Sharp, Sony Report Net Loss and 1 Hot Stock to Review
Sony (NYSE:SNE) reports a net loss of ¥15.5 billion in the second quarter ended September, down from ¥27 billion in the same quarter last year. However operating profit became positive with ¥30.3 billion as compared to a ¥1.6 billion loss last year. Analysts expected net profit of ¥15.57 billion and an operating profit of ¥33.8 billion, both of which Sony missed. Revenues for the quarter were up almost 2% to ¥1.605 trillion. For the full year ended March, Sony confirms it will maintain its forecast of a net profit of 20 billion years and an operating profit of ¥130 billion.
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BlackBerry manufacturer RIM (NASDAQ:RIMM) must now face competition in the Pentagon from Apple (NASDAQ:AAPL) and Android (NASDAQ:GOOG) devices. According to a report in Reuters, the Defence Department has invited bids for software that can monitor as well as enforce security on handsets manufactured by these RIM rivals. A contract may be awarded as early as April. On October 22, the US Immigration and Customs Enforcement Agency switched to Apple’s iPhone from RIM.
Another one to bite the dust in the slew of quarterly losses declared by Japanese electronics companies is Sharp (SHCAY.PK), an important supplier to Apple (NASDAQ:AAPL). Sharp reported a net loss of ¥249.1 billion in the September quarter compared to a net profit of ¥9.4 billion last year in the same quarter, while revenues fell to ¥645.5 billion. Restructuring costs and tax write-downs were ¥84.4 billion and ¥61.0 billion respectively. The company has widened its net loss projections for the full year two ¥450 billion against ¥250 billion estimated previously. On a more serious note, Sharp warned that its ability to continue as a going concern was in doubt after the losses.
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