Fujitsu Ltd.'s net loss shrank to 122.1 billion yen (1.0 billion dollars) from a 382.5 billion yen loss last year.

It posted a recurring profit of 12.4 billion yen, compared with a loss of 157.1 billion yen and revenue fell 7.8 percent to 4.62 trillion yen.

The company said restructuring costs of 151.4 billion yen and a 30.6 billion yen charge related to defects in magnetic disks ate into the bottom line.

Fujitsu vice president Takashi Takaya suggested the company's restructuring phase was over.

"Now I believe we have a corporate structure that can deal with the current slow economy and deflation," Takaya told a news conference.

Sales of mobile phones, semiconductors and plasma display panels rose, but those for fibre optic communications systems, servers and platform products fell, the firm said.

"Software services sales stalled," it said in a statement.

Fujitsu is forecasting a return to the black with a 30 billion yen net profit in the current year, with a 60 billion yen recurring profit and revenue of 4.80 trillion yen.

The firm said earlier Friday that president Naoyuki Akikusa, 64, would step down to become chairman and senior managing director Hiroaki Kurokawa, 60, would take over as president.

Both men have spent their entire careers at Fujitsu. Akikusa joined the company in 1961 and Kurokawa in 1967.

Akikusa resigned to take responsibility for the second straight year of losses, Jiji Press said.

Both appointments are subject to approval by shareholders at an annual general meeting at the end of June.

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