Kokusai Electric Corp (KOKSF) Q3 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

I am Kao Kami, Managing Executive Officer and CFO. Thank you for joining us today at Kokusai Electric's Earnings Call. I will begin by presenting our third quarter financial results as well as our full year earnings forecast. These are disclaimers which I will skip. First is a summary of the third quarter results. Page 4 are highlights. Specific details will be shared from the following pages and beyond. Page 5 is a summary of the consolidated financial results for the third quarter as well as the first nine months. In the third quarter from October to December, both revenue and profits increased compared to the same period of last year, in line with the revised earnings forecast at the time of the second quarter results. Both revenue and profit increased also compared to the second quarter, continuing a recovery trend. The lower gross profit margin in the third quarter compared to the first and second quarters is due to the difference in project mix and one-time expenses, as explained at the second quarter earnings call. The third quarter cumulative results, both for revenue and profit, also increased compared to the same period last year, and each profit margin also exceeded that of the same period last year. R&D, CapEx, and depreciation were generally in line with previous forecasts. Page 6 shows the factors behind the year-on-year changes in revenue and adjusted operating income for the third quarter. Equipment sales increased in the third quarter as equipment sales grew for all Logic, Foundry, DRAM, and NAND applications. In addition, part sales, relocation and modifications and legacy equipment sales of 200 mm and smaller were strong and service sales also increased. As a result, overall revenue increased 11% year-on-year. Higher gross profits from increased sa...