Fujitsu’s Q1 2017 financial results a mixed bag of good and bad
Fujitsu has released its financial results for the first quarter of 2017.
The company brought in 922.6 billion yen over the quarter, an increase of 22.6 billion yen from the first quarter of fiscal 2016.
Revenue in Japan rose 5.4 percent, while outside of the country it fell 2 percent. Fujitsu has put this down to a decrease in revenue from the services sub-segment resulting from a decline in the value of the British pound against the yen andrevenue from electronic components declining.
Apart from the impact of an approximately 13 billion yen decrease in revenue because of the exclusion of Nifty’s consumer ISP business in Fujitsu’s consolidated results, revenue in Japan from the services sub-segment increased.
The company asserts revenue from network products, PCs, mobile phones and LSI devices all increased. Taking away the impact of the Nifty reorganization, revenue from all three of Fujitsu’s reportable segments rose.
While the news is mainly good for Japan, the company’s interest around the rest of the world seems to on the edge as the ratio of revenue outside of Japan was 37.3 percent, a decrease of 1.7 percent compared to the same period of the previous fiscal year.
The company recorded an operating profit of 4.9 billion yen which represents an improvement of 18.6 billion yen from the same time last year.
According to the company, contributing factors to this success include the impact of two special one-time circumstances, namely, the approximately 16.0 billion yen net gain on the sale of assets from Nifty's consumer ISP business and others and a deterioration factor of approximately 7.0 billion yen associated with the result of a legal dispute at an overseas subsidiary.
Fujitsu also says other drivers behind the operating profit improvement were higher revenue network products of mobile phone base stations in Japan, PCs, mobile phones, and LSI devices as well as a result of not having the cost burden, incurred in last fiscal year's first quarter, of mandatory inspections of LSI device manufacturing facilities.
Profit for the period before income taxes from continuing operations was 7.4 billion yen, an improvement of 22.9 billion yen from the same time last year.
In addition to improved operating profit, Fujitsu attributes this to a reduction in the burden of financial expenses.
In the first quarter of fiscal 2016, a foreign exchange loss of approximately 5.0 billion yen was recorded due to the sudden rise in the value of the yen.
And as for the year ahead, the company has forecasted revenue of 4,100 billion yen, operating profit of 185 billion and profit for the year attributable to the owners of the parent of 145 billion yen.