Summary Report on Financial Results for the First Quarter of the Year Ending March 2010
August 3, 2009
Listing: JASDAQ
Company name: Fukuda Denshi Co., Ltd.
Code No.: 6960
(http://www.fukuda.co.jp)
Representative:

Kotaro Fukuda, President & CEO

Inquiries:

Shuichi Fukuda, Executive Director and Senior Manager of Accounting & Finance
DepartmentTel:+81-3-3815-2121 (main)

Scheduled date for filing the quarterly report:

August 7, 2009

Scheduled date for commencement of dividend payment:―(Amounts less than one million yen are discarded)
1.

Consolidated financial results for the first quarter of the year ending March 2010 (April 1, 2009
through June 30, 2009)(1) Consolidated operating results (cumulative)(Percentages represent increases or decreases from the previous year)
Net salesFirst quarter of the year
ending March 31, 2010
First quarter of the year
ended March 31, 2009

Operatingincomemillion%yen

millionyen%

19,467(2.9)

849

20,054

―

1,041

%

millionyen%(18.5)

940(17.6)

109(82.6)

―

1,140

―

629

―

yen
5.70

―

32.71

―

-1-

Net income

millionyen

Fully diluted net income
per shareyen

Net income per shareFirst quarter of the year
ending March 31, 2010
First quarter of the year
ended March 2009

Ordinary income

(2). Consolidated financial situation

million yen

million yen

Shareholders'equity ratio％

100,916

75,48274.8

3,921.60

101,200

74,79573.9

3,885.41

First quarter of the year ending March 2010:

75,482 million yen

Year ended March 2009:

74,786 million yen

Total assets
First quarter of the year
ending March 2010
Year ended March 2009

Net assets

Net assets per
share
yen

(Reference) Shareholders' equity:

2

Dividends
Record dateYear ended March
2009
Year ending March
2010
Year ending March2010 (estimate)

End of the firstquarteryen

End of the second
quarteryen―

Dividends per share
End of the third
quarteryen

End of the term

Annual

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 fiscal 2009 (April 1, 2009 through March 31, 2010)(percentages represent increases or decreases from the previous year for the full-year figures, and fromthe second quarter of the previous year for the consolidated second quarter figures.)millionyen%

millionyen%

millionyen%

millionyen%

Net income
per shareyen

42,200

(1.4)

2,800

(9.7)

2,800

(11.6)

1,200(27.6)

62.34

89,500

(0.1)

6,000

(10.7)

6,000(10.6)

2,800(25.7)

145.47

Net salesFirst two quartersof the consolidated
term
Full-year

Operating income

Ordinary income

Net income

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

4.

Others(1) Change in significant subsidiaries during the year under review (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 pages 5 through 6.

(3) Changes in accounting principles and procedures, and presentation related to the preparation of-2-

consolidated quarterly financial statements (described in changes in basis of preparation for the
consolidated quarterly financial statements):(i) Changes owing to the adoption of revised accounting standards or such like: None(ii) Changes other than (i) above: Yes
Note: For details, please refer to 4. Others in the “Qualitative Information and Financial
Statements” section on pages 5 through 6.

(4) Number of outstanding issues (common stock)(i) Number of outstanding shares at the year-end (including treasury stock)
First quarter of the year ending March 2010: 19,588,000 sharesYear ended March 2009: 19,588,000 shares(ii) Number of shares of treasury stock at the year-end:
First quarter of the year ending March 2010: 340,105 sharesYear ended March 2009: 339,945 shares(iii) Average number of shares during the period (accumulated consolidated quarter)
First quarter of the year ending March 2010: 19,247,945 sharesFirst quarter of the year ended March 2009: 19,247,851 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 of August 3,
2009. 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 for the fiscal year ending March 2010” in the “Qualitative
Information and Financial Statements" section on page 5.

-3-

Qualitative Information and Financial Statements
1.

