Report

PSA Technology: NEC (6701 JT) FY 20 Outlook – Avaloq and the NEC SaaS Opportunity

While we think NEC (6701 JT) will miss its FY20 forecasts due to Covid-related delays to big IT projects, the fact that 1H FY20 orders are up YoY, points to a stronger overall picture. NEC is making the right moves on the IT side, increasing its exposure to SaaS, while on the 5G side, its bet on Open vRAN is paying off as wireless networks are increasingly willing to try out the firm’s cloud based 5G network system. Both these businesses can scale up, and we would be targeting a US$50,000/employee increase in revenues from these moves, which should significantly improve the bottom line in the medium term.
Underlying
NEC Corp.

NEC is the parent company of a group engaged in the manufacture and sale of computers, software, communications equipment, and electric devices. Co. operates in four business segments: public, enterprise, telecom carrier, and system platform. Co. supplies integration, maintenance and support, and outsourcing services and system equipment for government, public and enterprises; network infrastructure to telecom carriers; hardware such as servers and mainframes, software, enterprise networks solutions. In addition, Co. also provides smart energy such as electrodes and energy storage systems, as well as smartphones, mobile phones, "BIGLOBE" Internet services and lighting equipment.

Provider
Pelham Smithers Associates Ltd
Pelham Smithers Associates Ltd

Founded in 2009, Pelham Smithers Associates (PSA) provides market intelligence on Asian technology, focusing in particular on Japan. The industries covered by our team of specialists are: consumer electronics, telecomms, pharmaceuticals, internet, electronic parts and materials, automotive technology, retail and capital goods. 

PSA produces both company and sector reports. The focus of PSA’s research is to identify winners and losers as new technologies impact the top and bottom lines of corporations. Critical to our research is the clear explanation of how these new technologies work and how they impact companies and industries. 

The founding partners have worked closely together for twenty years and the team has more than doubled in size since 2012. 

Analysts
Pelham Smithers

Other Reports on these Companies
Other Reports from Pelham Smithers Associates Ltd

ResearchPool Subscriptions

Get the most out of your insights

Get in touch