Market conditions are expected to deteriorate further in the fourth quarter of the year ending March 2009 resulting in a decrease in unit sales that will extend to high-end Digital SLR cameras. Moreover, we anticipate that ongoing market competition and a reduction in inventory will bring down unit prices and profits.
Therefore, we anticipate that fourth quarter sales will be 20 to 30% less in comparison to the same period last year and we plan a 50% cutback in production. As a result, we anticipate sales to drop by approximately half in comparison to the same period last year and to record an operating loss.
The outlook is that consumer uncertainty and harsh market conditions will continue. Nonetheless, we aim to return to profitability next fiscal year by intensifying our efforts to provide competitive, high-valued added products, and to adjust inventories, cut costs, and reduce expenses.