[Mistral75]

I guess we need monochrome to explain what an impairment test is

Let me try. It's a practice that comes from US GAAPs (Generally Accepted Accounting Principles) and has been incorporated into the international IFRS standards. It means that you have to test the book value of your fixed assets (most generally the intangible assets, in particular acquisition goodwill, but also tangible assets in some cases) according to the value they generate.

More specifically, you estimate the future free cash flows (*) generated by the assets under consideration, you calculate the net present value of these cash flows and you compare the NPV to the book value of the assets. If the difference is positive, fine: the assets are worth their book value (more than it, actually) and you don't have to do anything. If negative, you reduce the book value of the assets through an amortization (an exceptional depreciation) so that the residual book value is not higher than the NPV of the free cash flows. The amortization in turn reduces your profit.


(*) free cash flow = net income + depreciations - investments +/- change in working capital

[yucafrita]

??????????? | ??????? ???IR | ???

Pentax not doomed anymore

[clackers]

This is a trend in a camera industry now. Look on the newly announced D7500 - pricing similar to D610 and... 1 card slot

Yep, and it's only 20Mp, isn't it? Cheeky!

The camera manufacturers have to do what's needed to survive.

Premium products used to be subsidized by compact and APS-C sales.

[Mistral75]

The write-off of 10 billion yen is 91,25 million USD. So the value of Pentax in Ricoh's boos is closing down to zero. (...)

Definitely not. In your reasoning you forgot that Ricoh Imaging have made investments since 2011. May be the residual goodwill from the acquisition has been fully amortized (this is not the first time Ricoh are depreciating their Imaging assets) but there is still a positive book value attached to the tangible assets of the Imaging business.

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Last edited by Mistral75; 04-12-2017 at 01:39 AM.

[rawr]

Right about now, a good move from Ricoh would be to announce the release date for the new 50 f1.4 and the planned release dates for a few more DFA lenses. And drop some news or hints about their 645Z, K-1 or K-3II upgrade plans.

[D1N0]

Ricoh put a swift end to the wet dream of somebody here. Go Ricoh!

[Mistral75]

My translation of Ricoh press release:

http://jp.ricoh.com/info/2017/0412_1.html?_ga=1.134765816.827460808.1395189648

About some press coverage today

Today, there was a report on Ricoh shrinking their camera business and considering withdrawing from the consumer market but this article was not published by Ricoh.

Ricoh's Consumer Camera Business focuses resources on high value-added products such as PENTAX and GR that are enjoyed by many people enjoying photography as a hobby. In addition, the 360° camera "RICOH THETA" is the market leader of image acquisition devices in the new and rapidly growing VR and AR markets, and we plan to expand this business further. Furthermore, we intend to expand and develop the imaging business by creating a new market that would utilize our camera technology in the BtoB domain of business solutions."

[Kunzite]

Definitely not. In your reasoning you forgot that Ricoh Imaging have made investments since 2011. May be the residual goodwill from the acquisition has been fully amortized (this is not the first time Ricoh are depreciating their Imaging assets) but there is still a positive book value attached to the tangible assets of the Imaging business.

In a Securities Report it's stated that for this FY Ricoh will be (was) investing about 4,100 million Yen to "Increase production of digital cameras ,etc". That's over 37 million USD, allocated in such a way they only specifically mentioned digital cameras (this is only about the Other group).
This is just one example. Though it doesn't directly translate into a higher value for those tangible assets.

[Daikokuya]

My translation of Ricoh press release:

??????????? | ??????? ???IR | ???

About some press coverage today

Today, there was a report on Ricoh shrinking their camera business and considering withdrawing from the consumer market but this article was not published by Ricoh.

Ricoh's Consumer Camera Business focuses resources on high value-added products such as PENTAX and GR that are enjoyed by many people enjoying photography as a hobby. In addition, the 360° camera "RICOH THETA" is the market leader of image acquisition devices in the new and rapidly growing VR and AR markets, and we plan to expand this business further. Furthermore, we intend to expand and develop the imaging business by creating a new market that would utilize our camera technology in the BtoB domain of business solutions."

It looks like your translation is perfect as far as I know, although I might miss something. Anyway, in my very negative view, the last sentence is very important.

Furthermore, we intend to expand and develop the imaging business by creating a new market that would utilize our camera technology in the BtoB domain of business solutions.

As I quote earlier, Nikkei says Ricoh is considering to cut down consumer-oriented camera business and instead focus on automotive camera which is growing. The automotive camera market is going to be three times more than today in 10 years, according to some estimates.

?????????????????????? - ????????????? (see a graph inside)

Panasonic is also focusing on that market, reducing the BtoC business like Ricoh. Getting into "a new market that would utilize our camera technology in the BtoB domain of business solutions" should be what Ricoh really wants to say in the press release.

[Kunzite]

In English:

Today there was an article saying that RICOH considers to shrink the camera business and withdraw from consumer products. This article is not based on RICOH's official announcement.

RICOH is focusing its resource on the high added value products such as PENTAX and GR that are appreciated by the existing users and photo hobbyists. RICOH is also a market leader of input deviceｓ in the VR or AR market with its "RICOH THETA" where we can see rapid growth, and will keep on expanding the business even more in this field. In addition, RICOH will develop and expand the imaging business in the solution business field for corporate, by creating new market utilizing its own camera technology.

With regard to the article about RICOH today | Global | Ricoh

[Pål Jensen]

Yaawnn...so more high-end Pentax products. Great!

[Adam]

In English:

With regard to the article about RICOH today | Global | Ricoh

Seems like Ricoh beats out United many times over in the communications department

[D1N0]

With regards to Ricoh exiting the consumer camera business:

[Kunzite]

By the way, I'm quite intrigued how not realizing the expected profits could be on the same scale as the entire company's value.
I know it makes sense for Ron...

[Mistral75]

By the way, I'm quite intrigued how not realizing the expected profits could be on the same scale as the entire company's value.
(...)

I'm afraid I don't understand your point .