Nippon Telegraph Delivers – Analyst Blog

Nippon Telegraph & Telephone Corp. (NTT) declared full fiscal 2009 (ended March 31, 2010) financial results that were mostly in line with the company’s revised guidance. On a GAAP basis, net income in fiscal 2009 was approximately $5,297 million or $2 per share compared with a net income of approximately $5,360 million or $1.99 per share in the previous year.

 

Quarterly total revenue of $109,551 million was an increase of 5.7% year over year. The improvement in revenue was mainly due to higher IP/Packet Communication services and System Integration revenue together with the favorable movement of foreign exchange rate.

 

Operating income, in full fiscal 2009, was approximately $10,107 million compared with around $9,043 million in the previous fiscal. Yearly operating margin was 9.2% compared with 8.7% in the previous year. This was mainly due to a massive reduction in the cost of equipment sold and depreciation & amortization charges.

 

Nippon generated approximately $30,320 million cash from operations during fiscal 2009 compared with approximately $25,017 million in the previous fiscal. Yearly free cash flow (cash flow from operation less capital expenditure) was around $9.615 million compared with around $4,827 million in the previous fiscal.

 

At the end of fiscal 2009, Nippon had approximately $17,202 million of cash & marketable securities on its balance sheet compared with around $13,880 million at the end of fiscal 2008. Total debt was $48,206 million at the end of fiscal 2009 compared with $48,132 million at the end of fiscal 2008.

 

 

For full fiscal 2010, management is expecting that the total revenue of the company will be approximately $109,318 million. Operating expenses will be around $96,783 million. Operating income will be around $12,535 million and net income will be approximately $5,380 million.