NEC 2011 Annual Report Download - page 18

Download and view the complete annual report

Please find page 18 of the 2011 NEC annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 100

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100

500.0
400.0
300.0
200.0
2009 2010 2011
100.0
0
469.4
373.7 375.8
15.0
10.0
5.0
2009 2010 2011
0
–5.0
11.5
–1.7
8.9
2.4%
–0.5%
2.4%
80.0
60.0
40.0
2010 2011
20.0
0
47.5
39.1
12.7%
10.4%
4.0
3.0
2.0
2010 2011
1.0
0
2.5
3.3
FISCAL 2011 PERFORMANCE AND
MAIN ACCOMPLISHMENTS
Business segment sales increased 0.6% year on year to
¥375.8 billion. This was mainly due to steady growth of
software sales such as virtualization through server
integration and for cloud computing platforms, despite a
decrease in sales of hardware, including servers.
The segment posted operating income of ¥8.9 billion,
an improvement of ¥10.6 billion from an operating loss in
the previous year. This mainly reflected continuous cost
reductions and efficient development spending, in addition
to the increase in sales.
In fiscal 2011, NEC upgraded and extended its product
line up addressing needs in the cloud computing era.
Based on “REAL IT PLATFORM Generation2,” a vision for
IT platforms supporting cloud computing, NEC rolled out
the “Express5800/ECO CENTER Series” of energy-efficient
servers for data centers, which reduce power consumption
by up to around 70% compared with conventional servers.
Another product was “WebSAM Cloud Manager” software
for streamlining operation and management in cloud
environments. In PC servers, NEC has held the No. 1*1
share of volume shipment in the Japanese market for 15
consecutive years. NEC also won No.1 ranking in the
customer satisfaction survey*2 for its integrated operation
management and service execution platform software.
Turning to network products, NEC captured the No. 1
share*3 of the Japanese enterprise telephony market and
the No. 3 share*3 of the corresponding worldwide market.
Notably, NEC was selected as the preferred network
solution vendor by Taj Group Hotels, one of India’s luxury
hotel chains, and won orders for an IP telephony system
based on NEC’s “UNIVERGE SV8000 Series”
communication server.
FOR FURTHER GROWTH
As the shift to cloud computing takes hold, the role of
platforms is expected to become increasingly important.
In response, NEC aims to drive further growth in its
operations by focusing on three priority businesses: the
unified communication (UC) business, common
infrastructure for cloud business and server business.
PLATFORM BUSINESS
NEC supplies government agencies and enterprises with products essential
to the implementation of IT systems and enterprise network systems,
such as servers, storage, software and IP telephony systems. Based on
its extensive track record, NEC is committed to providing highly reliable
and energy-efficient platform products to help realize safe, secure,
convenient and eco-friendly IT systems.
Masato Yamamoto
Senior Vice President
SALES
(Billion ¥)
OPERATING INCOME (LOSS),
OPERATING INCOME RATIO
(Billion ¥)
R&D EXPENSES,
R&D EXPENSES RATIO
(Billion ¥)
CAPITAL EXPENDITURES
(Billion ¥)
Operating income (loss)
Operating income ratio
R&D expenses
R&D expenses ratio
*1 Source: IDC Japan, Japan Server Quarterly Model Analysis 2011Q1 (2010 calendar year)
*2 Source: Nikkei Computer (15th Customer Satisfaction Survey, August 18, 2010 issue); 1st place Web application server software category/1st place integrated
operation management software category/1st place network equipment category
17 NEC Corporation
Annual Report 2011