Falcom 2014 End of Year Financial Statement – Ys Will Be 2015’s Primary Initiative

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Falcom released their financial reports for the fiscal year that ended on 9/30/2014. Some of the basic key points from the supplementary powerpoint for the balance sheet can be seen below:

Total Sales: 2,541,000,000 yen (approx. $21,752,220) (a 38.1% increase from 2013)
Operating Profit: 1,302,000,000 yen (approx. $11,145,760) (83.2% increase from 2013)
Operating Income: 1,303,000,000 yen (approx. $11,155,760) (83.2% increase from 2013)
Net Income: 773,000,000 (approx. $6,618,110) (77.5% increase from 2013)

They are predicting the following numbers for the 9/2015 period:
Total Sales: 2,000,000,000 yen (approx. $17,119,420)
Operating Profit: 750,000,000 yen (approx. $6,419,780)
Operating Income: 750,000,000 yen (approx. $6,419,780)
Net Income: 483,000,000 yen (approx. $4,134,720)

9/2014 has provided the second ‘record earnings’ in a row for the company, after the successful sales of Sen no Kiseki in the Asia regions and the release of Sen no Kiseki II in Japan and Asia. Through 9/2015, they expect the continued sales of Sen no Kiseki and Sen no Kiseki II, along with newcomers to the Kiseki series both domestic and overseas. They also have their aim on a successful release of their new title, as well.

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Topics for 9/2014 Period
* Continuing the trend from 2013, the Legend of Heroes Sen no Kiseki II won the Japan Games Awards Future Award in 2014 at Tokyo Game Show, just like its predecessor. When compared to the number of titles shown at TGS, Sen no Kiseki II was one of 1,363 titles shown, amongst 421 exhibitors.

* The Legend of Heroes Sen no Kiseki marked Falcom’s first Asian release, by having the title launch in Hong Kong, Taiwan, and Korea in both the Chinese and Korean languages.

* Asia users took to the release very well. In Hong Kong, Taiwan, and Korea, there were many reports of the initial shipment of the games being soldout at stores.

* The Legend of Heroes Sen no Kiseki II saw a simultaneous release in both Japan and the Asia region.

Initiative for 9/2015 Period
* A new title for the Ys series is under development for the Playstation 4 console and the Playstation Vita handheld. First published in 1987, this 27 year old masterpiece series has been on multiple platforms and seen success in North America, Europe, and Asia regions.

* Development for this large scale title is progressing well. More information should be released from Falcom soon.

More details on the financial report can be found behind the cut.

Read more…

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Falcom’s Stock Hits the Yearly High on the Week of Sen no Kiseki II’s Launch

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When the Nikkei closed for 9/22/2014, Falcom’s stock had hit a value of 1,598 yen. The previous day, it was showing at 1,301, making the increase a 22.83% change upwards.

When the Nikkei opened on 9/22, the stock had been priced at 1,329. It had a high of 1,599 and a low of 1,313.

When looking at historical charts over the past ten years, though, since 2013, Falcom’s finally reaching in to numbers again that are similar to what they have had back during the PC era of their games. This also lines up with their yearly numbers in their reports over the past few years, and it also seems to ‘agree’ with the guess that this year may likely to be the first time they’ve received profits similar to what they’ve had back in the late 2000’s.

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The first big jump in 2013, though, was in response to the creation of the Innovation Unit, and since then they’ve been able to maintain similar numbers.

This is all preceding what may end up being a very interesting year with Falcom’s yearly financial report, which is expected to be released later in November. The third quarter report, as well as the adjustment of last November’s forecast, show that this year may be a good one for Falcom on a financial standpoint.

