Feeds

iPhone 5 imperilled by Sharp's 'huge' problems with tellies

Japanese elecronics woes - at last, a reason to care

Next gen security for virtualised datacentres

Japanese electronics firm Sharp has warned that it might not be able to keep going as a company, a situation that could put pressure on supply of iPhone 5s.

Sharp's consumer electronics division is dragging it down and growth in its components business won't be enough to save it on its own, financial results show.

"As operating and net loss for the six months ended September 30, 2012 were huge, continuing from the previous year, cash flows from operating activities were negative," the firm said in its financial statement. "Therefore, Sharp is in circumstances in which material doubt about its assumed going concern is found."

Sales of camera modules for smartphones and tablets and sales of LCD screens, including those for the iPhone, were both up, but a drastic fall in TV sales drove the firm to a net loss of a whopping ¥387.5bn (£2.9bn, $4.8bn), considerably worse than the situation at at the same time last year, when it lost ¥39.8bn (£307m, $497m).

The company is now expecting to lose ¥450bn (£3.5bn,$5.6bn) in the full year, a lot more than the ¥250bn (£1.9bn, $3.1bn) it forecast earlier this year.

Sharp has already been restructuring like mad to try to recover a strong position in the electronics market and got its banks to agree to a ¥360bn (£2.9bn, $4.6bn) bailout deal as well. But it said it would make even deeper cuts into its business to survive after these results.

"We will restructure business further… generating cash flows by decreasing expenses including personnel expenses such as calling for voluntary retirement and cutting salaries, setting proper inventories, selling assets and reducing capital investments," Sharp said.

"As a result, we will secure the necessary credit line, supported by financial institutions, and attempt to improve business performance and regain trust by monitoring the progress of this plan and implementing it steadily."

The once-mighty giants of Japanese electronics, Sharp, Panasonic and Sony, have taken blow after blow since the global financial crisis hit. Belt-tightening consumers don't want to fork out for new tellies, the strong yen is hitting exports and they face renewed competition from more nimble Korean firms like LG and Samsung. On top of all that, they have failed to make an impact in the new global revenue stream from mobile devices. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
So, Apple won't sell cheap kit? Prepare the iOS garden wall WRECKING BALL
It can throw the low cost race if it looks to the cloud
Samsung Gear S: Quick, LAUNCH IT – before Apple straps on iWatch
Full specs for wrist-mounted device here ... but who'll buy it?
Apple promises to lift Curse of the Drained iPhone 5 Battery
Have you tried turning it off and...? Never mind, here's a replacement
Now that's FIRE WIRE: HP recalls 6 MILLION burn-risk laptop cables
Right in the middle of Burning Mains Man week
Reg man looks through a Glass, darkly: Google's toy ploy or killer tech specs?
Tip: Put the shades on and you'll look less of a spanner
HUGE iPAD? Maybe. HUGE ADVERTS? That's for SURE
Noo! Hand not big enough! Don't look at meee!
AMD unveils 'single purpose' graphics card for PC gamers and NO ONE else
Chip maker claims the Radeon R9 285 is 'best in its class'
Tim Cook in Applerexia fears: New MacBook THINNER THAN EVER
'Supply chain sources' give up the goss on new iLappy
prev story

Whitepapers

Gartner critical capabilities for enterprise endpoint backup
Learn why inSync received the highest overall rating from Druva and is the top choice for the mobile workforce.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.