November 1, 2017
Company name: TOKYO ELECTRON DEVICE LIMITED
Representative: Atsushi Tokushige
President & Representative Director
(TSE First Section, Stock Exchange Code: 2760) Contact: Hiroyuki Akinaga
Director, Corporate Communications Department TEL: +81-45-443-4005
Announcement of Termination of Distributor Agreements with Major Business PartnersTOKYO ELECTRON DEVICE LIMITED (the "Company") hereby announces its decision to terminate the distributor agreements with its major business partners Analog Devices International ("Analog Devices") and Linear Technology KK ("Linear Technology"), as per the following.
Background of the termination
While engaged in the sales of various semiconductors as a sales representative of Analog Devices and Linear Technology, the Company has decided to terminate the distributor agreements with the two companies on January 31, 2018, following changes in their distributorship policies in Japan. As Linear Technology Corporation was acquired by Analog Devices, Inc. in March 2017, the above termination shall actually be the termination of business with a single entity.
Outline of the business partners
Name
Analog Devices International
Linear Technology KK
Location
Ireland
Chiyoda-ku, Tokyo
Business description (Note)
Design, manufacture and sales of analog integrated circuits (ICs), mixed-signal ICs, digital signal processing (DSP) ICs, etc.
Design, manufacture and sales of a broad line of high-performance analog ICs for communications, networking, industrial use, automotive, computers, etc.
Relationships between the Company and the business partners
Capital relationship
Not applicable
Not applicable
Personal relationship
Not applicable
Not applicable
Business relationship
Purchase and sales of the company's products
Purchase and sales of the company's products
Status of related parties
Not applicable
Not applicable
(Note) The business description above refers to Analog Devices, Inc. and the former Linear Technology Corporation.
Description of transactions
Type of transaction: Purchase and sales of products manufactured by each company
Actual net sales (for the fiscal year ended March 31, 2017)
Company name
Net sales
Ratio against the Company's consolidated net sales
Linear Technology
¥8,199 million
Analog Devices
¥5,926 million
Total
¥14,126 million
10.7%
Future outlook
Company name | Scheduled date of transaction termination* |
Linear Technology | January 31, 2018 |
Analog Devices | April 30, 2018 |
* As of November 1, 2017, transactions with each company are scheduled to be terminated on the above dates.
Details for the transfer of business, etc. will be discussed between the parties.
The termination is expected to have an immaterial impact on the Company's financial results for the fiscal year ending March 31, 2018.
For the fiscal year ending March 31, 2019 and thereafter, the Company shall be committed to minimizing such impact by working on further sales promotions of its existing products and strengthening its own brand business.
(Reference) Consolidated financial forecasts for the current fiscal year (announced on September 28, 2017) and consolidated financial results for the previous fiscal year
(Millions of yen)
Net sales | Ordinary income | Net income attributable to owners of parent | |
Consolidated financial forecasts for the current fiscal year (Fiscal year ending March 31, 2018) | 154,000 | 2,000 | 1,200 |
Consolidated financial results for the previous fiscal year (Fiscal year ended March 31, 2017) | 131,855 | 1,377 | 972 |
TEL - Tokyo Electron Device Ltd. published this content on 16 November 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 16 November 2017 00:54:03 UTC.
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