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ZTE to report net loss due to third-quarter slump, share price drops
A week after the U.S. Congress slapped ZTE with a 'do not trust' allegation, the Chinese company gets another bitter dose of bad news. It's about to report a net loss of between 1.65 billion and 1.75 billion yuan (US $263 million to $279 million) for the first nine months of 2012, which pales in comparison to the 1 billion yuan profit it reported during the same period in 2011. This has resulted in a sharp 15.8 percent drop in ZTE's share price on the Hong Kong stock exchange, where it now sits at HK$10.56. The financial hit came exclusively in the third quarter (that's July through September), where revenues are reported to be 13 percent lower than the same period in 2011 -- 18.23 billion yuan ($2.9 billion) versus 20.95 billion yuan ($3.34 billion). The equipment vendor blames global trends, low-margin contracts, project delays and procurement changes for the downward turn, and hopes to implement some cost-cutting measures to ensure better margins. However, it says it won't stop its current deals in North America and Europe, and will continue to invest in China's LTE market. In an analyst call, executives said they hope to break even this year, and that it has cut its smartphone sales target from 26 to 28 million to around 25 million. Still, it doesn't look good for China's second-largest maker of phone equipment, and just when it was getting started in the Windows 8 arena, too.
Sony's final 2011 report shows a record net loss, optimism for 2012
After a slew of bad news and drastically restated projections, Sony has reported the numbers for its full 2011 financial year and as expected, they're not good. The company experienced a record net loss of 456.7 billion yen ($5.73 billion) and an operating loss of 67.3 billion yen. The good news to look forward to however, is that it currently expects an operating profit of 180 billion yen for next year. For the year, it also noted sales of 13.9 million units for the PlayStation 3, 6.8 million PSPs/PS Vitas, 19.6 million LCD TVs and 21 million cameras. Next year, Sony is looking to move 16 million PS3s and 33 million smartphones. New CEO Kaz Hirai has detailed the "One Sony" strategy he hopes will bring the company back to financial health but with its current worth standing at just a fraction of competitors like Samsung and Apple (Reuters pegs it at 10 percent and 3 percent, respectively), the electronics giant has a long, long way to go. Hit the source link below for more dirty financial details, slideshows and spreadsheets.
Sony revises projections, sees $6.4 billion net loss for 2011
While we wait to hear Kaz Hirai's new plan for Sony, the news is getting worse before it gets better. The company just announced new projections that are more than double the net loss it predicted in February for the fiscal year 2011, to the tune of $6.4 billion. The reason? According to Reuters, it's additional tax expenses that are causing the pain, as Sony says it's "due to the establishment of valuation allowances against certain deferred tax assets, predominantly in the U.S." There is a silver lining to this cloud however, as the company is projecting an operational profit of 180 billion yen ($2.2 billion US) in 2012, compared to a loss of 95 billion yen ($1.16 billion US) last year. There are already predictions that Kaz will announce significant cuts in jobs and bonuses on the 12th, and from the numbers in the PDF linked below you can see why.
Sony loses $3.2B, spends $170M in response to hacker attacks
Sony's bad year is getting a smidge worse. The company, which had previously predicted a healthy profit for the past fiscal year, is now expecting a loss of $3.2 billion for the period of April 2010 through March 2011. The reverse in fortunes is mostly due to writing off a $4.4 billion tax credit, although the company has been struggling with both the recent earthquake and hacker attack that disrupted operations of both its physical operations and online services. Sony CFO Masaru Kato doesn't beat around the bush: "In the first quarter, we saw quite a major impact on our manufacturing activities." Sony also has spent over $170 million in response to the hacking intrusion last month. These funds went to rebuilding the network, providing identity protection coverage, investigating the attacks, free game time, and customer support. This is the second straight year that Sony has operated at a loss, although last year's $439 million wasn't nearly as severe as this promises to be.
