Vertical Divider
JDI Continues to Suffer from Y/Y Sales Declines in 2nd Half 2020
JDI reported Q320 sales of ¥72.7b (down 52% Y/Y) and an operating loss of ¥8.7b (down ¥11.3b). The company reported a net profit of ¥13.4b (up ¥20.1b Y/Y), mainly due to the booking of ¥18.6b in gains on fixed assets divestures following the sale of the Hakusan plant. By segment, sales were ¥33.8b for mobile (down 70% Y/Y; ¥25.3b in Europe/US, ¥8.5b in China/other), ¥24.0b for automotive (down 12%), and ¥15.0b for non-mobile (up 27%). Q420 guidance calls for sales of ¥70.0b and an operating loss of ¥11.0b, with full-year guidance calling for sales of ¥342.5b (down 32% YoY) and operating losses of ¥29.6b. The company aims for EBITDA to return to the black by 4Q FY3/22, and it is considering additional measures to reduce fixed and variable costs. In terms of tight supply for driver ICs, JDI said it has secured enough for production through the rest of the fiscal year, and while it seems some risk for FY3/22, it sees only a limited impact. CEO Callon stated that JDI’s goal is to become a personal tech company, and that it aimed to redefine the company's technology and human resources. He also noted that it would be launching new businesses, including services and solutions, centered on proprietary devices, within this year. At the same time, comments at the briefing also pointed to the possibility of further fixed cost cutting efforts and a continued focus on tight cost management.
JDI reported Q320 sales of ¥72.7b (down 52% Y/Y) and an operating loss of ¥8.7b (down ¥11.3b). The company reported a net profit of ¥13.4b (up ¥20.1b Y/Y), mainly due to the booking of ¥18.6b in gains on fixed assets divestures following the sale of the Hakusan plant. By segment, sales were ¥33.8b for mobile (down 70% Y/Y; ¥25.3b in Europe/US, ¥8.5b in China/other), ¥24.0b for automotive (down 12%), and ¥15.0b for non-mobile (up 27%). Q420 guidance calls for sales of ¥70.0b and an operating loss of ¥11.0b, with full-year guidance calling for sales of ¥342.5b (down 32% YoY) and operating losses of ¥29.6b. The company aims for EBITDA to return to the black by 4Q FY3/22, and it is considering additional measures to reduce fixed and variable costs. In terms of tight supply for driver ICs, JDI said it has secured enough for production through the rest of the fiscal year, and while it seems some risk for FY3/22, it sees only a limited impact. CEO Callon stated that JDI’s goal is to become a personal tech company, and that it aimed to redefine the company's technology and human resources. He also noted that it would be launching new businesses, including services and solutions, centered on proprietary devices, within this year. At the same time, comments at the briefing also pointed to the possibility of further fixed cost cutting efforts and a continued focus on tight cost management.
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