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A Summary from Zomgbbq
http://www.neogaf.com/forum/s[....].php?p=111913510&postcount=196
"Critically, the core business is actually marginally profitable and they decreased their net indebtedness by around $500m over the year and increased their revolving finance facilities to over $7bn (access to money if they need it, Moody's am cry). A lot of the losses over the last few years have been paper losses, asset impairments, DTA write downs and such. What that means is money either spent in the past or in the case of a DTA, the asset taken on for tax losses carried forwards, are now being written off as they are not going to get that money back. They spent the money, previously and now they won't get it back through their normal operations.
It is a huge difference to a company that actually loses money outright where their normal operations cost more than the revenue they generate from sales. Nintendo are in this category which is why their situation seems worse than Sony's and they don't really have a clear path to recovery like Sony (getting rid of the TV division) because their problems stem from deeper issues such as smartphones killing their handheld business and being stupidly uncompetitive in the home console market.
For all their current faults, Sony still have a profitable smartphones division, a hugely profitable financial services division, their content division (pictures+music) reliably makes $1bn per year in operating profit and their games division seems to be recovering very nicely after the PS3 caused so much turmoil. In essence if they jettison the TV division they would be pretty healthy and though they would hold a significant amount of debt but they would be profitable, more than enough to redeem bonds and meet their financial obligations. I guess the issue is that it has cost Sony $1.7bn to exit PCs and I expect the cost of exiting TVs would be double because all 30,000 employees would need paying off and the losses on current stock and contracts would need to be written off.
Essentially, though it is true they lose money, a lot of it is on paper, and the core business is generating cash."
The company just have too much weights to drag along, but things are not as bad as they seems to be.
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Posted: 2014-05-14 16:26:31
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I just can't understand how they shipped so few phones. Only 8.8 million?
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Posted: 2014-05-14 20:05:40
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http://arstechnica.com/busine[....]-lost-nearly-10b-over-8-years/
this is no bueno.. At this rate I hope Sony doesn't get absorbed by an American software company
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Posted: 2014-05-15 02:25:41
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I meant to type parts of it.. They already unloaded the pc division, so its not far fetched to think that they might get rid of something else as well
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Posted: 2014-05-15 02:29:04
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I would be deeply upset if Apple bought Sony. Sony are well ahead in innovation and design on their mobile division and I would still consider Sony as a brand still cool. The fact is Sony provides other OEMs components for their handsets so that should be profitable. I'm glad they got out of the PC market, too crowded and not as profitable as once used to be. Fingers crossed Sony goes strong and Ibelieve they will because they are always one step ahead of the competition and that's why I like their products!
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Posted: 2014-05-15 03:19:28
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should read what ZOMGBBQ posted, most of their lost are assets they own like VIAO unlike companies like nintendo where they loose actual money in the bank and don't own nearly as much assets as sony. Once Nintendo loose all the money they are completely done. Sony, the company as a whole still generating cash each quarters, lose all came from selling assets at a lost, basically money they have already spent and will never get back. Restructuring and shutting down division still cost a lot as they have to pay for compensation. I their earlier they were forcing easrlier retirement on some of their employees. Only division they got left that is dragging the whole business down is the TV. I would be the saddest say ever for gamers consider the new TV line up has amazingly low input lag, I think their 2014 low end might have set a record for TV with 13 ms input lag. Also as ZOMG has posted, which I agree with him is that they need a major restructuring for the mobile department even thought they are generation cash. They do thing slow and lazy and very incompetent consider what happen to Z2 delay. Fire all the old screw and hire people from the outside.
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Posted: 2014-05-15 04:21:46
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This is their stock performance for the last 5 years.. they are hanging in there, but the overall trend is not good. They need to be careful if their stock starts hitting below the $10 mark..
On 2014-05-15 03:19:28, chunkybeats wrote:
I would be deeply upset if Apple bought Sony. Sony are well ahead in innovation and design on their mobile division and I would still consider Sony as a brand still cool. The fact is Sony provides other OEMs components for their handsets so that should be profitable. I'm glad they got out of the PC market, too crowded and not as profitable as once used to be. Fingers crossed Sony goes strong and Ibelieve they will because they are always one step ahead of the competition and that's why I like their products!
Apple might be interested in certain parts, but they are already a hardware manufacturer.. I don't know if they would have much use for Sony.
Google might buy the mobile division for the patents, specifically that ones from Ericsson, strip it down from anything of interest, and then get rid of it.. just like what they did with Motorola Mobility. They really need some stronger patents because Android is not the most original work out there..
On 2014-05-14 20:05:40, FMW300 wrote:
I just can't understand how they shipped so few phones. Only 8.8 million?
Samsung.
They said that they will flood the market and they are executing very well. No one stands a chance really.. at least for now. There was only one other OEM that could challenge Sammy in the android realm, but sadly they don't exist anymore.
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Posted: 2014-05-15 18:41:13
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Apple has dominated the market now... sort of.
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Posted: 2014-05-23 05:35:26
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Actually Apple use a Sony lens for the 5 and 5s plus they don't manufacture their own chips and hardware they use a mix and then make it their own. You are blind if you think Apple manufactures all their innards!
Sony will be fine and last thing they would want is yankee crap.
I just have one normal question but how can the most hated brand in the world be the most successful? If you hated Apple simply you wouldn't buy it??
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Posted: 2014-05-23 10:01:59
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but, how, How much longer can they keep going like this, it's like SE back in 2009, except the numbers are much bigger. The vultures are going to start circling over them if not already.
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Posted: 2014-06-28 14:10:34
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