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FOR IMMEDIATE RELEASE
1997-0096
Contact:
Yuri Momomoto
Fujitsu Ltd, Public Relations
Tel: (+81-3)3215-5236
Board Member Changes

Global Network Computing Boom Drives 20 Percent Jump in Fujitsu's Fiscal 1996 Consolidated Net Sales

Tokyo, May 27, 1997 --- Buoyed by the rapid growth of network computing on a worldwide scale, Fujitsu Limited, a global leader in computers, communications and microelectronics, today reported consolidated net sales of 4.50 trillion yen for fiscal 1996 (April 1, 1996 through March 31, 1997), a gain of 20 percent over the previous fiscal year. Converted into dollars, this represents approximately $36.3 billion (*1 rate = 124 yen/1$).

However, despite strong double-digit sales increases in the communications and information processing areas and continued progress in improving group-wide management efficiency, consolidated profits were adversely impacted by depressed semiconductor memory prices as well as special charges such as those associated with inventory adjustments relating to Amdahl Corporation's new model introduction.

As a result, consolidated net income dropped by 27 percent over fiscal 1995 to 46.1 billion yen (approximately $372 million), while consolidated operating income and net income per share (*2) likewise declined by 3 percent and 27 percent to 200.7 billion yen ($1.62 billion) and 25.1 yen ($0.20) per share, respectively.

By product area, fiscal 1996 consolidated sales of communications systems jumped by nearly 37 percent over the previous fiscal year to 855.0 billion yen ($6.90 billion). Sales of computers and information processing systems rose by 21 percent to 2,974.9 billion yen ($23.99 billion). The impressive sales growth in these areas reflects Fujitsu's success in meeting burgeoning customer demand for networking and data service solutions.

In communications systems, for example, there was particularly strong demand for Fujitsu's advanced digital switching and fiber optic transmission systems to support increased Internet, intranet and PHS mobile communication network usage. The company also benefited from increased corporate investment in information systems, especially client/server systems, as well as continued strong gains in sales of personal computers and related equipment, such as hard disk drives.

Consolidated sales of semiconductors and electronic components, on the other hand, declined by 5 percent to 511.8 billion yen ($4.13 billion). Although the growth in personal computers led to increased demand for memory ICs, major price deterioration from the beginning of the fiscal year put a damper on sales and margins.

Overseas sales in fiscal 1996, including local production as well as exports from Japan, increased by 20 percent to 1,342.1 billion yen ($10.82 billion) and accounted for 29.8 percent of total consolidated sales. This included especially strong sales of fiber optic transmission systems in the U.S. and Asia, as well as a major growth in the company's OEM business for hard disk drives in the U.S.

The results for the Fujitsu Group reflect the performance of 446 consolidated subsidiaries worldwide (433 in FY1995), including ICL PLC, Fujitsu America, Inc. and Fujitsu Microelectronics, Inc., as well as 35 other affiliated companies (39 in FY1995), including Amdahl Corp. and Fanuc Ltd., using the applied equity accounting method.



Notes:

  1. All yen figures have been converted into U.S. dollars at the rate of 124 yen to the dollar.
  2. Net income per share is based on the weighted average number of shares of common stock outstanding during the respective fiscal years.

Consolidated Statements of Income


Yen U.S. dollars
(millions) (millions)




Years ended March 31 1997 1996 Change
%
1997





Net sales Y 4,503,474 Y 3,761,966 + 20% $36,318

Operating costs and expenses:
Cost of goods sold 3,149,607 2,495,014 25,400
Selling, general and administrative expenses 1,153,186 1,061,070 9,300





4,302,793 3,556,084 34,700




Operating income 200,681 205,882 - 3% 1,618

Other income (expenses):
Interest and dividend income 9,758 10,976 79
Interest charges (49,276) (48,589) (397)
Other, net (18,089) (40,583) (146)






(57,607) (78,196) (464)




