Sharp Reports Q3 Net Loss Of $329 Million
Japanese electronics manufacturing company Sharp Corporation has recently reported their Q3 results. The company hit an operating profit of 2.6 billion yen (around $28.5 million) for the quarter, but they hit a net loss of 36.7 billion yen ($398 million).
The company’s revenue was boosted by the sales of mobile devices and home appliances. The weak Japanese yen gives Sharp the advantage of competing for international business. Sharp is forecasting a drop in demand for small and medium sized displays for smartphones. Their LCD division posted significant losses for the year-end quarter.
Sharp was able to secure a $4.6 billion loan from two banks and they made a $120 million investment deal with Qualcomm. During the same period a year ago, Sharp posted a quarter loss of 173.6 billion yen ($1.8 billion).
Sharp has been scaling back as a result of their struggle. The company sold and mortgaged off some of their factories and offices. The company may sell other parts of their business also. Sharp will announced in September 2012 that they are cutting 11,000 jobs. It’s reported that Sharp has laid off 70 staff members from their mobile business in China this year. Sharp almost made a deal with Foxconn’s parent company Hon Hai, but it fell through.
Qualcomm completed the first part of their investment in Sharp in December and the remaining $60 million will be paid to Sharp in March. Qualcomm’s MEMs displays will be combined with Sharp’s IGZO technology.