January 30, 2014
Fujitsu Limited
Fujitsu Reports Fiscal 2013 Third-Quarter Financial Results
Improved results in Technology Solutions and Device Solutions contribute to rebound in operating income
Tokyo, January 30, 2014 — Fujitsu today reported consolidated net income of 12.0 billion yen (US$114 million), an improvement of 92.8 billion yen from the loss recorded in the third quarter of fiscal 2012.
Net sales for the third quarter of fiscal 2013 were 1,200.7 billion yen (US$11,435 million), an increase of 14.5% from the same period of fiscal 2012. Sales in Japan rose by 9.2%. Sales of system integration services increased, primarily in the public sector and financial services sector, and sales of PCs also grew, primarily to the enterprise customers. Sales outside of Japan rose by 24.6%. Excluding the impact of foreign exchange movements, however, sales increased by 2%. Sales of car audio and navigation systems in North America increased, as did sales of LSI devices.
Fujitsu recorded operating income of 26.1 billion yen (US$249 million), an improvement of 32.0 billion yen from the previous fiscal year’s third quarter. In addition to improved results, particularly in the Technology Solutions segment, structural reforms in the LSI device business and in businesses outside Japan as well as workforce-related measures contributed to the rebound in operating income.
In other income and expenses, Fujitsu recorded a loss 14.1 billion yen, representing an improvement of 66.3 billion yen from the previous fiscal year’s third quarter, when large restructuring expenses and impairment losses were recorded. The company recorded a gain on the sales of investment securities of 1.6 billion yen, and a gain on sales of property, plant and equipment of 2.1 billion yen. On the other hand, in accordance with the liquidation of the US subsidiary Fujitsu Management Services of America, Inc., the company recorded a loss of 20.5 billion yen on the reversal of foreign currency translation adjustments.
"In the third quarter we saw solid performance in system integration services and in enterprise PCs," commented Masami Yamamoto, President of Fujitsu Limited. "We expect to maintain this momentum for the rest of the fiscal year, and will continue to pursue ongoing structural reforms in the LSI device business and businesses outside Japan, as well as workforce-related measures. We will persevere in making utmost efforts to achieve our targets for the full fiscal year."
Business Segment Results
Consolidated net sales in the Technology Solutions segment amounted to 786.3 billion yen (US$7,489 million), up 12.2% from the third quarter of fiscal 2012. Sales in Japan increased 7.1%. In system integration services, sales increased, primarily in the public sector and financial services sector. In network products, sales increased as a result of spending by telecommunication careers to expand LTE service area coverage and increase transmission speeds. Server-related sales increased due to the contribution of large-scale systems deals in the public sector. Sales outside Japan increased 21.6% but were essentially unchanged on a constant-currency basis. The segment posted operating income of 44.4 billion yen (US$423 million), up 22.6 billion yen compared to the third quarter of fiscal 2012.
Net sales in the Ubiquitous Solutions segment were 321.2 billion yen (US$3,059 million), an increase of 20.6% from the third quarter of fiscal 2012. Sales in Japan rose by 16.9%. There was a significant increase in enterprise PC sales on higher demand for upgrades in accordance with the ending of support for an operating system product. In mobile phones, sales in the first half of the fiscal year fell sharply, but sales rose in the third quarter on Fujitsu’s smartphones having been selected by a telecom carrier for promotion. Sales of the Mobilewear sub-segment’s car audio and navigation systems increased in the third quarter with the rebound in new vehicle sales. Sales outside Japan increased 31.7%. On a constant currency basis, sales increased 10%. The segment posted an operating loss of 5.4 billion yen (US$51 million), a deterioration of 3.3 billion yen from the third quarter of fiscal 2012.
Net sales in Device Solutions amounted to 146.0 billion yen (US$1,390 million), up 12.8% from the third quarter of fiscal 2012. Sales in Japan were essentially unchanged. Sales of LSI devices used in IT equipment and manufacturing equipment decreased, and sales of LSI devices used in smartphones, which had been strong in the first half of the fiscal year, were sluggish in the third quarter. On the other hand, in electronic components, sales of optical transceiver modules for telecommunications equipment increased. Sales outside Japan increased 28.8%. On a constant currency basis, sales increased 4%. Sales of LSI devices, primarily to the US and Asia, increased. The segment recorded operating income of 4.2 billion yen (US$40 million), an improvement of 13.5 billion yen from the third quarter of fiscal 2012, and representing the fourth straight quarter of profitable results.
Fiscal 2013 Consolidated Projections
Projected net sales for the full fiscal year have been revised upward by 60 billion yen from the projections announced in October, to 4,680 billion yen. Fujitsu has left its full-year projection for operating income and net income unchanged at 140.0 billion yen and 45.0 billion yen, respectively.
Full-year financial projections for fiscal 2013
| (Billion Yen) |
| |
FY 2013 Projections (Full-Year) |
Change from Previous (October) Projections |
| Net Sales |
4,680.0 |
60.0 |
| Operating Income |
140.0 |
- |
| Net Income |
45.0 |
- |
* Yen figures have been converted to U.S. dollars, for convenience only, at a uniform rate of US$1 = 105 yen, the approximate closing rate on December 31, 2013.
About Fujitsu
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 http://www.fujitsu.com.
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