TEAC Corporation 77th Fiscal Period Report (2024-2025)
This report details the business performance of TEAC Corporation for the 77th fiscal period, from April 1, 2024, to March 31, 2025. It covers financial results, segment overviews, and future outlook, focusing on audio and information equipment businesses.
Message to Shareholders
We express our sincere gratitude for your continued support. As of March 31, 2025, TEAC Corporation has concluded its 77th fiscal period. This report provides an overview of our group's business activities.
President and Representative Director: Yuji Hanabusa
Business Performance Overview
The Japanese economy is expected to see a gradual recovery, supported by employment and income improvements and various policies. However, risks of economic slowdown due to US trade policy persist. Inflation also poses a risk to personal consumption.
In this environment, TEAC Group focused on enhancing brand value through high-quality, high-value products in the premium audio equipment segment (ESOTERIC brand), aiming for steady growth in overseas markets. For the TEAC brand, we strengthened the Reference series to improve profitability and brand image. For imported brands, we focused on establishing brand presence by highlighting their unique characteristics.
In the music production and professional audio equipment business (TASCAM brand), we expanded our B2B business by offering flexible and high-quality total system solutions, centered on professional digital mixers and related peripherals, alongside traditional recording and playback equipment. In our B2C business, we streamlined our product portfolio, focusing on mid-to-high-priced items with clear added value, aiming to improve profitability and market share.
In the information equipment business, we leveraged our core competencies in advanced recording and playback technology to develop products incorporating proprietary and cutting-edge technologies for measurement, semiconductor, medical, and mobile applications, aiming for niche top positions. We actively engaged with target customers to promote the investment merits of our products and incorporated user feedback into new product development.
During this consolidated fiscal year, sales revenue was 15,668 million yen (0.0% decrease year-on-year), operating income was 340 million yen (23.5% decrease year-on-year), and profit attributable to owners of the parent was 81 million yen (compared to a loss of 53 million yen in the previous year).
Regarding shareholder returns, in line with our basic policy for shareholder returns disclosed on May 14, 2025, we will invest in growth areas such as human resources, technology development, and brand value enhancement to increase corporate value in the medium to long term. While maintaining appropriate internal reserves for agile management, we aim to maximize returns to shareholders. For the current fiscal year's year-end dividend, we plan to pay 1 yen per share as initially forecast, as we exceeded the self-capital ratio of 25% which was our guideline for dividend resumption.
For the next fiscal year, we aim to improve performance and financial conditions, and based on the aforementioned policy, we plan an annual dividend of 1 yen per share (year-end dividend).
Fiscal Year 2025 Outlook
In the audio equipment business, high-priced B2C products and products for the sound equipment market performed well. However, sales remained flat year-on-year due to factors such as the reorganization of sales networks in the US market.
In the information equipment business, segment profit increased due to factors such as a recovery in semiconductor demand and the postponement of large-scale introductions by overseas airlines. However, growth was not sufficient.
We aim to further improve profitability through appropriate price revisions for products where we have a competitive advantage, as well as the introduction of strategic products and expansion of business areas. However, risks such as inflation, financial market turmoil, the Ukraine crisis, Middle East issues, and worsening Red Sea conditions are expected to continue, creating an unpredictable environment.
The negative impact of US trade policy is factored into our earnings forecast within the currently anticipated range.
We appreciate your continued support and understanding.
