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Hitachi Kokusai Electric Inc.

April 10, 2015
Hitachi Kokusai Electric Inc.

Reorganization of Broadcasting Transmitter Business in North America

Hitachi Kokusai Electric Inc. (hereinafter, "our company"; head office: Chiyoda-ku, Tokyo, Japan; President and Chief Executive Officer: Manabu Shinomoto) is currently accelerating the global deployment of video and wireless network systems in order to achieve the goals set for the Medium-term Management Plan "HK-AV10".

In order to strengthen our broadcasting transmitter business in North America, our company has decided to reorganize Comark Communications LLC (Southwick, Massachusetts, U.S.). In June of 2014 our company invested in Comark Communications LLC and they became an equity method affiliate, this will make Comark Communications LLC a consolidated subsidiary of Hitachi Kokusai Electric America, Ltd.(New York, U.S.), wholly owned company of our company (hereinafter, "Hitachi Kokusai America"). In addition, the corporate name will be changed to Hitachi Kokusai Electric Comark LLC (hereinafter, "Hitachi Kokusai Comark"), and the sales and maintenance businesses of broadcasting transmitters and codecs that are handled by the Midwest office of Hitachi Kokusai America (Elgin, Illinois, U.S.) will be integrated into Hitachi Kokusai Comark.

Through this reorganization, we will change the drive of our business system from exportations to global networking. As a result, we will expand our global business by manufacturing locally, and then connecting each region together to form a global network.

Purpose of the reorganization

In the U.S., the digital terrestrial transmitters currently being used are expected to be replaced or upgraded in the near future. In addition, the U.S. government plans to reprogram frequency bands in or after 2016 to secure and auction new frequencies for wireless broadband communications, which also increases the likelihood of growing demands for replacements and upgrades of digital terrestrial transmitters. Furthermore, broadcasting organizations in the U.S., Latin America, the Middle East, and Asia are expected to continue their investments in equipment as digital terrestrial broadcasting spreads across these regions.

In this kind of market, we expect the following to result from this business reorganization:

  1. Enhanced governance and efficient business operations resulting from the integration of business operations
  2. Expanded business opportunities in markets related to frequency reprogramming in the U.S.
  3. Improved development efficiency of broadcasting transmitters, expanded product lineups, and enhanced competitiveness, through cooperation with Hitachi Kokusai Linear Equipamentos Eletrônicos S/A (Santa Rita, Brazil, hereinafter, "Hitachi Kokusai Linear")
  4. Increased orders in Latin America, the Middle East, and Asia by our company group, lead by Hitachi Kokusai America, Hitachi Kokusai Comark, Hitachi Kokusai Linear, and the newly established Hitachi Kokusai Electric Asia (Singapore) Pte. Ltd., due to an expansion of assertive business activities
  5. Synergized business resulting from the provision of one-stop solutions for the projects that combine camera and broadcasting transmitter businesses that have until now been handled by Hitachi Kokusai America

Aiming to achieve the goals of the Medium-term Management Plan "HK-AV10", we will make efforts to establish an optimal organizational system.

About Hitachi Kokusai Electric America, Ltd.

Trade name Hitachi Kokusai Electric America, Ltd.
Date founded November 29, 1963
Head office location 150 Crossways Park Drive, Woodbury, New York, 11797, U.S.
Representative President, CEO & Treasurer: Yuichi Otsuka
Description of business Sale, maintenance and installation of broadcasting & video equipment

About Comark Communications LLC

Trade name Comark Communications LLC
Year founded 1978
Head office location 104 Feeding Hills Road, Southwick, Massachusetts, 01077, U.S.
Representative President & CEO: Richard E. Fiore, Jr.
Description of business Research and development, design, manufacture, sale, and maintenance of digital terrestrial broadcasting transmitters, etc.

Contact information for the press

Contact persons: Sasaki and Nishino
Hitachi Kokusai Electric Inc.
Strategic Planning & Communication Center
11th floor, Akihabara UDX Bldg.
4-14-1 Sotokanda, Chiyoda-ku, Tokyo 101-8980, Japan

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The information posted here, although valid at the time of posting, is subject to change without prior notice. Please therefore understand that some of this information may differ from the latest version.