Fujitsu has reported revenue of ¥1 trillion or $8.9 billion (–4.9 percent in USD) in Q3 fiscal 2018 — primarily due to poor performance in Japan.
Fujitsu posted ¥503.4 billion (–6.5 percent) revenue from technology solution business in Japan, whereas it clocked ¥261.1 billion (+3.2 percent) from international markets.
Fujitsu Services reported global revenue of ¥636.9 billion or $5.6 billion (–3.6 percent) — impacted by contract completion and a reduction in support and maintenance around hardware-based solutions.
Fujitsu generated revenue of ¥740.1 billion (–3.2 percent) from Technology Solutions, ¥165.9 billion (+1.4 percent) from Ubiquitous Solutions and ¥141.7 billion (+3.4 percent) from Device Solutions.
Technology Solutions services revenue declined from the previous year. Fujitsu experienced a significant impact with a decline in sales of all-in-one hardware solutions, which had been strong in the previous year.
The company said sales in the manufacturing and distribution industries were strong, but unable to cover overall performance. In Japan, revenues were strong. Outside Japan, revenue increased, in part because of the weak yen. Despite the impact of the sale of Nifty, overall revenue increased.
Kelly Lesiczka, research analyst at Technology Business Review, said Fujitsu Services’ revenue continues to be impacted by declines within its legacy business. The company recognizes the need to evolve its business, investing in the development of emerging technologies, such as AI-based solutions and blockchain capabilities.
In addition, expanding its cloud, digital and security solutions in EMEA and the Americas improves the ability of Fujitsu to capture related revenue streams and expand wallet share among clients adopting next-generation technologies.
However, Fujitsu’s reskilling initiatives to develop resources and grow its portfolio offerings around emerging technologies will dictate the company’s success in generating revenue growth.