Fujitsu 1998 Annual Report Download - page 29

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($115 million) for others. The capital
expenditures of electronic devices in-
clude ¥175.3 billion ($1,328 million)
in semiconductor-related outlays.
Major capital expenditures included:
•Information processing – construc-
tion of the Akashi System Center to
bolster outsourcing business, upgrad-
ing of value-added network equip-
ment, launch of the ICL PLC private
finance initiative, and new building
and equipment at Fujitsu Computer
Products of Vietnam, Inc.;
•Telecommunications – new build-
ing at Fujitsu Network Communi-
cations, Inc. in the United States;
•Electronic devices – new facilities at
the Mie Works to support develop-
ment of leading-edge technology,
equipment to increase output of
flash memories at Fujitsu AMD
Semiconductor Limited, 8-inch
wafer production equipment at the
Wakamatsu Works to upgrade logic
IC activities, and equipment to
strengthen 64M synchronous DRAM
production in the United States.
Financial Condition and Liquidity
Total assets at March 31, 1998
amounted to ¥5,123.0 billion ($38,811
million), 8.4% more than the previous
year’s ¥4,727.6 billion. Total interest-
bearing liabilities rose by ¥178.9 billion
($1,355 million) to ¥1,890.8 billion
($14,324 million), due in large part
to the acquisition of the remaining
shares of Amdahl Corporation.
Shareholders’ equity increased by
¥3.7 billion ($28 million) to ¥1,185.2
billion ($8,979 million), but the equity
ratio decreased from 25% to 23%.
Equity per share, based on the number
of shares outstanding at year-end, was
¥636.4 ($4.821) compared with
¥641.6 the previous year.
’98’96 ’97’95’94
1,058 1,100 1,149 1,181 1,185
Shareholders’ equity
(¥ Billion) Years ended March 31
Cash Flows
Net cash provided by operating
activities increased by ¥41.8 billion
($316 million) to ¥324.8 billion
($2,461 million). Although income
before income taxes decreased,
depreciation and amortization
expenses were up by ¥50.7 billion
($384 million) to ¥350.6 billion
($2,656 million). This resulted in
positive operating cash flow.
Net cash used in investing activi-
ties was ¥502.2 billion ($3,805 mil-
lion), ¥57.6 billion ($436 million)
more than in the prior fiscal year.
Capital expenditures were largely un-
changed. The increase in expenditures
incident to the Amdahl acquisition
boosted cash outflow significantly.
Net cash provided by financing
activities was ¥153.6 billion ($1,163
million), mostly the result of an in-
crease in long-term borrowings.
As cash used in investing activities
exceeded net cash provided by operat-
ing and financing activities, cash and
cash equivalents decreased by ¥21.7
billion ($164 million) to ¥392.1 bil-
lion ($2,971 million).