Fujitsu Reports Fiscal 2006 First-Quarter Financial Results; Strong Performance Overseas Paces 7.5% Year-on-Year Revenue Growth.Tokyo, Japan, July 27, 2006 - (JCN JCN Japan Corporate News
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JCN joint communications network (US DoD) Newswire) - Fujitsu Limited, a leader in customer-focused IT and communications solutions for the global marketplace, today reported consolidated net sales Net Sales
The amount a seller receives from the buyer after costs associated with the sale are deducted.
This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight of 1,102.8 billion yen (approximately US$9,674 million*) for the first quarter of fiscal 2006 (April 1, 2006 - June 30, 2006), a 7.5% increase over the same period in the previous fiscal year. A more than 20% year-on-year increase in first-quarter overseas sales offset flat sales in Japan. Strong performers in overseas markets, where all three of the company's business segments recorded revenue gains, ranged from optical transmission systems and outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. services to logic LSI LSI: see integrated circuit.
(Large Scale Integration) Between 3,000 and 100,000 transistors on a chip. See SSI, MSI, VLSI and ULSI. devices, hard disk drives and personal computers.
Fujitsu posted consolidated operating income Operating Income
The profit realized from a business' own operations.
This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. of 14.5 billion yen (US$128 million) in the first quarter, approximately the same level as in the corresponding quarter in fiscal 2005 and significantly exceeding the projections announced at the beginning of the current fiscal year. Robust sales of outsourcing services both in Japan and overseas, a reduction in the burden of start-up costs for the 300mm-wafer LSI production line at the Mie Plant, and cost efficiencies in mobile phone production all contributed to profits. The company posted net income of 0.6 billion yen (US$6 million) for the quarter.
Business Segment Results
First-quarter consolidated net sales in the Technology Solutions segment, which includes the System Platforms and Services sub-segments, increased 5.9% over the same period in fiscal 2005, to 649.6 billion yen (US$5,698 million). Sales of mobile phone base stations in Japan were healthy, but decreased in comparison with the first quarter of fiscal 2005, when demand was especially high. Overseas sales for the segment recorded a 24.9% increase, thanks to continued strong growth in overseas sales of UNIX servers A medium to large-scale computer system in a network that runs under Unix. Unix servers are widely used as application servers and database servers and are available from a variety of vendors, including Sun, IBM, HP and others. , optical transmission equipment, and outsourcing services, as well as the impact of corporate acquisitions in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . Operating income for the Technology Solutions segment was 5.0 billion yen (US$44 million), a decrease of 2.3 billion yen in comparison with the first quarter of fiscal 2005. Due to such factors as intensified in·ten·si·fy
v. in·ten·si·fied, in·ten·si·fy·ing, in·ten·si·fies
1. To make intense or more intense: global price competition and the continuing burden of up-front strategic investments, the System Platforms sub-segment recorded an operating loss operating loss
The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. for the quarter of 5.2 billion yen (US$46 million). This was offset by operating income of 10.2 billion yen (US$90 million) for the Services sub-segment, bolstered bol·ster
A long narrow pillow or cushion.
tr.v. bol·stered, bol·ster·ing, bol·sters
1. To support or prop up with or as if with a long narrow pillow or cushion.
2. by particularly favorable fa·vor·a·ble
1. Advantageous; helpful: favorable winds.
2. Encouraging; propitious: a favorable diagnosis.
3. results in the UK and the US.
Net sales in the Ubiquitous Product Solutions segment, which includes PCs, mobile phones, hard disk drives (HDDs), and other products, were 252.3 billion yen (US$2,214 million), an increase of 4.6% over the same period in the previous year. Double-digit growth in overseas sales was a major contributor to this increase, with higher sales of PCs in overseas markets offsetting lower PC sales in the Japanese market. Operating income for the segment was 10.3 billion yen (US$91 million), a slight decline from the first quarter of fiscal 2005. While mobile phone business earnings benefited from improved quality and cost efficiencies resulting from manufacturing innovation initiatives, increased price competition negatively impacted the company's PC and HDD (Hard Disk Drive) See hard disk and HDD caddy.
HDD - hard disk drive business in Japan and overseas.
Net sales in the Device Solutions segment, which includes the LSI Devices and Electronic Components, Others sub-segments, were 179.8 billion yen (US$1,577 million), an increase of 13% compared to the first quarter of last year. In the LSI Devices sub-segment, the market for logic chips remained strong, especially in the digital consumer electronics and automotive-related fields, and full-scale volume production at the new 300mm-wafer semiconductor fabrication fabrication (fab´rikā´shn),
n the construction or making of a restoration. facility (Fab No. 1) at the company's Mie Plant contributed to higher sales both in Japan and overseas. Operating income for Device Solutions was 12.4 billion yen (US$109 million), an increase of 5.1 billion yen compared to the previous year's first quarter. The increase reflected the impact of higher logic LSI device sales and a reduction in the burden of start-up costs at the Mie Plant's Fab No 1. Construction of another 300mm-wafer facility at the Mie Plant (Fab No. 2) commenced in April of this year, with operations scheduled to begin in April 2007.
Fiscal 2006 Projections
Fujitsu has revised upward its forecast announced in April for first-half fiscal 2006 earnings. The company's outsourcing and other services businesses are performing well both in Japan and in overseas markets, and demand remains firm for logic LSI devices for digital consumer electronics and other applications. However, in light of uncertainties with respect to certain product-related and solutions/SI businesses for which sales and profits tend to be highly concentrated toward the end of the fiscal year, and believing it premature to change its assessments of prospective market conditions and profitability for the logic LSI devices business, the company is maintaining its full-year earnings forecast unchanged.
Complete information on Fujitsu's first-quarter FY 2006 financial results, including financial tables, explanation of results, and supplementary information, may be found at: http://www.fujitsu.com/global/about/ir/.
* Note: All yen figures have been converted to U.S. dollars for convenience only at a uniform rate of US$1=114 yen, the approximate closing exchange rate on June 30, 2006.
About Fujitsu Limited
Fujitsu is a leading provider of customer-focused IT and communications solutions for the global marketplace. Pace-setting device technologies, highly reliable computing computing - computer and communications products, 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 (TSE See Tokyo Stock Exchange.
1. See Tokyo Stock Exchange (TSE).
2. See Toronto Stock Exchange (TSE). :6702) reported consolidated revenues of about 4.8 trillion One thousand times one billion, which is 1, followed by 12 zeros, or 10 to the 12th power. See space/time.
(mathematics) trillion - In Britain, France, and Germany, 10^18 or a million cubed.
In the USA and Canada, 10^12. yen (US$40.6 billion) for the fiscal year ended March 31, 2006. For more information, please see: www.fujitsu.com
Source: Fujitsu Limited
Fujitsu Limited Public and Investor Relations Inquiries: http://www.fujitsu.com/global/news/contacts/
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