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Full Year Consolidated Financial Results for the Fiscal Year Ended March 31, 2006

***** For immediate use May 11, 2006

 
Fiscal Year Ended March
31, 200 6
Fiscal Year
Ended March
31, 200 5
[Restated]
Change
 
In billions of yen
In billions of yen
%
Net sales
4,824.9
4,801.7
+0.5
Operating income
95.4
141.9
-32.7
Income from continuing operations before income taxes
83.3
145.1
-42.6
Net income
12.1
77.2
-84.3
 
yen
yen
yen
       
Basic
6.05
39.62
-33.57
Diluted
5.78
36.37
-30.59
 
In billions of yen
In billions of yen
%
Total assets
3,895.8
3,982.5
-2.2
Number of employees
154,180
154,001
-

 

Notes

 

1.The consolidated financial statements of NEC are prepared in accordance with accounting principles generally accepted in the United States, or U.S. GAAP.

 

2."Operating income" set forth above is a measure commonly used by other Japanese companies that report their financial results in accordance with generally accepted accounting financial reporting practices in Japan. “Operating income” is calculated by deducting cost of sales and selling, general and administrative expenses from net sales. Management believes this measure is useful to investors in comparing NEC’s results of operations to those of other Japanese companies. This measure, however, should not be construed as an alternative to "income before income taxes" or "net income" as determined in accordance with U.S. GAAP. Please refer to the condensed consolidated statement of operations for the calculation of operating income.

 

3.The number of consolidated subsidiaries and affiliated companies accounted for by the equity method is as follows:

 

 
As of March 31, 200 6
As of March 31, 200 5
[Restated]
Consolidated subsidiaries
356
317
Affiliated companies accounted for by the equity method
68
69

 

4.In accordance with U.S. GAAP, a part of the consolidated financial information for the fiscal year ended March 31, 2005 related to certain operations that were discontinued during the fiscal year ended March 31, 2006 has been reclassified.

 

5.NEC adopted the Financial Accounting Standards Board ("FASB") Interpretation No.47 ("FIN47"), "Accounting for Conditional Asset Retirement Obligations, an interpretation of FASB Statement No. 143", at March 31, 2006.

 

6.The consolidated financial results for the fiscal year ended March 31, 2005 were revised from those already announced , and restated based on U.S. GAAP . However, as restated figures are currently being audited by NEC’s independent auditors, NEC will promptly disclose revised consolidated financial results for the fiscal year ended March 31, 2005 after the aforementioned audit is complete.

 

Media Contact

 

Diane Foley/Makoto Miyakawa

TEL: +81-3-3798-6511

 

 

Full Year Consolidated Financial Results for the Fiscal Year Ended March 31, 2006 (298 KB)