Tokyo, December 18, 2000---Fujitsu Limited has approved implementation of the planned business restructuring of Amdahl Corporation, its Sunnyvale, California-based wholly owned subsidiary, in which Amdahl will shift from its traditional IBM-compatible mainframe business to a new focus on open systems. In accordance with the directives from a meeting of Fujitsu's board on October 25, 2000, Amdahl's board of directors decided on December 5, 2000 to move ahead with the business restructuring plan and, as a result, record an extraordinary loss. Today, Fujitsu gave formal approval to proceed with the implementation.
Under the restructuring plan, Amdahl will carry out a one-time write-down of all goodwill and disposal of assets relating to its IBM-compatible mainframe business. As a result, Fujitsu expects to post an extraordinary loss of about $500 million in fiscal year 2000 (ending March 31, 2001). The estimated loss was included in Fujitsu's consolidated financial results forecast for fiscal 2000, which the company announced in October when reporting results for the first half of the fiscal year.
In order to clarify responsibility and achieve profitability quickly, a new corporate structure will be put in place by April 1, 2001 under which Amdahl's existing operations (excluding its DMR Consulting affiliate) will be divided into a holding company, an open systems company, an IT services company, and a software company. Under the new corporate structure, the holding company will provide overall coordination for the three new companies, as well as for DMR Consulting.
The open systems company will offer technology solutions centering on Fujitsu's PRIMEPOWER Unix servers, PRIMERGY Intel-based servers, as well as open file systems. The IT services company will focus on maintenance business and sales and services for Sun Microsystems products. The new software company will provide its own storage management software and other solutions, while DMR Consulting will continue its consulting and ASP business.
* All company names mentioned may be trademarks or registered trademarks of their respective holders and are used for identification purposes only.
About Fujitsu
Fujitsu Limited (TSE: 6702) is a leading provider of Internet- based information technology solutions for the global marketplace. Comprising over 500 group companies and affiliates worldwide -- including ICL, Amdahl and DMR Consulting -- it had consolidated revenues of 5.26 trillion yen ($49.6 billion) in the fiscal year ended March 31, 2000. Fujitsu's pace-setting technologies, world-class computing and telecommunications platforms, and global corps of over 60,000 systems and services experts make it uniquely positioned to unleash the infinite possibilities of the Internet to help its customers succeed. Altogether, the Fujitsu Group has 188,000 employees and operations in over 100 countries.
Internet: http://www.fujitsu.com/
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