PIONEER CORPORATION
Table of Contents



FORM 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934

For the month of February, 2005

Commission File Number 1-7616

PIONEER CORPORATION

(Translation of registrant’s name into English)

4-1, MEGURO 1-CHOME, MEGURO-KU, TOKYO 153-8654, JAPAN
(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F:

     
Form 20-F þ   Form 40-F o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):           

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):           

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

     
Yes o   No þ

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-



 


TABLE OF CONTENTS

SIGNATURES
Pioneer Announces Third-Quarter and Nine-Month Results for Fiscal 2005


Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

         
      PIONEER CORPORATION
(Registrant)


 
 
Date: February 1, 2005        
  By   /s/ Kaneo Ito    
      Kaneo Ito
President and Representative Director 
 
 

This report on Form 6-K contains the following:

1.   The announcement released by the Company to the press in Japan dated January 31, 2005, concerning its consolidated third-quarter and nine-month business results, for the period ended December 31, 2004.

 


Table of Contents

For Immediate Release
January 31, 2005

Pioneer Announces Third-Quarter and Nine-Month Results for Fiscal 2005

TOKYO — Pioneer Corporation today announced its consolidated third-quarter and nine-month business results, for the period ended December 31, 2004.

Consolidated Financial Highlights

                                                 
                            (In millions of yen except per share information)
    Three months   Nine months
    ended December 31   ended December 31
                    % to                     % to  
                    prior                     prior  
    2004     2003     year     2004     2003     year  
Operating revenue
  ¥ 196,303     ¥ 198,022       99.1 %   ¥ 541,350     ¥ 518,004       104.5 %
Operating income
    1,632       16,689       9.8       14,905       34,247       43.5  
Income from continuing operations before income taxes
    3,514       15,860       22.2       15,952       32,445       49.2  
Income from continuing operations
    1,785       9,087       19.6       6,594       16,923       39.0  
Net income
  ¥ 1,785     ¥ 9,140       19.5 %   ¥ 6,594     ¥ 21,615       30.5 %
Basic earnings per share:
                                               
Income from continuing operations
  ¥ 10.17     ¥ 51.80             ¥ 37.59     ¥ 96.46          
Income from discontinued operations, net of tax
          0.30                     26.75          
Net income
  ¥ 10.17     ¥ 52.10             ¥ 37.59     ¥ 123.21          
Diluted earnings per share:
                                               
Income from continuing operations
  ¥ 8.98     ¥ 51.78             ¥ 33.43     ¥ 96.44          
Income from discontinued operations, net of tax
          0.30                     26.74          
Net income
  ¥ 8.98     ¥ 52.08             ¥ 33.43     ¥ 123.18          

Note:   As a result of the sales of subsidiaries in the audio/video software business in fiscal 2004, the gain on such sales, as well as the operating results of the discontinued operations, are presented as a separate line item in consolidated statements of income in accordance with Statement of Financial Accounting Standards No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets.” Previously reported amounts have been reclassified accordingly.

-1-


Table of Contents

Consolidated Business Results

The third quarter of fiscal 2005, ended December 31, 2004, resulted in consolidated operating revenue of ¥196,303 million (US$1,887.5 million), down 0.9% from the corresponding period in the previous year. Profitability dropped sharply, as operating income was ¥1,632 million (US$15.7 million), a 90.2% decrease, and net income was ¥1,785 million (US$17.2 million), an 80.5% decrease. The average value of the yen was up 2.8% against the U.S. dollar and down 5.6% against the euro from the corresponding period in the previous year.

Home Electronics sales increased 6.2% to ¥97,078 million (US$933.4 million) from the corresponding period last year. In Japan, sales rose 7.5% to ¥30,324 million (US$291.6 million) primarily due to a large increase in sales of plasma displays, including the expansion of our OEM (original equipment manufacturing) business, despite the decreased sales of DVD recorders as well as recordable DVD drives for personal computers (PCs). Overseas sales also rose 5.6% to ¥66,754 million (US$641.9 million) primarily due to an increase in sales of plasma displays worldwide and DVD recorders in Europe, despite a decrease in sales of DVD players worldwide, recordable DVD drives for PCs in Europe and audio products in Europe and Asia, as well as withdrawal of our digital cable TV set-top box business in North America.

