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REVIEW OF OPERATIONS
Information & Telecommunication Systems
l Software and Services
In software and services, sales were lower year
over year.
Software sales decreased from the previous
fiscal year due to lower sales of platform software
for mainframes and middleware such as system
operation management software.
Services also recorded lower year-over-year
sales, the result of lower sales in system integration,
as well as in outsourcing and consulting.
Earnings declined year over year despite higher
software earnings resulting in part from cost reduc-
tions and other factors. The main reason was lower
earnings in services stemming from lower revenues.
Segment revenues declined 12%, to ¥1,705.5 billion
(U.S.$18,340 million), reflecting lower revenues in both software
and services, and hardware due to the impact of constrained IT
investment resulting from the economic downturn.
Segment profit decreased 32%, to ¥94.5 billion (U.S.$1,017
million) due to the lower revenues and other factors.
l฀Hardware
Sector sales declined year over year.
Storage product sales declined year over year
due to the impact of lower sales of enterprise prod-
ucts, which outweighed solid sales of midrange
products. Server sales also declined on account of
decreases in UNIX servers and blade servers. PC
operations also posted lower sales due principally
to the impact of falling prices. Telecommunications
networks saw sales decline year over year as com-
panies kept a tight rein on IT investment. ATM sales
declined with a decrease in units shipped in Japan.
Earnings in hardware operations dropped from
the previous fiscal year mainly because of lower
sales of storage products, servers and telecommu-
nications networks.
Share of Revenues
17%
Millions of yen
Millions of
U.S. dollars
FY2009 FY2008 FY2009
Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥1,705,587 ¥1,945,351 $18,340
Segment profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94,592 138,452 1,017
Capital investment (Property, plant and equipment) . . . . . . . . . . . . . . . . . . . 24,258 30,167 261
Depreciation (Property, plant and equipment) . . . . . . . . . . . . . . . . . . . . . . . . 37,724 40,253 406
R&D expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82,264 94,049 885
Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,261,016 1,468,481 13,559
Number of employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68,409 67,828 –
14 Hitachi, Ltd. Annual Report 2010