Impress Holdings, Inc. Announces Revisions to Results Forecasts
Tokyo, May 9, 2005—Impress Holdings, Inc. (TSE: 9479), announced today that, in light of recent performance trends and other factors, it has made the following revisions to the consolidated results forecast for fiscal 2004, announced on May 13, 2004, and the revised nonconsolidated results forecast for fiscal 2004, announced on February 3, 2005.
1. Revised Consolidated Results Forecast for Fiscal 2004 (April 1, 2004, to March 31, 2005)
| (Millions of yen, %) |
| |
Net sales |
Ordinary income |
Net income (loss) |
| Original forecast (A) |
11,100 |
100 |
100 |
| Revised forecast (B) |
10,623 |
350 |
308 |
| Increase (decrease) (B)- (A) |
(477) |
250 |
208 |
| Rate of increase (decrease) (%) |
(4.3) |
250.0 |
208.0 |
| Fiscal 2003 |
11,071 |
70 |
(392) |
|
| Note: Forecast net income per share: ¥2,501.56 |
2. Revised Nonconsolidated Results Forecast for Fiscal 2004 (April 1, 2004, to March 31, 2005)
| (Millions of yen, %) |
| |
Net sales |
Ordinary income (loss) |
Net income (loss) |
| Forecast announced May 13, 2005 (A) |
2,900 |
(80) |
50 |
| Revised forecast (B) |
2,929 |
(54) |
346 |
| Increase (B)- (A) |
29 |
26 |
246 |
| Rate of increase (%) |
1.0 |
— |
246.0 |
| Fiscal 2003 |
5,439 |
(232) |
(1,167) |
|
| Note: Forecast net income per share: ¥2,854.50 |
3. Reason for the Revisions
(1) Revisions to Consolidated Results Forecast
In the first three quarters of fiscal 2004, although sales dipped below initial forecasts, ordinary income and net income exceeded initial projections as a result of an increase in advertising revenues in the digital media business and a rise in sales of New Years card creation software/booklet sets as well as a reduction in land rent, depreciation and amortization, and other fixed costs in the media publishing business. We have refrained from revising our consolidated results forecast thus far in consideration of such factors as an anticipated increase in returns of New Years card creation software/booklet sets in the fourth quarter of fiscal 2004; uncertainty as to the likelihood of achieving sales targets for books, including the Dekiru series of instructional books; and inventory adjustment risks associated with product returns. However, book sales, which was an area of concern, as well as return and inventory adjustment trends have been within our expectations, and advertising revenues in the digital media business have been strong. Therefore, we have revised upward our forecasts for ordinary income and net income.
(2) Revisions to Nonconsolidated Results Forecast
We have revised upward our previous forecast for nonconsolidated net income for fiscal 2004 due to the upward revision of our initial forecast for consolidated net income and a rise in the portion of the Companyfs consolidated corporate tax payments received from subsidiaries stemming from the recording of a loss associated with providing support to subsidiaries in the form of a provision for doubtful accounts for the taxable reserves of subsidiaries incurred in the fiscal year ended March 31, 2004, as a tax write-off in the fiscal year under review, which resulted in a \2.39 million decline in nonconsolidated corporate income, corporate inhabitant, and enterprise taxes.
