NEC Revises Segment Reporting, Shifts to Non-GAAP Profit Disclosure

MT Newswires Live07-10

NEC (TYO:6701) will revise its reportable segments on consolidated financial results starting from the fiscal first quarter, following organizational changes, according to a Tokyo bourse filing on Friday.

Previously, the IT company disclosed both adjusted operating profit and Non-GAAP operating profit for the company as a whole, while reporting only adjusted operating profit for each segment.

Going forward, however, NEC will disclose only Non-GAAP operating profit for both the company as a whole and each segment, reflecting a streamlined approach to measuring underlying profitability.

Under the new structure, the IT Services segment is forecast to generate 3 trillion yen in revenue and 420 billion yen in Non-GAAP operating profit for the fiscal year 2027, while the social infrastructure segment is expected to contribute 760 billion yen in revenue and 94 billion yen in profit.

The aerospace/national security and submarine systems segments are also projected to see growth, with the latter swinging from a loss to a profit of 3 billion yen.

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