Qualitative Information about consolidated operating results
During the first quarter under review, corporate earnings contracted in Japan, centering onexport-oriented companies, which is seriously affecting the real economy, as exemplified by theaggravation of the employment situation and declines in consumer spending.
In the medical environment, medical system reforms continued to be pushed forward with, including
the expansion of the adoption of the comprehensive medical fee payment system, called DPC (Diagnosis
Procedure Combination), aimed restraining medical expenses. In addition a further division of functions
between hospitals and clinics such as the consolidation of acute phase hospitals and an increase in thenumber of clinics assisting home medial treatment has been seen.
Under such circumstances, the Group posted consolidated net sales of 19,467 million yen (down
2.9% year-on-year), operating income of 849 million (down 18.5%), ordinary income of 940 million yen(down 17.6%) and a net income of 109 million yen (down 82.6 %) in the first quarter to date.

(i) Physiological diagnostic equipment segment
Sales of vascular screening systems, blood cell counters and air sterilization and deodorizationequipment increased in Japan, but overseas sales declined.
As a result, consolidated net sales were 4,333 million yen (down 6.3% year-on-year).
(ii) Patient monitoring equipment segment
Sales declined both domestically and abroad.
As a result, consolidated net sales were 867 million yen (down 12.9% year-on-year).
(iii) Medical treatment equipment segment
The business of renting medical equipment for home treatment remained sturdy, while both thesales volume and sales value of pacemakers increased. Sales of Automated External
Defibrillators (AEDs) declined, affected by the business downturn.
As a result, consolidated net sales were 8,559 million yen (down 4.1% year-on-year).
(iv) Other products and accessories segment
In the Other products and accessories segment, we mainly handle recording paper, disposable
electrodes and accessories, as well as consumables used for devices handled by the othersegments.
Consolidated net sales for this segment were 5,707 million yen (up 3.7% year-on-year).

2.

Qualitative information about consolidated financial situation
Total assets were 100,916 million yen at the end of the first quarter under review, down 283 million

yen from the end of the previous fiscal year.
The decrease is mainly due to a decline of 3,777 million yen in trade notes and accounts receivable
despite an increase of 1,403 million yen in cash and deposits, a rise of 495 million yen in merchandiseand products and an increase of 569 million yen in investments and other assets.

-4-

Liabilities amounted to 25,433 million yen, down 970 million yen from the end of the previous fiscal
year.
The decrease is primarily because of a decrease of 1,342 million yen in income tax payable, etc.
despite an increase of 858 million yen in allowance for bonuses to employees.
Net assets were 75,482 million yen, up 686 million yen from the end of the previous fiscal year.
The increase is primarily attributable to a rise of 1,305 million yen in evaluation difference on othersecurities despite a decrease of 660 million yen in retained earnings.

3.

Qualitative information about consolidated earnings forecast for the fiscal year ending
March 2010
The worldwide economic recession resulting from the financial crisis is expected to hit Japan as well,in the forms of falls in production and exports, deterioration of corporate earnings, declines in consumer
spending and rapid fluctuations in foreign exchange rates. Thus, the economic situation will likely remainstagnant in the foreseeable future. In the medical equipment industry, the business environment is
expected to remain sluggish, as there are concerns about a consolidation or reduction in the number ofpublic hospitals and patients’ refraining from visiting hospitals for medical advice because of therecession.
However, there is no change at this moment in the forecast of financial results for the accumulated
period up to the second quarter and for the full fiscal year, which we announced on May 15, 2009.

4.

Others(1) Change in significant subsidiaries during the year under review (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(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 thestatement of income of the previous fiscal year.
Corporate tax adjustments are included in corporate, inhabitants’ and enterprise taxes.
(ii) 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:
Previously, expenses for the development of new products in research and development-5-activities were posted as cost of sales. However, effective from the first quarter under review, such
expenses are treated as general and administrative expenses, with a view to appropriately grasping
the costs corresponding to sales and more properly indicating profit/loss for the period, more
properly taking advantage of the building of a system to manage expenses incurred in developing
new products, since the development of new products has come to be regarded less as cost, and more
as research and development as it involves the development of new technologies and newmechanisms.
As a result of this change, cost of sales decreased 305 million yen and gross profit increased by
the same amount for the first quarter under review compared with the figures under the previous
method, while operating income and ordinary income each declined 118 million yen due to anincrease of 423 million yen in selling, general and administrative expenses.
Quarterly net income before taxes decreased 247 million yen, since 129 million yen, equivalent
to research and development expenses in indirect manufacturing cost, which were included in
beginning inventories, was posted as extraordinary losses.

