I am very much grateful for your constant attention and special assistance to our company.
Here I am pleased to acknowledge that our midterm settlement of account in September, 2006, showed, as reported earlier, an income increase in the field of mobile phones, by nearly 70 % being compared to that of the midterm settlement of account in the previous fiscal year. This owes to the fact, in the field of mobile phones, that we had quickly responded to a rise of verification needs caused by a wide variety of the new products of mobile phones for sale from respective mobile phone companies with the prospect of commencement in mobile number portability services.
In addition, in the field of digital home appliances also, and as compared to that of the midterm settlement of account in the previous fiscal year, there was more than 50 % increase of the verification work for flat-panel TVs and portable audio devices, all in response to the age of digitalization. As a result of this, the total amount of our sales has reached the sum of 3,110 million yen with 35.7 % increase compared to that of the midterm settlement of account in the previous fiscal year.
On the other hand, owing to the enlargement of our system verification enterprise, there has been an urgent need for our company to procure duly specialized technical workers. During the first midterm of 2006, we have employed additional 20 workers including new graduates and mid-career recruitment candidates. And also, as a part of our marketing activity, we have endeavored vigorously at creating occasions to appeal to our customers about the services of our company, by participating exhibitions, holding the yearly "System Verification Seminars" and so on.
As a result of the above, the operating profit has reached the sum of 502 million yen with 53.2 % increase compared to that of the midterm last year. The ordinary profit has reached the sum of 504 million yen with 52.8 % increase compared to that of the midterm last year. Our middle net earnings have reached the sum of 291 million yen with 53.4 % increase compared to that of the midterm last year. Here I am pleased to acknowledge once again the kind of result ensuring that we are now "In a New Stage of Growing" just as I put it at the end of the previous fiscal year.
In view of the situation where the number of software command lines mounted in most advanced cars, for example, is getting close to as many as 10 millions, it is not too much to say that software is now the most influential factor to decide the true value of a product. On the other hand, cutting "Cost Down" is an urgent problem to be solved because the ratio of software development cost is getting greater and greater in overall product development cost. And this is just where we have found a new business opportunity in offering so called "Full-Line Verification Service", which is to support our customers for their entire cycle of software development. We believe that this particular service should contribute to the cost control of an entire product development, at the same time to the quality improvement for our customers. For the time being, we are planning to enlarge our program verification service as a forerunner, called "VeriSource Service".
With a resolution in mind to maintain the best integrated effort by everyone in the company, as a whole, I sincerely hope for all shareholders to continuously give us your understanding and assistance.
Thank you very much.
November, 2006
President & CEO
Kiyotaka Asai