I think a lot of this may have to do with the Hoya takeover. I noted they specifically mention endoscopes and competition in North America. If memory serves, it was Pentax's medical imaging business line that attracted Hoya's attention in the first place.
So, this may represent the opening moves in Hoya's campaign to expand Pentax's medical imaging business, and it's that line that's experienced depreciation of inventory rather than the camera line. It looks to me like the profit fall and the net income decrease are both due to subtracting the depreciation of inventory, i.e we had all these widgets on hand valued at $10,000 each, and now we're valuing them at $7500 each (or some such). How much does a new endoscope sell for? But the whole thing sounds like it's a paper loss for some tax advantage. -- PDML Pentax-Discuss Mail List [email protected] http://pdml.net/mailman/listinfo/pdml_pdml.net to UNSUBSCRIBE from the PDML, please visit the link directly above and follow the directions.
