Epson Reports Sharp Improvement for Fiscal Year; Sales of High-Capacity Inkjets Lift Revenue

epson japan hqSeiko Epson of Japan reported net sales of 1,003 billion yen ($9.7 billion U.S.) for its fiscal year 2014 ending March 31, 2014, a 17.9 increase over the previous year. It also reported net income of 83 billion yen ($813 million U.S.) versus a loss for the previous fiscal year.

Epson reports that sales of inkjet printers were lifted by increased sales of inkjet printers with high-capacity ink tanks, and by higher average selling prices, despite a decline in ink-cartridge shipments. However, net sales from consumables rose.

Sales of large-format printers also increased, due to a rise in average selling price, accompanied by sales of higher-end models and consumables. Dot-matrix printer sales increased due to steady demand in China. Point-of-Sale (POS) sales also increased, due to an increase in sales in the Americas.

Sales in the Visual Communications segment, which includes business-projectors and LCD panels,  also increased.

In its Sensing and Industrial Solutions Segment, which includes factory-automation robots, sales also increased.

Epson states that as part of its current business plan, it will transition from being primarily a company that provides consumer-imaging products to one that provides business-imaging products, as well as consumer products (for instance, it the last several years, it has concentrated on developing business-class inkjet printers and MFPs for the office).

In its Printing Systems Business, Epson says that it will continue to leverage it inkjet-printing technology. It will also continue to introduce new inkjet printers designed for business users, and for emerging markets. It will release new printers that feature Micro Piezo inkjet print heads. It will also increase service and support that includes IT services.

Fiscal 2014 Forecast and Initiatives

Epson states that it is seeking steady profit growth, and seeks to avoid “the single-minded pursuit of revenue growth.” The firm increased its projections for net sales for the upcoming fiscal year slightly to 6.3 billion yen, an increase of 0.6 percent versus fiscal 2013. However, it’s now projecting net income of 18.6 billion yen, a decrease of 22.3 percent versus the previous fiscal year.

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