NEC's quarterly loss swells as it abandons smartphones

Jul 31, 2013

NEC said Wednesday its net loss swelled in the three months to June, as the Japanese information technology giant announced plans to exit its once-dominant smartphone business.

The company lost 21.5 billion yen ($219 million) in the three months to June, compared to 17.9 billion yen in the same quarter a year earlier.

Sales rose 1.4 percent to 640.1 billion yen.

The firm attributed its mounting losses to a slump in its telecom system businesses, which includes and another unit that supplies .

NEC—a one-time powerhouse in the sector—also said it would exit the smartphone business, ending the development, production and sales of the mobile devices.

"We were late to enter the smartphone market, and we were unable to develop attractive products. That's what it comes down to," NEC chief financial officer Isamu Kawashima told a press conference, according to Dow Jones Newswires.

NEC had merged its mobile operations with those of Casio Computer and Hitachi to fight off rising competition. But the subsidiary struggled to succeed in a market increasingly dominated by Apple and South Korean giant Samsung.

The Japanese firm has seen its domestic smartphone market share dive from top spot with around 27 percent to just five percent now, according to Japanese media.

Also Wednesday, NEC left its full-year forecast unchanged, saying it was still gauging the impact on its earnings from the decision to stop making smartphones.

The firm expects to swing back to a of 20 billion yen for the year to March 2014 on sales of 3.0 trillion yen.

Explore further: NEC swings to annual net profit

add to favorites email to friend print save as pdf

Related Stories

NEC swings to quarterly net profit

Jan 31, 2013

Japanese information technology firm NEC said Thursday it had swung to a net profit in the October-December quarter, thanks in part to improved sales in defence systems and mobile networks.

NEC swings to annual net profit

Apr 26, 2013

Japan's NEC cast off two straight years of losses Friday, reporting it had returned to the black after a painful restructuring including layoffs and a business overhaul.

Japan's NEC revises up profit forecast

Oct 19, 2012

Japanese information technology firm NEC said Friday it has revised its half year forecast from a loss to a healthy net profit, with reports saying demand for iPhones was helping the company.

Japan's NEC sees $1.36 billion net loss

Apr 27, 2012

Japanese IT firm NEC said Friday it lost $1.36 billion in the year to March as asset write-downs and tax payments hit its bottom line, even as operating profit rose.

Yen fall returns Nintendo to profit (Update)

Jul 31, 2013

Nintendo is making money again courtesy of a weaker yen but its business selling game machines is ailing, with sales of its flagship Wii U console still lackluster.

Japan's Fujitsu hit by third-quarter loss

Jan 31, 2012

Japanese high-tech giant Fujitsu plunged into a net loss for the three months to December, it said Tuesday, as it slashed its full-year sales and profit forecast.

Recommended for you

Record labels sue Pandora over older songs

30 minutes ago

Major record labels are suing Internet radio giant Pandora for copyright infringement for using songs recorded before 1972 without paying license fees.

Weibo IPO below expectations, raises $285.6 mn

13 hours ago

Sina Weibo sold fewer shares than expected in its US IPO which was priced below expectations ahead of a Thursday listing that takes place after tech selloffs on Wall Street.

'Chief Yahoo' David Filo returns to board

14 hours ago

Yahoo announced the nomination of three new board members, including company co-founder David Filo, who earned the nickname and formal job title of "Chief Yahoo."

Fired Yahoo exec gets $58M for 15 months of work

15 hours ago

Yahoo's recently fired chief operating officer, Henrique de Castro, left the Internet company with a severance package of $58 million even though he lasted just 15 months on the job.

User comments : 0

More news stories

Deadly human pathogen Cryptococcus fully sequenced

Within each strand of DNA lies the blueprint for building an organism, along with the keys to its evolution and survival. These genetic instructions can give valuable insight into why pathogens like Cryptococcus ne ...

Researchers discover target for treating dengue fever

Two recent papers by a University of Colorado School of Medicine researcher and colleagues may help scientists develop treatments or vaccines for Dengue fever, West Nile virus, Yellow fever, Japanese encephalitis and other ...