NEC Fielding Announces Consolidated Financial Results for the Full Year Ended March 31, 2006.Tokyo, Japan, Apr 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 fiscal year ended March 31, 2006. Results for the year included sales of 230,776 million yen, a decrease of 4.5% from the previous year, owing to owing to prep. Because of; on account of: I couldn't attend, owing to illness. owing to prep → debido a, por causa de falling order unit prices from intensified competition and reductions in maintenance and repair services with the spread of open architecture and improvements in finished product quality. Ordinary income similarly decreased 12.0% to 10,285 million yen. However, net pre-tax income for the year rose to 9,267 million yen, an increase of 28.5%, and net income rose to 5,924 million yen, an increase of 36.5%, owing in part to management reforms which reduced subcontracting expenses through progressive 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. , emphasized reduction of costs of maintenance materials, and more concentration on profitable business domains. As a result, the net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight profit ratio for the term amounted to 2.6%, an increase of 0.8 points over the previous year. In a difficult year, the Fielding Group continued along the path of management reform instituted during the second half of the previous fiscal year, and made stable and continuous growth a management issue. With this in mind, the Group maintained certain key policies. Fielding Proactive Maintenance Proactive maintenance is a maintenance strategy for stabilizing the reliability of machines or equipment using Proactive maintenance services. Its central theme involves directing corrective actions aimed at failure root causes, not active failure symptoms, faults, or machine wear Operations continued increasing software support and sales volumes for software, and promoting cost reduction activities in the competitive fields of contract maintenance and repair services, along with maintaining sales by concentrating on reinforcing opportunities to provide maintenance on the equipment of a variety of vendors. Fielding Solutions Operations continued emphasizing expansion in three high-growth areas: security, IP networks, and outsourcing. The Company hopes to strengthen its presence in the IT services market by actively investing in IT equipment construction and support services while providing a significant return on that investment. In addition to developing a workforce that provides high quality customer service and continuing to invest in internal information systems in order to strengthen operations, the Company is accelerating the establishment of cooperative ventures that complement its software technology and system design/construction capabilities. NEC Fielding aims to provide its shareholders with a return on their investment by responding appropriately to changing business conditions and increasing competitiveness, and so boosting corporate value. The Company paid a cash dividend of 15 yen per share at the interim, and will propose another 15 yen per share dividend at the end of the fiscal year at the general shareholders' meeting shareholders' meeting n. a meeting, usually annual, of all shareholders of a corporation (although in large corporations only a small percentage attend) to elect the Board of Directors and hear reports on the company's business situation. . As a result, the annual dividend will be 30 yen per share. Consolidated Financial Results for the Fiscal Year ended March 31, 2006
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Business Results
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(millions of yen)
Fiscal year ended Fiscal year ended
31 March 2006 31 March 2005
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% change % change
Net Sales 230,776 (4.5) 241,539 (3.6)
Operating Income 10,006 (12.7) 11,458 (29.0)
Ordinary Income 10,285 (12.0) 11,693 (27.7)
Net Income 5,924 36.5 4,340 (65.2)
Net Income per Share 108.33 79.27
Shareholders' equity
to Net Income 10.1% 7.9%
Ordinary Income Ratio
of Total Capital 8.7% 9.6%
Ratio of net Sales
to Ordinary Income 4.5% 4.8%
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Financial Position
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(millions of yen)
As of 31 March 2006 As of 31 March 2005
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Total Assets 127,810 123,343
Shareholders' Equity 60,994 56,721
Equity Ratio (%) 47.7 46.0
EPS (yen) 1,118.05 1,039.68
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Cash Flows
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(millions of yen)
Fiscal year ended Fiscal year ended
31 March 2006 31 March 2005
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Cash Flow from
Operating Activities 13,111 (1,175)
Cash Flow from
Investing Activities (2,652) (4,127)
Cash Flow from
Financing Activities (1,635) (1,223)
Cash and Cash Equivalents
at Period End 11,674 2,838
