Large Format Review - Business News

Seiko Epson Corporation ("Epson") has been selected for the second time as a component company of the Dow Jones Sustainability World Index (DJSI World) and the Dow Jones Sustainability Asia Pacific Index (DJSI Asia Pacific), both leading indicators for socially responsible investment (SRI). The international stock indexes, jointly developed by the American company Dow Jones and Switzerland's SAM (Sustainable Asset Management) Group, assess companies around the world based on economic, environmental, and social perspectives, and select those with the best future prospects for achieving sustainability.

A review of the component companies is conducted on a yearly basis. On September 3rd, 317 corporations out of a pool of roughly 2,500 worldwide were designated as leading companies and selected to be included in the DJSI World. Epson was one of six that were selected from the computer hardware and electronic office equipment category of the technology sector.

In addition, Epson retained its position in the DJSI Asia Pacific, which was launched in January this year and is made up of the top 20% in terms of the SAM analysis out of the largest 600 companies in the developed Asia Pacific markets.

"Epson's selection is a reflection of our long-term efforts to earn the trust of our stakeholders in accordance with our management philosophy. In particular, Epson's environmental achievements, corporate citizenship initiatives, and stakeholder involvement were rated highly in this year's assessment," said Toshiyuki Fujimori, General Manager of the Trust-Based Management Department at Seiko Epson Corporation.

To find out more about Epson's CSR activities, or to view Epson's Sustainability Report 2009, please visit the Epson & the Community section on the corporate website. http://www.epson.co.jp/e/community/

A need for expansion has seen C41s Photo Imaging move to new facilities at the Evans Business Centre on North Road in Ellesmere Port, Cheshire. The move has given proprietor Mark Stephens a larger counter and reception lounge with more display room, and creates a meeting area and social space.

The business traded for twenty years from small shop premises on a high street just outside Chester city centre, before moving to the Ellesmere Port location this year.

Mark Stephens tells us: “Prior to the move the business hadn’t been able to really progress. The reason for that was purely down to space. We didn’t really do much marketing or promotion, because we couldn’t do more work in the space we had. Where we are now is five times bigger. The reception and counter area alone is as big as the shop we’ve just left. So now we can promote and advertise to get more work in.”

The new premises are an industrial unit six miles from Chester. It’s just half a mile from Junction 7 of the M53 motorway and has ample free parking outside.

Fujifilm's Business Imaging Group Senior Inkjet Specialist, Mark Wade, has followed developments at C41s over the years. He said: “I've had the privilege of looking after C41s for Fujifilm for about eight years now, since the days of Fuji Hunt. They've driven their growth through digital inkjet printing. They’re a smashing bunch of people, one of the friendliest labs around and they produce a very high quality range of products. I congratulate Mark and his team. With the new premises, it's onwards and upwards for them!”

C41s operates Fujifilm Epson 7600 and 9800 large format printing solutions. They print onto Fujifilm HD White Cotton Canvas, Fujifilm Matt Bond Paper, Fujifilm Photo Paper Glossy 240gsm, and Fujifilm Pearl Photo Paper 290gsm up to 44 inches wide. C41s also uses Fujifilm Crystal Archive papers for traditional C type printing for both its professional and retail customers.

C41s specialises in the printing, mounting and finishing of large format inkjet enlargements, including canvas prints, Foamex and other foam-board mounts, and various heat seals, offering next-day or day-after delivery. The firm also offers lab prints up to 16 x 12 inch, from digital files or C41 process film. To contact the lab, call 0151 348 8921 or email, This email address is being protected from spambots. You need JavaScript enabled to view it.

Fujifilm Holdings Consolidated Financial Results (1st Quarter Fiscal 2010 Earnings)

Revenue
The Company's consolidated revenue declined to ¥502.4billion, or 23.1% below the level in the previous fiscal year.
Revenue in each operating segment decreased owing to the impact of sales drop by yen appreciation as well as the impact of the global recession and associated demand drops. The amount of ¥34.1 billion out of sales reduction of ¥151.3 billion was negatively affected by yen appreciation.

Income
To generate profit amid the current unprecedentedly harsh operating environment and ensure that it can continue to achieve corporate growth, the Fujifilm Group is endeavoring to build a robust corporate constitution and promote the rebuilding of growth strategies regarding emphasized business fields.


The Company is resolutely implementing concentrated structural reforms and thoroughly implementing measures to reduce costs and expenses throughout the entire Group and all businesses without any excluded business fields from the scope of those measures. The implementation of these measures proceeded on schedule during the first quarter of the current fiscal year, and restructuring and other charges during the quarter amounted to ¥10.3 billion.

