[Not a Number]

Ricoh may not be, but...

PentaxIsDooomed!™

[stevebrot]

Ricoh Imaging is not doomed

Spoil sport.

[Adam]

Not long ago, Ricoh Imaging published their Q1 2016 financial results (if anyone is wondering, the fiscal year 2016 starts on April 1st, 2015 and ends on March 31, 2016. Don't ask me why).
FY2016 1st Quarter Financial Announcement | Global | Ricoh

We could see lots of incomprehensible numbers, and a worryingly drop in the Other division - where Ricoh Imaging belongs.
However, today they also published the translated presentation, which has additional details. Interesting additional details. It's also a reminder that Others does not mean only 'cameras', despite that small footnote which incorrectly is suggesting otherwise.
The speaker was Mr. Daisuke Segawa, Corporate Senior Vice President of Ricoh.

+ the sales decline was mainly caused by the transfer of the San-Ai business.
+ even so, operating profit improved significantly compared to Q1 2015
+ they made a loss in Q4 2015 due to writing down camera inventory (which is now completed and will no longer have an impact) and also due to costs associated with the transfer of the San-Ai business.
+ talking about cameras, Mr. Segawa mentioned the focus on high value added high end models and unique products like the Theta which "are selling very well today" and are contributing to profits. "We have been able to see improvements in the numbers", said Mr. Segawa.

Aren't all these publications related to Ricoh, not Ricoh Imaging? I see no mention of consumer electronics / cameras, but rather their office imaging business.

[Not a Number]

Aren't all these publications related to Ricoh, not Ricoh Imaging? I see no mention of consumer electronics / cameras, but rather their office imaging business.

Look at the "Other" business category (characterized as Digital Cameras).

Company Data | Global | Ricoh
Main Business
<Imaging and Solutions>
[Office Imaging]
MFPs (multifunctional printers), copiers, laser printers, digital duplicators, facsimile, scanners, related parts & supplies, services, support and software
[Production Printing]
Cut sheet printer, continuous feed printer, related parts & supplies, services, support and software
[Network System Solutions]
Personal computers, servers, network equipment, related services, support and software
<Industrial Products>
Thermal media, optical equipment, semiconductor devices and electronic components
<Other>
Digital cameras

[Adam]

Look at the "Other" business category (characterized as Digital Cameras).

Company Data | Global | Ricoh
Main Business

[Office Imaging]
MFPs (multifunctional printers), copiers, laser printers, digital duplicators, facsimile, scanners, related parts & supplies, services, support and software
[Production Printing]
Cut sheet printer, continuous feed printer, related parts & supplies, services, support and software
[Network System Solutions]
Personal computers, servers, network equipment, related services, support and software

Thermal media, optical equipment, semiconductor devices and electronic components

Digital cameras

Ah, there we go. So if you look under "other" in the consolidated financials document, I guess that would correspond to the consumer imaging business.

A 3.2% decline in sales compared to Q1 2014 actually isn't that bad compared to the state of the camera market.

[NZ_Ross]

Ricoh may not be, but...

PentaxIsDooomed!™

As we say in our part of the world 'yeah right'.

I have said it before on the forum - if any camera company has cause to be worried by the downturn in camera sales over all and DSLR/Mirrorless sales in particular it is Nikon. As a company they really have nothing else besides cameras. Ricoh, Sony and Canon have multiple other large profitable business lines - so are far more likely to do well in difficult times.

[RobA_Oz]

Ah, there we go. So if you look under "other" in the consolidated financials document, I guess that would correspond to the consumer imaging business.

A 3.2% decline in sales compared to Q1 2014 actually isn't that bad compared to the state of the camera market.

A forecast further 2.5% decline for the next year can't be that good either. Without a detail breakdown, though, it looks like the home market is the source of their short-term problem, perhaps across the board. However, the reported write-down of inventory may indicate they're discounting to boost sales numbers (as we've seen lately, especially in North America) resulting in lower sales revenue. Pentax sales, so we're told, are traditionally strongest in Japan itself, and the so-called "Abe-nomics" era seems to have run its course there, so perhaps they've now been convinced to look outside Japan for significant growth, ahead of expectations.