[ Yahoo Financials – Nihon Falcom (Code # 3723) ]

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Falcom Earnings Forecast Adjusted Based on Sen no Kiseki, Sen no Kiseki II, and Memories of Celceta

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  Original Forecast Adjusted Forecast Percent Changed
Total Sales ¥ 1,900,000,000
(approx. $17,721,420)
¥ 2,400,000,000
(approx. $22,384,960)
▲26.3%
Operating Profit ¥ 750,000,000
(approx. $6,992,380)
¥ 1,200,000,000
(approx. $11,187,950)
▲60.0%
Operating Income ¥ 750,000,000
(approx. $6,992,380)
¥ 1,200,000,000
(approx. $11,187,950)
▲60.0%
Fourth Quarter Net Income ¥ 460,000,000
(approx. $4,288,640)
¥ 720,000,000
(approx. $6,712,650)
▲56.5%

Falcom has posted an adjustment of the forecast for the earnings that will mark the end of the fiscal year (10/1/2013 ~ 9/30/2014), as predicted on 11/13/2013. As you can see above, there are some fairly significant changes to the originally listed numbers.

In the adjustment report, Falcom has stated that this can be attributed to the high preorder sales for Sen no Kiseki II and the steadier than expected sales of Sen no Kiseki in the Asia regions. Furthermore, the sales of Ys: Memories of Celceta for the North American and European regions have been better than expected. As a result, the earnings for the year have been adjusted up, using the trends in these numbers and to make these estimations.

There is also a disclaimer to remind readers that these are forecasted numbers. The final numbers that are eventually revealed may differ from the ones posted above. The final earnings report is expected to be released in November 2014.

For a comparison of the year earnings, you can see the earnings reported last year (2013) below:

  Total Sales Operating Profit Operating Income Fourth Quarter Net Income
2013
Earnings
¥ 1,840,000,000
(approx: $17,152,300)
¥ 710,000,000
(approx: $6,618,550)
¥ 711,000,000
(approx: $6,627,190)
¥ 435,000,000
(approx: $4,054,610)

Note: Yen to Dollar exchanged made based on an approximation of 1 = $0.00932 exchange rate as of 9/16/2014.

[ 2014 Earnings Adjustment IR (PDF) ]

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Licensing and International Releases Push Numbers to Almost Six Times Higher in Falcom’s Latest Financial Report

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On the morning of 8/8/2014, Falcom posted an earnings update for the third quarter, and the financial year will come to a close at the end of September.

This report represents the dates of 10/2013 through 6/2014.

  Year Before Current Year Percent Changed
Sales ¥ 631,000,000
(approx. $6,183,550)
¥ 861,000,000
(approx. $8,437,460)
▲36.4%
Operating Profit ¥ 48,000,000
(approx. $470,380)
¥ 294,000,000
(approx. $2,881,080)
▲512.1%
Operating Income ¥ 48,000,000
(approx. $470,380)
¥ 295,000,000
(approx. $2,890,880)
▲505.3%
Third Quarter Net Income ¥ 30,000,000
(approx. $293,990)
¥ 197,000,000
(approx. $1,930,520)
▲537.7%

Falcom has attributed much of these number increases to licensing of games, thanks to the favorable sales of the English released titles on the download-only Steam platform, as well as the Asia release of Sen no Kiseki.

The report also notes that they are showing an 8% increase in sales for manufactured goods. On 6/2014, Sen no Kiseki was released in the Asian region in Chinese and Korean- selling the game in Hong Kong, Taiwan, and Korea- and they have reported seeing a number of stores sell out on their copies. The fans in that region have shown a high appreciation for the series. Not only that, but Sen no Kiseki was re-released in Japan with the lower cost Super Price Edition in June 2014.

The licensing department saw a large 75% increase from last year, at ¥ 465,000,000 (approx. $4,556,810) in sales. English language software on the Steam platform saw high sales, Ys Memories of Celceta saw strong sales in both North America and Europe, and the Japanese release of Ao no Kiseki Evolution on the Playstation Vita in June 2014 saw favorable sales as well.

At this point, they are leaving the current numbers for the earnings forecast to be released in Sept 2014:

  Projected Earnings Percent Changed
Sales ¥ 1,900,000,000
(approx. $18,619,240)
3.2%
Operating Profit ¥ 750,000,000
(approx. $7,349,700)
5.5%
Operating Income ¥ 750,000,000
(approx. $7,349,700)
5.4%
Net Income for Term ¥ 460,000,000
(approx. $4,507,820)
5.5%

[ Gamebiz.jp Article ]
[ Falcom IR Report (PDF) ]

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