NEC Fielding Announces Consolidated Financial Results for the Fiscal Third Quarter and Nine Months ended December 31, 2005.Tokyo, Japan, Jan 26, 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) - NEC (NEC Corporation, Tokyo, www.nec.com, www.necus.com) An electronics conglomerate known in the U.S. for its monitors. In Japan, it had the lion's share of the PC market until the late 1990s (see PC 98). NEC was founded in Tokyo in 1899 as Nippon Electric Company, Ltd. Fielding, Ltd. (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). : 2322), an NEC Group company and leading information technology (IT) support services support services Psychology Non-health care-related ancillary services–eg, transportation, financial aid, support groups, homemaker services, respite services, and other services company in Japan, has announced its consolidated financial results for the third quarter and nine months ended December 31, 2005. Targeted business fields such as IT management and software support improved steadily, however lower prices for orders received and reductions in large-scale activities resulted in nine months' sales of 165.8 million yen, less 5.7% from the same period in the previous year. Cost reductions through reducing subcontract sub·con·tract n. A contract that assigns some of the obligations of a prior contract to another party. intr. & tr.v. sub·con·tract·ed, sub·con·tract·ing, sub·con·tracts expenses and cost savings through internalizing various operations were inplemented, however decreases in sales and falling unit prices resulted in lower earnings. Ordinary income totalled 6,645 million yen, less 9.0% on the previous term, and net income was 4,477 million yen, less 2.8% from the previous term. Together with our efforts to improve customer satisfaction (CS), the foundation of our operation, in the first three quarters, we implemented management reforms for establishing a new system aimed at business growth through enhancing business operations Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets and cooperative business operations, strengthening customer points of contact through optimum staffing, and reducing costs through internalization Internalization A decision by a brokerage to fill an order with the firm's own inventory of stock. Notes: When a brokerage receives an order they have numerous choices as to how it should be filled. . In the third quarter (from October 1 to December 2005), both our iSolution centers(*1) and our help-desk operations earned the Information Security Management System (ISMS ISMS Information Security Management System ISMS Integrated Safety Management System ISMS Illinois State Medical Society ISMS In-flight Safety Monitoring System ISMS Indian Society for Medical Statistics ISMS Integrated Environmental, Safety, and Health Management System ) BS7799-2: 2002 certification (*2) for high quality and security in CS support services. Our efforts to improve CS were also validated by our first-place ranking in the J.D. Power Asia Pacific (*3) 2005 Japan Solution Provider Customer Satisfaction Study for the fourth consecutive year in the maintenance and support segment. In an effort to promote business growth, we constructed a new system to promote management reform, including the construction of a "Systems Services Division" aimed at operational expansion of IT management and a "Marketing Division" with the goal of quickly developing cooperative business operations and business tie-ups. As for new services, the Company began to offer "Lock-it!" which prevents information leakage Information leakage happens whenever a system that is designed to be closed to an eavesdropper reveals some information to unauthorized parties nonetheless. For example, when designing an encrypted instant messaging network, a network engineer without the capacity to crack your from hard disks removed from CPUs, and the "Secure Backup System Noun 1. backup system - a computer system for making backups ADP system, ADPS, automatic data processing system, computer system, computing system - a system of one or more computers and associated software with common storage Construction Service", which encrypts and backs up data recorded on various types of memory storage devices, in response to increased needs for security. Furthermore, in order to develop capability to handle maintenance for other companies' equipment, the Company launched cooperative business operations with Visual Technology, Inc (http://v-t.jp/jp/) in the high performance server maintenance field, and with IO Data Device, Inc (http://www/iodata.com/) in the personal computer liquid crystal display liquid crystal display (LCD) Optoelectronic device used in displays for watches, calculators, notebook computers, and other electronic devices. Current passed through specific portions of the liquid crystal solution causes the crystals to align, blocking the passage of light. maintenance service field. Finally, we received orders from Mazda Motor Corp. for server integrated operations to reduce IT operational management costs, and began providing operational management services utilizing ITIL (Information Technology Infrastructure Library, www.itil.co.uk) One of the more comprehensive as well as non-proprietary and publicly available sets of guidelines for "best practice" IT services management, owned by the British Office of Government Commerce (OGC). (*4) as a base on hundreds of servers within Mazda. In the area of corporate social responsibility (CSR (1) (Customer Service Representative) A person who handles a customer's request regarding a bill, account changes or service or merchandise ordered. Agents in call centers are known as CSRs. See call center. ), the Company was praised for its participation in activities promoting protection of the environment as well as its efforts to build constructive relationships with stakeholders Stakeholders All parties that have an interest, financial or otherwise, in a firm-stockholders, creditors, bondholders, employees, customers, management, the community, and the government. . It was chosen once again for inclusion in the FTSE FTSE A company that specializes in index calculation. Although not part of a stock exchange, co-owners include the London Stock Exchange and the Financial Times. Notes: The FTSE is similar to Standard & Poor's in the United States. 