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Fujitsu annual report 1998
2
Fiscal 1997 Results
Despite adverse economic condi-
tions in Japan and Asia, consoli-
dated net sales for fiscal 1997 rose
11% to ¥4,985.3 billion, a record
high. By geographical area, do-
mestic sales were up 2%, while
overseas sales jumped 31% to
¥1,757.0 billion, rising from
30% to 35% of total sales. Oper-
ating income increased 5% to
¥211.2 billion. However, ex-
change losses due to currency de-
clines in Asia, plus amortization
of goodwill-related expenses inci-
dent to the Amdahl acquisition,
combined to limit net income to
¥5.5 billion.
Looking Ahead: Building Our
Global Solutions Business
Fujitsu’s broad lineup of com-
petitive products – from large-
scale and midrange servers to
personal computers, peripherals,
software and services – and
strong customer focus enable us
to offer comprehensive business
solutions in a wide range of in-
dustries. And in order to meet
the needs of customers doing
business in an increasingly global
marketplace, we have been ex-
panding our overseas operations
and working to increase synergy
among them. As a result of
these efforts, overseas markets
have grown to account for 35%
of overall consolidated sales.
Long active as a solutions
provider in the Asia/Oceania
region, our 1990 acquisition of
ICL helped us to extend our
reach to Europe as well. Like-
wise, by making long-time part-
ner Amdahl Corporation a
full-fledged member of the
Fujitsu Group last September,
we made clear our intention to
build our solutions business in
North America, the largest IT
market in the world. Having
marketed products based on
Fujitsu technologies for more
than 25 years, Amdahl has re-
cently been moving forcefully
into services and software,
which now account for about
two-thirds of its business. Tak-
Networking is the foundation of today’s information technology
industry. We provide a broad range of value-added, network-
based solutions to help our customers – from individuals to
large corporations – achieve their goals. In so doing, we are
well positioned to consolidate our leadership in the global IT
industry as we enter the 21st century.
Message to Shareholders