Seiko Epson of Japan has reported results for its second fiscal quarter that ended on September 30, 2016, with revenues down 10.2 percent, and profits down 7.5 percent, both versus the same quarter a year ago.
Epson’s Printing Solutions’ revenue was down 23.4 percent year-over-year, but rose to 161.3 billion yen, versus the 157.3 billion yen reported for Epson’s previous (first) quarter. Profit for the Printing Solutions group for the second quarter was down 3.7 percent versus the same quarter a year ago, but rose to 21 billion yen versus the 12.8 billion yen reported for Epson’s previous (first) quarter).
For its second quarter, Epson also reported:
- Large-format printer revenue growth was up in segments such as signage printing.
- Professional and “prosumer” photo-printer revenue was down.
- In its inkjet-printer business, there was “steady ongoing growth” for its high-capacity ink-tank office printers, but revenue was down for inkjet printers, due it states, to “printer price erosion” and the effects of a stronger Japanese yen.
- SIDM (serial impact dot-matrix) printer shipments to China were up, “despite a gradually shrinking market,” but revenue was down due to the effects of a stronger Japanese yen.
Overall, Epson reported that demand for inkjet printers continued to decline, as the Japanese consumer-printer market contracted sharply, and the North American market also shrank. On the other hand, it says there was “solid demand” for Epson high-capacity ink tank printers, “as the entry of other companies had the effect of boosting recognition.” Large-format inkjet-printer demand was “firm” in North America and Japan, but demand in China and Latin America was “subdued,” due to the effects of “economic deceleration.” SIDM printer demand was “firm” in China, where a major tax overhaul produced “extra demand” in the China tax-collection market, but demand continued to contract in the Americas and Europe.
Epson says that profits for its printing-solutions segment decreased, even though profits rose on increased sales of high-capacity ink-tank inkjet printers. It says the decrease in profits was due to “a combination of factors,” including a decrease in large-format inkjet printer sales, strategic investment, spending on medium-term growth, and the effects of a stronger Japanese yen.
First Half of Fiscal Year
For the first six months of its fiscal year that ended on September 30, 2016, Epson reported that revenues were down 10.2 percent, and it also reported a loss of approximately 16 billion yen.
Epson says its strategy will be further increase high-capacity ink tank printer shipments, and achieve stable ink revenues. It says its development of a line-head inkjet printer also remains “on track,” and that it also plans to increase growth in professional printers for printing signage, textiles, and labels.
For its entire fiscal year that will end in March 2017, Epson revised both its revenue and profits forecasts. It’s now forecasting revenue of 1,000.0 billion yen, versus its previous outlook of 1,030.0 billion yen, and profits of 46.0 billion yen, versus its previous outlook of 54.0 billion yen.
- October 2016: Epson Plans on Bigger Push into UAE, Saudi Arabia Consumer-Printer Markets
- August 2016: Epson Stumbles in Latest Fiscal Quarter, but Reports Increased Sales of High-Capacity Ink-Tank Printers
- August 2016: Two New ‘Supersize’ EcoTank Inkjet All-in-Ones from Epson, Including First Wide-Format ‘Supersize’ All-in-One
- July 2016: Epson Says it’s Sold 15 Million High-Capacity Ink-Tank Printers Since 2010
- June 2016: Epson Continues to Expand into Textile-Printing Market with Acquisition of Robustelli
- April 2016: Epson Reports Full-Year Results; 100-PPM Line-Head Inkjet Printers May Be on the Way
- March 2016: Impression Solutions to Distribute Epson Business Inkjets with Replaceable Ink Packs to Office-Equipment Dealers
- February 2016: Epson Increasing Production of Ink Bottles for High-Capacity Ink-Tank Printers, All-in-Ones
- February 2016: Epson Says it’s Sold More than a Million InkTank Printers in India
- February 2016: Earnings up for Epson’s Third Quarter, but Down for Last Nine Months; Forecast Unchanged
- January 2016: Epson to Triple PrecisionCore Inkjet Print-Head Production with 20 Billion Yen Investment
- November 2015: Epson Seeking to Have Faster, More Precise Volume Manufacturing 3D Printer on the Market in About Five Years