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Crafting leading-edge IT solutions for customers around the world
5
F A F
Question 1—Although Fujitsu offers solutions
covering a wide range of information and com-
munications fields, the company’s consolidated
net sales of ¥5 trillion are reported as a single
business segment. What is the breakdown on
profitability by division?
Excluding fiscal 1997 expenses that could not be
allocated to information processing, telecommu-
nications or electronic devices, operating income
as a share of sales in each business was 6% for in-
formation processing and 12% for telecommuni-
cations. The corresponding figures in fiscal 1996
were 6% and 16%. Electronic devices had a loss
in both years.
Information processing and telecommunica-
tions infrastructure business fueled growth in
Fujitsu’s earnings in fiscal 1997. In the informa-
tion processing sector, we expect profitability to
increase as we complete a full line of solutions
business products and implement our plans for
global business development. In fiscal 1998,
Amdahl’s earnings will improve substantially as its
new and highly regarded Millennium 700 Series
servers make further inroads into the market.
Our superior systems integration capabilities will
enable us to capitalize on growing solutions busi-
ness opportunities. These, in turn, will lead to
higher sales of hardware and software, thereby
Investors’ FAQ
F A F
contributing to increased profitability.
In the telecommunications sector, NTT, fac-
ing divestiture, will hold capital investment
down in the short term. And with the domestic
economy still in the doldrums and uncertainties
surrounding business in Asia, we believe that de-
mand will bottom out in the first half of fiscal
1998. On the mid-term horizon, however, we
anticipate that sales and profits will rise. NTT is
expected to resume capital investments after its
reorganization. Furthermore, by taking advan-
tage of progress in deregulation and next-genera-
tion mobile communications, we will expand our
global business in this sector.
The electronic devices group supplies the core
products essential to the competitiveness of the
other two groups. Although earnings have been
hurt by the steep plunge in DRAM market
prices, system LSIs and flash memory devices are
growing as a share of sales. The group is expected
to contribute to profits in and after fiscal 1999.
Question 2—What is the outlook for Fujitsu’s
large-scale server business and the
development of new technologies?
Fujitsu has now completed the shift from Emitter
Coupled Logic (ECL) to Complementary Metal-
Oxide Semiconductor (CMOS) technology. Al-
AQ BOUT UJITSU