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Dow Jones Newswires: NEC Corp. shares slump after it posts first-quarter net loss

NEC Corp.
6701,
-7.28%

shares fell sharply Friday morning, after the Japanese information-technology company posted a first-quarter net loss, citing weaker capital expenditures by client communications companies.

The shares were recently 7.0% lower at 4,920 yen after falling as much as 7.4% earlier.

NEC said Thursday after the market closed that it booked net loss of Y13.86 billion ($103.2 million) for the quarter ended June 30, compared with a net profit of Y226 million a year earlier.

Its operations for communications companies lost money due partly to clients’ slower capital expenditures for 5G services, as did its operations for regional governments, medical institutions and utilities.

First-quarter revenue rose 1.2% to Y659.67 billion.

NEC maintained its earnings forecasts for its fiscal year ending March 2023. It continued to expect revenue to rise 3.8% to Y3.130 trillion and adjusted net profit to fall 31% to Y115.00 billion.

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