Become a Member

Track your favourite stocks
Create & monitor portfolios
Daily portfolio value

Company	Chg	Chg %
Quickpicks
£	%
Add shares to your quickpicks to display them here!

Corrections to Consolidated F

1st Aug 2008 14:57

RNS Number : 4854A

Konami Corporation

01 August 2008

August 1, 2008

FOR IMMEDIATE RELEASE

KONAMI CORPORATION

Kagemasa Kozuki

Representative Director and CEO

Stock code number: 9766

First Section of the Tokyo Stock Exchange

Contact: Noriaki Yamaguchi

Representative Director and CFO

Tel: +81-3-5771-0222

Corrections to Consolidated Financial Results

for the Third Quarter Ended December 31, 2007

Konami Corporation hereby gives notice of the following corrections to the "Consolidated Financial Results for the Third Quarter Ended December 31, 2007 (Prepared in Accordance with U.S. GAAP)", announced on February 5, 2008.

I. Corrected Statement

Consolidated Financial Results for the Third Quarter ended December 31, 2007 (Prepared in Accordance with U.S. GAAP) (announced on February 5, 2008）

II. Reason for Correction

Our consolidated financial results are disclosed in accordance with U.S. GAAP, and with respect to software products which have multiple elements, revenue is recognized in accordance with the American Institute of Certified Public Accountants’ Statement of Position (hereinafter “SOP”) 97-2, Software Revenue Recognition.

SOP 97-2 requires that, with regard to game software which has online play functionality, revenue for the delivered package software element and revenue for the undelivered online services element should be separated based on the vender-specific objective evidence of fair value (VSOE). If VSOE does not exist for the undelivered online services, SOP 97-2 requires that the entire revenue from the sale of the package software be deferred and recognized over the estimated online service period.

Taking into account the rise in significance of online services in our game software business, we began to recognize the entire revenue of our package games with online functionality over the estimated online service period in accordance with SOP 97-2 starting from the fiscal year ended March 31, 2008. Accordingly, we re-evaluated the implications of such revenue recognition for each quarter of the fiscal year ended March 31, 2008, and concluded that the consolidated financial results for the third quarter needed to be corrected.

With respect to the results for the fiscal year ended March 31, 2008, SOP 97-2 has already been factored into our accounting procedures, and there are no items requiring correction.

III. Correction Format

The amounts corrected are underlined.

< Page 1>

1. Consolidated Financial Results for the Third Quarter Ended December 31, 2007 and for the Nine Months Ended December 31, 2007

Consolidated Results of Operations

(Before amendment)
(Millions of Yen, except per share data)
	Net revenues	Operating income	Income before income taxes	Net income
Third quarter ended December 31, 2007	Y 95,987	Y 19,112	Y 18,859	Y 11,622
% change from previous period	3.4	15.3	13.0	22.7
Third quarter ended December 31, 2006	92,838	16,583	16,688	9,473
% change from previous period	15.1	1.2	7.0	(2.1)
Nine months ended December 31, 2007	Y 229,730	Y 32,154	Y 31,934	Y 17,910
% change from previous period	8.1	20.4	20.2	22.8
Nine months ended December 31, 2006	212,437	26,698	26,572	14,587
% change from previous period	10.3	12.0	(11.2)	(12.3)
Year ended March 31, 2007	280,279	28,145	27,567	16,211

	Basic net	Diluted net
	income per share	income per share
Third quarter ended December 31, 2007	Y 84.64	Y 84.62
Third quarter ended December 31, 2006	69.03	69.00
Nine months ended December 31, 2007	Y 130.46	Y 130.43
Nine months ended December 31, 2006	106.33	106.27
Year ended March 31, 2007	118.15	118.09

(After amendment)

(Millions of Yen, except per share data)
	Net revenues	Operating income	Income before income taxes	Net income
Third quarter ended December 31, 2007	Y 89,003	Y 14,568	Y 14,315	Y 8,913
% change from previous period	(4.1)	(12.2)	(14.2)	(5.9)
Third quarter ended December 31, 2006	92,838	16,583	16,688	9,473
% change from previous period	15.1	1.2	7.0	(2.1)
Nine months ended December 31, 2007	Y 222,746	Y 27,610	Y 27,390	Y 15,201
% change from previous period	4.9	3.4	3.1	4.2
Nine months ended December 31, 2006	212,437	26,698	26,572	14,587
% change from previous period	10.3	12.0	(11.2)	(12.3)
Year ended March 31, 2007	280,279	28,145	27,567	16,211

	Basic net	Diluted net
	income per share	income per share
Third quarter ended December 31, 2007	Y 64.91	Y 64.89
Third quarter ended December 31, 2006	69.03	69.00
Nine months ended December 31, 2007	Y 110.72	Y 110.70
Nine months ended December 31, 2006	106.33	106.27
Year ended March 31, 2007	118.15	118.09

Consolidated Financial Position

(Before amendment)

(Millions of Yen, except per share data)
	Total assets	Total stockholders' equity	Equity-assets ratio	Stockholders' equity per share

