Fujitsu Ltd said that IT spending experienced “a mild rebound” in its first fiscal quarter, as the technology and services giant improved both its profitability and revenue.
In the three months ending June 30, 2004, the Tokyo, Japan-based company reduced its net loss to JPY 11.8bn ($106m) from JPY 39.8bn ($357m) in the year-ago quarter, on revenue that grew 7.4% to JPY 1,008bn ($9.03bn).
The Software and Services division accounted for the largest share of revenue to unaffiliated customers (38%), with sales growing 0.3% to JPY 384.5bn ($3.4bn). Sales to clients in Japan remained flat at JPY 266bn ($2.38bn), with overseas revenue growing 0.9% to JPY 118bn ($1.06bn). The company said that the large-scale public sector contracts the company won in the UK last year were starting to contribute to revenue.
Within this division, sales of solutions and systems integration projects fell 5.2% to JPY 146.7bn ($1.31bn), with revenue from infrastructure services up 4.1% to JPY 237.8bn ($2.13bn). The company said that pricing pressure intensified in the services market during the quarter, particularly in Japan.
The fastest growing division was Electronic Devices, where sales to unaffiliated customers increased 25.4% to JPY 203.9bn ($1.83bn) driven by demand for logic chips and flash memory used in mobile phones and digital AV equipment. Revenue from Japan rose 43.5% to JPY 108.5bn ($972m), and overseas sales increased 9.6% to JPY 95.4bn ($855m).
Revenue from Platforms, Fujitsu’s second largest operation, rose 15.1% to JPY 359.9bn ($3.2bn). Domestic sales rose 15.2% to JPY 248.9bn ($2.23bn), with overseas revenue up 15.1% to JPY 110.6bn ($991m).
The company pointed to strong growth in sales of Unix servers and mainframe computers, as well as sales of financial terminals able to accommodate new Japanese bank notes. It said the decline in PC prices was offset by a rise in sales of hard disk drives.