Welcome!

News Feed Item

Investment Bridge Announces Investment Opinion: Bridge Report on Ferrotec Corporation: Strong Recovery in FY3/14 Earnings, Estimates Call for Continued Earnings Growth in FY3/15

Investment Bridge, one of Japan’s leading IR services companies, has issued a “Bridge Report” on Ferrotec Corporation (JASDAQ:6890) reviewing its earnings results fiscal year March 2014 and estimates for fiscal year March 2015.

Report Highlights

  • Sales rose 16.4% year-over-year and operating income recovered from a loss in FY3/13 to a profit of JPY798 million in FY3/14. The recovery in profitability is attributed to reductions in fixed costs arising from a business restructuring plan.
  • Sales and operating income are expected to rise by 11.7% and 125.5% year-over-year during fiscal year March 2015 on the back of strong demand for silicon used in ceramic crucibles and photovoltaic cells, and thermoelectric modules used in automobile seat automated heating applications.
  • The Bridge Report calls attention to Ferrotec’s efforts to leverage its strengths in vacuum and precision processing technologies to expand its sales in the realms of foods, water, energy, communications and medical related fields over the intermediate term.

Ferrotec Corporation manufactures and sells silicon single and multiple crystal manufacturing equipment and other products in the photovoltaic related products segment, semiconductor manufacturing equipment, flat panel display (FPD) manufacturing equipment parts, semiconductor materials, and various thermoelectric temperature controllers widely used in personal computers, cellular telephones, and devices using liquid crystal and plasma technologies.

Sales rose by 16.4% year-over-year to JPY44.7 billion on the back of 44.8%, 14.6% and 7.0% year-over-year increases in sales of the electronic device, Equipment related , photovoltaic related businesses to JPY6.6, JPY21.6, and JPY13.2 billion respectively. These higher sales allowed gross income to rise by 55.1%, and reductions in sales, general and administrative expenses of 5.3% on the back of successful business restructuring allowed operating income to improve from a loss of JPY3.6 billion in FY3/13 to a profit of JPY798 million in FY3/14.

Total assets at the term end rose by JPY8.3 billion from the end of the previous term to JPY74.7 billion. After adjusting for changes in foreign exchange rates, the assets and liabilities of overseas subsidiaries rose by large margins in yen terms. Consequently, equity ratio improved by 5.3% points from the end of the previous term to 50.2% at the end of the current term.

Ferrotec’s FY3/15 estimates call for sales to rise by 11.7% year-over-year to JPY50.0 billion on the back of increases in sales of the Equipment related , photovoltaic related, and electronic device businesses of 3.1%, 22.3% and 14.2% year-over-year to JPY22.3, JPY16.150, JPY7.550 billion respectively. Increases in capacity utilization rates arising from higher sales, and cost reductions are expected to allow operating margin to rise from 1.8% to 3.6% and operating income to rise by 125.5% year-over-year to JPY1.8 billion. Ordinary and net incomes are expected to decline due to the disappearance of foreign exchange translation gains and extraordinary profits. Capital investments are expected to fall by 21.6% to JPY3.0 billion, while depreciation is expected to increase by 6.7% to JPY4.2 billion.

The Bridge Report calls attention to Ferrotec’s ability to facilitate a structure designed to put it back on a growth path confirmed by the recovery in FY3/14 earnings, and the aggressive strategy to expand its sales channels in China and other parts of Asia and to cultivate new applications for its products expected to be adopted from FY3/15 onwards. Over the medium term, Ferrotec is expected to implement measures that leverage its strengths in vacuum and precision processing technologies to expand the industries to which it provides products to include the food, water, energy, communications and medical fields.

To view the full report, please go to the website at the URL listed below.
http://www.bridge-salon.jp/report_bridge/archives/eng/6890/20140807.html

About Bridge Report:
Bridge Report is produced by Investment Bridge Co., Ltd. and provides accurate and objective information about the earnings, business strategies, and other information of publicly traded Japanese companies. Investment Bridge was founded in August 2000 and is one of Japan’s leading independent IR support services companies. Investment Bridge specializes in providing various solutions to Japan’s publicly traded companies with the goal of expanding our clients’ shareholder base and liquidity through increased recognition and understanding of companies.

