Fujitsu expects its loss in the first half of its current financial year to be less than a third of its previous forecast.
This is in part due to growth in demand for third-generation (3G) cellular base stations, it said.
The company expects its net loss for the six-month period from April to September to be ¥8bn (£40.6m). Its previous forecast, issued in late July, was for a loss of ¥25bn. In the first half of the last financial year its actual net loss was ¥58.5bn.
Fujitsu also lowered its net sales forecast by just over 1% to ¥2.22tr, from its previous forecast of ¥2.25tr. Despite the revision, the new forecast is still higher than its actual sales for the same period a year earlier, which were ¥2.14tr.
Fujitsu said profitability during the six months was boosted by favourable demand for 3G cellular base stations and chips for use in digital audio-visual equipment.
Negative influences on profitability included price pressure in the solutions and systems integration business and low sales of mobile telephones, Fujitsu said.
Progress made in a corporate-wide restructuring helped reduce expenses, and foreign exchange gains were also higher than expected, it said.
Fujitsu is due to report full first-half earnings on 28 October.
Martyn Williams writes for IDG News Service