Casio Hitachi Mobile Communications to Merge with NEC's Mobile Terminal Unit
14 September 2009 - 8:48AM
PR Newswire (US)
TOKYO, September 14 /PRNewswire-FirstCall/ -- NEC Corporation (NEC;
TSE: 6701), Casio Computer Co., Ltd. (Casio; TSE: 6952), and
Hitachi, Ltd. (Hitachi; TSE: 6501/NYSE: HIT) today announced an
agreement to integrate their mobile terminal businesses in April
2010 through the establishment of a joint venture company. 1. About
the Business Integration NEC develops and manufactures mobile
terminals for NTT DOCOMO, INC. and SoftBank Mobile Corp. that
capitalize on the company's core competencies and incorporate
wireless communications technologies such as W-CDMA (*1) and LTE
(*2), Linux (*3) platform development, low power consumption
innovations and ultra-thin technologies. In 2004, Casio and Hitachi
jointly established Casio Hitachi Mobile Communications Co., Ltd.
(CHMC) as a mobile terminal business company. CHMC capitalizes on
image technologies from Casio's digital camera business,
water/shock resistance technologies from Casio's wristwatch
development and Hitachi's image processing technologies in order to
provide mainly CDMA focused mobile handsets for KDDI Corporation
and SoftBank Mobile Corp. in Japan as well as Verizon Wireless in
the USA and LG Telecom in the Republic of Korea. The new company
will boast a competitive portfolio of products that draws strength
from the complete integration of business functions between NEC's
Mobile Terminal Operations Unit and CHMC, as well as merges the
advanced technologies and product development experience of each
company. Furthermore, NEC's IT/Network technology supported product
development capabilities linked to service business for enterprises
and consumers, combined with CHMC's consumer product technologies
and planning strength, is expected to result in the creation of
innovative synergies and the development of appealing new products,
in addition to future growth that is anticipated from a range of
new areas. NEC, Casio and Hitachi will integrate their mobile
terminal business in order to strengthen both domestic and
international business while increasing competitive strength and
capitalizing on each company's brand recognition through (1)
achieving synergies in a variety of fields, including sales
expansion, procurement and customer service, and (2) reinforcing
product development by unifying technological assets, know-how and
resources. 2. About the New Joint Venture Company Overview of the
new joint venture company formed through the integration of NEC's
Mobile Terminal Operations Unit with CHMC Company Name: NEC CASIO
Mobile Communications, Ltd. Head Office: Kawasaki City, Kanagawa
Prefecture, Japan (NEC Tamagawa plant) Capital: 1 billion JPY (at
start of the joint venture) Share: NEC: 66%, Casio: 17.34%,
Hitachi: 16.66% Capital increase planned to take place by the end
of June 2010 Capital after increase: 5 billion JPY Share after
capital increase: NEC: 70.74%, Casio: 20%, Hitachi: 9.26% Number of
Board Members: 8 (NEC: 6, Casio: 2, representative director
selected by NEC) Consolidated Number of Employees: 2,200 including
NEC Saitama (non-consolidated: 1,300) Established: April 2010
(planned) Accounting Period: April to March Business Summary:
Mobile terminal product planning, development, production, sales
and maintenance 3. Business Integration Procedure 1) By the end of
December 2009: NEC establishes a 100% subsidiary company 2) April
2010: The newly established subsidiary takes over NEC's mobile
handset business through company split (*4) 3) Same day as (2): The
newly established company merges with CHMC (*5) Other terms and
conditions relating to the merger of the newly established
subsidiary with CHMC are currently under discussion. The details
will be announced upon their conclusion. (*1) W-CDMA: Wideband Code
Division Multiple Access is a 3rd generation (3G) mobile phone
communications system. (*2) LTE: Long Term Evolution is a reference
term for 3G and 3.9G technologies. These are next generation mobile
phone data communications methods that further accelerate current
HSDPA high speed communications standards. (*3) Linux: Linux is a
UNIX type free software operating system developed by Linus
Torvalds. Linux has been adopted by computers and a range of
technologies that include mobile phones. (*4) The details of NEC's
company split will be announced as soon as they have been
determined. (*5) The effects that the merger will have on Casio's
business will be announced as soon as they have been determined. *
Product names, company names, etc. used herein are trademarks or
registered trademarks of their respective company. Overview of CHMC
(The to-be-transferred Casio subsidiary company) Company Name:
