Olympus Imaging’s cumulative operating losses significantly bigger than originally reported



We already knew that Olympus Imaging’s cumulative operating losses during the last twelve years totaled ¥103bn. That’s $1.2bn. Last week Olympus published their consolidated financial results for the second quarter of FY2021 (July – September 2020). Included in this reporting is the forecast of the FY2021 loss from the soon to be divested Imaging Business, now considered as ‘discontinued operation‘: ¥53bn. That’s an additional $500m.

As they politely said when presenting their results, “We expect to record a loss for the current fiscal year due to expenses related to the divestiture of the Imaging business.” Later on they added: “Total loss of ¥5.5 billion is expected due to the loss associated with the divestiture of the Imaging Business.

There are other interesting bits concerning the Imaging Business in Olympus’s financial reporting:

  • Olympus has begun to severely downsize their Imaging business:
    • Imaging’s headcount fell by nearly 30% between 31 March 2020 (4,270) and 30 September 2020 (3,031). In Japan, Imaging now has less than 400 employees.
    • Between April – September 2019 and April – September 2020, Imaging’s capital expenditures fell by half (-51.6%) and R&D expenditures by 30%.
  • Consequently, Olympus expects the revenue of the Imaging business to decline significantly over October – December 2020 compared to July – September whereas October – December is usually the strongest quarter of the year. Last year for instance October – December revenue was 121% of July – September revenue. This year the forecast ratio is 78%.

Thanks Mistral75!

This entry was posted in Olympus and tagged , , , , . Bookmark the permalink. Trackbacks are closed, but you can post a comment.
  • Back to top