December 31, 2007	Y 319,902	Y 185,167	57.9%	Y 1,348.54
December 31, 2006	300,434	172,707	57.5%	1,258.34
March 31, 2007	304,657	174,662	57.3%	1,272.54

(After amendment)

(Millions of Yen, except per share data)
	Total assets	Total stockholders' equity	Equity-assets ratio	Stockholders' equity per share

December 31, 2007	Y 324,109	Y 182,458	56.3%	Y 1,328.81
December 31, 2006	300,434	172,707	57.5%	1,258.34

< Page 4>

1. Business Performance
Overview for the third quarter ended December 31, 2007

(Before amendment)

In terms of financial performance, consolidated net revenue was Y95,987 million during the current quarter (a 3.4% increase from the same period in the previous year) and Y229,730 million for the nine months ended December 31, 2007 (a 8.1% increase from the same period in the previous year). Results of our operating income amounted to Y19,112 million during the current quarter (a 15.3% increase from the same period in the previous year) and Y32,154 million for the nine months ended December 31, 2007 (a 20.4% increase from the same period in the previous year). Consolidated net income amounted to Y11,622 million during the current quarter (a 22.7% increase from the same period in the previous year) and Y17,910 million for the nine months ended December 31, 2007 (a 22.8% increase from the same period in the previous year).

(After amendment)

In terms of financial performance, consolidated net revenue was Y89,003 million during the current quarter (a 4.1% decrease from the same period in the previous year) and Y222,746 million for the nine months ended December 31, 2007 (a 4.9% increase from the same period in the previous year). Results of our operating income amounted to Y14,568 million during the current quarter (a 12.2% decrease from the same period in the previous year) and Y27,610 million for the nine months ended December 31, 2007 (a 3.4% increase from the same period in the previous year). Consolidated net income amounted to Y8,913 million during the current quarter (a 5.9% decrease from the same period in the previous year) and Y15,201 million for the nine months ended December 31, 2007 (a 4.2% increase from the same period in the previous year).

< Page 5>

Performance by business segment

Summary of net revenues by business segment:

(Before amendment)

	Millions of Yen
	Nine months ended December 31, 2006	Nine months ended December 31, 2007	% change
Digital Entertainment	Y129,447	Y141,140	9.0
Health & Fitness	66,636	64,985	(2.5)
Gaming & System	11,847	12,645	6.7
Other and Eliminations	4,507	10,960	143.2
Consolidated net revenues	Y212,437	Y229,730	8.1

(After amendment)

	Millions of Yen
	Nine months ended December 31, 2006	Nine months ended December 31, 2007	% change
Digital Entertainment	Y129,447	Y134,156	3.6
Health & Fitness	66,636	64,985	(2.5)
Gaming & System	11,847	12,645	6.7
Other and Eliminations	4,507	10,960	143.2
Consolidated net revenues	Y212,437	Y222,746	4.9

Digital Entertainment segment:

(Before amendment)

In terms of financial performance, the Digital Entertainment segment recorded consolidated net revenues of Y67,162 million during the current quarter (a 1.9% increase from the same period in the previous year) and Y141,140 million for the nine months ended December 31, 2007 (a 9.0% increase from the same period in the previous year).

(After amendment)

In terms of financial performance, the Digital Entertainment segment recorded consolidated net revenues of Y60,178 million during the current quarter (a 8.7% decrease from the same period in the previous year) and Y134,156 million for the nine months ended December 31, 2007 (a 3.6% increase from the same period in the previous year).

< Page 8>

3. Consolidated Balance Sheets (Unaudited): ASSETS

(Before amendment)

	Millions of Yen						Thousands of U.S. Dollars
	December 31, 2006		December 31, 2007		March 31, 2007		December 31, 2007
		%		%		%
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	Y 43,745		Y 49,403		Y 57,333		$ 432,790
Trade notes and accounts receivable, net	46,953		45,730		29,729
of allowance for doubtful accounts of
¥592 million, ¥530 million
($4,643 thousand) and ¥540 million at
December 31, 2006, December 31,
2007 and March 31, 2007, respectively							400,613
Inventories	24,573		24,027		24,236		210,486
Deferred income taxes, net	17,266		17,802		14,877		155,953
Prepaid expenses and other current assets	6,851		11,641		12,086		101,980
Total current assets	139,388	46.4	148,603	46.5	138,261	45.4	1,301,822

PROPERTY AND EQUIPMENT, net	45,317	15.1	59,573	18.6	53,294	17.5	521,883

INVESTMENTS AND OTHER ASSETS:
Investments in marketable securities	644		649		701		5,686
Investments in affiliates	6,054		6,343		6,213		55,567
Identifiable intangible assets	38,606		38,066		38,585		333,474
Goodwill	23,153		22,518		22,738		197,267
Lease deposits	26,318		26,649		24,906		233,456
Deferred income taxes, net	3,266		1,730		2,593		15,155
Other assets	17,688		15,771		17,366		138,160
Total investments and other assets	115,729	38.5	111,726	34.9	113,102	37.1	978,765
TOTAL ASSETS	Y 300,434	100.0	Y 319,902	100.0	Y 304,657	100.0	$ 2,802,470

(After amendment)

