Fujitsu today reported a profit for the first quarter attributable to owners of the parent of 6.8 billion yen (US$67 million), representing an improvement of 16.0 billion yen compared to the loss posted in the first quarter of fiscal 2013.
From the first quarter of fiscal 2014, the Fujitsu Group has adopted International Financial Reporting Standards (IFRS). In addition, consolidated financial statements for the previous fiscal year's first quarter and for the full 2013 fiscal year are presented in accordance with IFRS.
Consolidated revenue for the first quarter of fiscal 2014 amounted to 1,068.6 billion yen (US$10,580 million), an increase of 6.9% from the first quarter of fiscal 2013. Revenue in Japan increased 8.1%. Revenue from mobile phones and PCs rose significantly, and revenue from system integration services also increased, primarily from the public sector and financial services sector. Outside of Japan, revenue rose 5.3%, but was essentially unchanged on a constant-currency basis. Revenue from LSI devices and electronic components declined, but higher revenue from car audio and navigation systems was recorded in North America, and revenue of PCs grew in Europe.
Gross profit was 280.9 billion yen, an increase of 21.0 billion yen from the first quarter of fiscal 2013. The gross profit margin was 26.3%, an increase of 0.3 of a percentage point from the first quarter of the previous fiscal year as a result of improved profitability in mobile phones and other factors. Selling, general and administrative expenses were 274.4 billion yen, essentially unchanged from the first quarter of fiscal 2013. Other income (expenses) was 0.8 billion yen, a decline of 1.6 billion yen from the first quarter of fiscal 2013. This was attributable to the one-time posting of profit associated with a partial buyout of the retirement benefit plan of a European subsidiary, and other factors, in the first quarter of the previous fiscal year.
Fujitsu recorded an operating profit of 7.2 billion yen (US$71 million), an improvement of 18.0 billion yen from the previous fiscal year's first quarter. In addition to the positive impact from higher revenue, results benefited from structural reforms implemented last fiscal year in the mobile phone business and other areas.
Profit before income taxes amounted to 10.4 billion yen. This was on account of the addition of income from investments accounted for using the equity method, net to operating profit, and other factors. President Masami Yamamoto commented: "I am delighted to report to our shareholders and investors, that for the first time since fiscal 2010, we have achieved operating profit in a first quarter. This is on account of improved profits in line with recovery to ICT investments in Japan.