Your browser is out-of-date!

Update your browser to view this website correctly. Update my browser now


Sony Posts Fiscal Q1 Lower Sales, Loss

Tokyo – Sony
reported lower sales and a loss in its fiscal first quarter due to the Japanese
earthquake and tsunami and a “deterioration of the electronics business

Sales were $18.5
billion, a decrease of 10 percent vs. the prior year’s opening quarter due, in
part, to sales decreases in consumer products, the earthquake and unfavorable
exchange rates.

During the quarter
ended June 30, the average rates of the yen were 80.7 yen against the U.S.
dollar and 115.9 yen against the euro, which was 12.7 percent higher and 0.4
percent lower, respectively, than the previous fiscal year’s first quarter.

Net loss
attributable to Sony stockholders was 15.5 billion yen ($191 million). That is
compared with net income of 25.7 billion yen in the same quarter of the
previous fiscal year.

Operating income decreased
39.5 billion yen year on year to 27.5 billion yen ($340 million).

Sony reported that
supply-chain and production-capacity issues due to the aftereffects of the
Japanese earthquake “is progressing faster than [expected].”

Due to the cyber
attacks on Sony’s network services for PlayStation Network, Qriocity and Sony Online

Entertainment, the
network services were temporarily shut down and related expenses such as
security enhancement measures were recorded in the current quarter. The network
services that were shut down in April were restored in phases beginning in May,
culminating in a full restoration on July 6 in all countries and regions where
Sony provides the network services. Most recently, user logins to PlayStation Network
in North America have returned to a similar level as before the cyber attacks.

In its consumer products
and services segment, sales decreased 17.9 percent year on year (a 13 percent
decrease on a local currency basis) to 732.3 billion yen ($9.04 billion). This
was primarily due to a decrease in LCD television revenue reflecting price
declines resulting mainly from a deterioration in market conditions in the U.S.
and Europe, and lower PC revenue reflecting price competition.

Operating income decreased
26.9 billion yen year-on-year to 1.7 billion yen ($21 million). This was driven
primarily by a decrease in gross profit due to lower sales and deterioration in
the cost of sales ratio. These factors were partially offset by a decrease in
selling, general and administrative expenses, the company said.

contributing to the deterioration in operating results (excluding restructuring
charges) include LCD television, reflecting the

price declines
mentioned above, and video cameras, reflecting a decrease in unit sales due to
market contraction, Sony said.