	Millions of Yen						Thousands of U.S. Dollars
	December 31, 2006		December 31, 2007		March 31, 2007		December 31, 2007
		%		%		%
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	Y 43,745		Y 49,403		Y 57,333		$ 432,790
Trade notes and accounts receivable, net	46,953		45,730		29,729
of allowance for doubtful accounts of
¥592 million, ¥530 million
($4,643 thousand) and ¥540 million at
December 31, 2006, December 31,
2007 and March 31, 2007, respectively							400,613
Inventories	24,573		26,466		24,236		231,853
Deferred income taxes, net	17,266		19,570		14,877		171,441
Prepaid expenses and other current assets	6,851		11,641		12,086		101,980
Total current assets	139,388	46.4	152,810	47.1	138,261	45.4	1,338,677

PROPERTY AND EQUIPMENT, net	45,317	15.1	59,573	18.4	53,294	17.5	521,883

INVESTMENTS AND OTHER ASSETS:
Investments in marketable securities	644		649		701		5,686
Investments in affiliates	6,054		6,343		6,213		55,567
Identifiable intangible assets	38,606		38,066		38,585		333,474
Goodwill	23,153		22,518		22,738		197,267
Lease deposits	26,318		26,649		24,906		233,456
Deferred income taxes, net	3,266		1,730		2,593		15,155
Other assets	17,688		15,771		17,366		138,160
Total investments and other assets	115,729	38.5	111,726	34.5	113,102	37.1	978,765
TOTAL ASSETS	Y 300,434	100.0	Y 324,109	100.0	Y 304,657	100.0	$ 2,839,325

< Page 9>

3. Consolidated Balance Sheets (Unaudited): LIABILITIES AND STOCKHOLDERS' EQUITY

(Before amendment)

	Millions of Yen						Thousands of U.S. Dollars
	December 31, 2006		December 31, 2007		March 31, 2007		December 31, 2007
		%		%		%
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt and	Y 22,616		Y 7,807		Y 23,073
capital lease obligations	Y 22,616		Y 7,807		Y 23,073		$ 68,392
Trade notes and accounts payable	24,100		20,828		24,002		182,462
Accrued income taxes	8,845		9,568		1,740		83,820
Accrued expenses	21,105		23,002		19,179		201,507
Deferred revenue	6,076		5,623		5,661		49,260
Other current liabilities	5,820		9,698		8,811		84,958
Total current liabilities	88,562	29.5	76,526	23.9	82,466	27.1	670,399
LONG-TERM LIABILITIES:
Long-term debt and capital lease obligations, less current portion	16,386		32,555		24,248		285,195
Accrued pension and severance costs	2,687		2,677		2,708		23,452
Deferred income taxes, net	11,975		12,459		12,207		109,145
Other long-term liabilities	5,482		6,669		5,669		58,423
Total long-term liabilities	36,530	12.1	54,360	17.0	44,832	14.7	476,215
TOTAL LIABILITIES	125,092	41.6	130,886	40.9	127,298	41.8	1,146,614

MINORITY INTEREST IN CONSOLIDATED SUBSIDIARIES	2,635	0.9	3,849	1.2	2,697	0.9	33,719

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY:
Common stock, no par value-
Authorized 450,000,000 shares;	47,399	15.8	47,399	14.8	47,399	15.6
issued 143,555,786 shares at
December 31, 2006, December 31,
2007 and March 31, 2007							415,234
Additional paid-in capital	77,184	25.7	77,220	24.2	77,213	25.3	676,478
Legal reserve	284	0.1	284	0.1	284	0.1	2,488
Retained earnings	60,936	20.3	73,057	22.8	62,560	20.5	640,009
Accumulated other comprehensive income	5,330	1.7	5,469	1.7	5,617	1.8	47,911
Treasury stock, at cost-
6,307,387 shares, 6,246,880 shares and 6,300,970 shares at December 31, 2006, December 31, 2007 and March 31, 2007, respectively	(18,426)	(6.1)	(18,262)	(5.7)	(18,411)	(6.0)	(159,983)
Total stockholders' equity	172,707	57.5	185,167	57.9	174,662	57.3	1,622,137
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	Y 300,434	100.0	Y 319,902	100.0	Y 304,657	100.0	$ 2,802,470

(After amendment)

	Millions of Yen						Thousands of U.S. Dollars
	December 31, 2006		December 31, 2007		March 31, 2007		December 31, 2007
		%		%		%
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt and	Y 22,616		Y 7,807		Y 23,073
capital lease obligations	Y 22,616		Y 7,807		Y 23,073		$ 68,392
Trade notes and accounts payable	24,100		20,828		24,002		182,462
Accrued income taxes	8,845		9,568		1,740		83,820
Accrued expenses	21,105		23,002		19,179		201,507
Deferred revenue	6,076		12,607		5,661		110,442
Other current liabilities	5,820		9,630		8,811		84,362
Total current liabilities	88,562	29.5	83,442	25.7	82,466	27.1	730,985
LONG-TERM LIABILITIES:
Long-term debt and capital lease obligations, less current portion	16,386		32,555		24,248		285,195
Accrued pension and severance costs	2,687		2,677		2,708		23,452
Deferred income taxes, net	11,975		12,459		12,207		109,145
Other long-term liabilities	5,482		6,669		5,669		58,423
Total long-term liabilities	36,530	12.1	54,360	16.8	44,832	14.7	476,215
TOTAL LIABILITIES	125,092	41.6	137,802	42.5	127,298	41.8	1,207,200

