FY2025 Q3 Financial Results Briefing

Performance Overview

Net sales for FY2025 Q3 amounted to JPY 467.5 billion, an increase of 4.3% year-on-year. Sales declined for high-frequency modules for smartphones and resin multilayer substrates; however, increased sales of capacitors for servers contributed positively. Operating income was JPY 37.9 billion, down 50.2% from the previous year, largely due to one-time expenses of JPY 49.8 billion including goodwill impairment of JPY 43.8 billion related to surface acoustic wave filter products. Operating income excluding one-time expenses was JPY 87.7 billion. Full-year earnings guidance was revised to net sales of JPY 1.8 trillion (3.4% increase from October forecast) and operating income of JPY 270 billion (3.6% decrease from October forecast).

Goodwill Impairment Loss and Business Environment

The entire goodwill of JPY 43.8 billion related to the surface acoustic wave filter product business from the acquisition of Resonant, Inc. was impaired. Fixed assets were judged recoverable, and no impairment was performed. Intensified competition in the Greater China region and delayed progress in high-frequency development, beyond initial acquisition assumptions, led to this goodwill impairment. Although sales bottomed out in FY2024 and are on a recovery trend, profitability has declined. Going forward, the company aims to strengthen its market position with high-performance components.