NEC 2007 Annual Report Download - page 20

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Fiscal 2007 Financial Results
In fiscal 2007, the year ended March 31, 2007,
sales were ¥2,758.8 billion, mostly the same as
in the previous fiscal year. The IT Services/SI area
recorded sales of ¥775.6 billion due to a recov-
ery in IT investment in Japan. In the Network
Systems area, sales increased year on year to
¥1,026.3 billion as a result of steady sales to tele-
com carriers in Japan. Meanwhile, in the IT Plat-
forms area, sales fell year on year to ¥651.4
billion, mainly owing to a decrease in sales of
optical disc drives. In the Social Infrastructure
area, sales decreased year on year to ¥305.5
billion, reflecting lower investment in terrestrial
digital broadcasting systems in the Japanese
market. Overall, operating income decreased
¥26.8 billion year on year to ¥154.1 billion. This
was mainly due to the accrual of estimated war-
ranty costs for products already sold and a drop
in sales in the IT Platforms area.
Fiscal 2007 Accomplishments
Steady Growth in IT Services/SI
In fiscal 2007, NEC successfully completed
numerous systems based on the convergence
of its world-class IT and network technologies.
In particular, we were able to complete services
platforms, which are the core systems that
enable our customers to provide various services
including bill payment, collaboration services
among different industry sectors via mobile
handset and video streaming. In addition, we
were able to seize numerous business
opportunities by actively proposing solutions to
resolve our customers’ issues. For example, we
optimized systems through server/storage
consolidations to reduce operating costs in
existing systems, reinforced security using our
Thin-Client system* and InfoCage software, and
enhanced internal control in preparation for the
enforcement of the Japanese SOX Act.
Furthermore, we worked to open up new markets
by bringing together various advanced
IT/Network Solutions Business
The IT/Network Solutions business provides products and services mainly
to government agencies, enterprises and communications service
providers, by leveraging both world-class IT and network technologies.
This business comprises IT Services/SI (Systems Integration), which involves
consulting, systems construction, maintenance and support; IT Platforms,
which consist of servers and other products; Network Systems, which involve
providing fixed-line and mobile communications systems to communications
service providers, and network systems for enterprises; and Social
Infrastructure, which involves broadcasting, aerospace and other domains.
Performance by Segment
18