fujitsu siemens computers announces stronger profit for the first-half fiscal year
• Operational profit increased by 11 percent
• Profit before tax increased by 10 million euros
• Revenue almost flat with 3.01 billion euros
Munich, October 24, 2007 – Fujitsu Siemens Computers, the leading European IT provider, announces its results for the first half of Fiscal Year 2007 (1HY07). From April to September 2007, the company increased its profit before tax from four to 14 million euros and its operational profit by 11 percent to 20 million euros. The company recorded 3.011 billion euros in revenue, which is a slight decrease of two percent, reflecting the company’s strategic business changes and the difficult market environment.
“We achieved our goal of strengthening profit before tax and operational profit. I am proud that we accomplished this while taking strategic decisions to focus on Managed Services as well as our realignment efforts in the consumer area, even though this had an effect on our short-term performance,” said Bernd Bischoff, President and CEO Fujitsu Siemens Computers.
A positive contribution to revenue was the above-market growth of 11 percent in the industry-standard server business and the 14 percent growth in consumer mobiles*. Revenue was impacted by the decision to shift break-fix service business to partners and to focus more on Managed Services as well as the decision to concentrate on profitable deals in the consumer business. Revenue and profit in the hardware business were also affected by a larger than
10 percent decline in Average Selling Price (ASP).
”We also managed to hold our revenue almost stable despite an extremely tough market environment with double-digit declining average selling prices, negative revenue growth of IT hardware in Western Europe and Germany, and a weak dollar,” continued Bischoff.
Fujitsu Siemens Computers has outlined its growth potentials to ensure further success. The company will continue to put its efforts in line with its strategic focus on Mobility and the Dynamic Data Center, delivering mobility and infrastructure solutions with associated service offerings. The now completely integrated Service Division will focus more on the fast-growing market of Managed Services.
Bernd Bischoff commented: “I am convinced that we have taken the right decisions for our long-term growth and sustainability. We see increasing demand for our merged service and platform offerings, our innovative Dynamic Data Center solutions, our new notebook family and of course Green IT.”
For the second-half of the fiscal year (ending March 31, 2008) Fujitsu Siemens Computers is expecting the IT market to show a slight increase in demand and is estimating a stronger revenue and profit growth for the company.
