Message from the President Oct.2011

As we enter the month of October, those companies whose fiscal year end is March have started their second half of the fiscal year. Since most of the company review their budget by the quarters (three month period) based on their fiscal year, our utilization ratio is affected accordingly. When a company is active in their business, they increase their R&D budgets and it would improve our utilization ratio. But, otherwise, it will decrease our utilization

It is fact that most of our customers are being careful on their R&D investment due to the uncertainty of the world economy since the shockwave caused by the downgrade of the U.S. bonds. At the time of the Lehman Shock, everyone hit their brake at a same time. But once we hit our brake on R&D, it would require large cost and time to get restarted. Therefore, I feel that many of our customers are trying not to take their foot off from their gas pedal now

From now on, it is important to make prompt management decisions by watching on how our utilization ratio would fluctuate by each quarter.

But under any circumstance, we have to continue our effort to meet the Target of Sales and Engineer Management Strategy of the New Mid-term Management Plan, “building stronger customer basis”. Goal of the target is to making all 1,000 clients to be our customer base, instead of just a customer. Cooperation between engineers and sales force is essential to transform our clients into the customer basis, customers who would continue business with us even under crisis conditions. And I would like to ask our entire employee to recognize this and take action accordingly.