The Japanese manufacturer of electronic components TDK predicts a 62% drop in net and operating profit in the current fiscal year, which will last from April 2017 to the end of March 2018 calendar year, according to Nikkei.

The company estimates that its net and operating income will be 55 and 80 billion yen ($ 482 and $ 700 million), while in the 2017 finch, which ended in March, these figures reached 145 and 208.7 billion yen (1, 3 and 1.8 billion dollars), respectively, increasing by more than 120%.

Impressive growth was facilitated by the sale of a majority stake in the division for the production of radio frequency chips (RF) by American company Qualcomm, observers say.. Excluding this transaction, TDK's operating profit in the past would be about 64 billion yen. That is, in fact, the forecast for this fingod provides for an increase in operating profit by 20%. However, the estimate is lower than the result of 2016 finland, when TDK's operating profit reached 93.4 billion yen, and 5 billion yen (44 million dollars) less than market experts expect.

Observers see two main reasons for the pessimism of TDK. First, by selling a stake in the RF business, the company lost a substantial part of its revenues. In the past, the production of radio-frequency chips used in smartphones brought an operating profit of 25 billion yen.

At the same time, the new assets of TDK have yet to pay off. Over the past year, TDK acquired five foreign companies, spending about 200 billion yen (1.75 billion dollars).

The largest transaction was the purchase of approximately 150 billion yen manufacturer of sensor systems InvenSense, which is among the suppliers of Apple. In TDK, the acquisition was viewed as profitable, counting on orders for the supply of sensors for Apple. However, recently in the media there was alarming information that Apple appealed to the competing German manufacturer Robert Bosch. Reducing orders from such a large client will negatively affect the financial indicators of InvenSense, warn observers.