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Fujitsu Recognizes Loss Due to LSI Business Reforms
Fujitsu Limited
Tokyo, October 28, 2009
Fujitsu announced today that it has recognized a loss in the consolidated financial results for the second quarter of fiscal 2009 in relation to the reorganization and consolidation of manufacturing facilities operated by subsidiary Fujitsu Microelectronics Limited, measures which were announced January 30, 2009.
1. Overview of Subsidiary
| Company name: | Fujitsu Microelectronics Limited |
| Head office: | Shinjuku Daiichi Seimei Bldg., 2-7-1 Nishi-Shinjuku, Tokyo, Japan |
| Representative: | Haruki Okada, President |
| Business description: | Design, development, manufacturing and sale of LSI products |
| Capital: | 60 billion yen |
2. Reason for Loss
Fujitsu Microelectronics, since its establishment as a wholly owned subsidiary of Fujitsu Limited in March 2008, has been implementing a medium-term business plan that includes raising production efficiency and optimizing costs in its LSI manufacturing divisions. However, with the rapid worsening of economic conditions worldwide, LSI product orders have decreased significantly since the autumn of 2008. The company therefore deemed it necessary to urgently reorganize and consolidate its LSI wafer manufacturing facilities, measures which it announced on January 30, 2009.
Fujitsu Microelectronics has been implementing these reforms at its LSI wafer processing facilities at the Iwate Plant and Aizu-Wakamatsu Plant, as well as at Fujitsu Semiconductor Technology, Inc. in Japan. At the same time, reforms to optimize the efficiency of the administrative divisions of the Fujitsu Microelectronics Group have been implemented. As part of these initiatives, Fujitsu Microelectronics took measures to reassign some of its employees to other operations within the Fujitsu Group. In relation to these measures, extra severance benefits and other costs related to employee transfers and resignations have been recognized as a loss in the financial results for the second quarter of fiscal 2009.
Fujitsu Microelectronics expects to complete its business reform initiatives by March 2010, as originally planned.
3. Outlook
Regarding the impact of these costs on Fujitsu’s consolidated financial results for the full-year fiscal 2009 ending March 2010, the company expects to recognize a loss of about 20 billion yen. Fujitsu will not revise its financial forecasts for the year as a result of this loss.
About Fujitsu
Fujitsu is a leading provider of IT-based business solutions for the global marketplace. With approximately 175,000 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 4.6 trillion yen (US$47 billion) for the fiscal year ended March 31, 2009. For more information, please see: www.fujitsu.com.
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All other company or product names mentioned 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: 28 October, 2009
City: Tokyo
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