Car Electronics sales decreased to ¥69,375 million (US$667.1 million), down 7.7% from the corresponding period in the previous year. In Japan, sales decreased 14.3% to ¥29,578 million (US$284.4 million), primarily reflecting decreased sales of car navigation systems in the consumer market, influenced by demand lower than initially expected, and OEM products. Overseas sales decreased 2.1% to ¥39,797 million (US$382.7 million), primarily due to a decrease in sales of car audio products in the consumer market worldwide, despite a strong increase in sales of car navigation systems in Europe and North America.

Royalty revenue from Patent Licensing decreased 20.0% from the corresponding period in the previous year to ¥1,407 million (US$13.5 million), reflecting the expiration of patents included in a larger portfolio of patents licensed to the optical disc industry.

Others sales decreased 4.1% from the corresponding period in the previous year to ¥28,443 million (US$273.5 million). In Japan, sales decreased by 20.4% to ¥13,338 million (US$128.3 million) primarily due to a decrease in sales of organic light-emitting diode (OLED) display panels and a sales shift from Japan to China of devices for cellular phones and semiconductors related to laser pickups, despite an increase in sales of factory automation systems. Overseas, sales were up 17.2% to ¥15,105 million (US$145.2 million), primarily due to increased sales in China of devices for cellular phones and semiconductors related to laser pickups, despite decreased sales of optical disc manufacturing systems in Southeast Asia.

- 2 -


Table of Contents

Operating income decreased 90.2% from the corresponding period of the previous year to ¥1,632 million (US$15.7 million). Due mainly to intensified price competition, market prices of our major products dropped, which adversely affected gross profit margin. Net income was ¥1,785 million (US$17.2 million), an 80.5% decrease from the corresponding period of the previous year.

Nine-month results — Operating revenue for the nine-month period ended December 31, 2004 was ¥541,350 million (US$5,205.3 million), a 4.5% increase, while net income for the period was ¥6,594 million (US$63.4 million), a 69.5% decrease, each compared with the corresponding period in the previous year.

Cash Flows

Cash flows from operating activities for the third quarter ended December 31, 2004 decreased by ¥2,300 million to ¥6,985 million (US$67.2 million), from ¥9,285 million for the corresponding period of the previous year. Net cash used in investing activities was ¥19,548 million (US$188.0 million), up ¥4,695 million in comparison with ¥14,853 million for the corresponding period of the previous year, due mainly to an increase in capital expenditures.

Business Forecasts for Fiscal 2005

Assuming that the yen-U.S. dollar and the yen-euro exchange rates average ¥100 and ¥130, respectively, through the end of fiscal 2005, ending March 31, 2005, we have revised downward our consolidated business forecasts for fiscal 2005, from those announced on October 28, 2004, as follows:
                         
                    (In millions of yen)  
    Revised     Previous        
    projections     projections     Results  
    for fiscal 2005     for fiscal 2005     for fiscal 2004  
Operating revenue
  ¥ 730,000     ¥ 800,000     ¥ 700,885  
Operating income
    2,000       27,000       43,719  
Income before income taxes
    0       25,000       41,848  
Net income (loss)
  ¥ (8,000 )   ¥ 10,000     ¥ 24,838  
 
                 

The projection of operating revenue for fiscal 2005 is revised downward, reflecting intensified competition and rapid decline of market prices of our major products such as plasma displays, DVD recorders and recordable DVD drives.

     The projections for fiscal 2005 of operating income, income before income taxes and net income are also revised downward, reflecting our forecast of the sales decline from our expectation last time of our major products mentioned above, the decrease in gross profit margin, mainly due to the fall of market prices and the decrease of production level in terms of units, and the disposal and the write-down of inventories.

