NEC Corporation Reports Earning Results for the Third Quarter and Nine Months Ended December 31, 2017; Revises Earnings Guidance for the Full Year of Fiscal 2018
January 30, 2018 at 04:56 pm
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NEC Corporation reported earnings results for the third quarter and nine months ended December 31, 2017. For the quarter, the company reported revenue of JPY 683.3 billion, operating profit of JPY 7 billion, income before tax of JPY 9.4 billion and net profit was negative JPY 1.2 billion.
For the nine months, the company reported revenue of JPY 1.9713 trillion, operating profit of JPY 14.3 billion, income before tax of JPY 14.2 billion and net profit JPY 17.6 billion. Free cash flow was negative JPY 37.2 billion, an improvement of JPY 3.1 billion year on year, posting JPY 31.4 billion in the past nine month period.
The company revised earnings guidance for the full year of fiscal 2018. For the year, the company's year revenue is upwardly revised by JPY 30 billion from the previous outlook, forecasting JPY 2.83 trillion, operating profit up JPY 10 billion to be JPY 60 billion, net profit up JPY 5 billion to be JPY 40 billion, free cash flow is revised to JPY 100 billion, up JPY 10 billion.
NEC Corporation specializes in the manufacturing and marketing computing and telecommunication equipments. Net sales break down by activity as follows:
- IT services (53.9%): integration, maintenance, outsourcing, support services, etc.;
- sale of IT infrastructure products and network systems (17%). In addition, the group provides network services;
- sale of digital government and financial services software (14.9%);
- other (12.7%): sale of hardware, mobile telephones, lighting products, energy management and storage systems, etc.
Net sales are distributed geographically as follows: Japan (75%), Asia/Pacific (11.2%), Europe/Middle East/Africa (9.8%) and Americas (4%).
NEC Corporation Reports Earning Results for the Third Quarter and Nine Months Ended December 31, 2017; Revises Earnings Guidance for the Full Year of Fiscal 2018