From a Feb 5 2007 report regarding Pentax:
On the other hand, management lowered its full-year estimate for the life
care segment to ¥3.4 bn, from ¥4.3 bn due to (1) shortfalls in planned sales
of airway scopes, (2) increased competition in the market for artificial
bones, and (3) the delayed launch of its new flexible endoscope. It also
lowered its target for optical components segment, evidently owing to
production cutbacks at customers for its micro lenses and inventory
valuation losses on lens units
Our overall impression is Neutral but results for the life care segment, a
center of investor attention, was a bit disappointing.
----
Other reports indicate that Pentax is facing huge competition in the medical
arena by companies with deeper pockets.
Alot of this doesn't have anything to do with whether one has a good product
or if it's selling well. It has to do with whether one is making enough
profit to keep shareholders happy AND continue to innovate and turn out new
products.
Assuming Pentax and Canon is spending the same amount on R&D which is a bad
assumption to begin with, if Pentax is making 1/5 the profit on each DSLR as
Canon is (I think my example is in the ballpark), they would need to sell
roughly 5x as many units in order to continue R&D at the same rate.
They are essentially facing an uphill struggle on an incline that gets
steeper and steeper.
Yes, Pentax could drop the camera division all on their own, without Hoya.
I just can't figure out what I'd do with an endoscope though.
Tom C.
From: "P. J. Alling" <[EMAIL PROTECTED]>
Reply-To: Pentax-Discuss Mail List <[email protected]>
To: Pentax-Discuss Mail List <[email protected]>
Subject: Re: Pentax Update - Shakeup in the Works (again)
Date: Tue, 24 Apr 2007 19:27:27 -0400
You're looking at the Imaging division, look at the whole picture. If
Pentax wanted to increase profit margins they could drop camera
development and sales themselves. They don't need Hoya for that. There
seems to be nothing but upside potential in their medical and other
divisions.
Tom C wrote:
> Not really. With Pentax market share in DSLR's around 6% and profit
margins
> down around 2% on digital cameras, it gets harder and harder to compete
in
> the face of competitors who are continuing to gain market share and are
> realizing economies of scale and higher profit margins either by
> manufacturing their own components or by sheer buying power.
>
> How long does one wait before deciding they can't go it alone?
Evidently
> Pentax management thought something must be done, not just Sparx.
>
>
> Tom C.
>
>
>
>> From: "P. J. Alling" <[EMAIL PROTECTED]>
>> Reply-To: Pentax-Discuss Mail List <[email protected]>
>> To: Pentax-Discuss Mail List <[email protected]>
>> Subject: Re: Pentax Update - Shakeup in the Works (again)
>> Date: Tue, 24 Apr 2007 18:33:24 -0400
>>
>>
>>> Sparx had supported Urano's efforts to pursue a merger with Hoya amid
>>>
>> the
>>
>>> belief that Pentax would not be able to survive on its own.
>>>
>> Does anyone else see a self fulfilling prophecy here?
>>
>> Tom C wrote:
>>
>>> Excerpts...
>>>
>>> TOKYO (Nikkei)--Pentax Corp.'s top shareholder, Sparx Group Co.,
plans
>>> to back the appointment of directors to the camera manufacturer's
>>> board who would support Hoya Corp.'s tender offer plans
>>>
>>> This could bode ill for Pentax President Takashi Watanuki and others
who
>>> voted down a proposed merger with Hoya and are said to be against a
>>>
>> business
>>
>>> integration with the firm. Sparx aims to use its 23.98% stake in
Pentax
>>>
>> to
>>
>>> nudge the company toward accepting a business integration with Hoya.
>>>
>>> With all eight Pentax directors facing re-election at an upcoming
>>>
>> general
>>
>>> shareholders meeting scheduled for June 22, Sparx plans to propose the
>>> reappointment of former President Fumio Urano and former Executive
Vice
>>> President Katsuo Morio to the board. The pro-merger Urano and Morio
>>>
>> were
>>
>>> relieved of their duties as executives earlier this month.
>>>
>>> ...
>>>
>>> Sparx apparently believes that its proposed appointments will go
through
>>> if it can win the support of overseas shareholders who are highly
>>>
>> conscious
>>
>>> of
>>> measures aimed at improving Pentax's enterprise value.
>>>
>>> Sparx had supported Urano's efforts to pursue a merger with Hoya amid
>>>
>> the
>>
>>> belief that Pentax would not be able to survive on its own.
>>>
>>> ...
>>>
>>> Citing an internal rift at Pentax, Sparx will call for an overhaul of
>>>
>> the
>>
>>> camera manufacturer's leadership to prevent an erosion in the
company's
>>> share
>>> price and other enterprise values.
>>>
>>>
>>> Tom C.
>>>
>>>
>>>
>>>
>>>
>> --
>> Entropy Seminar: The results of a five yeer studee ntu the sekend lw uf
>> thurmodynamiks aand itz inevibl fxt hon shewb rt nslpn raq liot.
>>
>>
>> --
>> PDML Pentax-Discuss Mail List
>> [email protected]
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>>
>
>
>
>
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Entropy Seminar: The results of a five yeer studee ntu the sekend lw uf
thurmodynamiks aand itz inevibl fxt hon shewb rt nslpn raq liot.
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