As of March 2025
Financial Highlights (Consolidated Basis - IFRS)
| 75th Term (FY2023) | 76th Term (FY2024) | 77th Term (FY2025) | 78th Term Forecast (FY2026) | |
|---|---|---|---|---|
| Sales Revenue (million yen) | 15,699 | 15,672 | 15,668 | 16,000 |
| Operating Income (million yen) | 563 | 445 | 340 | 350 |
| Profit Before Tax (million yen) | 341 | 5 | 59 | 150 |
| Profit Attributable to Owners of Parent (million yen) | 305 | △53 | 81 | 100 |
| Basic Earnings Per Share (yen) | 10.60 | △1.85 | 2.82 | 3.47 |
| Total Assets (million yen) | 10,958 | 11,871 | 10,815 | - |
| Total Equity (million yen) | 3,112 | 3,574 | 3,558 | - |
Business Segment Overview
Audio Equipment Business (70.5%)
- Sales Revenue: 11,044 million yen (1.0% increase year-on-year)
- Segment Operating Income: 1,219 million yen (2.2% decrease year-on-year)
Premium Audio Equipment (ESOTERIC and TEAC brands): ESOTERIC brand saw strong performance in SACD players, network players, and phono amplifiers. The TEAC brand showed steady sales of USB DACs and turntables. Imported brands, including Tannoy and Klipsch speakers, also performed well. Growth in the North American market contributed to an overall increase in revenue for premium audio equipment.
Music Production and Professional Audio Equipment (TASCAM brand): The B2B segment experienced stable demand for sound system installations throughout the year, leading to strong sales of core recording and playback equipment and peripherals. While professional mixers saw a decline due to the impact of new product launches in the previous year, adoption for broadcast station projects compliant with next-generation IP transmission standards is progressing. The B2C segment showed strong performance in the latter half of the year due to new products for creators. However, the reorganization of sales networks in the US market in the first half resulted in reduced shipments due to inventory adjustments, leading to sluggish sales. Consequently, the music production and professional audio equipment business as a whole saw a year-on-year decrease in revenue.
Information Equipment Business (25.5%)
- Sales Revenue: 3,989 million yen (1.4% increase year-on-year)
- Segment Operating Income: 209 million yen (57.0% increase year-on-year)
Measurement Equipment: Data recorders performed well with large orders for defense-related projects and contributions from new products launched in the fourth quarter. However, sales of PC and smartphone semiconductor-related equipment remained sluggish due to a slow recovery in semiconductor demand, leading to a year-on-year decrease in this category.
Medical Image Recording and Playback Equipment: Shipments of recorders for digestive endoscopes in Japan remained strong. Sales of the flagship 4K recorders for surgical image recording also significantly increased in Japan and North America, resulting in a year-on-year increase.
In-Flight Entertainment Equipment: Transactions for the Japanese shipping industry expanded, and sales of in-flight servers to overseas partners commenced. However, sales decreased year-on-year due to the postponement of large-scale introductions by overseas airlines to the next fiscal year.
Solution Business: Sales of medical-use servers remained strong throughout the year, leading to a year-on-year increase.
Other Businesses (4.0%)
- Sales Revenue: 635 million yen (21.6% decrease year-on-year)
- Segment Operating Income: 21 million yen (54.9% decrease year-on-year)
Original Brands: ESOTERIC, TEAC, TASCAM
Consolidated Financial Statements (IFRS)
Summary Consolidated Balance Sheet
| As of March 31, 2025 (million yen) | As of March 31, 2024 (million yen) | |
|---|---|---|
| Assets | ||
| Current Assets | 8,568 | 9,286 |
| Cash and Cash Equivalents | 1,552 | 1,227 |
| Trade and Other Receivables | 3,108 | 3,517 |
