Results by Business Segment in the First Half
* Net sales represents net sales to third parties
Segment information for the first half is as follows.
1.Software & Services
|First Half||Change from Same Period Last Year|
|Net Sales||909.3 billion yen||-1.0%|
|Japan||671.4 billion yen||+0.8%|
|Overseas||237.8 billion yen||-5.5%|
|Operating Income||28.8 billion yen||-22.6 billion yen|
Net sales in the software and services segment were 909.3 billion yen, roughly even with results for the same period last year. Sales within Japan increased, but overseas sales, which represent about one-fourth of the total, declined. The decline is partly attributable to the sale last year of some European business units as well as the currency conversion impact of the strong yen.
Operating income declined significantly compared to the prior year. The impact of new platforms product offerings being concentrated in the second half, the deterioration in profitability of particular projects, and aggressive up-front investments in middleware and Linux offerings all hurt profitability in Japan, while overseas profitability was affected by a deterioration in North American results.
|Net Sales||Change from Same Period Last Year|
|Solutions / S I||413.7 billion yen||+ 2.6%|
|Infrastructure Services||495.6 billion yen||-3.7%|
Sales increased of solutions/system integration services, whereby Fujitsu provides services to individual customer projects. Higher sales were posted to the public sector, through such high-profile projects as the e-Japan initiative, as well as the healthcare sector.
In infrastructure services, whereby Fujitsu provides services for business infrastructure, sales within Japan of corporate outsourcing services continued to be strong. Overseas, however, sales in Europe declined.
In order to support the global expansion of its customers, Fujitsu is enhancing its organizational structure in Europe, the U.S., and Asia. During the current period, in addition to supporting the global expansion of Japanese corporations, the company received a series of major government-related outsourcing deals in the U.K. and succeeded in winning other major global deals in Europe and North America.
Fujitsu is clearly establishing a strong business platform in Europe, and is coordinating its effort to strengthen its position in the U.S. market.
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