- 3 -


Table of Contents

Cautionary Statement with Respect to Forward-Looking Statements

Statements made in this release with respect to our current plans, estimates, strategies and beliefs, and other statements that are not historical facts are forward-looking statements about our future performance. These statements are based on management’s assumptions and beliefs in light of the information currently available to it. We caution that a number of important risks and uncertainties could cause actual results to differ materially from those discussed in the forward-looking statements, and therefore you should not place undue reliance on them. You also should not believe that it is our obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. We disclaim any such obligation. Risks and uncertainties that might affect us include, but are not limited to, (i) general economic conditions in our markets, particularly levels of consumer spending; (ii) exchange rates, particularly between the yen and the U.S. dollar, euro, and other currencies in which we make significant sales or in which our assets and liabilities are denominated; (iii) our ability to continue to design and develop and win acceptance of our products and services, which are offered in highly competitive markets characterized by continual new product introductions, rapid developments in technology and subjective and changing consumer preferences; (iv) our ability to successfully implement our business strategies; (v) our ability to compete, and develop and implement successful sales and distribution strategies in light of technological developments in and affecting our businesses; (vi) our continued ability to devote sufficient resources to research and development, and capital expenditure; (vii) our ability to continuously enhance our brand image; (viii) the success of our joint ventures and alliances; and (ix) the outcome of contingencies.

Pioneer Corporation is one of the leading manufacturers of consumer- and business-use electronics products such as audio, video and car electronics on a global scale. Its shares are traded on the New York Stock Exchange (ticker symbol PIO), Euronext Amsterdam, Tokyo Stock Exchange, and Osaka Securities Exchange.

#               #               #               #               #               #

The U.S. dollar amounts in this release represent translation of Japanese yen, for convenience only, at the rate of ¥104=US$1.00, the approximate rate prevailing on December 31, 2004.

Attached are consolidated financial statements for the three months and the nine months ended December 31, 2004.

For further information, please contact:
Investor Relations Department, Corporate Communications Division
Pioneer Corporation, Tokyo
Phone: +81-3-3495-6774 / Fax: +81-3-3495-4301
E-mail: pioneer_ir@post.pioneer.co.jp
Website: http://www.pioneer.co.jp/corp/ir/index-e.html

- 4 -


Table of Contents

Pioneer Corporation and Subsidiaries

(1) OPERATING REVENUE BY SEGMENT
                                         
                            (In millions of yen)
    Three months ended December 31  
    2004     2003     % to  
          % to           % to     prior  
    Amount     total     Amount     total     year  
Domestic
  ¥ 30,324       15.4 %   ¥ 28,199       14.2 %     107.5 %
Overseas
    66,754       34.1       63,241       32.0       105.6  
 
                             
Home Electronics
    97,078       49.5       91,440       46.2       106.2  
 
                             
Domestic
    29,578       15.1       34,514       17.4       85.7  
Overseas
    39,797       20.2       40,658       20.6       97.9  
 
                             
Car Electronics
    69,375       35.3       75,172       38.0       92.3  
 
                             
Domestic
                             
Overseas
    1,407       0.7       1,759       0.9       80.0  
 
                             
Patent Licensing
    1,407       0.7       1,759       0.9       80.0  
 
                             
Domestic
    13,338       6.8       16,760       8.5       79.6  
Overseas
    15,105       7.7       12,891       6.4       117.2  
 
                             
Others
    28,443       14.5       29,651       14.9       95.9  
 
                             
Domestic
    73,240       37.3       79,473       40.1       92.2  
Overseas
    123,063       62.7       118,549       59.9       103.8  
 
                             
Total
  ¥ 196,303       100.0 %   ¥ 198,022       100.0 %     99.1 %
 
                             
                                         
                            (In millions of yen)
    Nine months ended December 31  
    2004     2003     % to  
            % to             % to     prior  
    Amount     total     Amount     total     year  
Domestic
  ¥ 65,988       12.2 %   ¥ 60,885       11.8 %     108.4 %
Overseas
    154,774       28.6       148,838       28.7       104.0  
 
                             
Home Electronics
    220,762       40.8       209,723       40.5       105.3  
 
                             
Domestic
    91,362       16.9       91,624       17.7       99.7  
Overseas
    132,338       24.4       125,388       24.2       105.5  
 
                             
Car Electronics
    223,700       41.3       217,012       41.9       103.1  
 
                             
Domestic
                             
Overseas
    8,146       1.5       10,163       2.0       80.2  
 
                             
Patent Licensing
    8,146       1.5       10,163       2.0       80.2  
 
                             
Domestic
    39,873       7.3       44,254       8.5       90.1  
Overseas
    48,869       9.1       36,852       7.1       132.6  
 