MINORITY INTEREST IN CONSOLIDATED SUBSIDIARIES	2,635	0.9	3,849	1.2	2,697	0.9	33,719

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY:
Common stock, no par value-
Authorized 450,000,000 shares;	47,399	15.8	47,399	14.6	47,399	15.6
issued 143,555,786 shares at
December 31, 2006, December 31,
2007 and March 31, 2007							415,234
Additional paid-in capital	77,184	25.7	77,220	23.8	77,213	25.3	676,478
Legal reserve	284	0.1	284	0.1	284	0.1	2,488
Retained earnings	60,936	20.3	70,348	21.7	62,560	20.5	616,278
Accumulated other comprehensive income	5,330	1.7	5,469	1.7	5,617	1.8	47,911
Treasury stock, at cost-
6,307,387 shares, 6,246,880 shares and 6,300,970 shares at December 31, 2006, December 31, 2007 and March 31, 2007, respectively	(18,426)	(6.1)	(18,262)	(5.6)	(18,411)	(6.0)	(159,983)
Total stockholders' equity	172,707	57.5	182,458	56.3	174,662	57.3	1,598,406
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	Y 300,434	100.0	Y 324,109	100.0	Y 304,657	100.0	$ 2,839,325

< Page 10>

4. Consolidated Statements of Income (Unaudited)

(For the nine months ended December 31, 2007)

(Before amendment)

	Millions of Yen						Thousands of U.S. Dollars
	Nine months ended December 31, 2006		Nine months ended December 31, 2007		Year ended March 31, 2007		Nine months ended December 31, 2007
		%		%		%
NET REVENUES:
Product sales revenue	Y151,644		Y170,197		Y 199,620		$ 1,490,994
Service revenue	60,793		59,533		80,659		521,533
Total net revenues	212,437	100.0	229,730	100.0	280,279	100.0	2,012,527
COSTS AND EXPENSES:
Costs of products sold	87,201		99,647		118,806		872,948
Costs of services rendered	56,731		55,229		74,700		483,828
Selling, general and administrative	41,807		42,700		58,628		374,069
Total costs and expenses	185,739	87.4	197,576	86.0	252,134	90.0	1,730,845
Operating income	26,698	12.6	32,154	14.0	28,145	10.0	281,682
OTHER INCOME (EXPENSES):
Interest income	589		699		821		6,124
Interest expense	(703)		(791)		(985)		(6,930)
Other, net	(12)		(128)		(414)		(1,121)
Other income (expenses), net	(126)	(0.1)	(220)	(0.1)	(578)	(0.2)	(1,927)
INCOME BEFORE INCOME TAXES, MINORITY INTEREST AND EQUITY IN NET INCOME OF AFFILIATED COMPANIES	26,572	12.5	31,934	13.9	27,567	9.8	279,755
INCOME TAXES	11,562	5.4	13,000	5.7	10,919	3.9	113,885
INCOME BEFORE MINORITY INTEREST AND EQUITY IN NET INCOME OF AFFILIATED COMPANIES	15,010	7.1	18,934	8.2	16,648	5.9	165,870
MINORITY INTEREST IN INCOME OF CONSOLIDATED SUBSIDIARIES	501	0.2	1,159	0.5	575	0.2	10,154
EQUITY IN NET INCOME OF AFFILIATED COMPANIES	78	0.0	135	0.1	138	0.0	1,183
NET INCOME	Y 14,587	6.9	Y 17,910	7.8	Y16,211	5.7	$156,899

PER SHARE DATA:	Yen			U.S. Dollar
	Nine months ended	Nine months ended	Year ended	Nine months ended
	December 31, 2006	December 31, 2007	March 31, 2007	December 31, 2007
Basic net income per share	Y106.33	Y 130.46	Y 118.15	$ 1.14
Diluted net income per share	106.27	130.43	118.09	1.14
Weighted-average common
share outstanding	137,187,117	137,282,833	137,202,151
Diluted weighted-average
common shares outstanding	137,261,200	137,318,036	137,271,645

(After amendment)

