NEC Corporation Announces Consolidated Financial Results for the Third Quarter and Nine Months Ended December 31, 2016; Revises Consolidated Financial Forecasts for the Full Year of Fiscal 2017
January 30, 2017 at 09:53 pm IST
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NEC Corporation announced consolidated financial results for the third quarter and nine months ended December 31, 2016. For the quarter, the company reported revenue of ¥593.4 billion, operating loss of ¥20.8 billion, loss before income taxes of ¥14.2 billion and net loss of ¥16.0 billion. Negative free cash flow was ¥42.2 billion. This was an improvement of ¥18.2 billion year-on-year.
For nine months, the company reported revenue of ¥1,794.5 billion, operating loss of ¥17.0 billion, loss before income taxes of ¥1.6 billion and net loss of ¥2.8 billion. Free cash flow improved by ¥55.8 billion.
The company revised its consolidated financial forecasts for the full year of fiscal 2017. The company now expects consolidated revenue of ¥2,680.0 billion a decrease of ¥200.0 million from the previous forecasts. This decrease is mainly due to large-scale projects being delayed, failure to receive expected projects in the Public business, sluggish international growth in the Telecom Career business, a decrease in hardware sales in the System Platform business and a sales decrease in international business in Others, despite an anticipated sales increase from the consolidation of Japan Aviation Electronics, Limited through a tender offer bid. Operating income is anticipated at ¥30.0 billion a decrease of ¥70.0 billion from the previous forecasts. Net profit is anticipated at ¥20.0 billion a decrease of ¥30.0 billion from the previous forecasts, despite gain on sales from the transfer of a portion of shares in Lenovo NEC Holdings B.V. Free cash flow forecast is ¥80 billion, ¥20 billion higher than the previous forecast.
NEC Corporation specializes in the manufacturing and marketing computing and telecommunication equipments. Net sales break down by activity as follows:
- IT services (53.9%): integration, maintenance, outsourcing, support services, etc.;
- sale of IT infrastructure products and network systems (17%). In addition, the group provides network services;
- sale of digital government and financial services software (14.9%);
- other (12.7%): sale of hardware, mobile telephones, lighting products, energy management and storage systems, etc.
Net sales are distributed geographically as follows: Japan (75%), Asia/Pacific (11.2%), Europe/Middle East/Africa (9.8%) and Americas (4%).
NEC Corporation Announces Consolidated Financial Results for the Third Quarter and Nine Months Ended December 31, 2016; Revises Consolidated Financial Forecasts for the Full Year of Fiscal 2017