                             
Others
    88,742       16.4       81,106       15.6       109.4  
 
                             
Domestic
    197,223       36.4       196,763       38.0       100.2  
Overseas
    344,127       63.6       321,241       62.0       107.1  
 
                             
Total
  ¥ 541,350       100.0 %   ¥ 518,004       100.0 %     104.5 %
 
                             

 


Table of Contents

Pioneer Corporation and Subsidiaries

(2) CONSOLIDATED STATEMENTS OF INCOME
                         
            (In millions of yen)
    Three months ended December 31  
                    % to  
    2004     2003     prior year  
Operating revenue:
                       
Net sales
  ¥ 194,896     ¥ 196,263       99.3 %
Royalty revenue
    1,407       1,759       80.0  
 
                 
Total operating revenue
    196,303       198,022       99.1  
 
                 
Operating costs and expenses:
                       
Cost of sales
    149,418       134,462       111.1  
Selling, general and administrative
    45,253       46,871       96.5  
 
                 
Total operating costs and expenses
    194,671       181,333       107.4  
 
                 
Operating income from continuing operations
    1,632       16,689       9.8  
Other income (expenses):
                       
Interest income
    530       377       140.6  
Foreign exchange gain (loss)
    1,512       (867 )      
Interest expense
    (506 )     (503 )     100.6  
Other—net
    346       164       211.0  
 
                 
Total other income (expenses)
    1,882       (829 )      
 
                 
Income from continuing operations before income taxes
    3,514       15,860       22.2  
Income taxes
    1,090       6,159       17.7  
Minority interest in earnings of subsidiaries
    (65 )     (382 )     17.0  
Equity in losses of affiliated companies
    (574 )     (232 )     247.4  
 
                 
Income from continuing operations
    1,785       9,087       19.6  
Income from discontinued operations, net of tax
          53        
 
                 
Net income
  ¥ 1,785     ¥ 9,140       19.5 %
 
                 
                         
            (In millions of yen)
    Nine months ended December 31  
                    % to  
    2004     2003     prior year  
Operating revenue:
                       
Net sales
  ¥ 533,204     ¥ 507,841       105.0 %
Royalty revenue
    8,146       10,163       80.2  
 
                 
Total operating revenue
    541,350       518,004       104.5  
 
                 
Operating costs and expenses:
                       
Cost of sales
    400,296       353,790       113.1  
Selling, general and administrative
    126,149       129,967       97.1  
 
                 
Total operating costs and expenses
    526,445       483,757       108.8  
 
                 
Operating income from continuing operations
    14,905       34,247       43.5  
Other income (expenses):
                       
Interest income
    1,320       1,107       119.2  
Foreign exchange gain (loss)
    351       (1,872 )      
Interest expense
    (1,195 )     (1,689 )     70.8  
Other—net
    571       652       87.6  
 
                 
Total other income (expenses)
    1,047       (1,802 )      
 
                 
Income from continuing operations before income taxes
    15,952       32,445       49.2  
Income taxes
    6,634       12,979       51.1  
Minority interest in earnings of subsidiaries
    (625 )     (550 )     113.6  
Equity in losses of affiliated companies
    (2,099 )     (1,993 )     105.3  
 
                 
Income from continuing operations
    6,594       16,923       39.0  
Income from discontinued operations, net of tax
          4,692        
 
                 
Net income
  ¥ 6,594     ¥ 21,615       30.5 %
 
                 

 


Table of Contents

Pioneer Corporation and Subsidiaries

(3) CONSOLIDATED BALANCE SHEETS
                                         
                            (In millions of yen)
    December 31     March 31  
                    Increase/             Increase/  
    2004     2003     (Decrease)     2004     (Decrease)  
ASSETS
                                       
Current assets:
                                       
Cash and cash equivalents
  ¥ 115,607     ¥ 132,740     ¥ (17,133 )   ¥ 192,419     ¥ (76,812 )
Trade receivables, less allowance
    128,473       125,664       2,809       112,055       16,418  
Inventories
    131,974       116,217       15,757       107,806       24,168  
Others
    71,356       63,565       7,791       67,508       3,848  
 