| Inventories | 3,661 | 4,214 |
| Other Current Assets | 248 | 328 |
| Non-Current Assets | 2,246 | 2,585 |
| Property, Plant and Equipment | 1,853 | 2,211 |
| Intangible Assets | 115 | 107 |
| Other Non-Current Assets | 143 | 132 |
| Other Non-Current Assets | 125 | 119 |
| Total Assets | 10,815 | 11,871 |
| Liabilities and Equity | ||
| Current Liabilities | 5,557 | 5,434 |
| Trade and Other Payables | 2,565 | 2,110 |
| Short-term Borrowings and Current Portion of Long-term Debt | 1,024 | 1,504 |
| Lease Liabilities | 689 | 657 |
| Income Taxes Payable | 13 | 22 |
| Other Current Liabilities | 894 | 775 |
| Non-Current Liabilities | 1,700 | 2,862 |
| Long-term Borrowings | 797 | 1,478 |
| Lease Liabilities | 477 | 792 |
| Deferred Tax Liabilities | 22 | 17 |
| Other Non-Current Liabilities | 24 | 21 |
| Total Liabilities | 7,257 | 8,297 |
| Equity | ||
| Share Capital | 3,500 | 3,500 |
| Share Premium | 11 | 11 |
| Retained Earnings | 2,211 | 2,181 |
| Other Components of Equity | △ 3,430 | △ 3,430 |
| Treasury Stock | △ 122 | △ 122 |
| Total Equity Attributable to Owners of Parent | 3,558 | 3,574 |
| Non-controlling Interests | - | - |
| Total Equity | 3,558 | 3,574 |
| Total Liabilities and Equity | 10,815 | 11,871 |
Summary Consolidated Income Statement
| Current Period (FY2025) | Previous Period (FY2024) | |
|---|---|---|
| Sales Revenue | 15,668 | 15,672 |
| Cost of Sales | 8,872 | 8,665 |
| Gross Profit | 6,796 | 7,007 |
| Selling, General and Administrative Expenses | 6,413 | 6,581 |
| Other Income/Expenses | △44 | 19 |
| Operating Income | 340 | 445 |
| Financial Income | 6 | 8 |
| Financial Expenses | 287 | 448 |
| Profit Before Tax | 59 | 5 |
| Income Tax Expense | △22 | 58 |
| Profit for the Period | 81 | △53 |
| Profit Attributable to Owners of Parent | 81 | △53 |
| Profit Attributable to Non-controlling Interests | - | - |
Summary Consolidated Cash Flow Statement
| Current Period (FY2025) | Previous Period (FY2024) | |
|---|---|---|
| Cash Flows from Operating Activities | 3,500 | 3,500 |
| Cash Flows from Investing Activities | △115 | △106 |
| Cash Flows from Financing Activities | △706 | △69 |
| Net Change in Cash and Cash Equivalents | 325 | 31 |
| Cash and Cash Equivalents at Beginning of Period | 1,227 | 1,196 |
| Cash and Cash Equivalents at End of Period | 1,552 | 1,227 |
Point 1: Consolidated Balance Sheet Analysis
Point 2: Consolidated Income Statement Analysis
Point 3: Consolidated Cash Flow Statement Analysis
Non-Consolidated Financial Statements (Japanese GAAP)
Summary Balance Sheet
| As of March 31, 2025 (million yen) | As of March 31, 2024 (million yen) | |
|---|---|---|
| Assets | ||
| Current Assets | 5,077 | - |
| Cash and Deposits | 854 | - |
| Notes and Accounts Receivable | 77 | - |
| Electronically Recorded Claims | 226 | - |
| Notes and Accounts Receivable - Trade | 1,715 | - |
| Merchandise | 784 | - |
| Raw Materials and Work in Process | 627 | - |
| Prepaid Expenses | 114 | - |
| Advances Received | 347 | - |
| Accrued Income | 244 | - |
| Consumption Tax Payable | 79 | - |
| Non-Current Assets | 6,632 | - |
| Property, Plant and Equipment | 1,418 | - |
| Intangible Fixed Assets | 73 | - |
| Investments and Other Assets | 5,141 | - |
| Deferred Assets | 3 | - |
| Total Assets | 11,712 | 11,712 |
| Liabilities and Net Assets | ||
| Current Liabilities | 5,896 | - |
| Notes and Accounts Payable - Trade | 306 | - |
| Short-term Borrowings | 2,000 | - |
| Current Portion of Long-term Borrowings Due within One Year | 381 | - |
| Bonds Due within One Year | 100 | - |
| Lease Liabilities | 60 | - |
| Accrued Expenses | 365 | - |
| Accrued Consumption Tax | 157 | - |
| Other Current Liabilities | 188 | - |
| Non-Current Liabilities | 1,201 | - |
| Total Liabilities | 7,097 | - |
