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Sony Reports Wider Loss, Lower Sales

Tokyo – Sony
reported a wider net loss and lower sales for its fiscal year and fourth
quarter, both which ended March 31.

The net loss for the
year was $3.12 billion (259.6 billion yen) higher than the 40.8 billion yen
loss of the prior year, as Sony indicated when it projected these numbers in a
report on Monday.

Operating income for
the year was $2.407 billion or 199.8 billion yen, up 168 billion yen

Sales were 7.18
trillion yen, or $86.5 billion, down 5 percent from the prior year.

In the fourth
quarter the net loss was $4.68 billion or 388.8 billion yen, a deterioration of
332.2. billion yen from last year’s final quarter. The operating loss was $884
million or 73.4 billion yen, a deterioration of 17.3 billion yen year on year.

Sales in the fourth
quarter fell 7.8 percent to $19.04 billion or 1.58 trillion yen.

In its Consumer,
Professional & Devices (CPD) segment sales and operating revenue for the
year were up 1.6 percent to $43.0 billion, or 3.57 trillion yen. Operating
income was $35 million, or 2.9 billion yen, reversing a 53.2 billion loss from
the prior year.

Sales increased
during the year for the segment due to higher LCD TV sales. LCD TVs hurt
operating results due to lower unit selling prices and unfavorable exchange
rates despite higher unit sales.

In its Networked
Products & Services (NPS) segment sales were up 0.4 percent to $19.0
billion or 1.57 trillion yen for the year. Operating income for the segment
during the fiscal year was $429 million, or 35.6 billion yen, compared with a
loss of 83.3 billion yen in the prior year.

Sales in the segment
increased mainly due to PCs and cost reductions in PlayStation 3 hardware and
higher unit sales of PS3 software helped operating income.

Sony is projecting a
4.4 percent increase in sales and operating revenue in its fiscal year ending
March 31, 2012 and net income of 80 billion yen, as compared to its loss of
259.6 billion yen for this fiscal year.

In its CPD
segment Sony expects sales to increase year-on-year, despite the negative
impact of the earthquake, due in part to higher sales in LCD TVs. Operating
income is expected to significantly increase, primarily due to continuous cost
reductions and sales increases in LCD TVs, as well as a decrease in
restructuring charges. The expected operating income increase is partially
offset by the negative impact of the earthquake, which is anticipated to
primarily affect components and compact digital cameras.

In its NPS segment sales are expected to increase
year-on-year primarily due to higher sales in the game business, PCs and
network services.

In contrast, operating income is expected to significantly
decrease, primarily due to lower unit sales of

PSP (PlayStation Portable) and PS2
hardware and software, as well as expenses associated with the unauthorized access
to Sony’s PlayStation Network, Qriocity and Sony Online Entertainment network