Casio Hitachi Mobile Communications Co., Ltd. Established: April 1,
2004 Business Summary: Cellular phone product development, design,
production, procurement, quality control, sales and maintenance
Head Office: Higashiyamato City, Tokyo, Japan CEO: Tateki Ohishi
Capital: 3 billion JPY (share: Casio: 51%, Hitachi: 49%) Number of
Employees: 506 (as of March 2009) Accounting Period: April to March
Number of Shares Issued: 60,000 Three-Year Summary of Business
Performance and Financial Condition: (millions of yen) Fiscal Term
March 2007 March 2008 March 2009 Total assets 65,791 62,761 61,063
Net assets 15,499 15,400 2,864 Net assets per share (in yen)
258,323 256,662 47,733 Net sales 159,308 156,571 156,750 Operating
income 5,184 1,068 959 Ordinary income 4,511 (366) 63 Net income
3,126 (100) (12,536) Net income per share (in yen) 52,106 (1,661)
(208,929) Dividends per share (in yen) - - - CHMC, presently a
consolidated subsidiary of Casio, will become an equity-method
affiliate with Casio holding a 20% stake in the new joint venture
company as a result of its merger with the newly established NEC
subsidiary and capital increase. Cautionary Statement This material
contains forward-looking statements that necessarily depend on
currently available information and/or assumptions based on the
companies' judgments. A variety of factors could cause actual
results to differ materially from those in the forward-looking
statements. About NEC Corporation NEC Corporation is one of the
world's leading providers of Internet, broadband network and
enterprise business solutions dedicated to meeting the specialized
needs of a diversified global base of customers. NEC delivers
tailored solutions in the key fields of computer, networking and
electron devices, by integrating its technical strengths in IT and
Networks, and by providing advanced semiconductor solutions through
NEC Electronics Corporation. The NEC Group employs more than
140,000 people worldwide. For additional information, please visit
the NEC website at: http://www.nec.com/. About Casio Computer Co.,
Ltd. Casio Computer Co., Ltd. is one of the world's leading
manufacturers of consumer electronics products and business
equipment solutions. Since its establishment in 1957, Casio has
strived to realize its corporate creed of "creativity and
contribution" through the introduction of innovative and
imaginative products. Today, Casio's offerings include timepieces,
digital cameras, cellular phones, electronic dictionaries,
calculators, musical instruments, system equipment, and electronic
components such as LCDs. The Casio Group employs more than 12,000
people worldwide, shipping over 100 million products per year, with
net sales of 518 billion yen (approx US$5,286 million) in the
fiscal year ended March 2009. News and product information from
Casio is available at http://world.casio.com/ About Hitachi, Ltd.
Hitachi, Ltd., (NYSE:HITNYSE:/NYSE:TSE:NYSE:6501), headquartered in
Tokyo, Japan, is a leading global electronics company with
approximately 400,000 employees worldwide. Fiscal 2008 (ended March
31, 2009) consolidated revenues totaled 10,000 billion yen ($102.0
billion). The company offers a wide range of systems, products and
services in market sectors including information systems,
electronic devices, power and industrial systems, consumer
products, materials, logistics and financial services. For more
information on Hitachi, please visit the company's website at
http://www.hitachi.com/. Casio Hitachi Mobile Communications Co.,
Ltd. Casio Hitachi Mobile Communications Co., Ltd. was established
on April 1, 2004 in a joint venture between Casio Computer Co.,
Ltd., and Hitachi, Ltd. The company brings together the many highly
competitive technological assets possessed by Casio and Hitachi to
provide customers with highly innovative and reliable mobile phone
products packed with cutting-edge technologies. Since the merger,
the firm's operations have been streamlined and integrated for
maximum focus on its core competencies, faster and more efficient
development, and a robust production system. Today, Casio Hitachi
Mobile Communications provides innovative mobile devices for four
major wireless providers in Japan, South Korea and U.S.A. For more
information, go to http://ch-mobile.com/. Press Contacts: NEC
Corporation Kosuke Yamauchi +81-3-3798-6511 Casio Computer Co.,
Ltd. Shinobu Kurahashi +81-3-5334-4830 Hitachi, Ltd. Masahiro
Takahashi +81-3-5208-9324 DATASOURCE: NEC Corporation CONTACT: NEC
Corporation: Kosuke Yamauchi, , +81-3-3798-6511; Casio Computer
Co., Ltd., Shinobu Kurahashi, , +81-3-5334-4830; Hitachi, Ltd.
Masahiro Takahashi, , +81-3-5208-9324
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