Operating income before restructuring and other charges amounted to ¥7.6 billion (down 84.1% from the same period of the previous fiscal year), reflecting the impact of the revenue decrease and the negative impact of ¥8.2 billion by yen appreciation, while operating income after restructuring and other charges amounted to a loss of ¥2.7 billion, reflecting the recording of ¥10.3 billion in restructuring and other charges. Income before income taxes was ¥1.2 billion (down 97.9%, from the same period of the previous fiscal year), and the net loss attributable to FUJIFILM Holdings totaled ¥0.7 billion.

Further information including Earnings Presentation Materials are available from the Fujifilm Holdings website.

GLOBAL GRAPHICS SA, developers of the Harlequin and Jaws RIP engines as utilised in a number of leading large format RIP software solutions, announces financial results for the second quarter and the first six months of the year ending 31 December 2009.

Comparisons for the second quarter of 2009 with the second quarter of the previous year include:

- Sales of Euro 2.6 million this quarter (Euro 2.3 million at Q2 2008 exchange rates), as in Q2 2008;

- An operating loss of Euro 0.1 million this quarter compared with an operating loss of Euro 0.3 million in Q2 2008;

- An adjusted operating loss of Euro 0.2 million this quarter as in Q2 2008;

- An adjusted pre-tax loss of Euro 0.4 million this quarter (or a loss of Euro 0.04 per share) compared with an adjusted pre-tax loss of Euro 0.2 million in Q2 2008 (or a loss of Euro 0.02 per share);

- A net loss of Euro 0.5 million this quarter (or a loss of Euro 0.05 per share) as in Q2 2008; and

- An adjusted net loss of Euro 0.6 million this quarter (or a loss of Euro 0.06 per share) compared with an adjusted net loss of Euro 0.5 million in Q2 2008 (or a loss of Euro 0.05 per share).

Commenting on performance, Gary Fry, Chief Executive Officer, said: “Our performance in the second quarter of 2009 is in line with our expectations. Although we made a small operating loss in the quarter, our cash position is unchanged at Euro 4.5 million at 30 June 2009 with that of 1 January 2009 and we have made a conscious decision to continue driving future product developments in both our print and eDoc segments.

“We launched our first business application, gDoc Fusion, on 18 May as a soft launch to gain market knowledge and customer feedback. We have been very encouraged by the independent verification from multiple sources that gDoc Fusion has unique value to our customers and fits a current market need.

“Our printing partners continue to have a challenging time with the current economic conditions, but remain optimistic and are working closely with us on future developments. We delivered the latest release of our Harlequin RIP, 8.1, during the second quarter. This has been very well received by our partners and their customers.

“I was also very pleased to announce in early July our strategic partnership with a leading embedded chip manufacturer, Conexant, which will enable us to gain greater access into the office printing market with our Harlequin embedded printing solution.”

Second quarter 2009 performance
Sales for the second quarter 2009 amounted to Euro 2.6 million compared with Euro 2.6 million in the second quarter 2008, or a sequential increase of 3.4% at current exchange rates.

Total operating expenses amounted to Euro 2.6 million this quarter compared with Euro 2.7 million in the same period of 2008 (which included non-recurring expenses of Euro 0.3 million), as well as in Q1 2009.

The Company reported an operating loss of Euro 0.1 million for this quarter (or 2.6% of Q2 2009 sales), compared with an operating loss of Euro 0.3 million in Q2 2008 (or 10.1% of Q2 2008 sales).

The Company reported an adjusted operating loss (as defined in the accompanying table) of Euro 0.2 million for this quarter (or 8.1% of Q2 2009 sales), as in Q2 2008 when such adjusted operating loss represented 8.9% of Q2 2008 sales.

The Company reported an adjusted pre-tax loss (as defined in the accompanying table) of Euro 0.4 million for this quarter, compared with an adjusted pre-tax loss of Euro 0.2 million in Q2 2008, pursuant to the recognition of net exchange losses of Euro 0.2 million in Q2 2009. Accordingly adjusted pre-tax EPS was a loss of Euro 0.04 this quarter compared with a loss of Euro 0.02 in Q2 2008.

The Company reported a net loss of Euro 0.5 million for this quarter (or a loss of Euro 0.05 per share), as in Q2 2008.

The Company reported an adjusted net loss (as defined in the accompanying table) of Euro 0.6 million for this quarter, compared with an adjusted net loss of Euro 0.5 million in Q2 2008. Accordingly, adjusted net EPS was a loss of Euro 0.06 this quarter, compared with a loss of Euro 0.05 per share in Q2 2008.

First six months performance
Sales for the first six months of 2009 amounted to Euro 5.3 million compared with Euro 5.6 million for the same period of 2008, or a sequential decrease of 4.5% at current exchange rates.

