NEC Electronics gave slowing sales of semiconductors used in mobile phones and microcontrollers for embedded applications as the reason and said the market would hit the bottom of its current cycle in July 2005 but could then take up to six months to resume strong growth.

The company said it expects net sales for its first fiscal quarter to be approximately 13 percent smaller than in the previous quarter. The company expects to post operating losses of 10 billion yen (about $90 million) for the quarter, the company said.

After getting its financial year off to such a start NEC Electronics said it now believed it would be difficult to achieve the financial targets set for the first fiscal half and had revised the interim and full-year forecasts accordingly.

As a result NEC Electronics said that net income for the year ending March 31, 2006 would be 5.50 billion yen (about $49 million) rather than 13.00 billion yen (about $115 million).

Sales revenue is now expected to be 695.0 billion yen (about $6.2 billion), rather than the 720.0 billion yen (about $6.4 billion) previously predicted, NEC said.

By: DocMemory
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