Wacom Ltd. reported mixed results for its second quarter, with operating profit surging 123% to ¥5.48 billion ($36.5 million) despite ongoing challenges in its core tablet business.
The Japanese digital pen maker saw overall revenue inch up 3.1% to ¥57.3 billion ($382 million), powered by growth in its technology solutions division. This unit, which provides digital pen technology to other manufacturers, posted a 10.3% sales increase to ¥42.5 billion ($283 million).
However, the company’s branded products segment struggled, with sales dropping 13.2% as demand weakened for both display and pen tablet products. While segment losses narrowed to ¥1.1 billion from ¥2 billion a year earlier, the division remains under pressure.
Foreign exchange volatility hit Wacom’s bottom line, with net profit falling 8.8% to ¥3.47 billion ($23.1 million). The company faced currency losses this quarter, contrasting with gains in the previous year.
Looking ahead, Wacom projects modest full-year revenue growth of 1% but expects net profit to decline 36% to ¥6.2 billion ($41.3 million), reflecting continued currency headwinds and competitive pressures in the tablet market.
