Fujifilm has invested heavily in their R&D and for FY2019/3 Q1 they had to disclose that these expenses are affecting operating income growth. They also continue to have strong Instax sales thanks to the release of the Instax Square SQ6 as well as increasing their projections for annual sales from 9 million units to 10 million units due to increased sales in the United States and Europe where sales are strong and in the emerging markets.
In the electronic imaging business, overall revenues increased thanks to the Fujifilm X-H1, Fujifilm X-T100 and lens sales remained strong, espxially for 4k video lenses used for broadcast. There was also a lot of investment in R&D for a new sensor and processor to be used in future Fujifilm cameras like the Fujifilm GFX100S, GFX50R, and X-T3.
In the photo imaging business, sales were strong in instant photo systems such as the instax series and instax films. The sales volume of the instax series totaled 1.75 million units in this quarter. Sales increased with instax SQUARE SQ6, the instant camera with simple and stylish design which adopted square format, launched in May 2018. Wall Decor, Photobook and other value-added printing businesses also expanded and contributed to the revenue.
Regarding instax, we have revised the targeted annual sales volume upward from previously announced 9.0 million units to 10.0 million units, estimating the sales increase both in the U.S. and Europe, where the sales are strong, and in the emerging countries.
In the electronic imaging business, overall revenue increased due to solid sales of X Series such as FUJIFILM X-H1, a flagship model launched in March 2018, and FUJIFILM X-T100, an entry-level model, launched in June 2018, and interchangeable lenses. Professional photographers and camera enthusiasts have given high praise to our proprietary technology, which enables impressive depictions such as unrivalled, superior color reproduction, and the extensive line-up of 39 lenses.
In the optical device business, sales increased, reflecting steady performance of various industrial-use lenses such as those for vehicle cameras. Fujifilm is the pioneer of 4K lenses for use in broadcasting with highly valued image quality, and is seeking to increase its market share with the diverse lineup of 8 models.
In the Imaging Solutions segment, revenue increased due to strong sales in all businesses, while operating income remained at the same level, due to such factors as upfront R&D investment for next generation processor and sensor for digital cameras and others.
Imaging Solutions consolidated revenues were up 3.5% over the same period last year due to the sales increase in all businesses, while consolidated operations income was down 2.2% due to upfront investment in R&D for the Fujifilm GFX100S, GFX50R, and X-T3. Read More »
