UPDATE 1-Japan's NEC says reconciles with SEC

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TOKYO, June 18 (Reuters) - Japan's NEC Corp (6701.T) said on Wednesday it has reached a settlement with the U.S. Securities and Exchange Commission for not turning in its annual reports.

The electronics group said the SEC believes that NEC has violated U.S. securities laws by not submitting its annual reports and cancelled the registration of NEC's American depositary receipts, which had already been delisted from the Nasdaq exchange in October 2007.

NEC said it has not accepted or rejected the findings of the SEC's investigation. It added that the SEC has not given any monetary penalty.

Last year, NEC missed a twice-extended deadline to file an auditor-approved earnings report after it restated its earnings three times in the previous year.

It had to correct past earnings after it discovered an employee had inflated sales figures. It later switched to Japanese accounting rules from U.S. rules and then had to correct its figures due to human error.

NEC shares rose 2.1 percent to 595 yen as of 0024 GMT, against a 0.3 percent increase in the Nikkei average .N225. (Reporting by Sachi Izumi; Editing by Chris Gallagher)