In the report, JVCKENWOOD communicated that the PUBLIC SERVICE SECTOR existing of the Communication Systems Business and Professional radio systems, amateur radio equipment, wireless system devices, etc (some 21% of the total revenue) was impacted by the COVID-19 virus spread.

Revenue in the Communications Systems Business declined due to the impact of the shutdown of a plant in Malaysia, where one of the Company’s main plants is located, in 1Q in addition to sluggish orders received in the business industry market caused by the impacts of stay-at-home orders and closure of distribution outlets around the world. Revenue in the Professional (Radio) Systems Business declined due to the continued impact of a decline in capital investment in 2Q caused by the declaration of a state of emergency in Japan.

In the Communications Systems Business, in addition to the solid public safety market, the business industry market recovered gradually. In the Professional (Radio) Systems Business, order intake in Japan faced more challenges than expected and the recovery is expected to be slower.

On the positive side, solid performance is expected in the second half, including professional digital radio systems for the California Highway Patrol (CHP) in the United States and projects for Puerto Rico.

The company said that ongoing efforts will be made to increase backlogs of orders for large projects in the robust public safety market toward FYE3/’22 and onwards.

Furthermore the company continues to acquire solid orders for EFJT’s Viking series P25 radios