Japanese information and communication technology (ICT) company, Fujitsu, has posted a net loss of 79 billion yen ($US908 million) in the third quarter of fiscal 2012, and announced a restructuring of its semiconductor business.
Its third-quarter, the company’s consolidated net sales stood at 1,048.2 billion yen ($US12.1 billion), down about 2.9 per cent from the same period of fiscal 2011.
In a statement, Fujitsu said since 2011 its semiconductor business has been confronted with an extraordinarily difficult operating environment as sales declined due to fast-deteriorating market conditions and an increasingly severe competitive climate.
Following talks with outside companies, Fujitsu and Fujitsu Semiconductor have decided to form a new company with the integration of Fujitsu Semiconductor's system LSI business with that of Panasonic Corporation.
As a result of these decisions, Fujitsu's system LSI business will expand and be operated as an independent company.
With the backing of capital contributions from third-party investors, Fujitsu and Panasonic will establish the new company, enabling LSI design and development functions.
Fujitsu said it is considering numerous options with the aim of offering a stable supply of products to customers through its microcontroller and analog device businesses. Fujitsu aims to streamline production capabilities and “rationalise personnel resources to achieve a more compact organisation with stable business operations,” it said in the statement.
Fujitsu attributed the third quarter loss in part to restructuring expenses stemming from the LSI device business.
Sales in Japan fell by 5.4 per cent; sales of infrastructure services and system integration services increased, but sales of PCs, mobile phones, car audio and navigation systems, and LSI devices declined, Fujitsu said in a statement. Sales outside Japan rose by 2 per cent.
“Fujitsu's Technology Solutions business in Japan remains robust. However, Fujitsu's device business, its business outside Japan and PC business have deteriorated significantly from projections announced at the beginning of the fiscal year," Fujitsu president, Masami Yamamoto, said.
“The full-fledged structural reform measures that we have announced today are intended to address the issues these businesses present, and will strive to bolster our ability to achieve profitable growth the next fiscal year and going forward."
In the fourth quarter, Fujitsu plans to incur additional restructuring expenses associated with structural business reforms, specifically with its semiconductor business and other businesses outside of Japan. Fujitsu has revised its full-year business projections for fiscal 2012.