The high price of NEC electronic chip products Q1 loss of 49 million U.S.

According to the overseas media reports, the Japanese micro chip maker NEC released the first quarter of fiscal year 2006 financial report on Wednesday local time. The report shows that due to the high price of LCD driver chips, NEC electronics operating loss in the first quarter, but the company still adhere to the analyst's annual performance targets exceeded expectations.

This year 4 month, NEC electronic business loss of 5 billion 760 million yen ($49 million), compared with the same period last year 9 billion 810 million yen operating loss improved. At the same time, the company's sales revenue reached 165 billion 240 million yen, an increase of 13.1% over last year.

For the 2006 fiscal year, NEC electronics still adhere to this year's April announcement of operating profit will reach 5 billion yen, the expected target. According to the survey conducted earlier Reuters Estimates, analysts generally predict NEC electronic business losses will reach 937 million yen. 2005 fiscal year, the company's operating loss amounted to 35 billion 700 million yen.

Currently, NEC has been Nintendo chip procurement orders, and will be available for the upcoming Wii game graphics chips, the company is currently supplying Microsoft Xbox 360 microchip. Nintendo plans to launch Wii game in the 2006 fiscal year, and hope to the end of March next year cumulative sales exceeded 6 million units, which will help boost the NEC performance throughout the year. At present, NEC electronics is the world's eighth largest chip manufacturer.

Before the earnings release, NEC electronics shares fell 1.76%, to close at 3340 yen. 4 month this year, the company's share price fell 23.4%.