SAN JOSE, Calif. Kaoru Tosaka, president and chief executive of NEC Electronics Corp., has stepped down amid mounting losses for the semiconductor and electronics giant, the company said on Wednesday (Oct. 26).
In his new role, Tosaka will become senior corporate advisor and member of the board for the company. He will be replaced by Toshio Nakajima, who will become the new president and CEO, effective Nov. 1.
Nakajima, who joined NEC in 1970, had been executive vice president and a board member for NEC Electronics, which is 70 percent owned by NEC Corp.
The changes follow a loss at the company, due to falling sales within most of its chip sectors. The company’s communications chip business fell 34.9 percent year-over-year amid a dip in the wireless market. It was also hard hit in the automotive, consumer, PC and other sectors.
NEC Electronics posted a loss of 1.55 billion yen ($13.4 million) for the quarter, its third consecutive quarterly loss.
For the six month period, NEC Electronics reported sales of 312.9 billion yen ($2.76 billion), down 17 percent from the like period a year ago. The company reported a loss of 7.9 billion yen ($70 million), compared to a profit of 17.9 billion yen ($154 million) a year ago.
For the year, it forecasted sales of 635 billion yen, down 10 percent from a year ago. It projects a loss of 20 billion yen ($177 million). Previously, it projected a profit of 5.5 billion yen ($47.5 million) for the year.