| Net Assets | 4,615 | - |
| Share Capital | 3,500 | - |
| Share Premium | 54 | - |
| Retained Earnings | 1,183 | - |
| Treasury Stock | △122 | - |
| Total Net Assets | 4,615 | 4,615 |
| Total Liabilities and Net Assets | 11,712 | 11,712 |
Summary Income Statement
| Current Period (FY2025) | Previous Period (FY2024) | |
|---|---|---|
| Sales | 11,616 | - |
| Cost of Sales | 6,765 | - |
| Gross Profit | 4,851 | - |
| Selling, General and Administrative Expenses | 4,449 | - |
| Non-Operating Income | 156 | - |
| Non-Operating Expenses | 319 | - |
| Ordinary Income | 239 | - |
| Extraordinary Income | 243 | - |
| Extraordinary Losses | 54 | - |
| Profit Before Tax | 427 | - |
| Income Tax Adjustment | △95 | - |
| Net Income | 522 | - |
Summary Statement of Changes in Net Assets (Japanese GAAP)
| Beginning Balance | Changes During Period | Ending Balance | |||||
|---|---|---|---|---|---|---|---|
| Dividends from Surplus | Provision for Retained Earnings | Net Income | Acquisition of Treasury Stock | Total Changes During Period | |||
| Share Capital | 3,500 | - | - | - | - | - | 3,500 |
| Share Premium | 54 | - | - | - | - | - | 54 |
| Retained Earnings | 687 | - | - | 522 | - | 522 | 1,177 |
| Other Retained Earnings | 689 | - | - | - | - | - | 689 |
| Treasury Stock | △122 | - | - | - | △29 | △29 | △122 |
| Total Net Assets | 4,122 | - | - | 522 | △29 | 494 | 4,615 |
Topics 2025
Reference Series: AP-507, HA-507
TEAC has launched the stereo power amplifier 'AP-507' and headphone amplifier/preamplifier 'HA-507', garnering significant attention. The 'AP-507' features the next-generation Class D amplifier module 'NCOREx' from Hypex in a compact chassis, enhancing spatial expression while maintaining its renowned smooth and warm sound. It offers high driving power despite its space-saving design, allowing flexible speaker combinations.
The 'HA-507' is a high-performance headphone amplifier/preamplifier with Class AB operation capable of driving speakers. It supports balanced connections and features a full-balance attenuator with switchable resistance, allowing it to fully draw out the performance of headphones and also serve as a foundation for speaker system expansion. Both models represent significant advancements over previous models and have received high praise from audio enthusiasts. Their refined exterior design and high-quality operational feel also contribute to the pleasure of ownership.
TEAC will continue to leverage its long-cultivated audio technology and unique design philosophy to promote product development with a global market perspective, aiming for further enhancement of brand value.
Grandioso Series: Grandioso N1T, Grandioso E1
In 2024, ESOTERIC announced the network transport 'Grandioso N1T' and phono amplifier 'Grandioso E1', making a significant impact on the high-end audio market. The 'N1T' is the brand's first dedicated streaming transport, equipped with the 4th generation 'ESOTERIC Network Engine G4'. It supports SFP ports for high-demand optical LAN and DAC cables, and its large-capacity RAM enables ultra-high-precision digital transmission, including DSD 22.5MHz playback. Its independent linear power supply design, completely separating network and audio circuits, delivers a smooth and realistic sound. When connected to the monaural DAC 'D1X SE' via ESLINK DIGITAL output, a three-unit network player system is completed.
The 'E1' is the first phono amplifier in the Grandioso series, featuring MC balanced current input, dedicated input for optical cartridges, a fully balanced variable equalizer circuit, and six EQ curve settings, establishing a new standard for analog playback. It became the first phono amplifier in history to receive the highest award, Stereo Sound Grand Prix, from the renowned Japanese audio magazine 'Stereo Sound'.