[reh321]

A forecast further 2.5% decline for the next year can't be that good either. Without a detail breakdown, though, it looks like the home market is the source of their short-term problem, perhaps across the board. However, the reported write-down of inventory may indicate they're discounting to boost sales numbers (as we've seen lately, especially in North America) resulting in lower sales revenue. Pentax sales, so we're told, are traditionally strongest in Japan itself, and the so-called "Abe-nomics" era seems to have run its course there, so perhaps they've now been convinced to look outside Japan for significant growth, ahead of expectations.

I wonder if their inventory issues are connected to the tsunami of K-30 and K-50 bodies that seems to have hit the market recently.

[Mistral75]

(...)

+ the sales decline was mainly caused by the transfer of the San-Ai business.
(...)

San-ai, formerly included in Ricoh's "Other" business unit (as is Ricoh Imaging), is an apparel retailer which was loosing money since a couple of years. It was sold to Wacoal at the end of January 2015.

https://narrowgarden.wordpress.com/2015/02/02/business-transfer-of-san-ai/

---------- Post added 08-22-2015 at 10:10 AM ----------

Ah, there we go. So if you look under "other" in the consolidated financials document, I guess that would correspond to the consumer imaging business.

A 3.2% decline in sales compared to Q1 2014 actually isn't that bad compared to the state of the camera market.

The "Other" business unit includes, but is not limited to Ricoh Imaging.

As said above, San-ai, the apparel retailer, was also included there before being transferred to Wacoal.

Some lease activities in Japan are also included in the "Other" business unit.

[Zygonyx]

So, it seems really difficult to conclude anything sound re. Imaging business from these figures/declarations.

[RobA_Oz]

The "Other" business unit includes, but is not limited to Ricoh Imaging.

As said above, San-ai, the apparel retailer, was also included there before being transferred to Wacoal.

Some lease activities in Japan are also included in the "Other" business unit.

The forecast 2.5% decline for next FY won't include the San-Ai business, so it is either the camera division (which includes Ricoh, as well as Pentax-branded product) or the Japanese leasing business where sales revenue is predicted to drop.

[Kunzite]

The forecast 2.5% decline for the next FY include the lack of the San-ai business' contribution.
They are comparing a year for which San-ai contributed for about 3 quarters (FY 2015) with one after San-ai was excluded. Unless there was a growth on other areas, large enough to cover it, a decline in sales is expected.

[quant2325]

Any camera company outside of GoPro (and I have no clue what happens there) is smoking some great stuff if they are predicting only a 2.5% decline. It will be worse (I believe the equity markets are a discounting mechanism, therefore, worldwide growth will slow). So, the companies will manufacture less units and still do better than break even unless the goal is to pick up market share. I cannot see Canon or Nikon picking up market share (especially Nikon). Ricoh might. We'll see how the FF is priced.

Who cares if Pentax eventually dies and is renamed Ricoh? The photograph and subject of the photograph don't know the difference. The sensor, probably from SONY, doesn't know the difference. Neither does the processor. So long as I can use my lenses, I have no loyalty to a name.

[Kunzite]

It makes no sense to automatically assume a decline for Ricoh Imaging, just because the market was in decline (but guess what, now it isn't). A small player which was plagued by an unwilling owner could recover lost ground.
Besides, as it was clearly pointed out, the 2.5% decrease in sales is for the entire 'Other' business group, not for Ricoh Imaging. They don't forecast anything for Ricoh Imaging; for all I know, they might expect the camera business to grow.

We already know Pentax is here to stay so the second paragraph makes no sense either.

[banep]

I made a guess that 645Z is counted as hi-end and K-S2 is not.

Most important thing from this report is that management got the message "FF could be profitable".