NEC 2009 Annual Report Download - page 18

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08 09
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1,200
NETWORK SYSTEMS BUSINESS
SALES
(Billion ¥)
OPERATING INCOME
(Billion ¥)
FISCAL 2009 PERFORMANCE AND
MAIN ACCOMPLISHMENTS
Business segment sales fell 6% year on year to ¥1,001.8
billion. This was mainly due to lower sales of systems to
mobile communications service providers in Japan as well as
reduced sales of enterprise network systems worldwide.
Reflecting the decline in sales revenue and foreign
exchange losses due to the stronger yen, the segment posted
operating income of ¥42 billion, a decline of ¥27 billion in
year-on-year terms.
In fiscal 2009, NEC completed some strategic acquisitions
to support future global business expansion. To strengthen its
presence in the software and services sector, NEC acquired
U.S.-based NetCracker Technology Corp., a company with
outstanding expertise in operational support systems for
communications service providers. NEC obtained manage-
ment control of OCC Corporation, a submarine cable manu-
facturer. This acquisition will help NEC to maintain a stable
position in the submarine cable systems market, an area of
increasing business activity.
In the mobile broadband field, an area of projected future
growth, NEC actively worked to expand business. Cumulative
shipments of PASOLINK, an ultra-compact microwave commu-
nications system, surpassed 1 million units during fiscal 2009,
claiming the top share of the global market for the second
consecutive year. Orders from both domestic and overseas
clients for systems based on emerging technologies such as
WiMAX and femtocell systems also grew during the year.
FOR FURTHER GROWTH
Going forward, NEC is working to leverage its leading posi-
tion in the implementation of Next Generation Networks
(NGNs) within the advanced Japanese market to drive global
business expansion.
NEC’s NGN-related products were fully compliant with all
of the criteria of the Global MultiService Interoperability (GMI)
event by 20 major communications equipment manufacturers
from around the world. As a result, NEC further developed
the reputation of its products as suitable for the international
marketplace. In a separate development, NTT DOCOMO,
Inc. decided to adopt NEC products for Long Term Evolution
(LTE) next-generation mobile communications systems in
overall areas. This customer validation will support NEC’s
ongoing efforts to sell such products more widely to custom-
ers outside Japan.
In other areas, NEC plans to focus resources on expanding
operations in the software and services sector in collaboration
with NetCracker Technology Corp. The market for the latter’s
operational support systems has considerable potential, with
annual high sales growth projected over the medium term.
NEC plans to promote such systems actively to domestic and
overseas carriers, along with NEC’s range of service platform-
related products.
In the field of enterprise network systems, NEC will work to
reinforce sales of “unified communications systems” based
around its UNIVERGE series of communications servers.
Installation of submarine cable system
16 NEC CORPORATION
Annual Report 2009