TOKYO -- Despite a revived semiconductor market, NEC Electronics Corp.'s financial results for the last fiscal year ending March 31 showed a slight drop in sales but growth in profits.
Net sales totaled 711.9 billion (about $6.5 billion), 2 percent lower than the previous fiscal year. Operating income was 56.4 billion ($514 million), an increase of 187 percent from the provious year. Net income was 28 billion ($257 million), up 292 percent the previous fiscal year.
Consumer electronic sales totaled 88 billion ($807 million), a big drop of 58.8 billion ($539 million), or 40 percent, from the previous year. Sales shrunk by 44.3 percent, or 32.1 billion ($294 million), to 40 billion ($367 million) in "other" segments.
Semiconductors for game applications " mainly Nintendo's game consoles " were once a driving force for NEC, but sales fell sharply last year.
In the last fiscal year, sales for communication applications contributed largely in NEC Electronics' business. Sales in the segment grew sharply again last year, driven by sales for mobile phone applications, which accounted for about 80 percent of the company's communication semiconductor sales.
NEC Electronics projected sales for the current fiscal year will grow by 8 percent to 770 billion ($7.1 billion), with the operating profit of 65 billion ($596 million), up 15 percent. It projects net profits of 33 billion ($303 million), up 18 percent. The company expects demand for digital consumer electronics and peripherals will be the biggest gainers in the coming year.
"We expect that the economy will turn to downtrend after the Olympic games in Athens. Thus the second half of this fiscal year will be bearish," said J.J. Yamaguchi, senior vice president of corporation operations.