Pentax plans to phase out digital compact camera production and concentrate on DSLRs, according to a report in a leading Japanese trade journal, which has not been denied by Pentax Europe.

Pentax, which is one of the most famous brands in photography, is due to merge with Hoya Corporation on 31 March.

Hoya?s CEO Hiroshi Suzuki is reported to have told Japanese trade magazine Pen News Weekly that Pentax will concentrate on DSLRs and ?gradually phase down development and production of compact digicams in future?.

At the time of writing we were waiting for an official comment from Pentax.

It is thought that, in the short term at least, Pentax will use a third party to manufacture its compact cameras.

The Pen article adds that Hoya ?will focus its development resources on DSLRs and will gradually phase down marketing operations for compact digicams under the Pentax brand and specialise in OEM businesses in order to improve the profit profile of its digicam business operations?.