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Home > News Room > NEC Announces Loss on Devaluation of Investment Securities for Fiscal Year Ended March 31, 2008

NEC Announces Loss on Devaluation of Investment Securities for Fiscal Year Ended March 31, 2008

 

***For immediate use April 18, 2008

NEC Corporation today announced that it will record a loss on devaluation of investment securities owned by NEC and its consolidated subsidiaries which are of significant impairment of their value in comparison to their carrying amount.

1. Loss on Devaluation of Investment Securities for Fiscal Year Ended March 31, 2008 (Consolidated basis)

(In millions of yen)

(A) Loss on devaluation of investment securities for the fiscal year ended March 31, 2008 3,798
(B) Net assets for fiscal year ended March 31, 2007 (A / B×100) 1,240,123
(0.3%)
(C) Ordinary income for the fiscal year ended March 31, 2007 (A / C×100) 16,347
(23.2%)
(D) Net income for the fiscal year ended March 31, 2007 (A / D×100) 9,128
(41.6%)

 

2. Financial Forecast

For information of the financial forecast for the fiscal year ended March 31, 2008, including this devaluation loss, please see the today’s announcement titled “NEC Announces Revision of Financial Forecasts for Fiscal Year Ended March 31, 2008”.


CAUTIONARY STATEMENTS:

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 U.S. Securities and Exchange Commission, and in reports to shareholders and other communications. The U.S. Private Securities Litigation Reform Act of 1995 contains, and other applicable laws may contain, a safe-harbor for forward-looking statements, on which NEC relies 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) impact of NEC’s announcement that its previously issued financial statements may not be relied upon and inability to prepare the financial statements for inclusion in the 2006 Form 20-F and to restate historical financial statements, and (ix) uncertainty relating to the ongoing informal inquiry by the SEC. 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. The securities may not be offered or sold in any jurisdiction in which registration is required absent registration or an exemption from registration under the applicable securities laws. For example, any public offering of securities to be made in the United States must be registered under the U.S. Securities Act of 1933 and made by means of an English language prospectus that contains detailed information about NEC and management, as well as NEC’s financial statements.

***

NEC Press Contacts:

Makoto Miyakawa
NEC Corporation
+81-3-3798-6511
E-Mail:m-miyakawa@bk.jp.nec.com

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