategoryI
II

Net sales
Cost of sales
Gross profit
III Selling, general and administrative
expenses
Operating income
IV Non-operating income
V Non-operating expenses
Ordinary income
VI Extraordinary gains
VII Extraordinary losses
Quarterly net income before taxes
Tax expenses
Minority interests in income
Quarterly net income

First three quarters of theprevious consolidated
term(April 1, 2007 to
December 31, 2007)
Amount(million yen)
62,42535,07827,346
23,693
3,652
338
145
3,846
630
259
4,216
1,905
1
2,308

- 13 -

(2) Segment information[Segment information by business type]First three quarters of the previous consolidated term (from April 1, 2007 to December 31, 2007)
Segment information by business type is omitted because the amounts of sales and operating income of
the medical electronic equipment business account for over 90 percent of the total sales and total
operating income of all segments.

[Segment information by geographic area]
First three quarters of the previous consolidated term (from April 1, 2007 to December 31, 2007)
Segment information by geographic area is omitted because the amounts of sales and assets in Japanaccount for over 90 percent of the total sales and total assets of all segments.

[Overseas sales]First three quarters of the previous consolidated term (from April 1, 2007 to December 31, 2007)
Overseas sales are omitted because such sales accounted for less than 10 percent of consolidated sales.

6. Other information
Not applicable.

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