NEC Upgrades Year-End Financial Projections

NEC’s last fiscal year turned out to be better than expected. The company is revising the financial forecast for the fiscal year that ended on March 31, modifying an earlier forecast that was released in January. The final results for the fiscal year will be unveiled on May 12.

The new report is expected to show consolidated revenue of 3,090 billion yen (approximately $29 billion USD), and a consolidated operating profit of 127 billion yen ($1.2 billion USD). Those numbers respectively represent an increase of 140 billion yen and of 17 billion yen over the company’s earlier predictions. Net profit is also up 35 billion yen, to a total of 100 billion yen, which is just under $938 million USD.

NEC attributed the discrepancies to higher-than-projected sales in its System Platform, Network Services, and Public Solutions businesses, coupled with strong ICT investments and lower tax expenses following the liquidation of several subsidiaries. The company noted that any forward-looking statements may not necessarily correspond with actual performance, and could change based on a variety of factors, including the global outbreak of COVID-19.

NEC has made several changes in the executive suite and to the board of directors in the past few months. It has since indicated that it will be one of the many companies that will be prioritizing contactless identity solutions in response to the pandemic.

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May 8, 2020 – by Eric Weiss