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Fujitsu New Zealand lifted revenues from $155.6 million in the year to 31 March 2023 to $167.6 million in 2024 but stayed in the red due to a legal action by a customer.
As reported last year, Fujitsu NZ faced civil allegations for alleged misrepresentation, breaches of the Fair Trading Act and warranty.
The company was being sued by the Department of Corrections and in turn sued its subcontractor and software provider, Dassault Systémes Australia, on the basis that it relied on Dassault to provide rostering software which would meet Corrections’ needs.
It appears integrating that new system with Corrections’ SAP software proved much harder and more costly than expected.
The High Court in Wellington awarded $3.9 million in damages, plus costs, against Fujitsu in December 2023. It also upheld Fujitsu’s claim against Dassault of $1.8 million less the amount of any margin on that charged by Fujitsu.
Despite those extra costs, Fujitsu NZ still managed to reduce its year-on-year loss from $1.8 million to $432,000.
“The trading operations included a loss due to settlement of a dispute with a customer without which the result would have been profitable,” a note in the company’s accounts said.
A Fujitsu NZ spokesperson told Reseller News the company’s underlying performance showed continued strong market demand for Fujitsu’s digital transformation solutions and services, despite a challenging economic environment.
“Looking ahead, Fujitsu will continue to expand our service offerings, addressing growing demand for solutions and services in core areas including digital experience and sustainability transformation, and cyber security.
“Our strong financial position, coupled with our strategic focus on innovation and customer-centricity, ensures we are well-positioned to capitalise on emerging opportunities.”
Fujitsu NZ also integrated the local arm of its 2022 acquisition of Oobe, a Microsoft specialist, into its business during the year.
“There was no reduction in the size of our teams because of the integration,” the spokesperson said. “In fact, our acquired businesses provide core capabilities to a new business unit in New Zealand and Australia, Fujitsu Digital Acceleration Services.”
That new business strengthened Fujitsu’s position as a provider of digital experience and sustainability transformation services.
Fujitsu NZ also amalgamated the local arm of InPhySec Security into its own business during the year after the A/NZ cyber security firm was bought by Fujitsu Australia.