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To Our Shareholders and Investors
Today we concluded our Fourth Annual Shareholders Meeting. I wish to extend my greetings once again to all of our shareholders and investors. We are experiencing an intense period for the industry. Competition to differentiate offerings among the mobile carriers and handset manufacturers in Japan took off in October 2006, when new policy instituted mobile telephone number portability. In addition, the appreciation of handset retail prices has caused replacement purchase demand to level off. During this time, our group’s portfolio of user-oriented products and technologies gained support from the industry and yielded a year of good harvest. We also saw our business arenas expand. The Acrodea Group established consolidated subsidiaries in the U.S. and Japan, and initiated accounting on a consolidated basis. Each of our business operations tracked favorably, and we have achieved four straight years of growth in revenues and income. Nonetheless, we failed to attain the performance forecast for the year, because net sales for certain license revenues were booked after closing of the fiscal period. The situation raised serious concerns among you. Ever since our public stock listing, we have stressed that the peculiar trading practices in the mobile telephone industry skew our revenue structure to the second half of the fiscal year. In order to reduce our risk to this situation and normalize our business operations in general for purposes of efficiency, management decided to move for a change in the fiscal-year end (from March 31 to August 31). The approval of amendments to our Articles of Incorporation at today’s Shareholders Meeting enables us to transition to a stable management calendar. Continuing onward in an effort to respond to all of your support, the entire management team is resolved to expend all energies in advancing the group. We are committed to the establishment of steady revenue streams, a solid operating base for the group, and the earliest possible declaration of dividends in order to provide shareholder returns. In closing, I would like to ask for your continuing support as we deliver on expectations for further growth of the Acrodea Group.
Junya Tsutsumi |
