Kokusai Electric Corporation revised consolidated earnings guidance for the fiscal year ending March 31, 2026. For the fiscal year, the company revised revenue of JPY 230,000 million; Operating profit of JPY 38,800 million; Net income attributable to owners of the parent JPY 27,900 million; Basic earnings per share of JPY 119.52 compared to previous guidance of revenue of JPY 244,000 million; Operating profit of JPY 49,200 million; Net income attributable to owners of the parent JPY 36,000 million; Basic earnings per share of JPY 154.28. Reasons for the revision of the Full-Year earnings forecast: During the current term, semiconductor device manufacturers have been making capital investments aimed at transitioning to new device generations and expanding production scale, but the sales timing of some equipment initially expected in the second half has been delayed to the fiscal year ending March 2027.
As a result, sales revenue and profits are projected to fall short of the forecasts announced on May 13, 2025, and therefore, the full-year earnings forecast will be revised. The delay in the sales period mainly concerns some of the NAND equipment for manufacturers worldwide (excluding those based in China) and some of the DRAM equipment for local Chinese manufacturers, but all are expected to be sold by the fiscal year ending March 2027. The reason why the decline rate in profit is greater than the decline rate in sales revenue is not only because the sales of high value-added products are deferred to the fiscal year ending March 2027, and the resulting decrease in the number of units produced during the period lowers the gross profit margin, but also because the ratio of selling, general, and administrative expenses, including upfront investments, becomes relatively higher as sales revenue decreases.
Regarding profitability, it is expected to improve with future sales expansion. As noted above, since the revision of the full-year earnings forecast this time is mainly due to a temporary decrease in sales caused by a delay in the sales period, the forecast for the current term dividend has not been changed.
