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| Kazunori Matsuura, President |
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I wish to thank all of our shareholders and investors for their continuous support.
At present, harsh conditions persist in the amusement device market, which is our principal market, due to the domestic economic situation and other factors. It is viewed that a full-fledged recovery would require a certain amount of time. Also, given such circumstances, amusement device manufacturers are increasingly becoming conscious of cost cutting and the trend of re-using amusement device components, including our products, is growing. As a result, demand for some of our LSI products is showing a declining trend, thereby affecting our performance. Meanwhile, in the field of other embedded systems, demand for LSI products is gradually increasing on the back of a recovery trend in each industry.
Based on the results of such analysis, we intend to pursue the following strategic business activities and recover the business scale in the medium term, as well as build a corporate structure that can withstand changes in the economic environment. First, with respect to the amusement device market, which is our principal market, we will pursue the implementation of a new solution business in addition to the existing LSI business and raise the percentage of technical contribution to each unit of amusement device. Second, we will focus on expanding the market for LSI products targeted at embedded systems other than amusement devices and pursue the combination of targeted markets that can be deemed our business base. In doing so, we are intent on developing the strength to withstand various economic changes. Third, we will establish the field of Digital Convenience Radio (DCR) which NEW ZONE CORPORATION, our wholly-owned subsidiary established in December 2010, is intent on developing. We will focus our efforts on the early completion of products, recognizing that this field is a technical field that not only collects data of various devices but also realizes security and safety for people.
We are intent on improving the corporate value as Axell Group while promoting such strategic activities and sequentially expanding the scope of technical contribution to society.
We request our shareholders and investors for their understanding of Axell’s business strategy for pursuing new challenges, as well as for their continued guidance. |