TASCAM Sonicview Series Digital Mixer with SMPTE ST 2110 Compliant Option Card IF-ST2110
Since its launch in the Japanese market in spring 2022, the 'TASCAM Sonicview Series' has received high acclaim as a cost-effective digital mixer, offering an intuitive GUI, superior sound quality exceeding its class, a compact chassis, and various functions suitable for broadcast operations. It is now adopted by many broadcast stations, primarily in Europe, as well as in Japan.
The newly added SMPTE ST 2110 compliant 64-input/64-output IP connection option card 'IF-ST2110' can be installed in the TASCAM Sonicview main unit, enabling its use as a compact audio mixing console compatible with IP studio systems. This provides a flexible and cost-effective solution for IP connection needs.
Furthermore, it supports the Ember+ protocol for external control via network and SNMP for remote monitoring, offering high operability and expandability required for next-generation broadcast infrastructure.
Recognizing these product developments, the 'TASCAM Sonicview Series' and the option card 'IF-ST2110' received the prestigious Grand Prix award in the Professional Audio category at the 2024 INTER BEE AWARD.
TEAC Medical Video Recorder UR-4MD-SE
The 'UR-4MD', launched in 2014, has been supplied to medical facilities for over 10 years as a medical video recorder for surgical image recording. Incorporating features and operability refined through user feedback from medical sites, we have newly launched the 'UR-4MD-SE' for the Japanese market starting April 2025.
While maintaining the intuitive front panel design, the network functionality, previously an optional feature, is now standard to meet the increasing demand for network transfer. The internal HDD capacity has been doubled from 500GB to 1TB, allowing for longer video recording on the unit and handling larger recorded data capacities. The backup function has also been further enhanced. Two USB ports on the front panel allow for simultaneous recording to up to four locations, including the internal HDD and network transfer.
TEAC will continue to provide products that earn the trust of medical professionals.
Company and Stock Information (As of March 31, 2025)
Company Overview
- Company Name: TEAC CORPORATION
- Head Office: 1-47 Ochiai, Tama-shi, Tokyo 206-8530, Japan
- Establishment: August 26, 1953
- Capital: 3.5 billion yen
- Fiscal Year: April 1 to March 31 of the following year
- Representative Director and President: Yuji Hanabusa
- Employees: 237 (Consolidated: 547)
Domestic Locations
- TEAC Corporation (Head Office) [Tokyo]
- EMC Center [Saitama]
- Osaka Sales Office [Osaka]
- Nagoya Sales Office [Aichi]
- TEAC Customer Solutions Co., Ltd. [Tokyo]
- TEAC Manufacturing Solutions Co., Ltd. [Saitama]
Overseas Locations
- TEAC AMERICA, INC. [USA]
- TEAC EUROPE GmbH [Germany]
- TEAC UK LTD. [UK]
- TEAC SALES & TRADING (Shenzhen) CO., LTD. [China]
- TEAC AUDIO (CHINA) CO., LTD. [Hong Kong]
- DONGGUAN TEAC ELECTRONICS CO., LTD. [China]
Officers (As of June 26, 2025)
- Representative Director and President: Yuji Hanabusa
- Director: Yoshihiro Kurahara
- Director: Yasuyo Kaneko
- Director (Audit & Supervisory Committee Member): Kenji Hayashi
- Director (Audit & Supervisory Committee Member): Takumi Hara
- Director (Audit & Supervisory Committee Member): Yoji Sakaguchi
Shareholder Information
- Number of Shareholders: 18,293
Major Shareholders (Top 10)
| Shareholder Name | Number of Shares (Thousands) | Percentage (%) |
|---|---|---|
| Yoshihisa Yamashita | 1,126 | 3.91 |
| Hiroshi Matsuo | 738 | 2.56 |
| Yoneo Marukame | 711 | 2.47 |
| THE BANK OF NEW YORK MELLON 140040 | 562 | 1.95 |
| Ryuichiro Katsuyama | 500 | 1.74 |
| Seiji Nishimoto | 500 | 1.74 |
| SMBC Nikko Securities Inc. | 492 | 1.71 |
| TEAC Employee Stock Ownership Plan | 409 | 1.42 |
| Osamu Ando | 355 | 1.23 |
| Go Okano | 330 | 1.15 |
*Number of shares is rounded down, and shareholding percentage is rounded to the third decimal place.
