Weak demand for technology was also blamed for the slump in net profit in the three months to June to 700 million yen (5.8 million dollars).

NEC Corp.'s pre-tax profit sank 50.2 percent over the period to 9.8 billion yen.

In contrast, the fruits of a restructuring drive transformed NEC's operating profit to 12 billion yen from a loss last year of seven billion yen.

Sales over the period edged up 0.9 percent to 1.03 trillion yen.

"NEC recorded losses in affiliated companies of 3.9 billion yen mainly due to the weak operating results of semiconductor related affiliated companies," the firm said in a statement.

NEC raised its half-year forecast but left that for the full year unchanged.

For the six months to September, it expects a net profit of 12 billion yen -- up nine billion yen on the previous estimate, with pre-tax profit seen at 65 billion yen, up 30 billion yen. Revenue was left unchanged at 2.2 trillion yen.

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SPACE.WIRE