February 21, 2000–Tokyo, Japan–NEC Corp. has revised its financial results forecast for fiscal year 2001. Against a background of decreasing IT-related investments since NEC made its financial results statement on October 26, 2000, the company’s business environment has become increasingly severe–with falls in the prices of memory devices and wavering demand in the domestic and overseas markets for personal computers.
While demand for mobile terminals continues to grow in the domestic market, the difficult situation in the semiconductor memory market and the flattening of demand for personal computers is expected to result in sales for the fiscal year ending March 31, 2001 that are 100 billion Yen lower than forecast in October 2000. This is expected to result in consolidated net sales of approximately 400 billion Yen (+8% compared to the fiscal year ended March 31, 2000).
With the lower consolidated net sales forecast, income before income taxes is anticipated to be lower than the forecast made in October 2000 and reach approximately 100 billion Yen (3.3 times higher than in the fiscal year ended March 31, 2000). Net income for the period to March 31, 2001 is forecast to be 30 billion Yen lower and reach an estimated 60 billion Yen.