FOR IMMEDIATE RELEASE
　

Revision of FY 1999 Projections
　
Today we announced a downward revision of its non-consolidated full year projections for the fiscal year ended March 31. The projections for fiscal 1999 were issued on December 7, 1999, at the time of the interim business results announcement. The revised projections are shown in the table below.

(In million yen)
 

Sales

Recurring profits

Net profits

Previous projections(A)

34,900

-1,230

-2,840

New projections (B)

33,300

-820

-4,350

Change (B)-(A)

-1,600

410

-1,510

Change (%)

-4.6%

33.3%

-53.2%

　
We announced that it has revised downward projections for the full fiscal year ending March 31, for the following reasons.
　

  1. Goodwill reconsideration

    2.  

    Having reviewed the value of the assets and liabilities of the former Nippon Electric Industry Co. Ltd., we recognized goodwill to be smaller than estimated as of December 7, 1999.

     

    As a result, the goodwill amortization for the year just ended is smaller than our previous forecast and the recurring loss is consequently lower.

     

  2. Increase in Restructuring cost

　

The divestiture of non-core operations has been completed earlier than expected, and the number of transferred and retired employees larger than expected. In addition, the voluntary retirement program was received more favorably than expected. Consequently, We posted additional retirement allowance and required pension fund provisions as extra-ordinary losses in FY 1999.
　

The above two items are both, one-off costs, related to our restructuring program. We have taken a proactive decision to recognize these costs in FY 1999.
For reference, our non-consolidated sales, recurring profits and net profits for the previous year ended March 31, 1998, are as shown in the table below.

(In million yen)
 

Sales

Recurring profits

Net profits

Fiscal year ended March 31, 1998

20,535

431

920

　We also commented that the above factors would be reflected in the FY 1999 results on a consolidated basis. Since the disposal of non-core operations has been completed earlier than expected, and has been implemented during the account closing period, We will announce the revisions of consolidated projections immediately after the approval by the board meeting scheduled for May 12, 2000.

For further information, please contact:

Masami Kobashi, Director, Densei-Lambda Tel: 3447-4411

Notes to Editors
About Densei-Lambda:

Headquartered in Tokyo, Densei-Lambda is the Asian hub of operations for Invensys Power Systems. Concentrating on its core power systems division, Densei-Lambda is a research and development center of excellence for DC-DC converters and switching power supply product development, manufacturing and purchasing. It also provides marketing, sales and service support for Invensys Power Systemfs battery and uninterruptible power supply products.

Invensys Power Systems is the American-based world leader in secure power, energy storage, power conversion and telecom energy systems with 16,000 employees and $2.5 billion in sales. Invensys Power Systems is one of four divisions of Invensys plc, the $12 billion London-based leader in automation and controls.