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
DX World EXPO, LLC, a Lighthouse Point, Florida-based startup trade show producer and the creator of "DXWorldEXPO® - Digital Transformation Conference & Expo" has announced its executive management team. The team is headed by Levent Selamoglu, who has been named CEO. "Now is the time for a truly global DX event, to bring together the leading minds from the technology world in a conversation about Digital Transformation," he said in making the announcement.
"Space Monkey by Vivent Smart Home is a product that is a distributed cloud-based edge storage network. Vivent Smart Home, our parent company, is a smart home provider that places a lot of hard drives across homes in North America," explained JT Olds, Director of Engineering, and Brandon Crowfeather, Product Manager, at Vivint Smart Home, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Conference Guru has been named “Media Sponsor” of the 22nd International Cloud Expo, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. A valuable conference experience generates new contacts, sales leads, potential strategic partners and potential investors; helps gather competitive intelligence and even provides inspiration for new products and services. Conference Guru works with conference organizers to pass great deals to gre...
DevOps is under attack because developers don’t want to mess with infrastructure. They will happily own their code into production, but want to use platforms instead of raw automation. That’s changing the landscape that we understand as DevOps with both architecture concepts (CloudNative) and process redefinition (SRE). Rob Hirschfeld’s recent work in Kubernetes operations has led to the conclusion that containers and related platforms have changed the way we should be thinking about DevOps and...
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and shared the must-have mindsets for removing complexity from the develop...
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, led attendees through the exciting evolution of the cloud. He looked at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering m...
The next XaaS is CICDaaS. Why? Because CICD saves developers a huge amount of time. CD is an especially great option for projects that require multiple and frequent contributions to be integrated. But… securing CICD best practices is an emerging, essential, yet little understood practice for DevOps teams and their Cloud Service Providers. The only way to get CICD to work in a highly secure environment takes collaboration, patience and persistence. Building CICD in the cloud requires rigorous ar...
Companies are harnessing data in ways we once associated with science fiction. Analysts have access to a plethora of visualization and reporting tools, but considering the vast amount of data businesses collect and limitations of CPUs, end users are forced to design their structures and systems with limitations. Until now. As the cloud toolkit to analyze data has evolved, GPUs have stepped in to massively parallel SQL, visualization and machine learning.
"Evatronix provides design services to companies that need to integrate the IoT technology in their products but they don't necessarily have the expertise, knowledge and design team to do so," explained Adam Morawiec, VP of Business Development at Evatronix, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. In his session at @BigDataExpo, Jack Norris, Senior Vice President, Data and Applications at MapR Technologies, reviewed best practices to ...
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
"ZeroStack is a startup in Silicon Valley. We're solving a very interesting problem around bringing public cloud convenience with private cloud control for enterprises and mid-size companies," explained Kamesh Pemmaraju, VP of Product Management at ZeroStack, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Large industrial manufacturing organizations are adopting the agile principles of cloud software companies. The industrial manufacturing development process has not scaled over time. Now that design CAD teams are geographically distributed, centralizing their work is key. With large multi-gigabyte projects, outdated tools have stifled industrial team agility, time-to-market milestones, and impacted P&L stakeholders.
"Akvelon is a software development company and we also provide consultancy services to folks who are looking to scale or accelerate their engineering roadmaps," explained Jeremiah Mothersell, Marketing Manager at Akvelon, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Enterprises are adopting Kubernetes to accelerate the development and the delivery of cloud-native applications. However, sharing a Kubernetes cluster between members of the same team can be challenging. And, sharing clusters across multiple teams is even harder. Kubernetes offers several constructs to help implement segmentation and isolation. However, these primitives can be complex to understand and apply. As a result, it’s becoming common for enterprises to end up with several clusters. Thi...