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FISCAL 2010 PERFORMANCE AND
MAIN ACCOMPLISHMENTS
Business segment sales decreased 22% year
on year to ¥627.4 billion. This was mainly due
to the restrained investment by telecom
carriers worldwide.
Operating income decreased ¥20.2 billion
year on year to ¥31.3 billion, mainly reflecting
the large drop in sales, despite fixed cost
reductions.
Amid difficult market conditions, fiscal 2010 was
marked by the emergence of some results from
wireless broadband access businesses utilizing new
technologies for which growth is anticipated going
forward. In Japan, NEC began shipping 3.9G LTE*1
wireless base stations for NTT DOCOMO, Inc., and
was selected as a vendor for the development and
production by KDDI Corporation. In the overseas
market, NEC also participated in trial projects with
Telefónica S.A. of Spain and Singapore Telecommuni-
cations Limited.
Furthermore, UQ Communications Inc. of Japan and
Tatung InfoComm Co., Ltd. of Taiwan have launched
commercial services utilizing WiMAX systems which
NEC delivered. In addition, SFR of France has begun
commercial services using a femtocell solution provided
by NEC.
In other areas, cumulative shipments of “PASOLINK,”
an ultra-compact microwave communications system,
reached 1.44 million units, and NEC has secured the
top share*2 of the global market in this field for three
consecutive calender years.
FOR FURTHER GROWTH
Investment in network infrastructure is expected to
increase backed by the sharp increase in data traffic
driven by the rapidly expanding market for smart-
phones and other data terminals. In the field of the
wireless broadband access businesses including
LTE, WiMAX and femtocell as the new service
platforms for telecom carriers, NEC aims to expand
its overseas business by leveraging its strong
position in the Japanese market, which is ahead of
the rest of the world.
In addition, NEC will focus on expanding the
software and services business by strengthening
collaboration with NetCracker Technology Corp., which
was acquired in 2008. The market for NetCracker’s
operations support systems has considerable potential
to achieve high growth over the medium term. In fiscal
2010, NetCracker won orders and was selected as a
vendor from Japanese and overseas telecom carriers
of Malaysia, Russia, New Zealand and Germany.
Looking ahead, NEC will continue to actively promote
operations support systems, including our service
platform-related products.
In other areas, NEC will work to develop new
businesses and markets, such as the field of smart
grid, in addition to winning orders for large-scale
projects for submarine cable systems and launching
next-generation “PASOLINK.”
*1 Long-Term Evolution
*2 Source: Survey by Sky Light Research (From January to December
2009 on a cumulative basis)
CARRIER
NETWORK
BUSINESS
SALES
(Billion ¥)
OPERATING INCOME
(Billion ¥)
Femtocell ultra-compact wireless base
station designed for use in residential
or small business environments
“PASOLINK” ultra-compact micro-
wave communications system
19 NEC Corporation
Annual Report 2010