Seiko Epson has first annual loss in 4 years

Seiko Epson recorded its first net loss in 4 years for the fiscal year that just ended as restructuring costs exacerbated already tough market conditions.

Seiko Epson recorded its first net loss in 4 years for the fiscal year that just ended as restructuring costs exacerbated already tough market conditions for the Japanese company.

The company lost YEN 18 billion (AUD$210 million) in the 12 month period to the end of March compared with a profit of YEN 56 billion in the previous fiscal year, it said. Net sales increased 5 percent to YEN 1.6 trillion in the same period.

The company is being hit by falling prices for its mainstay inkjet printer products. The problem is especially affecting the printer-only models, which are falling out of favor as consumers continue to be attracted to multi-function printers that offer additional functions like copying and photo printers. As a result, Epson plans to reduce in the next 12 months the number of stand-alone printers it offers, it said.

Falling prices also impacted the company's 3LCD projector and laser printer businesses but unit shipments rose so revenue from sales of the devices increased along with revenue from sales of business projectors and dot-matrix printers, it said.

Overall, Epson's information equipment unit sales grew 3 percent in the 12 months, although for the current fiscal year, which runs from April to March 2007, business isn't expected to be as good.

Sales are expected to fall primarily due to the reduction in the number of stand-alone printers offered by the company, although anticipated strong sales of dot-matrix printers in markets such as China will help business overall, it said.

In its other business units, results for the year just ended were mixed. Revenue from sales of display panels for use in some models of projector fell while Epson said sales volume of TFT (thin-film transistor) LCD (liquid crystal display) panels soared. Semiconductor revenue was down sharply as fierce competition hit prices.

For the current year, Epson said it expects net sales to be almost unchanged at YEN 1.6 trillion and for net income to recover to a profit of YEN 14 billion.

Join the newsletter!


Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Martyn Williams

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles


PCW Evaluation Team

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill


I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?