The semiconductor market remained in good shape in the first half of the fiscal year thanks to expanding demand for semiconductors and other factors. In the second half of the fiscal year, however, there was a distinct slowdown due to such things as the effect of an oversupply of memory and inventory adjustments.
We focused on investing management resources into growth markets, including next-generation flip-chip type packages suited to nano-fabrication and high-density semiconductors. We faced headwinds overall, including the impact of inventory adjustments, and so pursued a course of proactive sales promotions, as well as lowering costs and ramping up production to increase our competitiveness and secure profits.
Sales of ceramic electro static chucks for semiconductor manufacturing equipment increased, demand for heat spreaders for servers grew. Sales of lead frames and IC assemblies dropped affected by inventory adjustments during the second half of the fiscal year. Sales of flip-chip type packages decreased due to sluggish orders, coming from a slump in the PC market, and other factors in the first half of the fiscal year. As a result of these factors, consolidated net sales for this fiscal year decreased 3.3% year on year to 142,277 million yen.
The growth in sales from high-value-added products and the posting of foreign exchange gains resulted of 7,649 million yen (up 33.5% year on year).
Due to the posting of an extraordinary loss stemming from a loss associated with the move to a retirement benefit scheme with the introduction of a risk-sharing pension plan and an impairment loss on fixed assets, the profits were 2,526 million yen (down 31.1% year on year).