Fujitsu reported a narrower first-quarter loss and said it was still on track to meet its profit projection for the year.

The Tokyo-based company posted a net loss of 39.8 billion yen ($334 million) for the April-June quarter, compared with losses of 56.4 billion yen in the same period last year.

Fujitsu said cost-cutting and other restructuring have helped improve its financial performance. But it said sales in computer servers, telecommunications equipment and hard drives were still slow.

Fujitsu lowered its half-year forecast from a loss of 40 billion yen ($336 million) to 50 billion yen ($420 million), but said it was still on track to meet a full-year projected profit of 30 billion yen ($252 million) for fiscal 2003, on 4.8 trillion yen ($40.3 billion) sales.

Net sales dropped 4.5 percent to 938.7 billion yen ($7.89 billion) for the April-June quarter, the first in the Japanese fiscal year, from 983 billion yen last year.