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A n n u a l R e p o r t 2 0 0 8
For the F iscal Year 2007 Ended March 31, 2008
New
Japan
Radio
The fusion of & opens
new technologies and new markets.
Various electronic devices that promote multimedia and
ubiquitous computing societies are evolving rapidly.
To respond as quickly as possible to the rapidly changing
times, New Japan Radio Co., Ltd. is promoting R&D based
on the concepts of "The fusion of & opens new
technologies and new markets."
New Japan Radio offers products and services meeting
the needs of the "multimedia and ubiquitous computing era"
by combining its "microwave technology" to carry information
and "semiconductor technology" to process information. Our
company is developing as a manufacturer of electronic devices
supporting development of products for a highly information-
based society.
Microwave
& Microelectronics
2 Financial Highlights
3 Consolidated Business Overview
4 Dear Shareholders
8 Semiconductor Devices
11 Microwave Application Products
12 Microwave Tubes and Radar Components
16 Management's Discussion and Analysis
20 Financial Statements
46 Independent Auditors' Report
47 Company Information
13 Research and Development
15 Environmental Activities
48 NJRC Group
Contents
A N N U A L R E P O R T 2 0 0 8 1
P r o f i l e
Semiconductor Devices
These devices consist of bipolar ICs, MOS ICs and microwave & optoelectronic devices. The bipolar ICs are mainly analog ICs
(such as operational amplifiers and comparators). The MOS ICs are mainly LCD driver ICs, audio processors and quartz crystal
oscillator ICs. The microwave & optoelectronic devices consist of GaAs MMICs and optoelectronic devices.
Microwave Application Products
These products consist of components for satellite broadcasting, satellite communications and terrestrial communications.
The main products are transmitters, receivers, and low-noise amplifiers.
Microwave Tubes and Radar Components
The main products are radar parts, including magnetron and radar components for governmental-use.
New Japan Radio Co., Ltd. started business as Saitama Japan Radio Co., Ltd. in 1959 through
100% investments from its parent company, Japan Radio Co., Ltd., and adopted its present
name in 1961.
New Japan Radio Co., Ltd. took over the manufacturing divisions of microwave tubes and
semiconductors from Japan Radio Co., Ltd. in 1961 and 1962 respectively.
With the establishment of Saga Electronics Co., Ltd. in 1965, New Japan Radio Co., Ltd. set
up five subsidiaries in Japan. We also have Kawagoe works, one branch office, and two sales
offices. Following the overseas establishment of NJR CORPORATION (U.S.A.) in 1979, we
set up THAI NJR CO., LTD. (Thailand) in 1989 and NJR (SINGAPORE) PTE LTD
(Singapore) in 1992, NJR SHANGHAI CO.,LTD.(China) in 2008.
New Japan Radio Co., Ltd. went public (over-the-counter issues). It listed its stock on the
second section of Tokyo Stock Exchange in 2000 and on its first section in 2002.
New Japan Radio Co., Ltd. consists of "Semiconductor Devices," "Microwave Application
Products" and "Microwave Tubes and Radar Components."
� Foundation
� Production
� Group Organization
� Stock
� Business Formation
� Defense/meteorology field
� Marine radar field
MicrowaveMicrowave
Tubes and Radar ComponentsTubes and Radar Components
New Japan Radio Co., Ltd.
� Terrestrial communications
� Satellite communications
� Satellite broadcasting
Microwave
Application Products
Microwave
Application Products
� Bipolar ICs
� MOS ICs
� Microwave &
Optoelectronic Devices
Semiconductor
A N N U A L R E P O R T 2 0 0 82 A N N U A L R E P O R T 2 0 0 8 3
F i n a n c i a l H i g h l i g h t s
Net sales ¥ 60,443 ¥ 60,726 $ 603,288
Net income 435 1,722 4,341
Per share Net income ¥ 11.12 ¥ 44.00 $ 0.11
Cash dividends 12.00 12.00 0.12
Shareholders' equity ¥ 25,523 ¥ 25,985 $ 254,743
Total assets 58,077 60,361 579,664
Capital expenditure 4,173 3,477 41,652
Depreciation and amortization 4,737 3,897 47,275
2008 2007 2008
Millions of Yen
Thousands of
U.S. Dollars
Yen U.S. Dollars
Millions of Yen
Thousands of
U.S. Dollars
Note: U.S. Dollar amounts are translated from Japanese Yen, for convenience only, at the rate of ¥100.19 = U.S.$1.