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Highlights of the Year Following the Company's efforts to improve Customer Srvice (CS), its 'iSolution' centers and help desk operations acquired 'Information Security Management Standard: BS7799-2 (2002 edition)', an international standard for information system security management 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 ), to help ensure that customers are provided with high quality and stable outsourcing services. In addition, in recognition of its continuous efforts in ensuring basic certification of its personnel in 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). , the global standard guideline for IT service management, and accelerating the introduction of ITIL into maintenance services, the Company acquired IT management international standard ISO (1) See ISO speed. (2) (International Organization for Standardization, Geneva, Switzerland, www.iso.ch) An organization that sets international standards, founded in 1946. The U.S. member body is ANSI. 20000 in the field of maintenance service. As a result of its efforts to improve CS, for the fourth year in a row, the Company was rated number one in the J.D. Power Asia Pacific 2005 Japan Solution Provider Customer Satisfaction Study (Maintenance and Support). As an initiative to spur business growth, a Systems Services Division was established in Tokyo and Osaka to manage everything from management to operations, including service development, where value added Value Added The enhancement a company gives its product or service before offering the product to customers. Notes: This can either increase the products price or value. is high and high growth is expected. Additionally, a Marketing Division was established, with the goals of quickly developing cooperative 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 business liaisons outside the framework of a business unit, strengthening capability to plan and develop new services, and maintaining business support systems. As for consolidated subsidiaries, NEC Fielding Supportcrew, Ltd. was started to accelerate the reorganization of affiliates and retain maximum value added within the Group, and NEC Fielding Information Technology Services (Beijing) Co., Ltd. was started to provide IT system maintenance service and operational support to Japanese companies This is a list of companies from Japan. Note that 株式会社 can be (and frequently is) read both kabushiki kaisha and kabushiki gaisha (with or without a hyphen). See that article for more details. in China. As for new services, the Company began providing IT management service, which supports customers who operate the efficient, high-definition IT systems that conform to Verb 1. conform to - satisfy a condition or restriction; "Does this paper meet the requirements for the degree?" fit, meet coordinate - be co-ordinated; "These activities coordinate well" ITIL. In response to increasing security requirements, the Company released 'Lock-it!', which prevents the leakage of information 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 enciphers and backs up data recorded on various types of memory storage media. Finally, in order to develop capability to handle maintenance for other companies' equipment, the Company launched cooperative business operations with Visual Technology, Inc. in the high-performance server maintenance service field, with IO Data Service, Inc. 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, and with Buffalo, Inc. in the LAN (Local Area Network) A communications network that serves users within a confined geographical area. The "clients" are the user's workstations typically running Windows, although Mac and Linux clients are also used. hard drive service maintenance field. Furthermore, the Company received orders from Mazda Motor Corp. for server integrated operations to reduce IT operational management costs, and began providing operational management services utilizing ITIL as the base on hundreds of servers in Mazda Motor Corporation. In order to fulfill its 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 continuously promoted activities in the five areas of governance and accountability, market, employment, philanthropy philanthropy, the spirit of active goodwill toward others as demonstrated in efforts to promote their welfare. The term is often used interchangeably with charity. , and environment. NEC Fielding promoted contributions to local communities through such activities as supporting work area cleanups and local sports events, and to the global environment through forestation in Indonesia and other activities. As a result of its CSR achievements, the Company was praised for its promotion of environmental protection and its efforts to build constructive relationships with its 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. . NEC Fielding 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/). The Company's internet investor relations Investor relations The process by which the corporation communicates with its investors. (IR) site was also recognized for its information dissemination efforts by Daiwa Investor Relations Corporation, which selected NEC Fielding as one of the 195 companies to which it awards the "Internet IR Best Company Award" for the third consecutive year. Finally, the Company was 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. Finances and Liquidity 1. Assets Total assets at the end of the consolidated fiscal year under review were 127,810 million yen, up by 4,466 million yen from the previous year. Current assets Current Assets Appearing on a company's balance sheet, it represents cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that can be converted to cash within one year. were 101,102 million yen, up 3,910 million yen from the previous year. This was chiefly the result of an increase in cash and cash equivalents to 11,674 million yen, which was up 8,836 million yen