Tokyo, July 31, 2008 - (JCN Newswire) - Fujitsu Limited, a leading
provider of IT-based business solutions for the global marketplace, today reported consolidated
operating income of 5.8 billion yen (US$55 million*) for the first quarter of fiscal 2008
(April 1 - June 30, 2008), nearly double the previous year's first-quarter result on strong
growth in the IT services business.
Consolidated net income totaled 0.3 billion yen (US$3 million), compared with a net loss of
14.7 billion yen in last year's first quarter when the company booked inventory revaluation
losses arising from a change in accounting policies.
Consolidated net sales totaled 1,177.2 billion yen (US$11,106 million), essentially unchanged
from the year-earlier period. Excluding the impact of yen appreciation, net sales increased by
5%. Sales in Japan increased by 4.7%, led by higher sales of system integration services,
mobile phone base stations and router equipment to telecom carriers. Sales outside Japan
declined by 5.2%, primarily a result of yen appreciation.
Both sales and operating income in the first quarter exceeded the company's projections
announced in May 2008.
"I am very pleased that we remain on target to meet our fiscal 2008 projections, despite
growing economic uncertainty," said Fujitsu Limited President Kuniaki Nozoe. "Companies need to
improve their business processes on a continual basis in order to succeed in a more competitive
business environment, and we are committed to driving innovation in our own business as well as
the businesses of our customers to enable them to thrive globally."
Business Segment Results
Consolidated net sales in the Technology Solutions segment, which includes the System
Platforms and Services sub-segments, rose 2.2%, to 697.9 billion yen (US$6,584 million). Sales
in Japan increased by 8.1%, primarily on higher sales of system integration services, mobile
phone base stations and router equipment to telecom carriers. Sales outside Japan decreased by
6.6%. Excluding the impact of yen appreciation, however, sales outside Japan increased by 6% on
higher Services sales. Operating income for the segment was 8.2 billion yen (US$77 million),
more than double the 3.9 billion yen profit in the previous year's first quarter.
Net sales in the Ubiquitous Product Solutions segment, which includes PCs, mobile phones, HDDs
and other products, were 271.8 billion yen (US$2,564 million), a decrease of 1.0% compared to
the year-earlier period. Sales in Japan rose by 6.7% on higher sales of PCs, primarily to
corporate customers. Sales outside Japan decreased by 14.5% as a result of yen appreciation and
intensified competition in Europe's PC market. Operating income for the segment was 9.9 billion
yen (US$94 million), a 19.5% decline compared to the previous year.
Net sales in the Device Solutions segment were 172.3 billion yen (US$1,626 million), a
decrease of 8.8% from the first quarter of fiscal 2007. Sales in Japan declined by 13.5% on
weak sales of standard logic devices. Sales outside Japan were essentially flat. Excluding the
impact of yen appreciation, however, sales outside Japan increased by 15% on strong sales of
logic products, especially to Asia. The segment posted an operating loss of 4.7 billion yen
(US$45 million) compared with a loss of 3.6 billion yen in the previous year's first quarter,
primarily due to the lower sales in Japan. An earthquake in the Iwate-Miyagi region of Japan in
June also impacted profitability.
Fiscal 2008 Consolidated Projections
Although first-quarter results exceeded the company's projections announced in May, the
company has left its first-half and full-year projections for fiscal 2008 unchanged. The
company's earnings projections for fiscal 2008 are presented below:
(Billion Yen)
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First Half Full-Year
FY 2007 FY2008 Change FY 2007 FY2008 Change
(Actual)(Forecast) (Actual)(Forecast)
----------------------------------------------------------------------
Net Sales 2,513.1 2,450.0 -2.5% 5,330.8 5,350.0 0.4%
Operating Income 43.9 35.0 -20.3% 204.9 220.0 7.3%
Net Income -9.3 0 -- 48.1 100.0 107.9%
----------------------------------------------------------------------
* All yen figures have been converted to U.S. dollars for convenience
only at a uniform rate of US$1 = 106 yen, the approximate closing
exchange rate on June 30, 2008.
* Note: These materials may contain forward-looking statements that are based on management's
current views and assumptions and involve known and unknown risks and uncertainties that could
cause actual results, performance or events to differ materially from those expressed or
implied in such statements. Actual results may differ materially from those projected or
implied in the forward-looking statements.
About Fujitsu Ltd
Fujitsu is a leading provider of IT-based business solutions for the global marketplace. With
approximately 160,000 employees supporting customers in 70 countries, Fujitsu combines a
worldwide corps of systems and services experts with highly reliable computing and
communications products and advanced microelectronics to deliver added value to customers. Headquartered in Tokyo, Fujitsu Limited (TSE:6702) reported consolidated revenues of 5.3
trillion yen (US$53 billion) for the fiscal year ended March 31, 2008. For more information,
please visit www.fujitsu.com .
Source: Fujitsu Ltd
Contact:Fujitsu Ltd
Public and Investor Relations
http://www.fujitsu.com/global/news/contacts/
+81-3-3215-5259
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