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Fujitsu Revises Earnings Projections for Full Year Fiscal 2007

Fujitsu Limited

Tokyo, January 31, 2008

Fujitsu Limited today announced that it has revised its earnings projections for fiscal 2007 ending March 31, 2008 for both consolidated and unconsolidated results.

1. Revised Earnings Projections for Full Year FY 2007
(April 1, 2007 – March 31, 2008)

(1) Consolidated

(Billion Yen)
Net Sales Operating Income Net Income
Previous Projection (A) 5,400.0 195.0 65.0
Current Projection (B) 5,350.0 200.0 40.0
Change (B-A) (50.0) 5.0 (25.0)
Percentage Change -0.9% 2.6% -38.5%
Results for FY 2006 5,100.1 182.0 102.4

(2) Unconsolidated

(Billion Yen)
Net Sales Net Income
Previous Projection (A) 3,000.0 65.0
Current Projection (B) 3,000.0 40.0
Change (B-A) - (25.0)
Percentage Change - -38.5%
Results for FY 2006 2,869.2 (249.2)

2. Reasons for Revisions to Earnings Projections

The projection for consolidated net sales has been lowered by 50.0 billion yen from the previous projection to 5,350.0 billion yen as a result of the yen appreciation from the end of December 2007 and other factors.

The projection for consolidated operating income has been increased by 5.0 billion yen to 200.0 billion yen. While income from the logic LSI and electronic devices businesses is expected to fall below the previous forecast, income from the PC and other businesses is expected to exceed the previous forecast. The current projection also takes into account expected non-operating losses related to currency rate movements.

Consolidated net income is now expected to total 40.0 billion yen, 25.0 billion lower than the previous forecast. In the third quarter, we recognized a loss of 19.8 billion yen (*1) on revaluation of investment securities resulting from a significant decline in share prices. In addition, we expect to book approximately 10.0 billion yen (*2) in expenses related to the relocation of equipment used in the development and mass-production prototyping of 90nm and beyond advanced LSI process technologies.

On an unconsolidated basis, net income for the full year is now expected to total 40.0 billion yen, a decline of 25.0 billion yen from the previous projection for the same reasons cited above.

(*1) For details, please see the related release "Fujitsu Recognizes Loss on Revaluation of Investment Securities" issued today. The loss of 19.8 billion yen related primarily to a significant decline in the share price of Spansion Inc. of the U.S., which is listed on the NASDAQ exchange. The loss is calculated based on the stock price on December 31, 2007. The future volatility in the stock price could affect our financial results.

(*2) For details, please see the press release "Fujitsu to Realign and Strengthen LSI Business" issued on January 21, 2008. In conjunction with the relocation of logic LSI development and mass-production prototyping facilities from the Akiruno Technology Center to the Mie Plant and the disposal of certain facilities, we expect to book expenses of approximately 10.0 billion yen in the current fiscal year. We plan to utilize the Akiruno Technology Center in the future, and we are now considering how and when to use this facility. The timing of this use may also impact our financial results.

* 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, Europe, and Asia, including China)

- Rapid changes in the high-technology market (particularly semiconductors, PCs, mobile phones, 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

- Changes in accounting policies

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 create infinite possibilities for its customers' success. Headquartered in Tokyo, Fujitsu Limited (TSE:6702) reported consolidated revenues of 5.1 trillion yen (US$43.2 billion) for the fiscal year ended March 31, 2007. For more information, please see:

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Company and product names referenced herein are trademarks or registered trademarks of their respective owners. Information provided in this press release is accurate at time of publication and is subject to change without advance notice.

Date: 31 January, 2008
City: Tokyo
Company: Fujitsu Limited, , , , ,