Fujitsu Records Valuation Loss on Investment and Revises Fiscal 2005 Full-Year Unconsolidated Financial Results Forecast.Tokyo, Japan, Jan 31, 2006 - (JCN JCN Japan Corporate News JCN Journal of Cognitive Neuroscience JCN Journal of Cardiovascular Nursing JCN Journal of Christian Nursing JCN Job Control Number JCN Journal of Child Neurology JCN joint communications network (US DoD) Newswire) - Fujitsu Limited today announced that, with respect to its unconsolidated financial results, it has recorded a valuation loss on investment in its U.S.-based affiliated company, Spansion Inc. (hereafter In the future. The term hereafter is always used to indicate a future time—to the exclusion of both the past and present—in legal documents, statutes, and other similar papers. , "Spansion"), resulting from its initial public offering on the NASDAQ stock market Nasdaq stock market The first electronic stock market listing over 5000 companies. The Nasdaq stock market comprises two separate markets, namely the Nasdaq National Market, which trades large, active securities and the Nasdaq Smallcap Market that trades emerging growth companies. last December. Along with this, as described below, Fujitsu has revised its unconsolidated earnings forecast for the full-year fiscal period ending March 2006, which it had previously announced on October 27, 2005. Fujitsu's full-year consolidated earnings forecast remains unchanged. 1. Valuation Loss on Investment Because the fair market value of the Spansion shares at the time of the IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. was notably lower than the book value of the shares recorded on Fujitsu's unconsolidated balance sheet*, and in light of the ensuing en·sue intr.v. en·sued, en·su·ing, en·sues 1. To follow as a consequence or result. See Synonyms at follow. 2. To take place subsequently. movement in the market price of Spansion shares until now, Fujitsu has recorded a valuation loss on investment. *Refers to the book value of the shares of Fujitsu's stock in a U.S.-based wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. that held Fujitsu's part of the ownership in Spansion. Upon Spansion's IPO, Fujitsu made a contribution of the shares of said U.S.-based subsidiary and received the shares of the newly established Spansion Inc. in exchange for such contribution. The impact of the above on Fujitsu's unconsolidated profit and loss is a valuation loss on investment of 39.2 billion yen, and a reduction of 23.3 billion yen in net income. In regard to consolidated financial results, the company has recorded a loss of 8.4 billion yen on change in ownership interest at the time of Spansion's IPO. 2. Revised FY 2005 Full-Year Unconsolidated Financial Results Forecast (April 1, 2005 - March 31, 2006)
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(Billion Yen)
Net Sales Operating Income Net Income
(Loss) (Loss)
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Previous Forecast* (A) 2,830.0 45.0 30.0
Revised Forecast (B) 2,830.0 30.0 15.0
Increase or Decrease (B - A) -- -15.0 -15.0
Percentage Increase/Decrease -- -33.3% -50%
FY 2004 Results
(For FY ended March 2005) 2,846.2 30.6 (39.8)
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* Previous projection as of October 27, 2005
Explanation With respect to projected unconsolidated operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. , due to decreased profits mainly on system products as a result of intensified competition both inside and outside Japan, Fujitsu has reduced its full-year forecast by 15.0 billion yen from the forecast previously issued last October. This reduction in operating income is expected to be offset by an increase in dividend earnings and currency transaction gains under other income (expenses). Regarding projected unconsolidated net income, due to the abovementioned a·bove·men·tioned adj. Mentioned previously. n. The one or ones mentioned previously. loss on investment, the forecast has been revised downward by 15.0 billion yen. As previously planned, the company intends to issue a 3 yen per share year-end dividend Year-end dividend A special dividend declared at the end of a fiscal year that usually represents distribution of higher-than-expected company profits. year-end dividend See final dividend. . About Fujitsu Limited Fujitsu Limited (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). : 6702)(ADR ADR - Astra Digital Radio : FJTSY) is a leading provider of customer-focused IT and communications solutions for the global marketplace. Pace-setting device technologies, highly reliable computing and communications platforms, and a worldwide corps of systems and services experts uniquely position Fujitsu to deliver comprehensive solutions that open up infinite possibilities for its customers' success. Headquartered in Tokyo, Fujitsu Limited reported consolidated revenues of 4.7 trillion yen (US$44.5 billion) for the fiscal year ended March 31, 2005. For more information, please see: www.fujitsu.com. Source: Fujitsu Limited Contact: Public and Investor Relations Fujitsu Limited Inquiries: https://www-s.fujitsu.com/global/news/contacts/inquiries/index.html Copyright [c] 2006 JCN Newswire. All rights reserved. A division of Japan Corporate News Network K.K. |
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