NEC Corp. today forecast net earnings of $90 million for the fiscal year ending March 31, compared with a $1.3 billion loss for the previous fiscal year.
Sales for the year are estimated at $45.4 billion, up 12% from $40.3 billion for the prior fiscal year.
The expected financial results are on a consolidated basis for all NEC operations. They include an expected $1.25 billion extraordinary loss for special restructuring charges, offset by an equal amount of extraordinary gains from the sale of assets.
As it nears the end of its fiscal year, NEC is continuing to reorganize into what it is calling "an Internet company," by setting up three new in-house companies: NEC Electron Devices, with $10 billion in estimated annual sales; NEC Solutions, for Internet-related operations, with $20 billion in sales; and NEC Networks, with $13.6 billion annual sales.
Officials said the new NEC Electron Devices company will continue a focus on System LSI devices. Resources will be shifted from corporate R&D laboratories to form a Solution Engineering Division in the new group's Semiconductor Engineering unit.
NEC's automotive electronics and plasma screen businesses, now part of a corporate special projects group, will be shifted to the Electron Devices company. NEC's new joint DRAM venture with Hitachi Ltd., known as NEC Hitachi Memory Inc., also will operate under the Electron Devices unit, the Japanese company said.