|By Business Wire||
|February 6, 2014 01:01 AM EST||
Renesas Electronics Corporation (TSE: 6723) today announced the recording of both special income (gain on transfer of business) and losses (business structure improvement expenses) in the nine months ended December 31, 2013 (the period from April 1, 2013 to December 31, 2013).
1. Outline of the special income from gain on transfer of business
(1) As announced in the press release, “Renesas Electronics Reaches a Definitive Agreement to Transfer Certain Assets and Shares of Subsidiaries Related to its LTE Modem Technology” dated September 4, 2013, Renesas Group decided to transfer all the shares of Renesas Mobile Europe Oy and Renesas Mobile India Private Limited together with certain assets related to its LTE modem technology to Broadcom Corporation, and completed the transfer on October 1, 2013. As a result, Renesas Group recorded gain on transfer of business of 15.3 billion yen as special income for the third quarter ended December 31, 2013.
2. Outline of the special losses from business structure improvement expenses
(1) In connection with the transfer of equity interest in consolidated subsidiary, as announced in the “Notice Regarding Termination of Business Operations of Offshore Affiliate Subsidiary” on December 26, 2013, Renesas recorded personnel-related costs, etc. of 4.0 billion yen as special loss from the business structure improvement expenses for the third quarter ended December 31, 2013.
(2) As announced in the press release, “Renesas Electronics and Sony Sign Definitive Agreement to Transfer Semiconductor Manufacturing Facility and Equipment, etc.” dated January 29, 2014, Renesas Group recorded an impairment loss, etc. of 9.5 billion yen as part of the business structure improvement expenses for the third quarter ended December 31, 2013, mainly owing to the difference between the expected transfer price and the book value of the assets at the time of the transfer.
3. Impact on Renesas’ financial results
The impact of the recording of special income and losses on business performance has been incorporated into the financial results for the nine months ended December 31, 2013, announced today.
The statements in this press release with respect to the plans, strategies and financial outlook of Renesas Electronics and its consolidated subsidiaries (collectively “we”) are forward-looking statements involving risks and uncertainties. We caution you in advance that actual results may differ materially from such forward-looking statements due to several important factors including, but not limited to, general economic conditions in our markets, which are primarily Japan, North America, Asia, and Europe; demand for, and competitive pricing pressure on, products and services in the marketplace; ability to continue to win acceptance of products and services in these highly competitive markets; and fluctuations in currency exchange rates, particularly between the yen and the U.S. dollar. Among other factors, downturn of the world economy; deteriorating financial conditions in world markets, or deterioration in domestic and overseas stock markets, may cause actual results to differ from the projected results forecast.
About Renesas Electronics Corporation
Renesas Electronics Corporation (TSE: 6723), the world’s number one supplier of microcontrollers, is a premier supplier of advanced semiconductor solutions including microcontrollers, SoC solutions and a broad-range of analog and power devices. Business operations began as Renesas Electronics in April 2010 through the integration of NEC Electronics Corporation (TSE:6723) and Renesas Technology Corp., with operations spanning research, development, design and manufacturing for a wide range of applications. Headquartered in Japan, Renesas Electronics has subsidiaries in 20 countries worldwide. More information can be found at www.renesas.com.