Sales proportion by division in fiscal 2007
Semiconductor Devices
[Consolidated net sales: ¥51,132 million; sales mix ratio: 84.6%]
In semiconductor products, sales of optical semiconductor devices grew well due to new use in
optical drives. Microwave devices (GaAs ICs) for mobile phones also grew well.
In bipolar ICs, sales of power supply ICs grew slightly; sales of operational amplifiers, comparators,
and audio ICs dropped due to intensifying competition in the TV and digital still camera markets.
In MOS ICs, sales of power supply ICs for digital still cameras and game machines grew. Sales of
DSPs (digital signal processors) for flat-panel TVs and LCD driver ICs finding new applications in
automotive displays also grew.
Sales trends by division (3 years)
2005 2006 2007 20082005 2006 2007 20082005 2006 2007 2008
23,017
24,334
25,985 25,523
Shareholder's equity
(Millions of Yen)
2,569
1,118
1,721
435
Ordinary Profit/Net income
(Millions of Yen)
65,053
60,332 60,725 60,443
Net sales
(Millions of Yen)
A N N U A L R E P O R T 2 0 0 82 A N N U A L R E P O R T 2 0 0 8 3
C o n s o l i d a t e d B u s i n e s s O v e r v i e w
Note: U.S. Dollar amounts are translated from Japanese Yen, for convenience only, at the rate of ¥100.19 = U.S.$1.
Sales proportion by division in fiscal 2007
Semiconductor Devices
[Consolidated net sales: ¥51,132 million; sales mix ratio: 84.6%]
In semiconductor products, sales of optical semiconductor devices grew well due to new use in
optical drives. Microwave devices (GaAs ICs) for mobile phones also grew well.
In bipolar ICs, sales of power supply ICs grew slightly; sales of operational amplifiers, comparators,
and audio ICs dropped due to intensifying competition in the TV and digital still camera markets.
In MOS ICs, sales of power supply ICs for digital still cameras and game machines grew. Sales of
DSPs (digital signal processors) for flat-panel TVs and LCD driver ICs finding new applications in
automotive displays also grew.
Semiconductor Devices
Microwave Application Products
Microwave Tubes and Radar Components
84.6%
7.8%
7.6%
Sales trends by division (3 years)
Microwave Application Products
[Consolidated net sales: ¥4,732 million, sales mix ratio: 7.8%]
Sales of main component products for satellite communications decreased because sales to the VSAT
(Very Small Aperture Terminal) market stabilized after a good previous year as expected.
Component products for terrestrial communications increased their sales for terrestrial digital
broadcasting equipment in Japan.
Microwave Tubes and Radar Components
[Consolidated net sales: ¥4,579 million, sales mix ratio: 7.6%]
Microwave tubes and Radar Components increased their sales in major clients for government and
public offices, and mainly in ship radars for private sector.
Note: Operating profit and loss by division means operating profit and loss before deduction of non-apportionable operating expenses.
50.8
FY2005 FY2006 FY2007
50.3 51.0
Billions of Yen
Billions of Yen
5.0
FY2005 FY2006 FY2007
6.2
4.7
Billions of Yen
4.6
FY2005 FY2006 FY2007
4.2
4.6
D e a r S h a r e h o l d e r s
A N N U A L R E P O R T 2 0 0 84 A N N U A L R E P O R T 2 0 0 8 5
Enhancing Vitality for Growth and
Product Manufacturing
Kazuo Hirata
President
Sales in fiscal 2007 were down by about ¥283
million compared to the previous fiscal year.
These results are not too bad considering the
financial instability caused by the US subprime
loan crisis and sluggish market conditions. Sales of
microwave & optoelectronic devices, and
microwave tubes and radar components increased,
but sales of microwave application products, audio
ICs, and crystal oscillator ICs were sluggish. In
the Semiconductor Devices division, which
enjoyed brisk sales, sales of products such as
microwave devices (GaAs ICs), optical
semiconductor devices, DSPs (digital signal
processors) and power supply ICs grew well.
New product releases and development of high-
value-added products created this growth.
Factors hampering sales included flagging markets
(especially overseas) and increase
