Casio Computer Co (6952) Q3 2025 earnings summary

Executive summary

• Third quarter and nine-month results were significantly impacted by a ransomware attack, with Q3 net sales down 13% year-over-year to 58.8 billion yen and operating profit down 75% to 0.9 billion yen; nine-month net sales fell 2.7% to 195.8 billion yen, operating profit at 11.2 billion yen, and net income down 75% to 0.7 billion yen.

• The ransomware attack caused opportunity losses of JPY 13 billion in net sales and JPY 4 billion in operating profit, with all segments affected.

• Comprehensive income for the nine months dropped 71.8% year-over-year to ¥4.7 billion.

• The impact of the ransomware attack ended in the third quarter, with operations returning to normal in the fourth quarter.

Financial highlights

• Q3 operating profit was JPY 900 million, compared to a plan of JPY 3.7 billion for the second half; Q3 operating margin dropped to 1.5% from 5.4% year-over-year.

• Nine-month gross profit was ¥86.3 billion, down from ¥87.8 billion year-over-year.

• Full-year forecast for operating profit remains unchanged at JPY 14 billion; FY2025 full-year net sales forecast at 262.0 billion yen, operating profit at 14.0 billion yen, OPM 5.3%.

• Dividend payout ratio at 88.4%, total payout ratio at 164.1%; dividend forecast for the year ending March 31, 2025, is yet to be determined.

• Extraordinary losses of ¥9.8 billion included extra retirement payments and business restructuring expenses.

Outlook and guidance

• Full-year forecast remains unchanged despite the third quarter impact, with normalization expected in the fourth quarter; FY2025 guidance anticipates further declines in profit.

• Adjustments in cost accounting due to the ransomware attack will result in a JPY 900 million decrease in fourth quarter operating profit.

• Timepiece full-year sales expected at 165.0 billion yen, with operating profit of 20.5 billion yen; Consumer segment full-year sales forecast at 83.5 billion yen, operating profit 2.7 billion yen.

• System Equipment and Others segments expected to remain weak.

• Dividend forecast for the year ending March 31, 2025, is yet to be determined.