 |
NEC Electronics Announces Combined Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2004
KAWASAKI, Japan, July 31, 2003 -
NEC Electronics Corporation (TSE: 6723) today announced its combined financial results for the first quarter of the fiscal year ending March 31, 2004.
I. Overview: Combined Financial Results
(Notes)
| 1. |
The combined financial statements of NEC Electronics are prepared in accordance
with accounting principles generally accepted in the United States, or U.S.
GAAP. Financial information for the fiscal year ended March 31, 2003 is
presented on a basis that reflects the historical combined financial statements
of NEC Electronics assuming that NEC Electronics had existed as a stand-alone
company for periods prior to the corporate separation. |
| 2. |
Operating income is a measurement commonly used by many Japanese companies
and is calculated as follows: net sales minus cost of sales minus selling,
general and administrative expenses. |
II. Combined Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2004 (Summary)
| Name of Stock Exchange: Tokyo Stock Exchange
(First section) |
| Code No: 6723 |
| Company name: NEC Electronics Corporation (URL
http://www.necel.com/) |
| Representatives: |
Kaoru Tosaka, President
Junshi Yamaguchi, Vice President, Corporate Strategic Planning |
1.Significant accounting policies in preparation of first-quarter operating results
| 1) |
U.S. GAAP applied: Yes |
| 2) |
Changes in accounting methods recognized in the most-recent consolidated
fiscal year: None |
| 3) |
Changes in scope of consolidation and application of equity method: None |
2.Performance in the first quarter of the fiscal year ending March 31, 2004
1)Results of operations
2)Financial position
[Cash flows]
(Note)
Financial information for the fiscal year ended March 31, 2003 is presented on a basis that reflects the historical combined financial statements of NEC Electronics assuming that NEC Electronics had existed as a stand-alone company for periods prior to the corporate separation.
3.Targets for the fiscal year ending March 31, 2004
(Note)
The targets discussed above were previously announced on June 16, 2003. NEC Electronics has no immediate plans to revise its interim and full-year targets for fiscal 2004, ending March 31, 2004, announced on June 16, 2003.
III. Combined Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2004 (Details)
1.Condensed combined statements of operations
(Note)
U.S. dollar amounts are translated from yen, for convenience only, at the rate of US$1 = 120 yen.
2.Condensed combined balance sheets
(Note)
U.S. dollar amounts are translated from yen, for convenience only, at the rate of US$1 = 120 yen.
3.Condensed combined statements of cash flows
(Note)
U.S. dollar amounts are translated from yen, for convenience only, at the rate of US$1 = 120 yen.
IV. Business Results
1.First quarter of the fiscal year ending March 31, 2004 (three months ended June 30, 2003)
NEC Electronics Corporation was established as a separate entity from NEC Corporation on November 1, 2002, as a dedicated semiconductor manufacturer specializing in non-DRAM semiconductor solutions.
War in Iraq and the spread of severe acute respiratory syndrome (SARS) briefly led to instability in the global economy during the first quarter of fiscal 2004, ended June 30, 2003. Both crises, however, began to settle, allowing a return to relative stability in the global economy despite some lingering uncertainty. Although consumer spending remained lackluster and capital expenditure declined in the United States over concerns regarding the war with Iraq, the U.S. economy managed to achieve positive growth overall.
In Japan, widespread business restructuring led to an improvement in corporate earnings, while the IT industry regained strength centered on strong sales of mobile handsets, digital cameras and DVD products. Despite these bright spots, the overall Japanese economy continued to remain in the doldrums due to protracted deflation and anxiety over the direction of the U.S. economy, exacerbated by historically low stock prices (although the prices have been recovering, to some degree, in recent months) and other factors.
NEC Electronics recorded first-quarter combined net sales of 169.7 billion yen, as a result of strong performance from semiconductors for mobile handsets and digital audio visual (AV) equipment. Operating income was 11.9 billion yen, the result of net sales growth coupled with efforts to improve cost efficiency. Income before income taxes was 9.5 billion yen, while net income was 6.0 billion yen.
On July 24, 2003, NEC Electronics achieved its goal of a listing on the Tokyo Stock Exchange. The public offering that accompanied the listing raised 93.7 billion yen in new capital, helping NEC Electronics secure a financial base to tackle rivals head-on in the global semiconductor market.
In light of current conditions, NEC Electronics has no immediate plans to revise its interim and full-year targets for fiscal 2004, ending March 31, 2004, announced on June 16, 2003.