                             
Total current assets
    447,410       438,186       9,224       479,788       (32,378 )
 
                             
Investments and long-term receivables
    31,001       29,639       1,362       33,725       (2,724 )
Property, plant and equipment, less depreciation
    208,307       155,174       53,133       156,201       52,106  
Intangible assets
    25,362       18,065       7,297       18,966       6,396  
Other assets
    38,940       39,919       (979 )     33,862       5,078  
 
                             
Total assets
  ¥ 751,020     ¥ 680,983     ¥ 70,037     ¥ 722,542     ¥ 28,478  
 
                             
 
                                       
LIABILITIES AND SHAREHOLDERS’ EQUITY
                                       
Current liabilities:
                                       
Short-term borrowings and current portion of long-term debt
  ¥ 50,385     ¥ 41,424     ¥ 8,961     ¥ 27,837     ¥ 22,548  
Trade payables
    104,962       88,329       16,633       79,439       25,523  
Others
    94,004       109,157       (15,153 )     116,022       (22,018 )
 
                             
Total current liabilities
    249,351       238,910       10,441       223,298       26,053  
 
                             
Long-term debt
    86,416       28,500       57,916       89,691       (3,275 )
Other long-term liabilities
    59,302       72,071       (12,769 )     58,771       531  
Minority interests
    17,941       17,728       213       17,844       97  
Shareholders’ equity:
                                       
Common stock
    49,049       49,049             49,049        
Capital surplus
    82,674       82,379       295       82,464       210  
Retained earnings
    278,119       272,688       5,431       273,718       4,401  
Accumulated other comprehensive loss
    (61,366 )     (69,882 )     8,516       (61,829 )     463  
Treasury stock
    (10,466 )     (10,460 )     (6 )     (10,464 )     (2 )
 
                             
Total shareholders’ equity
    338,010       323,774       14,236       332,938       5,072  
 
                             
Total liabilities and shareholders’ equity
  ¥ 751,020     ¥ 680,983     ¥ 70,037     ¥ 722,542     ¥ 28,478  
 
                             
 
                                       
Breakdown of accumulated other comprehensive income (loss)
                                       
Minimum pension liability adjustments
  ¥ (21,752 )   ¥ (31,032 )   ¥ 9,280     ¥ (22,930 )   ¥ 1,178  
Net unrealized holding gain on securities
    8,743       6,613       2,130       9,103       (360 )
Cumulative foreign currency translation adjustments
    (48,357 )     (45,463 )     (2,894 )     (48,002 )     (355 )
 
                             
Total accumulated other comprehensive income (loss)
  ¥ (61,366 )   ¥ (69,882 )   ¥ 8,516     ¥ (61,829 )   ¥ 463  
 
                             

 


Table of Contents

Pioneer Corporation and Subsidiaries

(4) CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 
                    (In millions of yen)
    Three months ended     Nine months ended  
    December 31     December 31  
    2004     2003     2004     2003  
I. Operating activities:
                               
Net income
  ¥ 1,785     ¥ 9,140     ¥ 6,594     ¥ 21,615  
Income from discontinued operations, net of tax
          (53 )           (4,692 )
Depreciation and amortization
    14,353       9,772       35,640       28,615  
Increase in trade receivables
    (10,113 )     (22,871 )     (9,698 )     (21,949 )
(Increase) decrease in inventories
    1,147       (6,741 )     (17,667 )     (27,725 )
Increase in trade payables
    6,264       12,400       13,432       27,464  
Increase (decrease) in other accrued liabilities
    (4,323 )     36       (15,508 )     5,141  
Other
    (2,128 )     7,602       (9,839 )     3,927  
 
                       
Net cash provided by operating activities
    6,985       9,285       2,954       32,396  
 
                       
II. Investing activities:
                               
Payment for purchase of fixed assets
    (19,194 )     (14,877 )     (45,478 )     (42,998 )
Payment for purchase of subsidiary
    (64 )           (36,679 )      
Other
    (290 )     24       48       3,647  
 
