News from the world of Olympus for the Zuikophiles among us.

In nutshell it appears that upper management at Olympus grossly mismanaged the company’s finances by purchasing companies completely un-related to its core business at enormously inflated prices and hid the losses from stockholders and investigators alike. Rumors are they were money laundering for the Yakuza and as the investigation continues five high ranking managers have been arrested and yesterday a top executive of the medical division committed suicide although it is not likely related to the scandal. The company’s top lender, Sumitomo Mitsui Banking Corp, is denying a thinly veiled attempt to hijack the Board of Directors although it is likely that they will have some executives on the new board.

The $1.7 B accounting fraud is taking a toll across the entire corporation but rumors of its demise are greatly exaggerated. Olympus has a 70% worldwide share of medical optics; endoscopes, microscopes and the like and so the company’s continued existence is assured. The bad news for Zuikophiles is that the camera division is the least profitable business segment and rumors of a buyout by Sony or Fuji have floated around the photosphere. According to Michael Woodford, former head of the camera division who blew the whistle on the scandal and was summarily fired for it, a buyout is very unlikely because the camera division is far too expensive even at fire-sale prices. It is also unlikely that the camera division will be closed because the cost of doing so would hurt the Corporation financially more than just letting it be. In addition to the cost of closing it, a recent surge in camera sales and profit, up 14% since the introduction of the Pen series, strengthens the division’s position within the corporation. It looks like Oly is here to stay, at least for the foreseeable future.

In other news about the company it appears that the malfeasance is limited to Olympus Japan leaving Olympus America and Olympus India clear of taint and mismanagement. Mr. Woodford would like his old job back and is pursuing a wrongful dismissal suit against the company. Woodford, a British citizen, has secured a book deal about the scandal and his part in unraveling the fraud and film rights to the story are being discussed. I personally would like to see Mr. Woodford reinstated as head of the camera division. He seems to have a genuine dedication and loyalty to the product line and the tenacity to see it flourish with the innovation and product quality the line is known for; in other words he is a fanatic worthy of the title “Chief Zuikophile”.

Olympus Camera continues to release new products in the ultra zoom compact categories and in the Pen series, notably the OM-D and the Pen EPM micro. The tech department maintains that the OM-D is not a pro level product and is leaking the development of a successor to the E-5, the E-7. If nothing else they are consistent with nomenclature. Not much is forthcoming in the form of details for the 7 except a 16 mp 5 axis image stabilized sensor. I’m not sure how much more you can put into a camera but the techies at Oly continue to amaze me so I’m sure there will be something nobody ever thought of.