NEC’s network division registered double-digit revenue gains in its fiscal Q3 2023 (ending 31 December 2022), on the back of growth in 5G equipment sales overseas and a spike in IP income.

Revenue grew 13.5 per cent year-on-year to JPY141.4 billion ($1.1 billion), with operating profit rising 3.5 per cent to JPY12.7 billion.

In its earnings release, NEC stated sales were lifted by IP income of JPY10 billion.

Profitability was hit by a one-time JPY5 billion expense for streamlining assets, including inventory valuation.

Revenue for fiscal 2023 is on track to exceed its target of JPY530 billion due to significant increases in domestic and international 5G sales.

NEC benefitted from rising demand for open RAN equipment, a sector Dell’Oro Group previously predicted would see revenue more than double in 2022.

On a group level, net profit rose 10.8 per cent to JPY22.4 billion and revenue increased 14.1 per cent to JPY813.9 billion.