Report Outline:

Fujitsu has announced its fiscal Q1 2012 revenues, for the period ended June 30, 2012, of ¥513.6bn ($6.5bn), down 3.8%.

Fiscal Q1 2012 revenue by service line (and revenue growth on a reported and constant currency basis) is:

• Solutions & systems integration ¥170.5bn (+1.2%, +1%)
• Infrastructure services ¥343.1bn (-6.2%, -3%).

Fiscal Q1 2012 services revenue by geography (and revenue growth) is:

• Japan ¥315.7bn (-0.7%). Systems integration spend was flat with fewer large-scale financial services deals balanced by stronger manufacturing, retail and public sector spending. Infrastructure services spend continues to be weak
• International ¥197.6bn (-8.4% and 3% at constant currency). Sales in Europe and US impacted by economic factors.

Fiscal Q1 2012 operating income for the Services sub-segment was 4.9 bn yen, representing a margin of ~1%, compared with a margin of 0.4% in the prior year quarter:

• In Japan, rise in profits was due to increases in network services deals
• Internationally, profitability was impacted by declining sales and higher pension expense in the UK, but profitability has improved overall in the rest of Europe.

Fujitsu has revised downwards prior guidance for FY 2012 to:

• Revenues of ¥2,405bn, of which
  - Solutions & systems integration ¥850bn
  - Infrastructure services ¥1,555bn, with flat growth in both service lines
• Operating income of ¥130.0 bn, a margin of 5.4%, compared with 5.2% in FY 2011.