NEC Corporation, 2013 Earnings Call, Apr 26, 2013

NEC Corporation reported earnings results for fiscal 2012. The company reported group net profit of ¥30,434 million in fiscal 2012, swinging back to the black for the first time in three years, due to cost reductions reflecting job cuts and other restructuring measures. In the preceding year, the company suffered a net loss of ¥110,267 million. Sales rose 1.1% to ¥3,071,609 million, buoyed by brisk orders for equipment used at base stations for mobile phone services. Operating income, ¥114.6 billion, ordinary income, ¥92 billion, all recording a year-on-year increase. NEC also announced a plan to take out a total of ¥130 billion in subordinated loans from Sumitomo Mitsui Banking Corp. and four other banks in May, in order to improve its financial base. As a result, the company is forecasting a full year operating income to breakeven but the actual fell short by ¥20 billion. In addition, centering on software, ¥15 billion impairment loss was recorded as extraordinary loss affecting a major impact on the results for fiscal 2012, but this allows for the lean operation for fiscal 2013. The operating income was ¥14.6 billion higher than the plan. Now, operating income was ¥7.4 billion higher than the plan, but the others were ¥11.6 billion lower than the plan including the impairment loss. Net income was ¥10.4 billion higher than the plan. Page 16 shows the summary of financial forecast for Fiscal Year '13. Net sales are expected to declined by 2.3% year-on-year to ¥3 trillion. Operating income is expected to declined by ¥14.6 billion to ¥100 billion. Ordinary income is expected to decline ¥22 billion to ¥70 billion. Net income is expected to decline ¥10.4 billion to ¥20 billion. Cash flow, through the improvement activities of the CCC, to improve.

Wright State University (WSU), a Fairborn, Ohio research university, worked with NEC Corporation to successfully complete the UNIVERGE(R) SV8500 Ultra Module Group (UMG) deployment. NEC, together with NEC-authorized dealer Black Box Network Services, led the implementation of WSU's new solution to provide access to advanced features such as the latest voice, unified communications, and mobility solutions. The solution also equips the university to quickly respond to both its immediate and future requirements.