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Fujitsu Revises Fiscal 2006 Financial Results Forecasts

Fujitsu Limited

Tokyo, April 17, 2007

Fujitsu Limited today revised its consolidated and unconsolidated earnings forecasts for fiscal 2006 (April 1, 2006 – March 31, 2007). On March 20, 2007, the company revised its unconsolidated earnings forecasts for fiscal 2006. At that time, however, a detailed analysis of the consolidated earnings forecasts had not yet been completed. Fujitsu has now revised its consolidated earnings forecasts as follows:

1-1. Revised FY 2006 Consolidated Financial Results Forecast

(April 1, 2006 - March 31, 2007)

(Billion yen)
Net Sales
Operating Income Net Income
Previous Forecast* (A) 5,100.0 190.0 80.0
Revised Forecast (B) 5,100.0 182.0 102.0
Increase or Decrease (B-A) -- -8.0 +22.0
Percentage of Increase or Decrease -- -4.2% +27.5%
FY 2005 Results
(For year ended March 31, 2006)
4,791.4 181.4 68.5

* Previous forecast as of January 31, 2007

1-2. Explanation of Revision

Operating income projections are being lowered because of delays in the recovery of the company's optical transmission business. With respect to net income projections, although the company is posting a devaluation loss on plant and equipment assets in its optical transmission business, it is posting a gain on the sale executed on March 20, 2007 of a portion of the company's shareholdings in Fanuc Ltd. As a result, Fujitsu is revising upward its previous forecast for net income, and projected net income is expected to exceed the company's previous record level of net income posted in fiscal 1984.

2-1. Revised FY 2006 Unconsolidated Financial Results Forecast

(April 1, 2006 - March 31, 2007)

(Billion yen)
Net Sales Net Income
Previous Forecast* (A) 2,950.0 (275.0)
Revised Forecast (B) 2,870.0 (249.0)
Increase or Decrease (B-A) -80.0 +26.0
Percentage of Increase or Decrease -2.7% --
FY 2005 Results
(For year ended March 31, 2006)
2,850.2 17.4

* Previous forecast as of March 20, 2007

2-2. Explanation of Revision

Net income is expected to exceed the previously projected level by approximately 26.0 billion yen. The company is revising its stock valuation losses on its shareholdings in overseas subsidiaries. This revision accounts for higher-than-anticipated Yen-based equity value of overseas subsidiaries at the end of fiscal 2006. The devaluation loss on plant and equipment assets is also lower than previously projected.

3. Devaluation Loss on Plant and Equipment Assets

Fujitsu is posting a devaluation loss relating to plant and equipment assets of Fujitsu Limited and its consolidated subsidiaries in Japan. The losses are primarily attributable to delays in the performance recovery of the optical transmission business as a result of rapid changes in the business environment in North America and Japan. These devaluation losses amount to approximately 6.0 billion yen on an unconsolidated basis and approximately 10.0 billion yen on a consolidated basis.

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 due to, without limitation, the following factors:
- General economic and market conditions in key markets (particularly in Japan, North America and Europe)
- Rapid changes in the high-technology market (particularly semiconductors, PCs, etc.)
- Fluctuations in exchange rates or interest rates
- Fluctuations in capital markets - Intensifying price competition
- Changes in market positioning due to competition in R&D
- Changes in the environment for the procurement of parts and components
- Changes in competitive relationships relating to collaborations, alliances and technical provisions
- Potential emergence of unprofitable projects

About Fujitsu

Fujitsu is a leading provider of customer-focused IT and communications solutions for the global marketplace. Pace-setting device technologies, highly reliable computing and communications products, and a worldwide corps of systems and services experts uniquely position Fujitsu to deliver comprehensive solutions that open up infinite possibilities for its customers' success. Headquartered in Tokyo, Fujitsu Limited (TSE:6702) reported consolidated revenues of about 4.8 trillion yen (US$40.6 billion) for the fiscal year ended March 31, 2006. See for further information.

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Company:Fujitsu Limited

Date: 17 April, 2007
City: Tokyo
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