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CNET News.com: Fujitsu cuts income forecast; reorg's server business to focus on Unix and Linux

Oct 25, 2000, 19:40 (0 Talkback[s])

"Fujitsu said it will reorganize its computer server business to improve profitability. Its chip business is benefiting from rising sales of mobile phones, which use chips and other parts Fujitsu makes. Japanese mobile phone makers will introduce new technology before other countries' rivals, benefiting Japanese chipmakers supplying chips for them."

"Fujitsu said full-year net income will be less than expected to account for a one-time charge of $508 million to reorganize its computer server business, mainly in North America. To overhaul the business, Fujitsu will stop making new versions of IBM-compatible servers. Production lines will be shifted to focus on the manufacturing of computer servers using open operating systems, such as Linux and Unix."

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