Income before income taxes 143,074 127,686 + 12% 1,154

Income taxes 96,499 71,656 778

Minority interests 4,175 4,818 34


Equity in earnings of affiliated companies, net 3,747 11,901 30




Net income Y 46,147 Y 63,113 - 27% $ 372





Yen U.S. dollars



Net income per share Y 25.1 Y 34.5 $ 0.202
Cash dividends per share Y 10.0 Y 10.0 $ 0.081

Consolidated Balance Sheets




Yen
(millions)
U.S. dollars
(millions)



March 31 1997 1996 1997




Assets
Current assets:
Cash and time deposits Y 400,969 Y 418,803 $ 3,234
Marketable and other securities 51,170 42,127 413
Receivables, trade 1,172,583 963,381 9,456
Inventories 880,582 822,735 7,101
Other current assets 154,295 176,851 1,244




Total current assets 2,659,599 2,423,897 21,448





Investments and long-term loans 651,243 623,479 5,252

Property, plant and equipment
less accumulated depreciation 1,261,276 1,124,917 10,172
Other assets 155,569 152,197 1,255




Y 4,727,687 Y 4,324,490 $ 38,127





Liabilities and shareholders' equity
Current liabilities:
Short-term borrowings and current
portion of long-term debt
Y 868,079 Y 757,591 $ 7,001
Payables, trade 753,606 599,488 6,077
Other current liabilities 622,588 598,847 5,021




Total current liabilities 2,244,273 1,955,926 18,099





Long-term liabilities:
Long-term debt 843,831 774,851 6,805
Other long-term liabilities 290,767 286,526 2,345





1,134,598 1,061,377 9,150




Minority interests 167,326 157,788 1,350









Shareholders' equity :
Common stock 237,674 237,626 1,917
Capital surplus 424,578 419,780 3,424
Legal reserve 27,767 25,907 224
Retained earnings 491,471 466,086 3,963




Total shareholders' equity 1,181,490 1,149,399 9,528





Y 4,727,687 Y 4,324,490 $ 38,127








Consolidated Net Sales by Product Area

Years ended March 31 1997
Yen(millions)
1996
Yen(millions)
CHANGE (%) 1997
US$(millions)
Communications Systems
Japan
Overseas
Total

660,712
194,337
855,049

479,673
145,032
624,705

+37.7%
+34.0%
+36.9%

5,328
1,568
6,896
Computers and Information Processing Systems
Japan
Overseas
Total

2,103,407
871,541
2,974,948

1,773,125
683,814
2,456,939

+18.6%
+27.5%
+21.1%

16,963
7,028
23,991
Semiconductors and Electronic Components
Japan
Overseas
Total

266,060
245,779
511,839

275,328
263,486
538,814

- 3.4%
-6.7%
- 5.0%

2,146
1,982
4,128
Other Operations
Japan
Overseas
Total

131,186
30,452
161,638
116,951
24,557
141,508
+12.2%
+24.0%
+14.2%
1,058
245
1,303
Total
Japan
Overseas
Total

3,161,365
1,342,109
4,503,474

2,645,077
1,116,889
3,761,966

+19.5%
+20.2%
+19.7%

25,495
10,823
36,318


Fujitsu Limited Consolidated Earnings Projections for FY1997

(year ending March 31, 1998)

Continued globalization and growth in network computing will drive expansion of the information and communications markets in the year to come, providing fertile ground for increasing Fujitsu's business performance. Accordingly, the Fujitsu Group intends to further enhance its global operations, placing particular emphasis on strengthening research and development of advanced technologies in areas ranging from high-speed network infrastructure to software & services and electronic devices.

By product area, the company projects continued strong demand in overseas telecommunications markets, particularly in the U.S., solid growth in computers and information processing systems, centering on demand for PCs and related products and services, and growing demand for high value-added semiconductors and electronic devices.

