As the US economy is likely to have hit the bottom and China and other Asian countries have been in a seemingly recovery track as well, it seems that the worst is over with the Japanese economy in the 2009 fiscal year. Still, the 2009 fiscal year was a tough year for Japan due to the continued appreciation of yen in the foreign currency exchange market as well as slow facility investment and personal consumption. In the cutting-edge electronics industry, we see the light due to the government economic stimulus package and promotion of “green” technology, but companies are still remaining conservative in terms of facility investment.

Under the circumstances, INNOTECH group has strived to provide highly value-added engineering services in the 2009 fiscal year. Cadence EDA Software business with its multi-year licensing model and the Embedded Software business from IT ACCESS were relatively solid and stable, but we saw stagnation and/or decrease in businesses for Semiconductor Testers, Design Services, and Electronic Components. We also had to support one of the toughest price reduction requests from our customers this year.

As a result, the consolidated financial results of INNOTECH Group for the 2009 fiscal year were;
Sales: 24.492 billion yen (18.4% decrease compared to FY 2008 sales)
Operating profit: 613 million yen (50.1% decrease compared to FY 2008 operating profit)
Ordinary profit: 740 million yen (39.2% decrease compared to FY 2008 ordinary profit)
Net profit: 170 million yen (64.1% decrease compared to FY 2008 net profit)

INNOTECH’s FY2009 cash dividends was approved to be 3 yen (interim dividends 2 yen) at its 24th stock holders general assembly held on June 24, 2010.