Share Status
- Authorized Shares: 40,000,000 shares
- Issued Shares: 28,803,073 shares (excluding treasury stock: 128,640 shares)
Shareholder Breakdown by Number of Shares
- Financial Instruments Firms: 27 shareholders, 5.75%
- Other Corporations: 98 shareholders, 1.70%
- Foreign Corporations, etc.: 62 shareholders, 6.05%
- Financial Institutions: 4 shareholders, 0.79%
- Individuals and Others: 18,102 shareholders, 85.71%
Shareholder Breakdown by Shareholding Amount
- Less than 100 shares: 4,462 shareholders, 0.26%
- 100 to less than 1,000 shares: 10,774 shareholders, 7.59%
- 1,000 to less than 10,000 shares: 2,615 shareholders, 22.48%
- 10,000 to less than 50,000 shares: 364 shareholders, 23.36%
- 50,000 shares or more: 78 shareholders, 46.31%
Shareholder Information
- Fiscal Year: April 1 to March 31 of the following year
- Record Date for Dividends: March 31
- Trading Unit: 100 shares
- Annual General Meeting of Shareholders: June each year
- Share Transfer Agent: Mitsubishi UFJ Trust and Banking Corporation
- Account Management Institution for Special Accounts: Mitsubishi UFJ Trust and Banking Corporation, Securities Agency Department
- Contact Information: 1-1 Hikarimachi, Fuchu-shi, Tokyo 137-8081, TEL: 0120-232-711 (Toll-free)
- Listed Stock Exchange: Tokyo Stock Exchange, Standard Market
- Method of Public Notice: Electronic Public Notice
- URL for Public Notice: https://www.teac.co.jp/about/jp/koukoku (If electronic public notice is not possible due to unavoidable circumstances, public notice will be made in the Nikkei Shimbun.)
Regarding Shareholder Procedures
- Inquiries Regarding Various Procedures: For changes of address, requests for share buybacks, and other procedures, please contact your account management institution (securities company, etc.) where you opened your account. Inquiries cannot be handled by the share transfer agent (Mitsubishi UFJ Trust and Banking Corporation).
- Various Procedures Regarding Shares Recorded in Special Accounts: For procedures concerning shares recorded in special accounts, please contact Mitsubishi UFJ Trust and Banking Corporation, which serves as the account management institution. Inquiries can also be made at any branch of Mitsubishi UFJ Trust and Banking Corporation nationwide.
To Shareholders Holding Fractional Shares
- For shareholders with accounts at securities companies: Please contact your securities company for inquiries.
- For shareholders with shares in special accounts (those without accounts at securities companies): You can sell fractional shares (less than 100 shares) through our fractional share buyback request system. TEAC will cover the handling fees associated with this system. Please consider utilizing this service.
*Handling fees covered by TEAC apply only to fees charged by TEAC. Securities companies may charge separate handling fees for their services.
Example: If a shareholder owns 10 shares, they can request a buyback of these 10 shares.
Shareholder (owns 10 shares) → Request for buyback of 10 shares → TEAC (10 shares) → Shareholder (0 shares)
Specifications and appearance are subject to change without notice for improvement. Product colors may appear different from the actual colors due to photography and printing. Company names, product names, and logos are trademarks or registered trademarks of their respective companies.
TEAC Corporation
1-47 Ochiai, Tama-shi, Tokyo 206-8530
TEL: 042-356-9100 (Main)
Homepage: https://www.teac.co.jp/jp/