2.Breakdown of net sales by end-market applications
Communications
Net sales: 35.7 billion yen
Net sales of semiconductors for communications applications were 35.7 billion yen in the first quarter. This application area encompasses semiconductors for routers, mobile-phone base stations and other broadband networking equipment, as well as semiconductors for mobile handsets.
The introduction of new mobile phone models for the Japanese domestic market, increased production volume of third-generation (3G) mobile devices, and other factors spurred robust growth of system LSI and system memory products for communications applications.
Computing and peripherals
Net sales: 27.2 billion yen
Net sales of semiconductors for computing and peripheral applications totaled 27.2 billion yen in the first quarter. This application area covers semiconductors for servers, workstations, personal computers (PCs) and PC peripherals.
LCD driver-ICs used in color LCD monitors for PCs experienced weak demand during the first quarter. However, a higher installation rate of rewritable DVD drives in new PCs increased system LSI shipments used for those drives, resulting in strong growth of computing and peripherals overall.
Consumer electronics
Net sales: 18.0 billion yen
Net sales of semiconductors for consumer electronics applications were 18.0 billion yen in the first quarter. This area includes semiconductors for digital AV equipment and game consoles.
Despite a favorable performance by semiconductors for digital AV equipment, such as digital cameras, demand for semiconductors used in game consoles dropped sharply.
Automotive and industrial equipment
Net sales: 22.9 billion yen
Net sales of semiconductors for automotive and industrial applications totaled 22.9 billion yen in the first quarter. This application area includes semiconductors used in automobiles and industrial systems, including medical equipment.
Healthy sales of microcontrollers for car audio systems supported a strong sales of semiconductors for automotive and industrial applications overall.
Multi-market ICs
Net sales: 22.1 billion yen
Net sales of multi-market ICs totaled 22.1 billion yen. This field covers general-purpose microcontrollers, gate arrays, and multi-purpose SRAMs.
Although sales of low-end microcontrollers were stable, gate array and system memory shipments continued to struggle.
Discrete, optical and microwave devices
Net sales: 29.9 billion yen
First-quarter net sales of discrete, optical and microwave devices were 29.9 billion yen. This application area includes discrete devices for diodes and transistors, and optical semiconductors, such as semiconductor lasers for optical communications equipment and semiconductors for optical storage devices. This area also encompasses microwave semiconductors for mobile handsets and other applications.
Sales of discrete semiconductors and compounds were strong in the first quarter.
Other
Net sales: 13.5 billion yen
Other net sales in the first quarter totaled 13.5 billion yen. Sales categorized under other consist mainly of sales of color LCDs and other products marketed by NEC Electronics' sales subsidiaries on a consignment basis. These sales are not part of NEC Electronics' core operations, and has contracted substantially in scope since April 2003.
Cautionary Statements:
The statements in this press release with respect to the plans, strategies and forecasts of NEC Electronics Corporation and its subsidiaries (collectively "NEC Electronics") are forward-looking statements involving risks and uncertainties. NEC Electronics cautions in advance you that actual results could differ materially from such forward-looking statements due to several factors. The important factors that could cause actual results to differ materially from such statements include, but are not limited to, general economic conditions in NEC Electronics' markets, which are primarily Japan, North America, Asia and Europe; demand for, and competitive pricing pressure on, NEC Electronics' products and services in the marketplace; NEC Electronics' ability to continue to win acceptance of its products and services in these highly competitive markets; and movements in currency exchange rates, particularly the rate between the yen and the U.S. dollar.
Among other factors, a worsening of the world economy resulting from the downturn in the IT and telecommunications industries, a worsening of financial conditions in the world markets, and a deterioration in the domestic and overseas stock markets, would cause actual results to differ from the projected results forecast.
The information contained in this press release may fall within the definition of "Material Information" under Paragraph 2, Article 166 of the Securities and Exchange Law of Japan. If you (and directors or employees of your company if the content of this report comes to their knowledge in connection with their duties) read this press release before the time of "Publication" (which is defined under the Securities and Exchange Law of Japan and its Enforcement Ordinance as twelve hours after its release; i.e., approximately 3:00 am on August 1, 2003 (JST)), you (and directors or employees of your company if the content of this press release comes to their knowledge in connection with their duties) may be prohibited from purchasing, selling, or making other transactions of shares of stock or other securities of NEC Electronics before the time of Publication.
***
Information in the press releases, including product prices and
specifications is current on the date of the press announcement,
but is subject to change without prior notice.
| |
|
|
SITE MAP