	Millions of Yen						Thousands of U.S. Dollars
	Nine months ended December 31, 2006		Nine months ended December 31, 2007		Year ended March 31, 2007		Nine months ended December 31, 2007
		%		%		%
NET REVENUES:
Product sales revenue	Y 151,644		Y 163,213		Y 199,620		$ 1,429,812
Service revenue	60,793		59,533		80,659		521,533
Total net revenues	212,437	100.0	222,746	100.0	280,279	100.0	1,951,345
COSTS AND EXPENSES:
Costs of products sold	87,201		97,207		118,806		851,573
Costs of services rendered	56,731		55,229		74,700		483,828
Selling, general and administrative	41,807		42,700		58,628		374,069
Total costs and expenses	185,739	87.4	195,136	87.6	252,134	90.0	1,709,470
Operating income	26,698	12.6	27,610	12.4	28,145	10.0	241,875
OTHER INCOME (EXPENSES):
Interest income	589		699		821		6,124
Interest expense	(703)		(791)		(985)		(6,930)
Other, net	(12)		(128)		(414)		(1,121)
Other income (expenses), net	(126)	(0.1)	(220)	(0.1)	(578)	(0.2)	(1,927)
INCOME BEFORE INCOME TAXES, MINORITY INTEREST AND EQUITY IN NET INCOME OF AFFILIATED COMPANIES	26,572	12.5	27,390	12.3	27,567	9.8	239,948
INCOME TAXES	11,562	5.4	11,165	5.0	10,919	3.9	97,810
INCOME BEFORE MINORITY INTEREST AND EQUITY IN NET INCOME OF AFFILIATED COMPANIES	15,010	7.1	16,225	7.3	16,648	5.9	142,138
MINORITY INTEREST IN INCOME OF CONSOLIDATED SUBSIDIARIES	501	0.2	1,159	0.5	575	0.2	10,154
EQUITY IN NET INCOME OF AFFILIATED COMPANIES	78	0.0	135	0.1	138	0.0	1,183
NET INCOME	Y 14,587	6.9	Y 15,201	6.9	Y16,211	5.7	$133,167

PER SHARE DATA:	Yen			U.S. Dollar
	Nine months ended	Nine months ended	Year ended	Nine months ended
	December 31, 2006	December 31, 2007	March 31, 2007	December 31, 2007
Basic net income per share	Y 106.33	Y110.72	Y 118.15	$ 0.97
Diluted net income per share	106.27	110.70	118.09	0.97
Weighted-average common
share outstanding	137,187,117	137,282,833	137,202,151
Diluted weighted-average
common shares outstanding	137,261,200	137,318,036	137,271,645

< Page 11>

4. Consolidated Statements of Income (Unaudited)

(For the third quarter ended December 31, 2007)

(Before amendment)

	Millions of Yen				Thousands of U.S. Dollars
	Third quarter ended December 31, 2006		Third quarter ended December 31, 2007		Third quarter ended December 31, 2007
		%		%
NET REVENUES:
Product sales revenue	Y 72,291		Y 76,658		$ 671,555
Service revenue	20,547		19,329		169,330
Total net revenues	92,838	100.0	95,987	100.0	840,885
COSTS AND EXPENSES:
Costs of products sold	41,654		43,263		379,001
Costs of services rendered	18,934		17,021		149,111
Selling, general and administrative	15,667		16,591		145,344
Total costs and expenses	76,255	82.1	76,875	80.1	673,456
Operating income	16,583	17.9	19,112	19.9	167,429
OTHER INCOME (EXPENSES):
Interest income	191		194		1,699
Interest expense	(124)		(275)		(2,409)
Other, net	38		(172)		(1,507)
Other income (expenses), net	105	0.1	(253)	(0.3)	(2,217)
INCOME BEFORE INCOME TAXES, MINORITY INTEREST AND EQUITY IN NET INCOME (LOSS) OF AFFILIATED COMPANIES	16,688	18.0	18,859	19.6	165,212
INCOME TAXES	7,089	7.7	7,012	7.3	61,428
INCOME BEFORE MINORITY INTEREST AND EQUITY IN NET INCOME (LOSS) OF AFFILIATED COMPANIES	9,599	10.3	11,847	12.3	103,784
MINORITY INTEREST IN INCOME OF CONSOLIDATED SUBSIDIARIES	123	0.1	213	0.2	1,866
EQUITY IN NET INCOME (LOSS) OF AFFILIATED COMPANIES	(3)	(0.0)	(12)	(0.0)	(105)
NET INCOME	Y 9,473	10.2	Y 11,622	12.1	$ 101,813

PER SHARE DATA:	Yen		U.S. Dollar
	Third quarter ended	Third quarter ended	Third quarter ended
	December 31, 2006	December 31, 2007	December 31, 2007
Basic net income per share	Y 69.03	Y 84.64	$ 0.74
Diluted net income per share	69.00	84.62	0.74
Weighted-average common
share outstanding	137,239,132	137,307,136
Diluted weighted-average
common shares outstanding	137,296,666	137,336,172

(After amendment)

