NEC 2011 Annual Report Download - page 20

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900.0
600.0
2009 2010 2011
300.0
0
807.0
627.4 605.4
60.0
40.0
2009 2010 2011
20.0
0
51.6
31.3
40.7
6.4%
5.0%
6.7%
80.0
60.0
40.0
2010 2011
20.0
0
58.1
50.7
9.3% 8.4%
8.0
6.0
4.0
2010 2011
2.0
0
4.6
6.3
FISCAL 2011 PERFORMANCE AND
MAIN ACCOMPLISHMENTS
Business segment sales decreased 3.5% year on year to
¥605.4 billion. This decrease mainly reflected the impact of
exchange rate fluctuations and delays with contractual
procedures for submarine cable systems, despite higher
domestic sales of wireless communications equipment and
of cable television-related systems.
Operating income rose ¥9.4 billion year on year to ¥40.7
billion, mainly due to streamlined costs and higher sales
from the second half of the fiscal year.
In fiscal 2011, NEC shipped wireless base stations for
NTT DOCOMO, INC.’s new LTE-based mobile phone
service Xi™ (read “Crossy”), along with related core
networks and Ethernet transmission equipment. NEC also
participated in LTE field trial projects with KDDI Corporation,
Telefónica Moviles Argentina S.A., a subsidiary of Telefónica
S.A. of Spain, and Globe Telecom, Inc. an associate of
Singapore Telecommunications Ltd. In this manner, NEC
built a solid track record in the latest LTE services both in
Japan and overseas. In addition, NEC started to see signs
of recovery in the business environment. NEC won large
submarine cable system projects linking Japan and various
Asian countries, including the Asia Submarine-cable
Express system in January 2011 and South-East Asia
Japan Cable system in April 2011. Also, femtocell solutions
were supplied to telecom carriers in Norway and Russia.
In other areas, cumulative shipments of “PASOLINK,”
an ultra-compact microwave communications system,
reached 1.64 million units in 145 countries as of April 2011.
In this field, NEC launched the new “iPASOLINK” Series,
which extends its cover from access to metro area. NEC
has already received “iPASOLINK” orders from telecom
carriers in India, Turkey and other countries.
FOR FURTHER GROWTH
Data traffic has been increasing with the rapid uptake of
smartphones and growing demand for mobile phones in
emerging countries, presenting major business opportunities
for NEC. In this environment, NEC is concentrating
CARRIER NETWORK BUSINESS
NEC supplies equipment required for network implementation to telecom
carriers, along with network control platform systems and operating
services. NEC’s wealth of experience in large-scale network implementation
and strong technical capabilities contribute to the development of highly
reliable communications networks.
Shunichiro Tejima
Senior Vice President
SALES
(Billion ¥)
OPERATING INCOME,
OPERATING INCOME RATIO
(Billion ¥)
R&D EXPENSES,
R&D EXPENSES RATIO
(Billion ¥)
CAPITAL EXPENDITURES
(Billion ¥)
Operating income
Operating income ratio
R&D expenses
R&D expenses ratio
19 NEC Corporation
Annual Report 2011