Ricoh Quits Optical-Drives Business

Ricoh is withdrawing from the optical disk drive business, citing price competition and declining sales internationally.

The company now thinks it can't make a profit in the optical disk business, according to spokesman Satoshi Aoki.

Shrinking Sales

"I guess you could say it was the drop in prices, and the arrival of new makers," Aoki said.

Thursday, the company reported that its net income for the first six months fell 15.2 percent to $323 million as of September 30, compared to last year's sales of 8.25 billion, down 1.4 percent from the same period the year before.

Decreased sales of optical discs together with the appreciation of the Japanese yen accounted for a 7.4 percent drop in overseas sales, the company said.

The company also predicted a 7.4 percent drop in its net income to 800 million for the full year to March 31, 2005.

Looking Ahead

As well as refocusing on strengthening its main printer and office automation business, Ricoh will continue to produce CDs and DVDs and is now looking at next-generation optical storage technologies.

The company is now considering whether it will develop components and or discs for either the next-generation High Definition/High Density DVD or Blu-ray Disc formats, Aoki said.

"We're undecided, and we are not in a rush. We may develop something of our own, but the market for these technologies hasn't begun yet," he said.