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 keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settle...
The cloud era has reached the stage where it is no longer a question of whether a company should migrate, but when. Enterprises have embraced the outsourcing of where their various applications are stored and who manages them, saving significant investment along the way. Plus, the cloud has become a defining competitive edge. Companies that fail to successfully adapt risk failure. The media, of course, continues to extol the virtues of the cloud, including how easy it is to get there. Migrating...
Blockchain. A day doesn’t seem to go by without seeing articles and discussions about the technology. According to PwC executive Seamus Cushley, approximately $1.4B has been invested in blockchain just last year. In Gartner’s recent hype cycle for emerging technologies, blockchain is approaching the peak. It is considered by Gartner as one of the ‘Key platform-enabling technologies to track.’ While there is a lot of ‘hype vs reality’ discussions going on, there is no arguing that blockchain is b...
No hype cycles or predictions of a gazillion things here. IoT is here. You get it. You know your business and have great ideas for a business transformation strategy. What comes next? Time to make it happen. In his session at @ThingsExpo, Jay Mason, an Associate Partner of Analytics, IoT & Cybersecurity at M&S Consulting, presented a step-by-step plan to develop your technology implementation strategy. He also discussed the evaluation of communication standards and IoT messaging protocols, data...
ChatOps is an emerging topic that has led to the wide availability of integrations between group chat and various other tools/platforms. Currently, HipChat is an extremely powerful collaboration platform due to the various ChatOps integrations that are available. However, DevOps automation can involve orchestration and complex workflows. In his session at @DevOpsSummit at 20th Cloud Expo, Himanshu Chhetri, CTO at Addteq, will cover practical examples and use cases such as self-provisioning infra...
You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You’re looking at private cloud solutions based on hyperconverged infrastructure, but you’re concerned with the limits inherent in those technologies.
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 ...
In his session at 21st Cloud Expo, Raju Shreewastava, founder of Big Data Trunk, provided a fun and simple way to introduce Machine Leaning to anyone and everyone. He solved a machine learning problem and demonstrated an easy way to be able to do machine learning without even coding. Raju Shreewastava is the founder of Big Data Trunk (www.BigDataTrunk.com), a Big Data Training and consulting firm with offices in the United States. He previously led the data warehouse/business intelligence and B...
"IBM is really all in on blockchain. We take a look at sort of the history of blockchain ledger technologies. It started out with bitcoin, Ethereum, and IBM evaluated these particular blockchain technologies and found they were anonymous and permissionless and that many companies were looking for permissioned blockchain," stated René Bostic, Technical VP of the IBM Cloud Unit in North America, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventi...
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, whic...
The need for greater agility and scalability necessitated the digital transformation in the form of following equation: monolithic to microservices to serverless architecture (FaaS). To keep up with the cut-throat competition, the organisations need to update their technology stack to make software development their differentiating factor. Thus microservices architecture emerged as a potential method to provide development teams with greater flexibility and other advantages, such as the abili...
Product connectivity goes hand and hand these days with increased use of personal data. New IoT devices are becoming more personalized than ever before. In his session at 22nd Cloud Expo | DXWorld Expo, Nicolas Fierro, CEO of MIMIR Blockchain Solutions, will discuss how in order to protect your data and privacy, IoT applications need to embrace Blockchain technology for a new level of product security never before seen - or needed.
Leading companies, from the Global Fortune 500 to the smallest companies, are adopting hybrid cloud as the path to business advantage. Hybrid cloud depends on cloud services and on-premises infrastructure working in unison. Successful implementations require new levels of data mobility, enabled by an automated and seamless flow across on-premises and cloud resources. In his general session at 21st Cloud Expo, Greg Tevis, an IBM Storage Software Technical Strategist and Customer Solution Architec...
The use of containers by developers -- and now increasingly IT operators -- has grown from infatuation to deep and abiding love. But as with any long-term affair, the honeymoon soon leads to needing to live well together ... and maybe even getting some relationship help along the way. And so it goes with container orchestration and automation solutions, which are rapidly emerging as the means to maintain the bliss between rapid container adoption and broad container use among multiple cloud host...
Blockchain is a shared, secure record of exchange that establishes trust, accountability and transparency across business networks. Supported by the Linux Foundation's open source, open-standards based Hyperledger Project, Blockchain has the potential to improve regulatory compliance, reduce cost as well as advance trade. Are you curious about how Blockchain is built for business? In her session at 21st Cloud Expo, René Bostic, Technical VP of the IBM Cloud Unit in North America, discussed the b...