NEC Networks & System Integration Corporation Announces Consolidated Earnings Results for the Nine Months Ended December 31, 2016; Provides Earnings Guidance for the Fiscal Year Ending March 31, 2017
January 29, 2017
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NEC Networks & System Integration Corporation announced consolidated earnings results for the nine months ended December 31, 2016. For the period, the company reported net sales of JPY 179,314 million compared to JPY 194,120 million a year ago. This was caused by a substantial decline in sales in the Carrier Networks business linked to the restraint on capital spending by telecom carriers, despite an increase in sales to other enterprises. Another factor was the completion of projects in response to the digitalization of fire-fighting and emergency radio systems in May 2016. Operating income was JPY 3,456 million compared to JPY 6,634 million a year ago. Ordinary income was JPY 3,594 million compared to JPY 6,768 million a year ago. Income before income taxes and minority interests was JPY 3,507 million compared to JPY 6,225 million a year ago. Profit attributable to owners of parent was JPY 2,132 million or JPY 42.96 per share compared to JPY 4,007 million or JPY 80.74 per share a year ago. Net cash provided by operating activities was JPY 18,314 million compared to JPY 2,746 million a year ago. Purchase of property, plant and equipment was JPY 1,340 million compared to JPY 1,943 million a year ago. Purchase of intangible assets was JPY 550 million compared to JPY 532 million a year ago.
For the fiscal year ending March 31, 2017, the company expects net sales of JPY 260,000 million, operating income of JPY 10,000 million, ordinary income of JPY 10,000 million and net income attributable to owners of parent of JPY 6,000 million or JPY 120.87 per share.
NEC Networks & System Integration Corporation is a Japan-based company mainly engaged in the provision of information and communication technology (ICT) systems mainly in the communication field. The Company is also involved in the manufacture and sale of network communication equipment. The Company operates through three business segments. Company Network segment is engaged in the provision of ICT solutions related service integration to companies. Career Network segment is engaged in the provision of system integration (SI) service and installation service from ICT infrastructure to telecommunications carriers, as well as the provision of SI service and related operation and monitoring services. Society Infrastructure segment is engaged in the provision of service integration including SI services and installation work related to ICT infrastructure for government offices, local governments and public interest corporations, as well as related services such as operation and monitoring.
NEC Networks & System Integration Corporation Announces Consolidated Earnings Results for the Nine Months Ended December 31, 2016; Provides Earnings Guidance for the Fiscal Year Ending March 31, 2017