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The company foresees that net sales, operating income, ordinary income and net income for the fiscal 2007 will be lower than the estimation released on October 25, 2007.
The net sales for the fiscal 2007 will be largely lower than the estimation on October 25, 2007.
In the fourth quarter, the Japanese economy moved in the uncertain business sentiment and it has been overshadowing enterprise intention for their capital investment. Also severe business environment has been lasting in the continued price competition in hardware etc.
Sales in Tokyo area moved steadily but other regional sales faced continued difficulty.Sales in the government and public offices declined greatly from the previous year largely due to postponement of large size business and to cancellation of some projects. The overall sales for fiscal 2007 is expected lower than the previous estimation.
Regarding operating income and ordinary income, operating margin showed improvement mainly in software and services by expansion of consulting style business approaches, and continued efforts was made to reduce cost in SG&A cost. Nevertheless this could not absorb negative impact from the large decline in overall sales.
Net income will be almost same level from the previous year.
As the review of holding assets in this financial year for the purpose of effective use of the assets, the invested real estate held as the model of the intelligent building was sold. This transaction brought gains of 511 million yen to extraordinary income. On the other hand, extraordinary loss of 423 million yen was recorded as the expense of the business structural reform in the review of support service structures in Higashi Nihon(East Japan) region.
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