updated 09:51 am EDT, Thu July 31, 2014
Company does not expect to turn a profit on the year
Electronics manufacturer Sony has posted its first profit in some time. The company reported sales of 1.8 trillion yen ($17.9 billion), an increase of 5.8 percent compared to the same quarter of the previous fiscal year, primarily from contributions made by the PlayStation 4. As a result, Sony ended its first quarter pulling down a profit of $265 million.
Highlights from Sony include a 101 percent year-on-year sales increase in the company's Games and Network Services division. The company reports that, for the first time, gains from increased sales from the PlayStation 4 more than offset the declining sales of the PlayStation 3. One-fifth of the company's profits came from the sale of Sony's shares of game foundry Square Enix.
The company reports a continued decrease in sales of mobile communications (smartphones), its semi-conductor business, as well as imaging products including digital cameras. Some losses were offset by streamlining and reorganization efforts, with the company taking a blow from its exit from the PC business.
Sony is expecting the continued decline of mobile to keep the company from turning a profit for the year. Chief Financial Officer Kenichiro Yoshida postulates that "it is possible the [mobile division] review might result in an impairment charge against various assets in the mobile communications segment."
Further streamlining of the company is expected. More than 5,000 positions within the company are about to be axed, as well as the spin-off of the company's television business.
"We have topped our targets (in the first quarter), but if you look at our past, we have made our targets in most first quarters but then haven't been able to meet our full-year targets," said Yoshida. "I want to see how the rest of the year goes."