Summary of Consolidated Financial Results: First Half Ended September 30, 2013

The consolidated financial results for KAGA ELECTRONICS CO., LTD. for the first half of the fiscal year ending March 31, 2014, demonstrate a significant recovery in profitability compared to the same period in the previous year. The company reported net sales of 122,077 million yen, representing a 17.6% increase year-on-year. This growth was accompanied by a return to profitability, with operating income reaching 2,194 million yen, compared to an operating loss of 470 million yen in the first half of the previous fiscal year. Net income similarly improved, shifting from a loss of 1,373 million yen to a profit of 1,352 million yen.

The company’s performance was driven primarily by its electronic components segment, which saw a 21.6% increase in sales to 94,595 million yen and a substantial 365.7% rise in operating income. This segment benefited from increased demand for electronics manufacturing services (EMS) in both domestic and international markets, particularly for amusement equipment and semiconductors. Other segments, including information equipment, software, and general services, also contributed to the overall positive results, with each segment showing improved operating income compared to the prior-year period.

The financial position of the group remained stable, with total assets reaching 116,658 million yen as of September 30, 2013, up from 111,888 million yen at the end of the previous fiscal year. The equity ratio stood at 43.1%. Cash flow from operating activities provided 3,772 million yen, supporting the company's liquidity. Management maintained its previously announced full-year forecast, projecting net sales of 247,000 million yen and net income of 2,200 million yen for the fiscal year ending March 31, 2014. These results reflect a broader economic recovery in Japan, characterized by increased corporate earnings and consumer spending, despite ongoing challenges in the global electronics market.