Japan's Fujitsu reported a 62 percent drop in quarterly profit on Thursday, dragged down by a slump in its hard disk drive and microchip businesses, and it kept its full-year outlook below market expectations.
Fujitsu, which competes with International Business Machines and Electronic Data Systems in IT services, is fighting declining margins on microchips and hard drives while it seeks to shift more resources to its lucrative consulting business and servers.
Fujitsu, which eyes growth in Europe and the United States through acquisitions, kept its annual forecast of 65 billion yen, below the mean estimate of 71.94 billion yen by 14 analysts polled by Reuters Estimates.
The company, which also makes mobile phones and PCs, posted a net profit of 5.44 billion yen ($50 million) in July-September, compared with a profit of 14.18 billion yen the previous year.
Prior to the announcement, shares of Fujitsu closed up 0.5 percent at 778 yen, against a 0.1 percent rise in Tokyo's electrical machinery subindex
Shares of Fujitsu have lost 17 percent in the year to Thursday, while the subindex fell 12 percent.