Message from the President Sep.2010

We were able to meet our sales target for the first half of the fiscal year. Also we were able to reserve some allowance which to be used to distributed among employee if we achieve an operating profit for the fiscal year to compensate the cost cutting measures under the crisis condition.

But, it does not mean that we are out of crisis. Because we are assigning the younger engineers under wider work variation and hourly rate variation, we should think that our current break even point might be higher than that of normal conditions, 80%. Also, since the macroeconomic environments continue to show unstableness and uncertainty such as the rapid raise of yen, we can not say that we are out of crisis condition unless we can stably continue to exceed the current performance.

Although we are still not in conditions that we can be optimistic, but it is a fact that our performances are in improvement trend. And we have started to see the light from the exit of the long tunnel named “emergencies”. Considering these facts, we now need to think about how we should proceed after clearing the crisis.

As it was discussed at the company-union meeting in August, we are planning to implement (1) consideration of resuming the new hire, and (2) application of the further measures to promote work assignments during the second half of the fiscal year. These efforts will become a big first step to realize our operation strategy disclosed at the beginning of the fiscal year “transformation to defense from offence”.

We shall move forward as we take to our heart that “going offensive also means taking risks.”