OREANDA-NEWS. July 27, 2012. Fujitsu today reported a consolidated net loss of 23.7 billion yen (USUSD 300 million) for the first quarter of fiscal 2012, representing a deterioration of 3.3 billion yen from the first quarter of fiscal 2011. The first quarter loss was in line with April projections, and no change has been made to full-year projections for increased income.

First quarter consolidated net sales totaled 957.3 billion yen (USUSD 12,118 million), a decline of 2.9% from the corresponding period of the previous fiscal year. On a constant currency basis, sales were essentially unchanged from the previous year. Sales in Japan for the quarter remained on par with those of the first quarter of fiscal 2011. While Fujitsu reported lower sales of mobile phones and LSI devices, sales of car audio and navigation systems recovered following sluggish demand in the first quarter of fiscal 2011, when sales were adversely impacted by the Great East Japan Earthquake. Sales of network products also increased. Outside Japan, despite the positive effects of higher sales for car audio and navigation systems, net sales declined by 7.6% due to lower sales of optical transmission systems in the US and lower sales of UNIX servers.

Fujitsu recorded an operating loss of 25.0 billion yen (USUSD 316 million), representing a deterioration of 7.9 billion yen compared to the first quarter of fiscal 2011. This was the result of overall lower sales of LSI devices and optical transmission systems, as well as rising procurement costs associated with obtaining certain dollar-denominated parts and components in Europe, where the euro has weakened against the US dollar. Furthermore, despite a decline in R&D costs, primarily for mobile phones, there were continued upfront investments in areas such as network products.

Fujitsu also recorded a loss of 24.9 billion yen in income before income taxes and minority interests, a year-on-year improvement of 1.4 billion yen. Other income and expenses were essentially break even, representing an improvement of 9.3 billion yen, primarily due to lower foreign exchange losses and the fact that, in the first quarter of fiscal 2011, Fujitsu recorded disaster-related losses of 7.5 billion yen stemming from the aftermath of the earthquake.

“We are moving away from a defensive stance to go on the offensive, and we will challenge ourselves to achieve further growth. Moving forward, we will continue to go on offense with structural reforms, accelerate globalization, and create new services businesses,” commented Masami Yamamoto, President of Fujitsu.