Welcome!

News Feed Item

Fujitsu Reports Fiscal 2014 First-Quarter Financial Results

First time since FY2010 to report first quarter operating profits due to ongoing solid performance and the growing impact of streamlining resulting from structural reforms

Tokyo, July 31, 2014 - (JCN Newswire) - Fujitsu today reported a profit for the first quarter attributable to owners of the parent of 6.8 billion yen (US$67 million), representing an improvement of 16.0 billion yen compared to the loss posted in the first quarter of fiscal 2013.

From the first quarter of fiscal 2014, the Fujitsu Group has adopted International Financial Reporting Standards (IFRS). In addition, consolidated financial statements for the previous fiscal year's first quarter and for the full 2013 fiscal year are presented in accordance with IFRS.

Consolidated revenue for the first quarter of fiscal 2014 amounted to 1,068.6 billion yen (US$10,580 million), an increase of 6.9% from the first quarter of fiscal 2013. Revenue in Japan increased 8.1%. Revenue from mobile phones and PCs rose significantly, and revenue from system integration services also increased, primarily from the public sector and financial services sector. Outside of Japan, revenue rose 5.3%, but was essentially unchanged on a constant-currency basis. Revenue from LSI devices and electronic components declined, but higher revenue from car audio and navigation systems was recorded in North America, and revenue of PCs grew in Europe.

Gross profit was 280.9 billion yen, an increase of 21.0 billion yen from the first quarter of fiscal 2013. The gross profit margin was 26.3%, an increase of 0.3 of a percentage point from the first quarter of the previous fiscal year as a result of improved profitability in mobile phones and other factors. Selling, general and administrative expenses were 274.4 billion yen, essentially unchanged from the first quarter of fiscal 2013. Other income (expenses) was 0.8 billion yen, a decline of 1.6 billion yen from the first quarter of fiscal 2013. This was attributable to the one-time posting of profit associated with a partial buyout of the retirement benefit plan of a European subsidiary, and other factors, in the first quarter of the previous fiscal year.

Fujitsu recorded an operating profit of 7.2 billion yen (US$71 million), an improvement of 18.0 billion yen from the previous fiscal year's first quarter. In addition to the positive impact from higher revenue, results benefited from structural reforms implemented last fiscal year in the mobile phone business and other areas.

Profit before income taxes amounted to 10.4 billion yen. This was on account of the addition of income from investments accounted for using the equity method, net to operating profit, and other factors.

President Masami Yamamoto commented: "I am delighted to report to our shareholders and investors, that for the first time since fiscal 2010, we have achieved operating profit in a first quarter. This is on account of improved profits in line with recovery to ICT investments in Japan, as well as being able to enjoy the benefits of structural reforms to our mobile phone business in the Ubiquitous Solutions segment. In fiscal 2013 we were able to set consistent goals for structural reforms, which put us on course for our May 29 announcement of a new medium-term management plan, commencing in fiscal 2014, and forward on to achieving sustainable growth. Together with steadily expanding our footprint in ICT domains, both in and outside of Japan, we are striving to achieve our fiscal 2014 operating profit and net profit goals, and to meeting our medium-term objectives."

Business Segment Results

Consolidated revenue in the Technology Solutions segment amounted to 708.0 billion yen (US$7,010 million), an increase of 4.5% from the same period in fiscal 2013. Revenue in Japan rose 3.2%. Revenue from system integration services rose, primarily in the financial services and public sectors. For network products, revenue rose as a result of the high level of spending by telecommunications carriers to expand their LTE coverage areas. Revenue outside Japan increased 6.4%, but declined by 1% on a constant currency basis. Overall revenue from infrastructure services declined as a result of temporary sluggishness in hardware-related demand in continental Europe. There was a decline in revenue from optical transmission systems in North America as this was a slow period for investment spending in this segment on the part of telecommunications carriers. The segment posted an operating profit of 11.4 billion yen (US$113 million), a decline of 2.9 billion yen compared to the first quarter of fiscal 2013. In Japan, operating profit rose on the impact of higher revenue. Outside Japan, operating profit declined on the impact of lower revenue in the infrastructure services business in addition to a one-time posting of profit related to a partial buyout of a retirement benefit plan of a European subsidiary in the prior fiscal year's first quarter.

Consolidated revenue in the Ubiquitous Solutions segment amounted to 268.9 billion yen (US$2,662 million), an increase of 24.5% from the first quarter of fiscal 2013. Revenue in Japan was up by 24.6%. Contributing factors included increased unit sales of PCs on account of higher demand for upgrades as a consequence of the ending of support for an operating system. For mobile phones, in addition to strong revenue in the Raku-Raku series, the launch of new models contributed to increased revenue. Revenue outside Japan increased 24.4%, and even on a constant currency basis rose 19%, primarily owing to higher revenue from PCs in Europe and Mobilewear in North America. The segment posted an operating profit of 8.7 billion yen (US$86 million), an improvement of 25.7 billion yen from the first quarter of the previous fiscal year. In addition to the impact of higher revenue, income from mobile phones increased because of the impact of the structural reforms implemented last fiscal year, a decline in costs relating to quality issues and a further reduction in operating costs.

Consolidated revenue in the Device Solutions segment amounted to 135.2 billion yen (US$1,339 million), a decrease of 7% from the same period of fiscal 2013. In Japan, revenue from both LSI devices and electronic components was essentially unchanged from the first quarter of fiscal 2013. Outside Japan, revenue decreased 13.7%. The segment posted an operating profit of 3.3 billion yen (US$33 million), a decline of 3.8 billion yen compared to the first quarter of fiscal 2013 primarily because of lower revenue.

