Mainframes, PCs, mobes tickle Fujitsu revenues in the right direction
Big overall profit turnaround in spite of x86 server slump
Despite a mild slump in its x86 server sales, Fujitsu revenues increased for its first fiscal 2017 quarter by 2.5 per cent to $8.3bn (¥922.6bn), accompanied by a rebound in profits.
Operating profit rose year-on-year from -$123.3m (-¥13.7bn) to $44.1m (¥4.9bn) – a welcome turnaround.
In its technology solutions business:
- System Platforms revenues rose 3.9 per cent to $884.7m (¥98.3bn)
- Systems products revenues fell 3 per cent to $450.9m (¥50.1bn)
- Network products revenues rose 6.9 per cent to to $433.8m (¥48.2bn)
- Services revenues declined 4 per cent to $5.17bn (¥574.2bn)
Mainframe product revenues increased but x86 server revenue was weak compared to last year. The network revenue boost was attributed to higher income from mobile phone base stations in Japan.
Fujitsu has an Ubiquitous Solutions segment, which covers PCs and mobile phones. Revenues here grew 21.5 per cent to $1.19bn (¥132.5bn) as new and better differentiated consumer PCs sold well. Mid-range mobile phone sales also increased, as did "Raku-Raku" smartphone sales.
The Device Solutions segment, selling LSI products and electronic components, saw revenues rise 5.3 per cent to $1.22bn (¥135.3bn), although the components sub-segment had a 0.6 per cent fall in revenues to ¥65.9bn. There was higher demand for LSI devices in smartphones.
Revenue in Japan rose by 5.4 per cent but revenue outside fell by 2.0 per cent. Services revenue decreased because of a decline in the value of the British pound against the yen, and revenue from electronic components also fell back. The ratio of revenue outside Japan was 37.3 per cent.
No dramas here, and the x86 servers will probably get a boost from Intel's newly launched Xeon SP processors. ®