4 Good Global Index by the UK company FTSE International (http://www.ftse.com/ftse4good/) (*5). The Company's internet investor relation (IR) site was also recognized for its information dissemination dissemination Medtalk The spread of a pernicious process–eg, CA, acute infection Oncology Metastasis, see there efforts by Daiwa Investor Relations Investor relations The process by which the corporation communicates with its investors. Corporation, which selected NEC Fielding as one of the 195 companies to which it awards the "Internet IR Best Company Award" (*6) for the third consecutive year. Finally, we were recognized for using clear management values in call center management, by increasing work center efficiency through speech recognition technology, by the Customer Relations Management (CRM (Customer Relationship Management) An integrated information system that is used to plan, schedule and control the presales and postsales activities in an organization. ) Conference, which selected the Company for its 2005 CRM Best Practice Award (*7). 1. Consolidated Financial Summary for the Nine Months ended December 31, 2005
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Business Results
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(Units: millions of yen)
Nine Months Nine Months Previous FY
April 1 to April 1 to April 1 to
Dec. 31, 2005 Dec. 31, 2004 March 31, 2005
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% change % change
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Net Sales 165,815 (5.7) 175,882 (2.6) 241,539
Operating Income 6,442 (9.0) 7,083 (33.6) 11,458
Ordinary Income 6,645 (9.0) 7,299 (31.8) 11,693
Net Income 4,477 (2.8) 4,607 (23.6) 4,340
EPS (yen) 82.10 84.48 79.27
Fully Diluted
Net Income per Share -- -- --
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Financial Position
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As of As of As of
Dec. 31, 2005 Dec. 31, 2004 March 31, 2005
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Total Assets 123,222 122,819 123,343
Shareholders' Equity 59,544 56,980 56,721
Equity Ratio (%) 48.3 46.4 46.0
EPS (yen) 1,091.77 1,044.74 1,039.68
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Cash Flows
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Nine Months Nine Months Previous FY
April 1 to April 1 to April 1 to
Dec. 31, 2005 Dec. 31, 2004 March 31, 2005
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Cash Flow from
Operating Activities 6,111 (1,995) (1,175)
Cash Flow from
Investing Activities (1,696) (3,109) (4,127)
Cash Flow from
Financing Activities 3,272 (1,205) (1,223)
Cash and Cash Equivalents
at Period End 10,532 3,054 2,838
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2. Consolidated Financial Summary for the Third Quarter, Oct. 1 - Dec. 31, 2005
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Business Results
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(Units: millions of yen)
Third Quarter Third Quarter
Oct. 1 to Oct. 1 to
Dec. 31, 2005 Dec. 31, 2004
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% change % change
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Net Sales 54,401 (5.6) 57,650 (3.8)
Operating Income 1,950 (25.1) 2,604 4.8
Ordinary Income 1,931 (26.2) 2,618 8.3
Net Income 1,261 (25.8) 1,699 14.1
EPS (yen) 23.13 31.17
Fully Diluted
Net Income per Share -- --
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Cash Flows
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Cash Flow from
Operating Activities 2,372 979
Cash Flow fro
Investing Activities (666) (1,052)
Cash Flow from
Financing Activities 4,089 (797)
Cash and Cash Equivalents
at Period End 10,532 3,054
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Cash and cash equivalents ("cash") totaled 10,532 million yen at the end of the third quarter, an increase of 7,478 million yen from the year-ago quarter. Cash flows for the quarter and the factors contributing to their change are described below. Cash Flows from Operating Activities Net cash used in operating activities during the third quarter totaled 6,111 million yen, 8,107 million yen more than in the previous year, calculated following a 6,681 million yen net income before taxes of the previous quarter. This was primarily due to a cash increase over the previous third quarter and based on a decrease of 5,447 million yen from the previous year, primarily from the receipt of 2004 corporate tax refunds Tax refund Money back from the government when too much tax has been paid or withheld from a salary. amounting to 1,397 million yen. Cash Flows from Investing Activities Net cash used in investing activities this quarter amounted to 1,696 million yen, a decrease of 1,413 million yen from the previous term. The primary reason for this decrease was a drop (1,042 million yen less than the previous year) in expenditures resulting from the acquisition of tangible fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → . Cash Flow from Financing Activities Cash Flow from Financing Activities A category in the cash flow statement that accounts for external activities such as issuing cash dividends, adding or changing loans, or issuing and selling more stock. Net cash used in financing activities this quarter amounted to 3,272 million yen, a year on year increase of 4,477 million yen. The major factor behind this increase was an increase in the amount of working capital. Projected Results for the Year Ending March 31, 2006 There are no revisions to the full term consolidated estimates promulgated prom·ul·gate tr.v. prom·ul·gat·ed, prom·ul·gat·ing, prom·ul·gates 1. To make known (a decree, for example) by public declaration; announce officially. See Synonyms at announce. 