NEC losses deepen in first half

Losses at NEC ballooned in the fiscal first half compared to the previous year, as sales of mobile phones and personal computers slumped and the Japanese electronics maker booked costs to restructure its chip operations, an Associated Press report said.

The Associated Press report said NEC posted a group net loss of 7.4 billion yen ($62.7 million) during the six months ended September 30, worse than the 1.5 billion yen loss racked up a year earlier.

Fiscal half sales fell 2.5% to 2.2 trillion yen ($18.6 billion) from 2.3 trillion yen.

For the fiscal year though March, the manufacturer expects a group net profit of 18 billion yen ($152.5 million) on 4.7 trillion yen ($39.8 billion) sales, the report said.

NEC's financial results for the half and forecast for the full fiscal year are based on Japanese accounting standards, the report said.

In October, the company switched from US accounting standards after problems with its auditor, Ernst & Young, on how to account for revenue on bundled software and hardware contracts.

NEC said it expects an operating loss of 50 billion yen ($424 million) in its mobile phone business in the fiscal year through March.

It hopes to return into the black in the mobile phone business in the following fiscal year, ending March 2008, it said.

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