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Hitachi, Ltd. Annual Report 2006
22
Software and Services
In software and services, sales rose year
on year. Software sales were on a par with
the previous fiscal year. While lower demand
for mainframes and other factors brought
down sales of platform software, sales of
middleware were healthy, particularly
system operation management software.
Services recorded higher year-on-year
sales due to strong growth in the out-
sourcing business.
Earnings increased due to the
strengthening of project management and
other factors.
Hardware
Hardware sector sales increased from the
previous fiscal year. Storage products
posted a large increase in sales. In addi-
tion to higher sales of enterprise and mid-
range disk array subsystems, especially
overseas, this result reflected growth in
HDDs chiefly for use in the home informa-
tion appliance field. Server operations saw
sales fall as demand shifted to low-priced
models. PC operations also posted lower
sales because of price declines. Hitachi-
Omron Terminal Solutions, Corp., formed
in October 2004 from a merger of
This segment recorded a 4% year-on-year increase in
revenues, to ¥2,360.9 billion (U.S.$20,179 million), the result
of growth in disk array subsystems, hard disk drives (HDDs)
and certain other products. Operating income climbed 25%
over the previous fiscal year, to ¥84.6 billion (U.S.$724
million), mainly on a strong performance in project
management in the software and services sector.
This blade system integrates
server, communications, storage
and management software
functions
This security PC has an in-built
finger vein authentication system,
but no internal HDD
Electronic paper display
Hitachi’s information equipment busi-
nesses with those of Omron Corporation,
recorded higher sales of ATMs equipped
with finger vein authentication systems, as
financial institutions beefed up security.
Earnings fell sharply year on year,
mainly due to a larger loss in HDDs and a
loss in PC operations, which were affected
by exchange rate fluctuations.
Review of Operations
Information & Telecommunication Systems