from a year earlier, and a decline to 56,056 of notes and sales receivable, down by 5,641 million yen from the previous year. Fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → increased by 556 million yen over the previous year to 26,707 million yen. Tangible fixed assets were 4,838 million yen, down 262 million yen from the previous year due to disposal of idle assets. Intangible fixed assets were 5,688 million yen, an increase of 1,026 million yen over the previous year, owing to the construction of a new IT system (TrustV) for the improvement of CS and the strengthening of management fundamentals. In other assets other assets Assets of relatively small value. For financial reporting purposes, firms frequently combine small assets into a single category rather than listing each item separately. , although prepaid pre·pay tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay  ment n. pension expenses were 6,957
million yen, an increase of 1,768 million yen over the previous year,
they amounted to 16,180 million yen, or a decrease of 207 million yen
compared to a year earlier after deferred tax assets fell 1,803 million
yen from the previous year to 4,229 million yen.2. Liabilities Total liabilities at the end of this consolidated fiscal year were 66,764 million yen, an increase of 143 million yen from the previous year. Current liabilities Current Liabilities Usually appearing on a company's balance sheet, it represents the amount owed for interest, accounts payable, short-term loans, expenses incurred but unpaid, and other debts due within one year. were 49,886 million yen, 758 million yen less than the previous year. This was due to reduced purchases as a result of reduced sales, trade notes and accounts payable of 34,756 million yen, down 2,032 million yen from the previous year, accrued expenses Accrued Expense An accounting expense recognized in the books before it is paid for. It is a liability, usually current. These expenses are typically periodic and documented upon a company's balance sheet due to the high probability of collection. of 8,471 million yen, down 312 million from the previous year, and income taxes payable and other expenses amounting to 2,646 million yen, up 2,055 million yen over the previous year. Fixed liabilities were 16,878 million yen, 902 million yen more the previous year. This was primarily due to an increase in allowance for employees' retirement benefits to 16,875 million yen, up 924 million yen from last year. 3. Shareholders' Equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. Shareholders' equity increased 4,273 million yen from the previous year to 60,994 million yen. This was chiefly a result of retained earnings Retained Earnings The percentage of net earnings not paid out in dividends, but retained by the company to be reinvested in its core business or to pay debt. It is recorded under shareholders equity on the balance sheet. rising to 41,154 million yen, an increase of 4,271 million yen over the previous fiscal year. Reflecting the above, the liquidity ratio rose 10.8 points by the end of the consolidated fiscal year to 202.7%, and the shareholders' equity ratio rose to 1.7 points from a year earlier to 47.7%. Projected Results for the Year Ending March 31, 2005 (millions of yen)
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Category FY07(Est.) FY06 Change Change(%)
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Proactive Maintenance
Operations 93,000 98,569 (5,569) (5.6%)
Fielding Solutions
Operations 142,000 132,207 9,793 7.4%
Total sales 235,000 230,776 4,224 1.8%
Operating income 8,000 10,006 (2,006) (20.0%)
Ordinary income 8,000 10,285 (2,285) (22.2%)
Net income 4,000 5,924 (1,924) (32.5%)
ROE-consolidated 6.4% 10.1% (3.7%)
EPS-consolidated (yen) 73.34 108.33 (34.99%)
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Basic Management Policies NEC Fielding's fundamental corporate principle is as follows: 'Using fielding activities to facilitate new dynamism and business expansion for our customers, whilst also contributing to the creation of a stable and prosperous society'. In this context, 'fielding' refers not only in the way in which the Company's IT services business helps customers realize trouble-free IT systems operations and get the most from their systems, but at the same time the way in which Company endeavors to anticipate customer needs in devising and offering new services to management. The word 'fielding' itself derives from the idea of sending teams of employees to customer locations, or out into the field, to tackle problems head on. Its incorporation in NEC Fielding's name is representative of the Company's intention to base its revenues on fieldwork field·work n. 1. A temporary military fortification erected in the field. 2. Work done or firsthand observations made in the field as opposed to that done or observed in a controlled environment. 3. carried out throughout its nationwide business service network and at customer locations. Based on these ideas, NEC Fielding has established 'Fielding Vision' to clarify its fundamental management position and business goals over the long term. This vision is already well integrated into the system whereby potential business operations are investigated and Company employees conduct their various responsibilities. 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 +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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