Trend Micro Inc S/Adr (TMICY) Q2 2025 Earnings Call

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WEBVTT 00:00:00.031 -- 00:00:02.031 This 00:00:03.736 -- 00:00:06.521 is a summary for Q2. 00:00:06.521 -- 00:00:07.682 Net sales down by 3%. 00:00:07.682 -- 00:00:10.283 And total 00:00:12.349 -- 00:00:13.811 OPEX down by 6%. 00:00:13.811 -- 00:00:19.320 And 9% increase on operating income. To be honest, 00:00:19.320 -- 00:00:21.823 this is more or less in line with our expectation. 00:00:21.823 -- 00:00:24.227 There are two factors. 00:00:24.227 -- 00:00:26.550 One, Kevin Simpson 00:00:26.550 -- 00:00:27.925 will talk about this later. 00:00:27.925 -- 00:00:29.867 But 00:00:29.867 -- 00:00:34.912 uncertainty is still continuing in terms of macroeconomics. 00:00:34.912 -- 00:00:38.514 So the sales cycle is getting longer. 00:00:38.556 -- 00:00:41.779 So the expected sales was not achieved. 00:00:41.779 -- 00:00:44.520 And also stronger yen. 00:00:45.724 -- 00:00:49.968 Without FX impact, growth would have been plus 1%. 00:00:49.968 -- 00:00:51.790 But 00:00:51.790 -- 00:00:56.107 if the yen gets stronger, the denominated sales become smaller. 00:00:56.107 -- 00:01:01.613 And the minus 29% in ordinary income. Well, this is evaluation 00:01:01.613 -- 00:01:04.976 loss of FX. So FX assets 00:01:04.976 -- 00:01:08.380 evaluation based on stronger yen becomes weaker. 00:01:08.380 -- 00:01:13.826 So about 5 billion yen exchange evaluation loss was posted. 00:01:13.826 -- 00:01:15.848 And pre-gap was minus 6%. 00:01:15.848 -- 00:01:17.529 This 00:01:17.529 -- 00:01:20.470 is a little bit lower than our expectation. 00:01:21.250 -- 00:01:27.339 Now, for enterprise and consumer, on the right-hand side, you can see consumer, 00:01:27.339 -- 00:01:32.847 and we see a bigger decline in sales, but this was actually anticipated, as 00:01:32.847 -- 00:01:35.709 we explained in the...