Japan's QD Laser Laser Business Grows Steadily, Accelerating The Layout Of The Three-year Medium-term Strategic Blueprint

Recently, QD Laser, a leader in quantum dot laser technology in Japan, disclosed its financial performance for the first quarter of fiscal year 2024 (covering April to June). The report shows that despite a decline in both profit and revenue for the quarter compared to the same period last year, overall performance remains on track with expectations based on the original budget assessment. At the same time, the company foresees that cumulative sales through July are expected to surpass the year-ago level and is actively deploying growth strategies.
To lead the company into its next phase of growth, QD Laser announced in May this year the appointment of Mr. Osamu Nagao as its new CEO and Representative Director, effective June 28, and Mr. Nagao is working on a three-year, medium-term strategic blueprint aimed at achieving a major breakthrough as the company celebrates its 20th anniversary, which is the end of the 2026 fiscal year. The Company is actively exploring the potential of third-party partnerships in business areas that require long-term commitment and collaboration, and is personally trying out various paths to show more fruitful results in the future.
In terms of orders, at the end of the quarter, the total backlog of orders, including those contracted and expected to be fulfilled during the current fiscal year, already accounted for 43% of projected sales for the year, indicating that the potential for market demand still exists.
In terms of financial details, in the first quarter of 2024, the laser device (LD) business achieved solid growth with a 4% year-on-year improvement in sales to 218 million yen, while the visual information device (VID) business encountered challenges, with a sharp decline in sales of 83% to 7 million yen, dragging down the company's overall sales by 12% year-on-year to 226 million yen.
The growth in the laser devices (LD) business segment was mainly due to increased sales of DFB lasers and small visible light lasers, although the market performance of high-power lasers and quantum dot lasers retreated. The Visual Information Devices (VID) business was hit hard by a sharp decline in sales of RETISSA NEOVIEWER in the US, resulting in an 83% contraction in the business and the deferral of most development contract deliveries to the second half of the year.
In terms of profitability, operating income from the laser device (LD) business declined 54% year-on-year (to ¥10 million), mainly affected by a surge in selling, general and administrative expenses (SG&A), including additional expenses for personnel expansion, new base relocation and R&D projects, etc. The VID business was even deeper in the red, with an operating loss that widened to ¥92 million, a year-on-year deterioration of ¥24 million. Company-wide, operating loss worsened to 167 million yen, a deterioration of 40 million yen (32%) year-on-year.
In addition, the company's ordinary loss and quarterly net loss both deteriorated by ¥28 million (22%) year-on-year to ¥158 million and ¥159 million, respectively, mainly due to the fact that the increase in net loss due to the absence of expenses related to the exercise of stock subscription rights was smaller than the deterioration in operating income.
Semiconductor laser equipment 2024 first-quarter sales of 113 million yen, up 45% year-on-year. Of these, micromachining applications accounted for 49%, measurement (sensor systems) for 26%, and medical devices for 23%.
The performance of these products in different geographic markets showed that QD Laser made gains in Europe, China, North America and Japan, especially in Japan, where sales of light sources for ophthalmic diagnostics achieved a 34% year-on-year increase. Sales in China amounted to ¥16,406,000, driven by orders for sensor light sources. The company's unique quantum dot laser technology is also showing its value in applications worldwide, such as a number of innovative products for LiDAR (laser radar), sensors, and medical and ophthalmic examination equipment.
Sales of high-power lasers were 38 million yen, down 17% year on year.
QD Laser Co., Ltd. was established in 2006 as a pioneer dedicated to the commercialization of quantum dot laser technology, and has been providing new solutions to customers in a wide range of fields, including communications, industrial and consumer applications. To date, QD Laser has successfully developed and mass-produced one of the world's first current-unregulated quantum dot lasers for communications, and has successively created micro-miniature short-pulse DFB lasers for machining, current-injected green, yellowish-green, and orange lasers for life sciences, quantum dot laser arrays for silicon optical circuits, a broadband gain chip for ophthalmic examination equipment, and retinal scanning laser glasses.
Since its establishment, QD Laser, under the leadership of its founder Dr. Mitsuru Sugawara, has not only succeeded in achieving a breakthrough in commercialization, but has also been successfully listed on the Tokyo Stock Exchange, a notable milestone in the industry, thanks to its deep accumulation in the field of quantum dot laser technology. Looking ahead, the company will continue to rely on its core laser equipment business, deepen its visual information equipment business base (nearly 80 domestic and international patents related to laser retinal imaging have been registered), and continue to provide cutting-edge solutions to customers through technological innovation and market expansion.