Sales and income projections for FY1997 are as follows:

FY1997 Consolidated Earnings Projections
(April 1, 1997 - March 31,1998)


Billions of Yen Increase Over Previous
Fiscal Year

Net Sales
Net Income
5,350
90
+ 19%
+ 95%

Unconsolidated Statements of Income


Yen U.S. dollars
(millions) (millions)




Years ended March 31 1997 1996 Change
%
1997





Net sales Y 3,123,672 Y 2,602,216 + 20% $ 25,190

Operating costs and expenses:
Cost of goods sold 2,305,594 1,832,428 18,593
Selling, general and administrative expenses 716,171 678,208 5,775





3,021,766 2,510,636 24,369




Operating income 101,906 91,580 + 11% 821

Other income (expenses):
Interest and dividend income 19,320 12,455 155
Interest charges (31,571) (30,798) (254)
Other, net 12,381 (4,121) 99






130 (22,464) 1




Income before income taxes 102,037 69,115 + 48% 822

Income taxes 41,900 24,600 337

Net income Y 60,137 Y 44,515 + 35% $ 484





Yen U.S. dollars



Net income per share Y 32.7 Y 24.3 $ 0.263

Unconsolidated Balance Sheets




Yen
(millions)
U.S. dollars
(millions)



March 31 1997 1996 1997




Assets
Current assets:
Cash and time deposits Y 243,752 Y 250,885 $ 1,965
Marketable and other securities 24,122 6,560 194
Receivables, trade 860,881 730,082 6,942
Inventories 420,880 407,796 3,394
Other current assets 114,001 109,734 919




Total current assets 1,663,637 1,505,059 13,416





Investments and long-term loans 984,550 913,329 7,939

Property, plant and equipment
less accumulated depreciation 678,626 637,806 5,472
Other assets 10,892 12,303 87




Y 3,337,708 Y 3,068,499 $ 26,917





Liabilities and shareholders' equity
Current liabilities:
Short-term borrowings and current
portion of long-term debt
Y 498,061 Y 497,162 $ 4,016
Payables, trade 591,068 442,265 4,766
Other current liabilities 303,906 292,714 2,450




Total current liabilities 1,393,036 1,232,141 11,234





Long-term liabilities:
Long-term debt 726,883 660,395 5,861
Other long-term liabilities 185,967 185,804 1,499





912,851 846,199 7,361




Shareholders' equity :
Common stock 237,674 237,626 1,916
Capital surplus 294,659 294,580 2,376
Legal reserve 27,767 25,907 223
Retained earnings 471,717 432,044 3,804




Total shareholders' equity 1,031,819 990,157 8,321





Y 3,337,708 Y 3,068,499 $ 26,917








Unconsolidated Net Sales by Product Area

Years ended March 31 1997
Yen(millions)
1996
Yen(millions)
CHANGE (%) 1997
US$(millions)
Communications Systems
Japan
Overseas
Total

598,050
119,446
717,496

433,447
90,116
523,563

+ 38.0%
+ 32.5%
+ 37.0%

4,823
963
5,786
Computers and Information Processing Systems
Japan
Overseas
Total

1,903,448
216,130
2,119,578

1,620,771
111,106
1,731,877

+ 17.4%
+ 94.5%
+ 22.4%

15,350
1,743
17,093
Semiconductors and Electronic Components
Japan
Overseas
Total
(Semiconductors)

168,034
118,564
286,598
( 275,726)

197,066
149,710
346,776
( 336,842)

- 14.7%
- 20.8%
- 17.4%
( - 18.1%)

1,355
956
2,311
( 2,224)
Total
Japan
Overseas
Total

2,669,532
454,140
3,123,672

2,251,284
350,932
2,602,216

+ 18.6%
+ 29.4%
+ 20.0%

21,528
3,662
25,190

Fujitsu Limited Unconsolidated Earnings Projections for FY1997

( April 1, 1997 - March 31, 1998 )

Billions of Yen Increase Over Previous
Fiscal Year

Net Sales
Net Income
3,550.0
70.0
+ 14%
+ 16%

For more information, please contact:

Yuri Momomoto
Fujitsu Limited, Public Relations
Phone: (+81-3) 3215-5236 or 3213-4160 Fax: 3216-9365

URL: http://www.fujitsu.com/
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