Impress Holdings, Inc. Announces Revisions to Half-Year Results Forecasts
Tokyo, November 6, 2006 - Impress Holdings, Inc. (TSE: 9479), announced today that, in light of recent performance trends and other factors, the Company has made the following revisions to its consolidated and parent results forecasts for the first half of fiscal 2006 (April 1 - September 30, 2006) announced on May 11, 2006.
1. Revised Consolidated Results Forecasts for the Six Months to September 30, 2006| (Unit: million yen) |
| Net sales | Ordinary income | Net income | |
| Previous forecast (A) | 7,700 | 100 | 50 |
| Revised forecast (B) | 7,544 | 238 | 173 |
| Increase (decrease) (B) - (A) | (156) | 138 | 123 |
| Increase (decrease) (%) | (2.0%) | 138.0% | 246.0% |
| (Reference) Previous first half (six months to Sept. 30, 2005) |
7,588 | 428 | 277 |
2. Revised Parent Results Forecasts for the Six Months to September 30, 2006
| (Unit: million yen) |
| Net sales | Ordinary income | Net income | |
| Previous forecast (A) | 500 | (50) | 100 |
| Revised forecast (B) | 505 | (3) | 207 |
| Increase (decrease) (B) - (A) | 5 | 47 | 107 |
| Increase (decrease) (%) | 1.0% | 94.0% | 107.0% |
| (Reference) Previous first half (six months to Sept. 30, 2005) |
498 | 45 | 228 |
3. Reasons for the Revisions
The consolidated results forecast was revised downward because publication sales are seen coming in below initial estimates as a result of changes in the publishing schedule. Nevertheless, with expense reductions from improved efficiency in group-wide administrative operations and adjustments to the hiring schedule, ordinary income and net income are now expected to come in above the previously announced forecast.
On a parent basis, ordinary income and net income are now expected to come in above the previously announced forecast because of the aforementioned reductions in group-wide administrative expenses and a higher than initially forecast corporate tax adjustment (-\47 million) resulting from a review of the possibility of recovering deferred tax assets.
With regard to the consolidated and parent forecasts for the full year to March 2007, in light of a variety of risk factors including the sales trend for major seasonal products like Mooks for New Year's Cards, and returns of store inventories of books related to previous operating systems associated with Microsoft's release of the new "Windows Vista" operating system, the previously announced forecast is not being revised.
With regard to the acquisition of Yama-Kei Publishers, Co. Ltd. announced on October 11, 2006, preparations for the acquisition of shares on November 30, 2006 are proceeding, and the impact on consolidated and parent results will be announced promptly after being ascertained following the acquisition.