                       
Net cash used in investing activities
    (19,548 )     (14,853 )     (82,109 )     (39,351 )
 
                       
III. Financing activities:
                               
Increase in short-term borrowings and long-term debt
    9,802       5,342       6,768       9,952  
Dividends paid
    (2,193 )     (2,193 )     (4,386 )     (3,947 )
Other
    (105 )     (102 )     (428 )     (293 )
 
                       
Net cash provided by financing activities
    7,504       3,047       1,954       5,712  
 
                       
Effect of exchange rate changes on cash and cash equivalents
    (3,270 )     (2,675 )     389       (8,497 )
 
                       
Net decrease in cash and cash equivalents
    (8,329 )     (5,196 )     (76,812 )     (9,740 )
Cash and cash equivalents, beginning of period
    123,936       137,936       192,419       142,480  
 
                       
Cash and cash equivalents, end of period
  ¥ 115,607     ¥ 132,740     ¥ 115,607     ¥ 132,740  
 
                       
 
                               
 
                       
Free cash flow (I + II)
  ¥ (12,563 )   ¥ (5,568 )   ¥ (79,155 )   ¥ (6,955 )
 
                       

 


Table of Contents

Pioneer Corporation and Subsidiaries

(5) SEGMENT INFORMATION

The following segment information is prepared pursuant to the regulations under the Securities and Exchange Law of Japan.

<Business Segments>

                                                 
                                    (In millions of yen)
    Three months ended December 31  
    2004     2003     % to prior year  
    Operating     Operating     Operating     Operating     Operating     Operating  
    Revenue     Income     Revenue     Income     Revenue     Income  
Home Electronics
  ¥ 97,273     ¥ (2,499 )   ¥ 91,792     ¥ 7,992       106.0 %     %
Car Electronics
    69,668       2,963       76,426       7,671       91.2       38.6  
Patent Licensing
    1,805       1,381       2,348       1,681       76.9       82.2  
Others
    38,223       (307 )     40,347       1,067       94.7        
 
                                   
Total
    206,969       1,538       210,913       18,411       98.1       8.4  
Corporate and elimination
    (10,666 )     94       (12,891 )     (1,722 )            
 
                                   
Consolidated
  ¥ 196,303     ¥ 1,632     ¥ 198,022     ¥ 16,689       99.1 %     9.8 %
 
                                   
                                                 
                                    (In millions of yen)
    Nine months ended December 31  
    2004     2003     % to prior year  
    Operating     Operating     Operating     Operating     Operating     Operating  
    Revenue     Income     Revenue     Income     Revenue     Income  
Home Electronics
  ¥ 221,995     ¥ (5,888 )   ¥ 210,712     ¥ 4,393       105.4 %     %
Car Electronics
    224,670       13,840       218,917       21,786       102.6       63.5  
Patent Licensing
    9,385       8,148       11,721       9,900       80.1       82.3  
Others
    118,448       1,134       109,493       1,226       108.2       92.5  
 
                                   
Total
    574,498       17,234       550,843       37,305       104.3       46.2  
Corporate and elimination
    (33,148 )     (2,329 )     (32,839 )     (3,058 )            
 
                                   
Consolidated
  ¥ 541,350     ¥ 14,905     ¥ 518,004     ¥ 34,247       104.5 %     43.5 %
 
                                   

Notes:

1. The Company’s consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America.
 
2. The consolidated financial statements include the accounts of the parent company and 128 subsidiaries and the investments in 5 affiliated companies accounted for on an equity basis.
 
3. As a result of the sales of subsidiaries in the audio/video software business in fiscal 2004, the operating results of the discontinued operations are presented as a separate line item in consolidated statements of income in accordance with Statement of Financial Accounting Standards No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets.” Reclassifications have been made to consolidated statements of cash flows and segment information to conform to this presentation.
 
4. At the year end of fiscal 2004, the Company changed business segment classification for certain businesses. Results related to recordable DVD drives have been moved from “Others” to “Home Electronics”, and results related to plasma displays for business use have been moved from “Home Electronics” to “Others”. Corresponding figures for the previously reported operating revenue by segment and segment information have been reclassified accordingly.