Fiscal Year 1998 Half-Year Financial Results

Summary of Unconsolidated Results

Yen
(millions)

U.S. dollars
(millions)

FY 1998

FY 1997

Change (%)

FY 1998

Net Sales

Y 3,191,146

Y 3,229,084

-1

$26,373

Operating Income

39,863

89,332

-55

329

Income (Loss)
Before Income Taxes

(21,304)

89,800

(176)

Net Income (Loss)

(21,504)

50,900

(177)

Amounts Per Share of Common Stock:

Basic Earnings (Loss)
Diluted Earnings

Y (11.5)
-

Y 27.4
Y 26.0

-
-

$(0.095)
-

Net Sales by Business Segment

Yen
(millions)

U.S. dollars
(millions)

FY 1998

FY 1997

Change (%)

FY 1998

Communications Systems

Y 518,040

Y 645,778

-20

$4,281

Computers & Information
Processing Systems

1,498,327

1,456,897

12,383

Services & Software

927,253

827,834

+12

7,663

Semiconductors & Electronic
Components

247,526

298,575

-17

2,046

[Semiconductors]

[225,050]

[282,245]

-20

[1,860]

TOTAL

Y 3,191,146

Y 3,229,084

-1

$26,373

Projections for FY1999 (April 1, 1999 - March 31, 2000)

Consolidated Earnings Forecast

Yen
(billions) Change(%)

Net Sales 5,650 +8

Net Income 80 -

Unconsolidated Earnings Forecast

Yen
(billions) Change(%)

Net Sales 3,350 +5

Net Income 45 -