NEC 2007 Annual Report Download - page 28

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Fiscal 2007 Operating Results
In fiscal 2007 (ended March 31, 2007), sales in
the Electron Devices business were up 6% year
on year at ¥861.0 billion, mainly due to an
increase in the sales of semiconductors for game
consoles and general purpose microcontrollers.
However, NEC posted an operating loss of ¥23.0
billion in fiscal 2007, an improvement of ¥7.8
billion from the previous year’s loss. This result
reflected a limited business expansion and price
erosion in semiconductors, despite substantial
R&D expenses and investments to increase pro-
duction capacity, which were initially aimed at
improving performance by fueling sales growth
in the semiconductor area. In response, NEC
adjusted production levels and booked expens-
es related to the consolidation of some devel-
opment projects outside core fields to
concentrate development resources.
Fiscal 2007 Accomplishments
In the core semiconductor business, NEC
commenced mass production and shipments of
system LSIs used to perform sophisticated image
processing in Nintendo Co. Ltd.’s new home
game console Wii®. By embedding DRAM
circuits for storing data and logic circuits for
processing data on a single chip, this product
enables high-speed processing of large image
data. Furthermore, NEC has developed an image-
recognition LSI for the IMAPCAR*1 automotive
image processor in collaboration with Toyota
Motor Corporation and DENSO CORPORATION.
This new LSI has been adopted by Toyota for its
luxury-brand Lexus, specifically in the LS460
model, which was introduced to the market in
September 2006. With the world’s leading data
processing speeds, IMAPCAR can identify
targets such as pedestrians and leading vehicles
in real time, while driving, enabling it to contribute
to the development of pre-crash safety systems
such as collision avoidance support systems.
In the electronic components business, NEC
grew sales centered on components for mobile
handsets and digital home electronics, support-
ed by the launch of a new capacitor product
called Proadlizer and other initiatives.
* Wii is a registered trademark of Nintendo in Japan
Electron Devices Business
The Electron Devices business provides semiconductors and electronic components
essential to creating a more secure and user-friendly ubiquitous networking society.
By enhancing solutions-based proposal capabilities and quality, and raising
development and production efficiency based on unique cutting-edge
technologies, NEC aspires to be a business partner that offers optimal solutions
that meet the demands of global customers. This business also has competitive
advantages in software and system development capabilities developed in the
IT/Network Solutions business and other areas.
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