For the first half of fiscal 2007, we are now projecting consolidated operating income of 44.0 billion yen, an upward revision of 24.0 billion yen over our previous projection made on July 26, 2007. The improvement reflects growth in our services business as well as in PCs and mobile phones, along with advance demand for server-related products. Cost-cutting initiatives also boosted income. As a result of higher projections for operating income, the outlook for net income is also revised upward.
Full-year earnings projections for fiscal 2007 remain unchanged, primarily because of uncertainties relating to our product businesses, for which sales and income tend to be highly concentrated at the end of the fiscal year. In addition, we have not changed our view of full-year demand and earnings for such areas as logic LSI devices and hard disk drives.
Announcement Schedule for FY 2007 First-Half Results
As announced on July 26, 2007, in accordance with the Japanese Corporate Law, Fujitsu will proceed with a special accounts settlement for the fiscal 2007 first-half period, and plans to use retained earnings from net income posted for the first half to pay an interim dividend (*).
For the first half of fiscal 2007, in addition to the audit required by the Japanese Financial Instruments and Exchange Law, Fujitsu must also comply with audit procedures for a special accounts settlement required by the Japanese Corporate Law. The announcement of first-half results for fiscal 2007 is scheduled for November 22, 2007. The interim dividend is expected to be paid in the latter part of December 2007, after the completion of all audit procedures for the special accounts settlement. In addition, the Half-yearly Report will be made public in late December.
On an unconsolidated basis, Fujitsu Limited had a negative balance of retained earnings for fiscal 2006 ended March 31, 2007. A decision was made at a meeting of the Board of Directors in May 2007 to transfer 240.4 billion yen from "other capital surplus" into "other retained earnings", making the balance of retained earnings zero. In order to pay interim dividends out of retained earnings resulting from net income posted for the first half of fiscal 2007, Fujitsu is preparing a special accounts settlement reports using, in accordance with the Japanese Corporate Law, the last day of the first-half period, September 30, 2007, as the special accounts settlement date. -Fujitsu
