NEC Corp. today revised its financial results forecast for the fiscal year ended March 31 to post a loss of $208 million (25 billion yen), $292 million (35 billion yen) lower than NEC's January forecast.

The downturn was mainly attributed to a loss of  $133 million (16 billion yen) incurred from the reexamination of deferred income tax assets resulting from the introduction of a new local tax, and increased burden of other taxes, NEC said.

Meanwhile, due to the better than expected reductions in cost and business expenses, NEC’s operating income is expected to be $959 million (115 billion yen), which is $125 million (15 billion yen) higher than the previous forecast. However, NEC said that because of devaluation of investment in securities of $167 million (20 billion yen), NEC’s income before income taxes is expected to be $500 million (60 billion yen), $41.7 million (5 billion yen) lower than the previous forecast.

NEC will make its final results statement later this month.

By: DocMemory
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