Sony announces a series of fund raising efforts to initialize restructuring for profit.
It seems that Sony Corp’s efforts in fund raising and restructuring are paying off as shares hit highs last seen in April 2011.
Since the beginning of the month of April when the tech company announced the shedding half of its stake in Olympus cameras to raise funds for restructuring, Sony shares have lifted 11.4%. Since last Thursday, shares have climbed 2.6% and now stand at 30.52 at the close of Asian trading on Monday.
Much of this year’s financial focus for Sony ironically came from being hacked, when the contentious film, ‘The Interview’ that depicted the assassination of North Korean’s leader was the cause of an alleged North Korean hack into Sony’s systems. Sony released the film at Christmas online and in cinemas with a massive public response – in fact reports boasted ‘The Interview’ had generated more than $31 million in video-on-demand streams in the first week.
However, even before this event, Sony had already made a 6.5% increase in sales and operating revenue at 2,566.7 billion yen (US$21,213 million), compared to the same quarter of the previous fiscal year (year-on-year). This figure was part of third quarter results ended December 2014 and released on 17 March, when Sony reported, ‘This increase is primarily due to the favorable impact of foreign exchange rates, a significant increase in Mobile Communications (“MC”) segment sales reflecting an increase in unit sales of smartphones, a significant increase in Devices segment sales due to the strong performance of image sensors, and a significant increase in Game & Network Services (“G&NS”) segment sales reflecting the strong performance of PlayStation 4 (“PS4”).
More recently, Sony addressed the less profitable areas of business by halving its stake in Olympus cameras, whilst financing successful divisions with Sunday’s announcement that Sony will integrate Advantech’s Networked Media Interface into Sony's IP Live Production system. Sony also plans to increase total production capacity for image sensors from the current level of approximately 60,000 wafers per month to the level of approximately 87,000 wafers per month by the end of September 2016. Sony commented, ‘Demand for these image sensors is anticipated to further increase, particularly within the expanding market for mobile devices such as smartphones and tablets. Sony is striving to bolster its production capacity for stacked CMOS image sensors in order to solidify its leading position in the image sensor market.’
MT4 chart: Sony Corp
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