Due to unadaptability of the style sheet with the browser used in your computer, pages may not look as original.
Even in such a case, however, the contents can be used safely.
*** For immediate use July 31, 2013
Tokyo, July 31, 2013 - NEC Corporation (NEC; TSE: 6701) is reviewing the mobile phone handset business operated by NEC CASIO Mobile Communications, Ltd. in order to accelerate its growth strategy focused on the "Social Solutions Business," which provides advanced social infrastructure capitalizing on information and communications technologies (ICT) .
Specifically, as of today, NEC is ending the development, manufacturing and sale of smartphones, other than models already on the market. NEC will continue providing maintenance and support services for its existing smartphones. NEC will also continue developing and producing conventional mobile phone handsets. Furthermore, NEC will utilize NEC Saitama, Ltd. for its Social Solutions Business, as well as the production of conventional mobile phone handsets for the Japanese market. Moreover, NEC will continue operating its tablet business.
As the market for mobile phone handsets, including the rapid spread of smartphones, has dramatically changed, economies of scale have become increasingly important for the maintenance and strengthening of competitiveness. However, NEC's mobile phone handset shipments are following a downward trend and it is difficult to foresee improved performance in the future. In light of these circumstances, NEC reached this decision to review its mobile phone handset business following a comprehensive examination of the business' direction.
NEC will now strengthen its portfolio management even further, in addition to focusing management resources on the company's Social Solutions Business. Going forward, NEC will capitalize on the technologies and know-how acquired through the development of wireless communications, terminals and human interfaces for the mobile phone handset business in order to strengthen its Social Solutions Business. As a result, NEC will reposition NEC CASIO Mobile Communications employees, except those who continue to engage in business operations, within the NEC Group, centering on the Social Solutions Business.
NEC is in the process of assessing the impact of this resolution on its consolidated financial results for the fiscal year ending March 31, 2014. NEC will report any significant developments on this matter as soon as information becomes available.
|About NEC CASIO Mobile Communications, Inc.|
|Business Summary||:||Mobile terminal development, production and maintenance|
|Capital||:||5 billion JPY|
|Net Sales||:||approximately 140 billion JPY (2012 fiscal year)|
|Shipments||:||2.9 million units (2012 fiscal year)|
|Employees||:||890 (April 2013)|
|Share||:||NEC: 70.74%, CASIO: 20.00%, Hitachi: 9.26%|
This material contains forward-looking statements pertaining to strategies, financial targets, technology, products and services, and business performance of NEC Corporation and its consolidated subsidiaries (collectively "NEC"). Written forward-looking statements may appear in other documents that NEC files with stock exchanges or regulatory authorities, such as the Director of the Kanto Finance Bureau, and in reports to shareholders and other communications. NEC is relying on certain safe-harbors for forward-looking statements in making these disclosures. Some of the forward-looking statements can be identified by the use of forward-looking words such as "believes," "expects," "may," "will," "should," "seeks," "intends," "plans," "estimates," "targets," "aims," or "anticipates," or the negative of those words, or other comparable words or phrases. You can also identify forward-looking statements by discussions of strategy, beliefs, plans, targets, or intentions. Forward-looking statements necessarily depend on currently available assumptions, data, or methods that may be incorrect or imprecise and NEC may not be able to realize the results expected by them. You should not place undue reliance on forward-looking statements, which reflect NEC's analysis and expectations only. Forward-looking statements are not guarantees of future performance and involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those in the forward-looking statements. Among the factors that could cause actual results to differ materially from such statements include (i) global economic conditions and general economic conditions in NEC's markets, (ii) fluctuating demand for, and competitive pricing pressure on, NEC's products and services, (iii) NEC's ability to continue to win acceptance of NEC's products and services in highly competitive markets, (iv) NEC's ability to expand into foreign markets, such as China, (v) regulatory change and uncertainty and potential legal liability relating to NEC's business and operations, (vi) NEC's ability to restructure, or otherwise adjust, its operations to reflect changing market conditions, (vii) movement of currency exchange rates, particularly the rate between the yen and the U.S. dollar, (viii) the impact of unfavorable conditions or developments, including share price declines, in the equity markets which may result in losses from devaluation of listed securities held by NEC, and (ix) impact of any regulatory action or legal proceeding against NEC. Any forward-looking statements speak only as of the date on which they are made. New risks and uncertainties come up from time to time, and it is impossible for NEC to predict these events or how they may affect NEC. NEC does not undertake any obligation to update or revise any of the forward-looking statements, whether as a result of new information, future events, or otherwise.
The management targets included in this material are not projections, and do not represent management's current estimates of future performance. Rather, they represent targets that management will strive to achieve through the successful implementation of NEC's business strategies.
Finally, NEC cautions you that the statements made in this material are not an offer of securities for sale. Securities may not be offered or sold in any jurisdiction in which required registration is absent or an exemption from registration under the applicable securities laws is not granted.