Please note that JavaScript and style sheet are used in this website,
Due to unadaptability of the style sheet with the browser used in your computer, pages may not look as original.
Even in such a case, however, the contents can be used safely.
President's Message
NEC Electronics aims to increase corporate and shareholder value based upon the following policies.
- Ensure a customer-oriented approach to all business activities, delivering optimal solutions and excellent product quality, with an eye toward increasing sales and earnings through improved customer satisfaction.
- Focus on the company's three core areas of SoC (system on chip), microcomputers, and discrete semiconductors. Develop business processes for each business unit, while promoting re-use of core technologies and resources, to address various customer needs with high-quality and low-cost solutions, thus achieving steady growth and profits.
- Leverage the company's position as an international player to connect with customers, aggressively pursue global business opportunities, and expand sales.
In the first half of the fiscal year (April to September 2007), the U.S. economy showed signs of a slowdown as a result of adjustments in the housing market, whereas the European and Asian economies demonstrated steady growth.
In the semiconductor market, price erosion for DRAM suppressed growth in the overall semiconductor market. Non-DRAM semiconductors, although limited, did see growth, as the global economy fared well.
In this business environment, we posted consolidated net sales of 351.0 billion yen ($3,052 million) for the six months ended September, 2007, up 2.3% over the previous fiscal year. Although sales of liquid crystal display (LCD) driver ICs for mobile phones declined, robust sales of semiconductors for game consoles and an increase in sales of semiconductors for digital televisions helped to push overall sales.
We recorded consolidated operating income of 1.9 billion yen ($16 million), an improvement of 8.8 billion yen year on year. This was the result of higher consolidated sales, in addition to a reduction in fixed costs including R&D expenses, and currency gains. Consolidated income before income taxes was 1.8 billion yen ($16 million), a 7.4 billion yen improvement year on year. Consolidated net loss was 3.0 billion yen ($26 million), a 4.4 billion yen improvement year on year.
In February 2007 NEC Electronics announced new management policies designed to make the company's business structure more robust and help it to achieve profits even despite the downturn in the semiconductor market. We are making a concerted effort to implement these new policies as thoroughly as possible.
Every one of us at NEC Electronics stands firmly committed to regain the confidence of our stakeholders. I respectfully ask for your understanding, guidance and continued support as we move forward in this endeavor.
November 2007
TOSHIO NAKAJIMA
President and CEO, NEC Electronics Corporation
Note: Operating Income(loss) = Net Sales - COGS - R&D - SG&A