2. on October 27, 2005. -------------------------------------------------------------------------- FY05 (Estimate) (Units: millions of yen) Total sales 244,000 Ordinary income 12,000 Net income 8,000 EPS (yen) 146.68 -------------------------------------------------------------------------- (*1) "iSolution Center" comprises centers in 11 cities nationwide (Sapporo, Morioka, Koriyama, Niigata, Saitama, Chiba, Tokyo, Osaka, Kyoto, Kanazawa, and Fukuoka) and the "East and West Japan Systems Services Departments" that manages these 11 centers, providing high-quality, safe outsourcing services which correspond to local requirements. (*2) "Information Security Management Standard BS7799-2: 2002" is the international standard specified by the British Standards British Standards are the national standards of the UK. The standards body which produces them is BSI British Standards, a division of BSI Group. It is incorporated under a Royal Charter and is formally designated as the National Standards Body (NSB) for the UK. Institution (BSI BSI - British Standards Institute ) and serves as a guideline guideline Medtalk A series of recommendations by a body of experts in a particular discipline. See Cancer screening guidelines, Cardiac profile guidelines, Gatekeeper guidelines, Harvard guidelines, Transfusion guidelines. for corporate and organizational information security management systems. The standard places special emphasis on the operational management of security. (*3) J.D. Power Asia Pacific Corporation is an international agency specializing in customer satisfaction surveys and consulting. (*4) ITIL (Information Technology Infrastructure Library) is a summary IT guideline set up through an analysis of the successful IT techniques used in leading enterprises. It is used as a "Model" when operational business processes are reviewed, offering guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. to each phase of the IT process - systemizing service planning, development, provision, and maintenance. (*5) FTSE International was established by the joint investment of the U.K. financial publication Financial Times and the London Stock Exchange London Stock Exchange London marketplace for securities. It was formed in 1773 by a group of stockbrokers who had been doing business informally in local coffeehouses. as an institution dedicated to the development, calculation, and management of indices to track stocks, bonds, and the like. (*6) Daiwa Investor Relations reviews the websites of 1,144 listed companies listed company n → compañía cotizable listed company n → société cotée en Bourse listed company list n → and companies listed on the over-the-counter market over-the-counter market Trading in stocks and bonds that does not take place on stock exchanges. Such trading occurs most often in the U.S., where requirements for listing stocks on the exchanges are strict. , selects the 441 most commendable com·mend tr.v. com·mend·ed, com·mend·ing, com·mends 1. To represent as worthy, qualified, or desirable; recommend. 2. To express approval of; praise. See Synonyms at praise. 3. , and then uses its own selective contents evaluation to qualitatively rank these to arrive at the 195 companies to receive the Internet IR Best Company Award. (*7) The "CRM Best Practice Award" sponsored by the CRM Conference (Secretariat Secretariat, 1970–89, thoroughbred race horse. Trained by Lucien Laurin and ridden by Ron Turcotte, Secretariat won the Kentucky Derby, Preakness, and Belmont Stakes to capture the Triple Crown in 1973. Secretariat (foaled 1970) U.S. Office: Suginami-ku, Tokyo) is awarded following a hearing and examination of outstanding companies, organizations, and public government offices achieving results through the employment of IT technology in customer relationship management. The purpose of the award is to widely showcase these companies as model cases of progress in CRM. Customer Relationship Management (CRM) is the management of a data base structure responding to customer needs in order to increase customer satisfaction and improve corporate income. About NEC Fielding, Ltd. Headquarterd in Tokyo, Japan, NEC Fielding, Ltd. (TSE: 2322; US: NECFF) is a leading information technology (IT) support services company. The company leverages sophisticated technological expertise and knowledge of personnel to help it's customers complete IT spectrum - from businesses to individuals - maximize the potential of their IT assets. As the name suggests, its primary focus is Fielding's expert teams at customer premises to solve IT-user issues. NEC Fielding was founded in 1957. Source: NEC Fielding, Ltd. Contact: NEC Fielding Investor Relations Miyazaki Hitoshi miyazaki-h@star.fielding.nec.co.jp Shigeru Matsui matsui-s@star.fielding.nec.co.jp +81-3-3452-7093 Copyright [c] 2006 JCN Newswire. All rights reserved. A division of Japan Corporate News Network K.K. |
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