Sony Shrinks Loss Expectations, Profitability Near
Although the annual report isn't due out until Thursday, Sony revised its earnings estimate for their fiscal year ending March 31, 2010.
According to GameSpot, Sony still expects to post a loss of 41 billion yen ($440 million) but that's a good deal less than the previously anticipated 70 billion yen ($752 million). The reason for this significant revision is due to Sony's Networked Products & Services Division, which includes Sony Computer Entertainment; this division will surpass earlier estimates by about 10 billion yen ($107 million). This enhanced dollar amount is "due to improved performance within the game business" and further helped by VAIO computer manufacturing. Furthermore, the reduced cost of producing LCD TVs lowered the loss estimate and for the full year, Sony expects slightly lower revenues of 7.214 trillion yen ($77.46 billion) and an operating profit of 32 billion yen ($343 million). The latter is a drastic turnaround compared to the operating loss of 30 billion yen ($321 million) it had expected back in February and furthermore, a survey of analysts has predicted that the company will return to profitability this coming fiscal year.
The better performance of the gaming division isn't exactly a surprise, based on the success of the Slim and PS3 exclusives but all in all, it's good to see Sony rebounding.
5/10/2010 9:38:52 PM John Shepard