Wacom Co. reported higher earnings for the fiscal first half despite falling sales, as its restructured branded products division offset persistent weakness in its technology components business.
The pen-tablet maker posted net income of ¥4.1 billion ($27 million) for the six months through September, up 19% from a year earlier. Revenue dropped 10% to ¥51.4 billion as the technology solutions segment struggled with yen appreciation and concerns over US tariff policies, the company said in a statement Thursday.
The branded products division, which makes pen tablets and display devices for graphic designers and animators, achieved profitability for the first time in four quarters following cost-reduction measures. That turnaround helped cushion the blow from weaker demand for smartphone and tablet components that comprise the bulk of Wacom’s sales.
For the full fiscal year ending March, the Saitama-based company projects revenue will fall 5% to ¥110 billion ($714 million), while net income is expected to surge 63% to ¥8.5 billion. The company recently launched new Cintiq and MovinkPad products and invested in medical imaging startup Holoeyes as part of its Chapter 4 growth strategy.
Wacom has completed nearly half of its annual targets for sales and profit through the first half.