	Millions of Yen				Thousands of U.S. Dollars
	Third quarter ended December 31, 2006		Third quarter ended December 31, 2007		Third quarter ended December 31, 2007
		%		%
NET REVENUES:
Product sales revenue	Y 72,291		Y 69,674		$ 610,372
Service revenue	20,547		19,329		169,330
Total net revenues	92,838	100.0	89,003	100.0	779,702
COSTS AND EXPENSES:
Costs of products sold	41,654		40,823		357,625
Costs of services rendered	18,934		17,021		149,111
Selling, general and administrative	15,667		16,591		145,344
Total costs and expenses	76,255	82.1	74,435	83.6	652,080
Operating income	16,583	17.9	14,568	16.4	127,622
OTHER INCOME (EXPENSES):
Interest income	191		194		1,699
Interest expense	(124)		(275)		(2,409)
Other, net	38		(172)		(1,507)
Other income (expenses), net	105	0.1	(253)	(0.3)	(2,217)
INCOME BEFORE INCOME TAXES, MINORITY INTEREST AND EQUITY IN NET INCOME (LOSS) OF AFFILIATED COMPANIES	16,688	18.0	14,315	16.1	125,405
INCOME TAXES	7,089	7.7	5,177	5.8	45,353
INCOME BEFORE MINORITY INTEREST AND EQUITY IN NET INCOME (LOSS) OF AFFILIATED COMPANIES	9,599	10.3	9,138	10.3	80,052
MINORITY INTEREST IN INCOME OF CONSOLIDATED SUBSIDIARIES	123	0.1	213	0.2	1,866
EQUITY IN NET INCOME (LOSS) OF AFFILIATED COMPANIES	(3)	(0.0)	(12)	(0.0)	(105)
NET INCOME	Y 9,473	10.2	Y 8,913	10.1	$ 78,081

PER SHARE DATA:	Yen		U.S. Dollar
	Third quarter ended	Third quarter ended	Third quarter ended
	December 31, 2006	December 31, 2007	December 31, 2007
Basic net income per share	Y69.03	Y 64.91	$ 0.57
Diluted net income per share	69.00	64.89	0.57
Weighted-average common
share outstanding	137,239,132	137,307,136
Diluted weighted-average
common shares outstanding	137,296,666	137,336,172

< Page 12>

5. Consolidated Statements of Cash Flows (Unaudited)

(Before amendment)

	Millions of Yen			Thousands of U.S. Dollars
	Nine months ended December 31, 2006	Nine months ended December 31, 2007	Year ended March 31, 2007	Nine months ended December 31, 2007
Cash flows from operating activities:
Net income	Y 14,587	Y 17,910	Y 16,211	$ 156,899
Adjustments to reconcile net income to net cash provided by operating activities -
Depreciation and amortization	7,916	9,199	11,757	80,587
Provision for doubtful receivables	20	(27)	(76)	(236)
Loss on sale or disposal of property and equipment, net	125	247	829	2,164
Equity in net income of an affiliated company	(78)	(135)	(138)	(1,183)
Minority interest	501	1,159	575	10,153
Deferred income taxes	(729)	(1,763)	2,621	(15,445)
Change in assets and liabilities, net of business acquired:
Decrease (increase) in trade notes and accounts receivable	(12,357)	(16,770)	4,716	(146,912)
Increase in inventories	(4,406)	(976)	(4,298)	(8,550)
Increase (decrease) in trade notes and accounts payable	3,389	(2,555)	3,354	(22,383)
Increase (decrease) in accrued income taxes	2,735	7,307	(7,190)	64,012
Increase in accrued expenses	4,786	2,055	3,567	18,003
Increase (decrease) in deferred revenue	724	(35)	309	(307)
Other, net	(1,742)	3,944	(413)	34,551
Net cash provided by operating activities	15,471	19,560	31,824	171,353

(After amendment)

	Millions of Yen			Thousands of U.S. Dollars
	Nine months ended December 31, 2006	Nine months ended December 31, 2007	Year ended March 31, 2007	Nine months ended December 31, 2007
Cash flows from operating activities:
Net income	Y 14,587	Y 15,201	Y 16,211	$ 133,167
Adjustments to reconcile net income to net cash provided by operating activities -
Depreciation and amortization	7,916	9,199	11,757	80,587
Provision for doubtful receivables	20	(27)	(76)	(236)
Loss on sale or disposal of property and equipment, net	125	247	829	2,164
Equity in net income of an affiliated company	(78)	(135)	(138)	(1,183)
Minority interest	501	1,159	575	10,153
Deferred income taxes	(729)	(3,599)	2,621	(31,529)
Change in assets and liabilities, net of business acquired:
Decrease (increase) in trade notes and accounts receivable	(12,357)	(16,770)	4,716	(146,912)
Increase in inventories	(4,406)	(3,415)	(4,298)	(29,917)
Increase (decrease) in trade notes and accounts payable	3,389	(2,555)	3,354	(22,383)
Increase (decrease) in accrued income taxes	2,735	7,307	(7,190)	64,012
Increase in accrued expenses	4,786	2,055	3,567	18,003
Increase (decrease) in deferred revenue	724	6,949	309	60,876
Other, net	(1,742)	3,944	(413)	34,551
Net cash provided by operating activities	15,471	19,560	31,824	171,353

< Page 13>

6. Segment Information (Unaudited)

a . Segment Information

(Nine months ended December 31)

(Before amendment)

Nine months ended December 31, 2007		Digital Entertainment		Health & Fitness		Gaming & System		Other, Corporate and Eliminations		Consolidated
	(Millions of Yen)
Net revenue:
Customers		Y	139,979	Y	64,714	Y	12,645	Y	12,392	Y	229,730
Intersegment			1,161		271		-		(1,432)		-
Total			141,140		64,985		12,645		10,960		229,730
Operating expenses			108,005		60,268		10,733		18,570		197,576
Operating income (loss)		Y	33,135	Y	4,717	Y	1,912	Y	(7,610)	Y	32,154

