Semiconductor Design Business
INNOTECH has focused on providing highly value-added products and services effectively leveraging its sophisticated engineering skills and conducted its vigorous sales activities to expand its sales to existing customers, and develop new customer base. Our core products are EDA software, and while we did not achieve the same level of results as we did last year, still the business in FY 2010 was solid and stable. Sales from ASIC design consignment business decreased due to discontinuation of some products, but sales from INNOTECH internally-developed tester system substantially bounced back due to strong flash memory demand and increased customers' incentives for facility investments. As for the LSI Design Consignment business from Sanei Hytechs, customer demands have recovered and the business structural reform conducted last year brought profitability improvement. As a result, profitability of Sanei Hytechs surpassed the level of last year results and it has contributed to the overall FY2010 profitability.
In summary, INNOTECH FY 2010 overall results of the Semiconductor Design business were;
-Sales: 10 billion 305 million yen (4.6% increase compared to FY 2009 sales)
-Segment profit: 1 billion 166 million yen (191.3% increase compared to FY 2009 segment profit)

Electronic Components Business
Our strategies for the Electronic Component business were to focus on the digital consumer products, office automation, and factory automation, and to promote our highly value-added products as well as to cultivate new applications. As for the Hard Disk Drive business, the number of shipment increased due to the recovery and increase in shares in the office automation, factory automation, and other amusement markets, while the shipment for DVR has substantially decreased due to a fierce competition. As for the Electronic Devices business, the sales from HDMI chip and laser diode drivers have substantially increased due to increase demands for digital TVs and DVD drives. IT ACCESS, with the embedded software and other development assistance businesses for digital consumer products, substantially increased its sales due to the Eco Point Program in Japan being a driving force for acquiring licensing deals for digital consumer products as well as for industrial products.
As a result, our FY 2010 results from the overall Electronic Component business were;
-Sales: 15 billion 576 million yen (6.4% increase compared to FY 2009 sales)
-Segment profit: 589 million yen (50.7% increase compared to FY 2009 segment profit)