Hit by the weak demand resulting from the global meltdown, Japanese electronics biggie NEC Corp. Tuesday announced a gigantic 296.6-billion-yen net loss for the year to March. Posting the figures, the company said that it suffered blows from plunge in demand for electronic devices in particular, along with having to undertake restructuring costs.

The recently-posted huge loss figures are a dramatic contrast to NEC’s last year figures of 22.7-billion- yen profit.

The chipmaker – posting an 8.7 percent fall in revenue to 4.216 trillion yen - reported a 6.2 billion yen operating loss, in comparison to the year-before profit of 156.8 billion. The operating loss largely resulted from the sharp price falls and slothful demand in the global semiconductor sector.  

However, despite the dismal figures, NEC anticipates a run of profits in the future, brought forth by its cost reduction measures. In the ongoing business year, the company is looking at a 10 billion yen net profit and a 100 billion yen operating profit.

While steep cuts in production have helped the company in price stabilization, NEC Electronics has started reporting a rise in demand for chips used in electronics like TVs. In a briefing, CEO Toshio Nakajima said: “There have been signs that inventory adjustments are not the only factor for the upturn in the market.”