Nine months ended December 31, 2007		Digital Entertainment		Health & Fitness		Gaming & System		Other, Corporate and Eliminations		Consolidated
	(Thousands of U.S. Dollars)
Net revenue:
Customers		$	1,226,272	$	566,921	$	110,775	$	108,559	$	2,012,527
Intersegment			10,171		2,374		-		(12,545)		-
Total			1,236,443		569,295		110,775		96,014		2,012,527
Operating expenses			946,167		527,972		94,025		162,681		1,730,845
Operating income (loss)		$	290,276	$	41,323	$	16,750	$	(66,667)	$	281,682

(After amendment)

Nine months ended December 31, 2007		Digital Entertainment		Health & Fitness		Gaming & System		Other, Corporate and Eliminations		Consolidated
	(Millions of Yen)
Net revenue:
Customers		Y	132,995	Y	64,714	Y	12,645	Y	12,392	Y	222,746
Intersegment			1,161		271		-		(1,432)		-
Total			134,156		64,985		12,645		10,960		222,746
Operating expenses			105,565		60,268		10,733		18,570		195,136
Operating income (loss)		Y	28,591	Y	4,717	Y	1,912	Y	(7,610)	Y	27,610

Nine months ended December 31, 2007		Digital Entertainment		Health & Fitness		Gaming & System		Other, Corporate and Eliminations		Consolidated
	(Thousands of U.S. Dollars)
Net revenue:
Customers		$	1,165,090	$	566,921	$	110,775	$	108,559	$	1,951,345
Intersegment			10,171		2,374		-		(12,545)		-
Total			1,175,261		569,295		110,775		96,014		1,951,345
Operating expenses			924,792		527,972		94,025		162,681		1,709,470
Operating income (loss)		$	250,469	$	41,323	$	16,750	$	(66,667)	$	241,875

< Page 14>

(Third quarter ended December 31)

(Before amendment)

Third quarter ended December 31, 2007		Digital Entertainment		Health & Fitness		Gaming & System		Other, Corporate and Eliminations		Consolidated
	(Millions of Yen)
Net revenue:
Customers		Y	66,769	Y	20,974	Y	5,045	Y	3,199	Y	95,987
Intersegment			393		112		-		(505)		-
Total			67,162		21,086		5,045		2,694		95,987
Operating expenses			47,331		19,982		4,083		5,479		76,875
Operating income (loss)		Y	19,831	Y	1,104	Y	962	Y	(2,785)	Y	19,112

Third quarter ended December 31, 2007		Digital Entertainment		Health & Fitness		Gaming & System		Other, Corporate and Eliminations		Consolidated
	(Thousands of U.S. Dollars)
Net revenue:
Customers		$	584,924	$	183,741	$	44,196	$	28,024	$	840,885
Intersegment			3,443		981		-		(4,424)		-
Total			588,367		184,722		44,196		23,600		840,885
Operating expenses			414,639		175,050		35,769		47,998		673,456
Operating income (loss)		$	173,728	$	9,672	$	8,427	$	(24,398)	$	167,429

(After amendment)

Third quarter ended December 31, 2007		Digital Entertainment		Health & Fitness		Gaming & System		Other, Corporate and Eliminations		Consolidated
	(Millions of Yen)
Net revenue:
Customers		Y	59,785	Y	20,974	Y	5,045	Y	3,199	Y	89,003
Intersegment			393		112		-		(505)		-
Total			60,178		21,086		5,045		2,694		89,003
Operating expenses			44,891		19,982		4,083		5,479		74,435
Operating income (loss)		Y	15,287	Y	1,104	Y	962	Y	(2,785)	Y	14,568

Third quarter ended December 31, 2007		Digital Entertainment		Health & Fitness		Gaming & System		Other, Corporate and Eliminations		Consolidated
	(Thousands of U.S. Dollars)
Net revenue:
Customers		$	523,741	$	183,741	$	44,196	$	28,024	$	779,702
Intersegment			3,443		981		-		(4,424)		-
Total			527,184		184,722		44,196		23,600		779,702
Operating expenses			393,263		175,050		35,769		47,998		652,080
Operating income (loss)		$	133,921	$	9,672	$	8,427	$	(24,398)	$	127,622

< Page 15>

b . Geographic Information

(Nine months ended December 31)

(Before amendment)

Nine months ended December 31, 2007	Japan		North America		Europe		Asia/ Oceania		Total		Eliminations		Consolidated
	(Millions of Yen)
Net revenue:
Customers	Y	171,727	Y	21,673	Y	30,512	Y	5,818	Y	229,730		-	Y	229,730
Intersegment		15,826		3,483		33		408		19,750	Y	(19,750)		-
Total		187,553		25,156		30,545		6,226		249,480		(19,750)		229,730
Operating expenses		160,001		25,096		26,626		5,659		217,382		(19,806)		197,576
Operating income	Y	27,552	Y	60	Y	3,919	Y	567	Y	32,098	Y	56	Y	32,154