-6-5. Consolidated Quarterly Financial Statements(1) Consolidated quarterly balance sheets(Million yen)
End of the consolidated firstquarter under review(as of June 30, 2009)

Summarized balance sheets
related to the previous fiscal year
(as of March 31, 2009)

29,62828,224

19,541

23,319

998
8,979
141
1,789
3,508

999
8,483
44
1,642
2,951

(196)

(243)

64,39065,421

20,321
2,499

19,975
2,668

13,72013,151(16)(16)

13,704

13,13436,525100,916

35,778101,200

12,69012,401

2,466
354

2,866
1,697

2,598

1,739

25
2,721
20,857116
3,043
21,865

33

50

3,320

3,230

144
－
1,077
4,576
25,433

192
0
1,065
4,538
26,404

4,621
9,982
61,033
(766)

4,621
9,982
61,693(766)

AssetsCurrent assets
Cash and deposits
Trade notes and accounts
receivable
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
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 allowances
Other
Total current liabilities
Long-term liabilities
Long-term borrowings
Allowance for retirement
benefits
Other allowances
Negative goodwill
Other
Total long-term liabilities
Total liabilities
Net assets
Shareholders' equity
Common stock
Capital surplus
Retained earnings
Treasury stock-7-

Total shareholders' equity

End of the consolidated firstquarter under review(as of June 30, 2009)
74,871

Summarized balance sheets
related to the previous fiscal year
(as of March 31, 2009)
75,531

709

(595)

(98)

(149)

611

(745)

－
75,482
100,9169
74,795
101,200

Valuationandtranslation
adjustments
Evaluation difference onother securities
Foreign currency translation
adjustment accountTotal
valuationandtranslation adjustments
Minority interests
Total net assets
Total liabilities and net assets-8-(2) Consolidated quarterly statements of income(First quarter of the consolidated term)(Million yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative
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
Gain on insurance adjustment
Gains on insurance surrender
Gains on reversal of allowancefor doubtful accounts
Other
Total extraordinary gains
Extraordinary losses
Losses on sale of fixed assets
Losses on disposal of fixed assets
Loss on valuation of investment
securities
Impairment losses
Loss on prior period adjustment
Other
Total extraordinary losses
Quarterly net income before taxes
Corporate, inhabitants' andenterprise taxes
Corporate tax adjustments
Total income taxes
Minority interests in earnings ofconsolidated subsidiaries
Net income

First quarter of the previous
consolidated term(from April 1, 2008 to June 30,
2008)
20,054
11,1048,950First quarter of the consolidated
term(from April 1, 2009 to June 30,
2009)
19,467
10,264
9,203

7,908

8,353

1,041

849

3
78
85
167

4
82
21
108

18
47
2
69
1,140

7
7
2
17
940

1
－
100

3
22
116

39

46

－
141

2
191

0
1

0
9

12

657

7
－
1
23
1,259

4
129
7
808
323

893

404

(264)
629

(190)
213

0

0

629

109

-9-

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

(4) Segment information(Segment information by business type)First quarter of the consolidated term under review (from April 1, 2009 to June 30, 2009)
Segment information by business type is omitted because the amounts of sales and operating incomeof the medical electronic equipment business account for over 90 percent of the total sales and total
operating income of all segments.

(Segment information by geographical area)
First quarter of the consolidated term under review (from April 1, 2009 to June 30, 2009)
Segment information by geographical area is omitted because the amount of sales in Japan accounts
for over 90 percent of the total sales of all segments.

(Overseas sales)First quarter of the consolidated term under review (from April 1, 2009 to June 30, 2009)
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.

6.

Other information
Not applicable.

- 10 -