TOKYO, Japan, May 10, 2011 — Renesas Electronics Corporation (TSE: 6723), a premier provider of advanced semiconductor solutions, today revised its consolidated financial forecasts for the full year (the period from April 1, 2010 to March 31, 2011), which it disclosed on January 28, 2011.
1. Revised forecasts for the full-year consolidated financial results
(For the year ending March 31, 2011)
In millions of yen
| Net Sales | Operating Income (loss) | Ordinary Income (Loss) | Net Income (Loss) | Net Income (Loss) per Share (Yen) | |
|---|---|---|---|---|---|
| Previous forecasts (As of January 28, 2011) | 1,150,000 | 7,000 | (5,000) | (80,000) | (191.79) |
| Revised forecasts | 1,137,000 | 14,500 | 1,000 | (115,000) | (275.70) |
| Increase (decrease) | (13,000) | 7,500 | 6,000 | (35,000) | – |
| Percent change | (1.1) | 107.1 | – | – | – |
| Reference: Results for the year ended March 31, 2010 | 1,062,398 | (113,251) | (125,336) | (137,776) | – |
Note: The consolidated financial results for the year ended March 31, 2010 are calculated based on the sum of respective figures at the former NEC Electronics Corporation and the former Renesas Technology Corp. The amount of “Net sales” of former Renesas Technology Corp. is reclassified to be consistent with former NEC Electronics Corporation.
Background to the revision of full-year forecasts
Renesas Electronics announced the following revisions to its forecasts for the fiscal year ending March 31, 2011: net sales are expected to total 1,137.0 billion yen, 13.0 billion yen less than the previous forecast; semiconductor sales are expected to total 1,018.0 billion yen, a decrease of 12.0 billion yen; operating income is expected to amount to 14.5 billion yen, an increase of 7.5 billion yen; ordinary income is expected to total 1.0 billion yen, an increase of 6.0 billion yen; and consolidated net loss is expected to total 115.0 billion yen, an increase of 35.0 billion yen.
Among the Semiconductor sales, sales of MCU and system on chips (SoCs) in particular are expected to decline from the previous forecast. Although there is a decline in profit from the decrease in semiconductor sales, consolidated operating income is expected to be 14.5 billion yen, mainly due to the reduced selling and general administrative expenses and promotion of streamlining the R&D expenses from steady implementations of structural reform measures and realization of merger synergies, etc.
Consolidated net loss is expected to be 115.0 billion yen, mainly due to the special loss from executing structural reform measures, which had been announced on January 28, 2011, in addition to the special loss from the Great East Japan Earthquake for repair expenses of fixed assets.
Details will be explained in Renesas Electronics' announcement of full-year financial results on May 18, 2011.
Forward-Looking Statements
The statements in this press release with respect to the plans, strategies and financial outlook of Renesas Electronics and its consolidated subsidiaries (collectively “we”) are forward-looking statements involving risks and uncertainties. We caution you in advance that actual results may differ materially from such forward-looking statements due to several important factors including, but not limited to, general economic conditions in our markets, which are primarily Japan, North America, Asia, and Europe; demand for, and competitive pricing pressure on, products and services in the marketplace; ability to continue to win acceptance of products and services in these highly competitive markets; and fluctuations in currency exchange rates, particularly between the yen and the U.S. dollar. Among other factors, downturn of the world economy; deteriorating financial conditions in world markets, or deterioration in domestic and overseas stock markets, may cause actual results to differ from the projected results forecast.
About Renesas Electronics Corporation
Renesas Electronics Corporation (TSE: 6723) delivers trusted embedded design innovation with complete semiconductor solutions that enable billions of connected, intelligent devices to enhance the way people work and live. A global leader in microcontrollers, analog, power and SoC products, Renesas provides comprehensive solutions for a broad range of automotive, industrial, infrastructure, and IoT applications that help shape a limitless future. Learn more at renesas.com. Follow us on LinkedIn, Facebook, Twitter, and YouTube.
The content in the press release, including, but not limited to, product prices and specifications, is based on the information as of the date indicated on the document, but may be subject to change without prior notice.