Total operating expenses amounted to Euro 5.3 million for the first six months of 2009, compared with Euro 5.5 million for the same period of 2008, the latter figure including non-recurring expenses of Euro 0.5 million, notably relating to costs incurred with regards to the change in the Chief Executive Officer position which occurred in late June 2008.

The Company reported an operating loss of Euro 0.2 million for the first six months of 2009 (or 3.7% of the period’s sales), compared with an operating loss of Euro 0.1 million for the same period of 2008 (or 2.1% of that period’s sales).

The Company reported an adjusted operating loss (as defined in the accompanying table) of Euro 0.5 million for the first six months of 2009 (or 8.7% of the period’s sales), compared with a nominal adjusted operating loss for the same period of 2008 (or 0.6% of that period’s sales).

The Company reported an adjusted pre-tax loss (as defined in the accompanying table) of Euro 0.6 million for the first six months of 2009 (or a loss of Euro 0.06 per share), compared with an adjusted pre-tax profit of Euro 0.2 million for the same period of 2008 (or a profit of Euro 0.02 per share).

The Company reported a net loss of Euro 0.6 million for the first six months of 2009 (or a loss of Euro 0.06 per share), compared with a net loss of Euro 0.3 million for the same period of 2008 (or a loss of Euro 0.03 per share).

The Company reported an adjusted net loss (defined in the accompanying table) of Euro 0.8 million for the first six months of 2009, compared with an adjusted net loss of Euro 0.2 million for the same period of 2008. Accordingly, adjusted net EPS was a loss of Euro 0.08 per share for the first six months of 2009, compared with a loss of Euro 0.02 per share for the same period of 2008.

2009 outlook
Gary Fry continued: "Our strategy of continued investment in our printing and gDoc solutions will continue in the second half of 2009. With the market insight and direct customer feedback we have had we will be refining our gDoc Fusion application and plan an aggressive sales and marketing drive shortly. This will set us up well for both gDoc Fusion and future planned gDoc applications.

Clearly 2009 has been and continues to be a challenging year for most companies in our industry. Though we currently have limited visibility on our revenues for the second half of this year, we remain confident that our past and current commercial and technology investments will deliver sustained, long-term growth for Global Graphics.”

Eastman Kodak Company today reported second-quarter 2009 results that reflect the weak global economic climate and forecasted improved financial results for the second half of the year.

The company's second-quarter results also reflect focused investments that Kodak is making in new products and core growth businesses, as well as disciplined cost management and more tightly focused spending on research and development. These actions will lay the groundwork for the second-half cash and earnings improvement that the company expects.

For the second quarter, Kodak reported a loss from continuing operations of $191 million, or $0.71 per share. Second-quarter sales were $1.766 billion, a 29% decline from the year-ago quarter, including approximately 5% of unfavorable foreign exchange impact.

"While we continue to be challenged by the global recession, we remain committed to our strategy and have the financial resources available to implement our business plans," said Antonio M. Perez, Chairman and Chief Executive Officer, Eastman Kodak Company. "We have every expectation that our cash flow pattern this year will mirror the pattern of previous years, with a sizable increase in cash generation in the second half of 2009. During the second quarter we continued to execute on our strategy, with our consumer inkjet hardware and ink revenue growth significantly outpacing the market. We've recently announced the first sale of our KODAK PROSPER S10 Imprinting System, and the first letter of intent to purchase a KODAK PROSPER Press powered by our Stream Inkjet Technology. We are successfully focusing on those things within our control – strengthening the return on our cash-generating businesses, further developing our core growth businesses, maintaining and enhancing our leading market share position, introducing innovative new products, and driving a leaner cost structure – all of which will create operating leverage and position Kodak for a stronger second half of 2009."

For the second quarter of 2009:

- Sales worldwide totaled $1.766 billion, a decrease of 29% from $2.485 billion in the second quarter of 2008, including 5% of unfavorable foreign exchange impact. Revenue from digital businesses totaled $1.173 billion, a 28% decline from $1.636 billion in the prior-year quarter, primarily as a result of the global recession and continued restrictions in the credit markets. Revenue from the company's traditional business decreased 30% to $593 million, primarily as a result of industry-related declines in our traditional businesses and the negative impact on volumes related to the uncertainty of labor contract negotiations in the entertainment industry. These labor contract negotiations were concluded in June 2009.

- The company's second-quarter loss from continuing operations, before interest expense, other income (charges), net, and income taxes was $119 million, compared with earnings on the same basis of $18 million in the year-ago quarter.

On the basis of U.S. generally accepted accounting principles (GAAP), the company reported a second-quarter loss from continuing operations of $191 million, or $0.71 per share, compared with earnings on the same basis of $200 million, or $0.66 per share, in the year-ago period. Items of net expense that impacted comparability in the second quarter of 2009 totaled $75 million after tax, or $0.28 per share, primarily related to restructuring charges and tax related items. Items of net benefit that impacted comparability in the second quarter of 2008, totaled $245 million after tax, or $0.79 per share, due primarily to a tax refund from the U.S. Internal Revenue Service. (Please refer to the attached Items of Comparability table for more information.)