Fiscal 2014 Consolidated Projections

Projections for the first half of fiscal 2014 and full-year fiscal 2014 remain unchanged from the projections announced in the beginning of the fiscal year.

* Yen figures have been converted to U.S. dollars, for convenience only, at a uniform rate of US$1 = 101 yen, the approximate closing rate on June 30, 2014.

About Fujitsu Limited

Fujitsu is the leading Japanese information and communication technology (ICT) company offering a full range of technology products, solutions and services. Approximately 170,000 Fujitsu people support customers in more than 100 countries. We use our experience and the power of ICT to shape the future of society with our customers. Fujitsu Limited (TSE: 6702) reported consolidated revenues of 4.4 trillion yen (US$47 billion) for the fiscal year ended March 31, 2013 For more information, please see www.fujitsu.com.



Source: Fujitsu Limited

Contact:
Fujitsu Limited
Public and Investor Relations
www.fujitsu.com/global/news/contacts/
+81-3-3215-5259


Copyright 2014 JCN Newswire. All rights reserved. www.japancorp.net

More Stories By JCN Newswire

Copyright 2008 JCN Newswire. All rights reserved. Republication or redistribution of JCN Newswire content is expressly prohibited without the prior written consent of JCN Newswire. JCN Newswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, led attendees through the exciting evolution of the cloud. He looked at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering m...
Without lifecycle traceability and visibility across the tool chain, stakeholders from Planning-to-Ops have limited insight and answers to who, what, when, why and how across the DevOps lifecycle. This impacts the ability to deliver high quality software at the needed velocity to drive positive business outcomes. In his general session at @DevOpsSummit at 19th Cloud Expo, Eric Robertson, General Manager at CollabNet, will discuss how customers are able to achieve a level of transparency that e...
As data explodes in quantity, importance and from new sources, the need for managing and protecting data residing across physical, virtual, and cloud environments grow with it. Managing data includes protecting it, indexing and classifying it for true, long-term management, compliance and E-Discovery. Commvault can ensure this with a single pane of glass solution – whether in a private cloud, a Service Provider delivered public cloud or a hybrid cloud environment – across the heterogeneous enter...
We all know that end users experience the internet primarily with mobile devices. From an app development perspective, we know that successfully responding to the needs of mobile customers depends on rapid DevOps – failing fast, in short, until the right solution evolves in your customers' relationship to your business. Whether you’re decomposing an SOA monolith, or developing a new application cloud natively, it’s not a question of using microservices - not doing so will be a path to eventual ...
"DivvyCloud as a company set out to help customers automate solutions to the most common cloud problems," noted Jeremy Snyder, VP of Business Development at DivvyCloud, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
DXWorldEXPO LLC announced today that ICC-USA, a computer systems integrator and server manufacturing company focused on developing products and product appliances, will exhibit at the 22nd International CloudEXPO | DXWorldEXPO. DXWordEXPO New York 2018, colocated with CloudEXPO New York 2018 will be held November 11-13, 2018, in New York City. ICC is a computer systems integrator and server manufacturing company focused on developing products and product appliances to meet a wide range of ...
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smart...
We all know that end users experience the Internet primarily with mobile devices. From an app development perspective, we know that successfully responding to the needs of mobile customers depends on rapid DevOps – failing fast, in short, until the right solution evolves in your customers' relationship to your business. Whether you’re decomposing an SOA monolith, or developing a new application cloud natively, it’s not a question of using microservices – not doing so will be a path to eventual b...
Major trends and emerging technologies – from virtual reality and IoT, to Big Data and algorithms – are helping organizations innovate in the digital era. However, to create real business value, IT must think beyond the ‘what’ of digital transformation to the ‘how’ to harness emerging trends, innovation and disruption. Architecture is the key that underpins and ties all these efforts together. In the digital age, it’s important to invest in architecture, extend the enterprise footprint to the cl...
Sanjeev Sharma Joins November 11-13, 2018 @DevOpsSummit at @CloudEXPO New York Faculty. Sanjeev Sharma is an internationally known DevOps and Cloud Transformation thought leader, technology executive, and author. Sanjeev's industry experience includes tenures as CTO, Technical Sales leader, and Cloud Architect leader. As an IBM Distinguished Engineer, Sanjeev is recognized at the highest levels of IBM's core of technical leaders.
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, discussed how from store operations and ...
As Cybric's Chief Technology Officer, Mike D. Kail is responsible for the strategic vision and technical direction of the platform. Prior to founding Cybric, Mike was Yahoo's CIO and SVP of Infrastructure, where he led the IT and Data Center functions for the company. He has more than 24 years of IT Operations experience with a focus on highly-scalable architectures.
Headquartered in Plainsboro, NJ, Synametrics Technologies has provided IT professionals and computer systems developers since 1997. Based on the success of their initial product offerings (WinSQL and DeltaCopy), the company continues to create and hone innovative products that help its customers get more from their computer applications, databases and infrastructure. To date, over one million users around the world have chosen Synametrics solutions to help power their accelerated business or per...
In an era of historic innovation fueled by unprecedented access to data and technology, the low cost and risk of entering new markets has leveled the playing field for business. Today, any ambitious innovator can easily introduce a new application or product that can reinvent business models and transform the client experience. In their Day 2 Keynote at 19th Cloud Expo, Mercer Rowe, IBM Vice President of Strategic Alliances, and Raejeanne Skillern, Intel Vice President of Data Center Group and ...
We are seeing a major migration of enterprises applications to the cloud. As cloud and business use of real time applications accelerate, legacy networks are no longer able to architecturally support cloud adoption and deliver the performance and security required by highly distributed enterprises. These outdated solutions have become more costly and complicated to implement, install, manage, and maintain.SD-WAN offers unlimited capabilities for accessing the benefits of the cloud and Internet. ...