Nearly half a million customers left T-Mobile in Q1 2011
Not even promises of a new Sidekick can keep T-Mobile from hemorrhaging customers, it seems, as the company reported significant losses in its Q1 statement for 2011. According to official Q1 financials, 471,000 contract customers either failed to re-up, or outright canceled their contracts. Stacked against a shortcoming growth of just 372,000 prepaid customers (including MVNO customers for sub-carriers), T-Mobile suffered a net loss of 99,000 users, a 29-percent increase in losses over the same period for the previous year. Ouch. The firm chalked its loss to increased "competitive pressures," which lends credence to AT&T's insistence that Sprint and Verizon are such fierce opponents that it has to acquire T-Mobile for the magenta-tinted carrier to stay in the game. You can judge the profits and pitfalls for yourself -- just hit the source link for the full financials.
Foxconn reports $218 million full-year net loss, worse than analysts' expectation
Foxconn, the mega-manufacturer behind many popular gadgets, posted a $218.3 million net loss for 2010 yesterday. While the company had previously predicted lower earnings amid suicide-related wage increases and welfare costs, the reported figure is still worse than analysts' estimation of around $202 million, which also far outweighs the prior year's $38.6 million profit. Foxconn puts the blame on higher consolidated income tax and increased competition, as well as "cost streamlining actions" -- a reference to the ongoing relocation and expansion plans, which are also the outcome of the Chinese suicides -- that took longer than expected and led to increased spending along with higher manufacturing overhead. As for 2011, Foxconn said it'll "take decisive actions to conclude our capacity relocation, optimize our cost structure and return to profitability." Of course, further losses could accelerate plans to increase prices, which could ultimately put everyone in a lose-lose situation if Foxconn can't compete. Excerpts from the financial report can be found after the break.
Sprint reports $760 million net loss for Q2, slightly less than expected
Well, it looks like Verizon has a bit of company at the negative end of the earnings spectrum -- Sprint has now also reported a loss for the second quarter, although it's a slightly smaller one than expected. Specifically, the company posted a $760 million net loss for the quarter that's just ended, or 15 cents a share, which isn't exactly great, but is better than the 17 cent loss analysts had predicted. That gain is at least partly attributed to strong sales of the HTC EVO 4G, and by the company's best ever year-over-year improvement in net postpaid subscribers, which helped boost the number of wireless subscribers by 110,000 (for a total 48.2 million customers). Looking for some more hard numbers? There's plenty to keep you busy at the link below.
Sony Ericsson posts $299 million Q2 2009 loss, PlayStation-integrated phone (probably Aino) coming Q4
The good news, if you want to call it that, is that Sony Ericsson's most recent quarter loss is not as bad as its epic $382 million tab prior, and at this point there's no talk of further en masse job cuts. That said, this new report isn't exactly sunshine, and the Q2 results show a 213 million Euro ($299 million) net loss. Product shipments were around 13.8 million, down 43 percent compared with last year. Some blame is attributed to the focus on mid-tier feature phones in lieu of a greater smartphone push -- SE says it's working to correct that direction, but its higher end devices won't hit until fourth quarter. One interesting note is that one of those late-year handhelds is said to "integrate with PlayStation," but before you get excited over the oft-rumored PSP phone, we'd venture to say it's more likely that description's referencing the Remote Play-supporting Aino. From what we can tell, there's no indication of what's in the cards to improve Q3, so we won''t exactly be surprised if the story repeats itself three months from now.
Is Sanyo selling off its mobile phone division?
According to recent rumblings, Sanyo Electric is seriously considering cutting its mobile phone operations loose, and is apparently in talks with a number of competing manufacturers about purchasing the ailing line. At the top of the "interested parties" list are Sharp and Kyocera, well known phone-makers hoping to pick up the company's under-performing slack (which currently constitutes about 15 percent of Sanyo's overall sales). The news comes as little surprise, given the current restructuring scramble Sanyo is attempting after a whopping 72 percent drop in operating profit in recent months. Phone sales for Sanyo are now expected to fall 1.5-1.6 million short, according to the company, which has posted a net loss for the past three years and is rumored to be selling off its semiconductor operations. At this rate, there may be dark days ahead for the Japanese giant.
