Feeds

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

Japanese elecronics woes - at last, a reason to care

Secure remote control for conventional and virtual desktops

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. ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
Xperia Z3: Crikey, Sony – ANOTHER flagship phondleslab?
The Fourth Amendment... and it IS better
Microsoft to enter the STRUGGLE of the HUMAN WRIST
It's not just a thumb war, it's total digit war
Tim Cook: The classic iPod HAD to DIE, and this is WHY
Apple, er, couldn’t get the parts for HDD models
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
Sporty in all but name: Peugeot 308 e-THP 110
Car of the Year? Arguably. Engine of the Year? Indubitably
Caterham Seven 160 review: The Raspberry Pi of motoring
Back to driving's basics with a joyously legal high
prev story

Whitepapers

Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
How to simplify SSL certificate management
Simple steps to take control of SSL certificates across the enterprise, and recommendations centralizing certificate management throughout their lifecycle.