Nine months ended December 31, 2007	Japan		North America		Europe		Asia/ Oceania		Total		Eliminations		Consolidated
	(Thousands of U.S. Dollars)
Net revenue:
Customers	$	1,504,398	$	189,864	$	267,297	$	50,968	$	2,012,527		-	$	2,012,527
Intersegment		138,642		30,513		289		3,574		173,018	$	(173,018)		-
Total		1,643,040		220,377		267,586		54,542		2,185,545		(173,018)		2,012,527
Operating expenses		1,401,673		219,852		233,254		49,575		1,904,354		(173,509)		1,730,845
Operating income	$	241,367	$	525	$	34,332	$	4,967	$	281,191	$	491	$	281,682

(After amendment)

Nine months ended December 31, 2007	Japan		North America		Europe		Asia/ Oceania		Total		Eliminations		Consolidated
	(Millions of Yen)
Net revenue:
Customers	Y	170,476	Y	21,555	Y	25,055	Y	5,660	Y	222,746		-	Y	222,746
Intersegment		13,626		3,483		33		408		17,550	Y	(17,550)		-
Total		184,102		25,038		25,088		6,068		240,296		(17,550)		222,746
Operating expenses		158,664		25,035		23,438		5,606		212,743		(17,607)		195,136
Operating income	Y	25,438	Y	3	Y	1,650	Y	462	Y	27,553	Y	57	Y	27,610

Nine months ended December 31, 2007	Japan		North America		Europe		Asia/ Oceania		Total		Eliminations		Consolidated
	(Thousands of U.S. Dollars)
Net revenue:
Customers	$	1,493,439	$	188,830	$	219,492	$	49,584	$	1,951,345		-	$	1,951,345
Intersegment		119,369		30,513		289		3,574		153,745	$	(153,745)		-
Total		1,612,808		219,343		219,781		53,158		2,105,090		(153,745)		1,951,345
Operating expenses		1,389,961		219,317		205,326		49,111		1,863,715		(154,245)		1,709,470
Operating income	$	222,847	$	26	$	14,455	$	4,047	$	241,375	$	500	$	241,875

< Page 16>

(Third quarter ended December 31)

(Before amendment)

Third quarter ended December 31, 2007	Japan		North America		Europe		Asia/ Oceania		Total		Eliminations		Consolidated
	(Millions of Yen)
Net revenue:
Customers	Y	59,966	Y	9,647	Y	24,055	Y	2,319	Y	95,987		-	Y	95,987
Intersegment		11,337		1,299		33		248		12,917	Y	(12,917)		-
Total		71,303		10,946		24,088		2,567		108,904		(12,917)		95,987
Operating expenses		57,885		10,299		19,253		2,339		89,776		(12,901)		76,875
Operating income (loss)	Y	13,418	Y	647	Y	4,835	Y	228	Y	19,128	Y	(16)	Y	19,112

Third quarter ended December 31, 2007	Japan		North America		Europe		Asia/ Oceania		Total		Eliminations		Consolidated
	(Thousands of U.S. Dollars)
Net revenue:
Customers	$	525,326	$	84,512	$	210,732	$	20,315	$	840,885		-	$	840,885
Intersegment		99,317		11,380		289		2,173		113,159	$	(113,159)		-
Total		624,643		95,892		211,021		22,488		954,044		(113,159)		840,885
Operating expenses		507,096		90,224		168,664		20,491		786,475		(113,019)		673,456
Operating income (loss)	$	117,547	$	5,668	$	42,357	$	1,997	$	167,569	$	(140)	$	167,429

(After amendment)

Third quarter ended December 31, 2007	Japan		North America		Europe		Asia/ Oceania		Total		Eliminations		Consolidated
	(Millions of Yen)
Net revenue:
Customers	Y	58,715	Y	9,529	Y	18,598	Y	2,161	Y	89,003		-	Y	89,003
Intersegment		9,137		1,299		33		248		10,717	Y	(10,717)		-
Total		67,852		10,828		18,631		2,409		99,720		(10,717)		89,003
Operating expenses		56,548		10,238		16,065		2,286		85,137		(10,702)		74,435
Operating income (loss)	Y	11,304	Y	590	Y	2,566	Y	123	Y	14,583	Y	(15)	Y	14,568

Third quarter ended December 31, 2007	Japan		North America		Europe		Asia/ Oceania		Total		Eliminations		Consolidated
	(Thousands of U.S. Dollars)
Net revenue:
Customers	$	514,367	$	83,478	$	162,926	$	18,931	$	779,702		-	$	779,702
Intersegment		80,043		11,380		289		2,173		93,885	$	(93,885)		-
Total		594,410		94,858		163,215		21,104		873,587		(93,885)		779,702
Operating expenses		495,383		89,689		140,736		20,026		745,834		(93,754)		652,080
Operating income (loss)	$	99,027	$	5,169	$	22,479	$	1,078	$	127,753	$	(131)	$	127,622

This information is provided by RNS

The company news service from the London Stock Exchange

END

QRTPBMJTMMJMBMP

Related Shares:

FTSE 100 Latest

Value8,275.66

Change0.00