Japan's NEC says cuts net loss in half

July 30, 2014 - 12:03:10 pm

TOKYO: Japan's NEC said Wednesday it had cut its quarterly net loss by half from a year ago owing to its exit from a money-losing smartphone business and robust computer platform sales.

The company said its shortfall in the three-months to June stood at 10.1 billion yen ($99 million), from a 21.5 billion yen loss in the same period last year.

It added that its operating loss also shrank to 7.1 billion yen from 21.8 billion yen, on sales of 598.7 billion yen, which were down 6.5 percent.

The former powerhouse in the mobile sector said last year it would exit the highly competitive smartphone business, ending the development, production and sales of the devices.

NEC had merged its mobile phone handset operations with those of Casio Computer and Hitachi to fight off rising competition. But the subsidiary struggled to succeed in a market increasingly dominated by Apple and South Korean giant Samsung.

For the full-year to March, the company said it expects to post a net profit of 35 billion yen on sales of 3.0 trillion yen. (AFP)