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NEC feels the pain

DRAM dropped in Scotland

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NEC has said its Q1 profits have plummeted 72 per cent due to falling chip demand and flat panel display price drops. It has posted net income of 800 million yen ($6.46 million), down sharply from 3 billion yen ($20 million) posted a year earlier.

But sales were up 6 per cent to 1.12 trillion yen ($9 billion).

The company has decided to stop making DRAMs in Scotland. The move is likely to mean it chops half of its 1,500 staff there.

And the DRAM doldrums mean Q2 is not going to be any better and for the first half year, ending 30 September, NEC is expecting net income of 3 billion yen ($20 million). This is well down on the 15 billion yen it predicted earlier in the year.

Revenues are expected to hit 2.6 trillion yen, down from 2.7 trillion yen. ®

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