Other second-quarter 2009 details:

- Gross Profit was 18.5% of sales, a decline from 23.6% in the year-ago period. This decline in margin was driven by reduced volumes, along with the impact of negative price/mix, including lower intellectual property licensing royalties, and unfavorable foreign exchange, partially offset by continued cost reductions.

- Selling, General and Administrative (SG&A) expenses were $324 million in the second quarter, down 26%, or $114 million, from $438 million in the year-ago quarter, as a result of company-wide cost reduction actions.

- Research and Development expenses were $84 million in the second quarter, down 38%, or $51 million, from $135 million in the year-ago quarter, driven by more tightly focused investments in core growth businesses.

- Second-quarter 2009 cash generation, before restructuring, reflected a use of $136 million. This compared with cash usage on the same basis of $158 million in the year-ago quarter, after excluding the impact of a tax refund received from the IRS in that period. This corresponds to net cash used in continuing operations from operating activities on a GAAP basis of $161 million in the second quarter, compared with net cash provided of $162 million in the second quarter of 2008. As was the case in 2008, the company expects cash usage to be heaviest in the first part of the year, with cash trends expected to be significantly improved for the second half of the year.

- Kodak held $1.132 billion in cash and cash equivalents as of June 30, 2009.

- The company's debt level stood at $1.311 billion as of June 30, 2009.

Segment sales and earnings from continuing operations before interest, taxes, and other income and charges (segment earnings from operations), are as follows:

- Consumer Digital Imaging Group second-quarter sales were $503 million, a 33% decline from the prior-year quarter, including 5% of unfavorable foreign exchange impact. Second-quarter loss from operations for the segment was $99 million, compared with a loss of $49 million in the year-ago quarter. The year-over-year variance was driven primarily by price/mix impacts, including lower intellectual property licensing royalties and unfavorable foreign exchange, and market-related volume declines. This was partially offset by improved profitability in consumer inkjet systems, driven by a 44% revenue increase in consumer inkjet printer hardware and ink, along with lower costs as a result of the company's move to a more efficient product platform, and reduced SG&A and R&D expenses across the segment. Kodak continues to forecast an average of at least $250 million to $350 million in intellectual property licensing revenue for 2009 and the next few years.

- Graphic Communications Group second-quarter 2009 sales were $670 million, a 24% decline from the second-quarter of 2008, including 5% of unfavorable foreign exchange impact. This revenue decrease was primarily driven by a market-related decline of 27% in Prepress Solutions as well as associated declines in workflow. Second-quarter loss from operations for the segment totaled $28 million, compared with earnings of $13 million in the year-ago quarter. This earnings decline was primarily driven by lower volume and price/mix across several product lines, along with a negative impact from foreign exchange, partially offset by operational improvements in Electrophotographic Printing Solutions.

- Film, Photofinishing and Entertainment Group second-quarter sales were $593 million, a 30% decline from the year-ago quarter, including 6% of unfavorable foreign exchange impact. Second-quarter earnings from operations for the segment were $51 million, compared with earnings of $54 million in the year-ago period. These earnings results were driven by declines in consumer film sales volumes, price/mix across several product lines and unfavorable foreign exchange impacts, primarily in Entertainment Imaging, largely offset by operational improvements in Traditional Photofinishing, significant cost reductions across the segment, improvement in raw material costs, and the impact of previously announced changes in post-employment benefits.

The Océ Pension Fund has informed Océ N.V. that the Dutch Central Bank has approved its recovery plan. The fund ratio of the Océ Pension Fund had dropped to 79.4% on 31 December 2008 as a result of the crisis in the financial markets. The Central Bank requested the Fund to submit a recovery plan.
 
As part of the recovery plan and for a four-year period as of mid-2010, Océ N.V. will make a further annual contribution to the Pension Fund expected to amount to approximately EUR 7.5 million. The additional contributions have no impact whatsoever on the profit and loss account of Océ N.V. Should the financial position of the Océ Pension Fund deviate positively or negatively from the forecast as projected in the recovery plan, Océ will amend its further contributions accordingly.
 
On 30 June 2009, the fund ratio amounted to 83.9%.
 
As announced earlier, the Océ Pension Fund had raised the pension premiums from
9 to 10% of the pensionable salary (for employees) and from 18 to 20% (for the company) effective 1 January 2009. This increase will remain in effect until the fund ratio has been restored to 105%.
 
The Océ Pension Fund applies the pension scheme to (former) employees in the
Dutch subsidiaries Océ-Technologies B.V. and Océ-Nederland B.V.