Japan's NEC reports $490 million quarterly loss
Japan's NEC Corp. reported a loss in the latest quarter amid a slump in its network systems business and after hiving off its semiconductor unit .
The Tokyo-based electronics maker Wednesday posted net loss of 43.1 billion yen ($490 million) in the April-June quarter, sinking deeper into the red compared with a loss of 33.8 billion yen a year earlier. NEC returned to profit in the January-March period — its first in a year and half — on a recovery in IT services.
Quarterly sales of 667.5 billion yen ($7.6 billion) were down 14.1 percent from 778.5 billion yen a year earlier.
NEC said not having its chip unit, NEC Electronics Corp., as part of its group company contributed to the quarterly loss. Renesas Technology Corp. and NEC Electronics last year combined operations after their parent companies agreed to inject 200 billion yen ($2.2 billion) into a new company, Renesas Electronics Corp., that would rank as the world's No. 3 chipmaker. NEC has a 33.4 percent stake in Renesas Electronics.
A sales slump in data connection services also contributed to the loss, the company said.
NEC shares closed up 2.5 percent at 244 yen in Tokyo.