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NEC Electronics Revises Forecasts for the First Half of the Fiscal Year
KAWASAKI, Japan, November 7, 2007
NEC Electronics Corporation (TSE: 6723) today revised its consolidated financial forecasts for the first half of the fiscal year (the period from April 1 to September 30, 2007), which it disclosed on May 14, 2007. The full-year forecasts remain unchanged. Details will be explained in NEC Electronics' announcement of interim financial results on November 13, 2007.
1.Revised forecasts for interim consolidated financial results
| (For the six months ended September 30, 2007)
|
In millions of yen
|
|
Net Sales |
Operating Income
(Loss) |
Income (Loss)
Before
Income Taxes |
Net Income (Loss) |
Previous forecasts |
335,000 |
(5,000) |
(12,000) |
(15,000) |
Revised forecasts |
350,000 |
1,800 |
1,800 |
(3,000) |
Increase (decrease) |
15,000 |
6,800 |
13,800 |
12,000 |
Percent change |
4.5 |
--- |
--- |
--- |
Reference:
Results for the six months ended September 30, 2006 |
343,011 |
(6,924) |
(5,603) |
(7,387) |
|
|
2.Background to the revisions
Consolidated operating income for the first half of the fiscal year is expected to total 1.8 billion yen, a 6.8 billion yen improvement over the forecast. This was the result of an increase in net sales, primarily due to strong sales of consumer electronics devices, as well as a reduction in fixed costs, and the effects of a weaker yen. Income before income taxes and net income are both expected to exceed original forecasts, as certain non-operating expenses that were anticipated in the first half were shifted to the second half of the fiscal year.
3.Original (unchanged) forecasts for the full year consolidated financial results
| (For the year ending March 31, 2008)
|
In millions of yen
|
|
Net Sales |
Operating Income |
(Loss) Before
Income Taxes |
Net (Loss) |
Previous forecasts |
690,000 |
0 |
(10,000) |
(15,000) |
4.Background to the unchanged full-year forecasts
The global impact of the U.S. subprime mortgage issue, as well as the steep rise in crude oil prices, have made it increasingly difficult to predict global economic trends. It will be necessary to carefully analyze the semiconductor market conditions, particularly for the fourth quarter. Therefore, NEC Electronics has not revised its original forecast for the fiscal year, or the estimate for semiconductor sales in the amount of 670.0 billion yen.
Cautionary statements: |
1) |
The statements in the material above with respect to the plans, strategies and forecasts of NEC Electronics Corporation ("NEC Electronics") are forward-looking statements involving risks and uncertainties. We caution you in advance that actual results could differ materially from such forward-looking statements due to several factors. |
2) |
The consolidated financial statements of NEC Electronics are prepared in accordance with accounting principles generally accepted in the United States, or U.S. GAAP, but the figures for operating income shown above represent net sales minus the cost of sales, research and development, and selling, general and administrative expenses. |
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About NEC Electronics
NEC Electronics Corporation (TSE: 6723) specializes in semiconductor products encompassing advanced technology solutions for the high-end computing and broadband networking markets, system solutions for the mobile handsets, PC peripherals, automotive and digital consumer markets, and multi-market solutions for a wide range of customer applications. NEC Electronics Corporation has 25 subsidiaries worldwide including NEC Electronics America, Inc. (www.am.necel.com) and NEC Electronics (Europe) GmbH (www.eu.necel.com). For additional information about NEC Electronics worldwide, visit www.necel.com.
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.
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