Sony profits doubled.

MuGen · 04-28-2005, 01:27 PM

Quote:

Sony Shows Year Profits Nearly Doubled
Game sales slow despite spunky PSP performance.
by David Adams

April 27, 2005 - Sony today reported slowing fourth quarter financials, though total profits for the year almost doubled from the company's fiscal 2003. Costly restructuring and slow sales of the company's mobile phone, portable music, and standard television product lines made for low quarterly numbers, though the Sony's PlayStation Portable picked up slack, selling 2.97 million units worldwide.

For the fiscal 2004 quarter ending March 31, 2005, the company reports a net loss $533 million for the fourth quarter of fiscal 2004, compared with a loss of $352 million in the same period last year. By contrast, full fiscal year net profit reached $1.5 billion, an 85 percent increase from fiscal 2003's net profit of $833 million.

Despite the relatively strong performance of the PSP worldwide, Sony's game division saw operating revenue drop 6.5 percent to $6.82 billion. Operating income decreased about 36 percent to $407 million. The company explains this is due largely to slow PlayStation 2 sales worldwide, as well as the console's newly reduced price. The company shipped 16.17 million PS2 hardware units and 252 million PS2 software titles worldwide.

Sony hopes to ship 12 million units of the PlayStation 2 in this fiscal year. Despite contributions from both PS2 and PSP sales, the company expects that the costs of developing the next PlayStation system will leave game division revenues essentially the same for the current year.

Link: http://ps2.ign.com/articles/608/608130p1.html

This is good to know.... their Consumer Electronics subsidy is doing bad, but Gaming is staying steady.

Blackmane · 04-28-2005, 02:31 PM

They hope to ship another 12 million units this year?! What, is the console still brand new or something? That PSP number seems high too!

I'm not trying to knock your source, but those numbers seem off. Maybe I'm reading something wrong, but I don't think so.

MuGen · 04-28-2005, 05:09 PM

My source is IGN, so numbers will always be a bit skewed. in my opinion.

Perfect Stu · 04-28-2005, 05:59 PM

Quote:

Originally Posted by Blackmane

They hope to ship another 12 million units this year?! What, is the console still brand new or something?.

The PS2 is up well over 80 million now...and that's after 4 and a half years on the market. Do the math, consider a price drop, and I think the numbers for PS2 make a lot of sense.

Crash · 04-28-2005, 06:53 PM

well that's kinda good news...

wonder what their debt is now... cause it aint outta the red

Perfect Stu · 04-28-2005, 07:51 PM

Quote:

Originally Posted by Crash

well that's kinda good news...

Crash · 04-29-2005, 01:45 AM

stu, you're the man...

Quote:

Sony Corp. (SNE ): Downgrades to 1 STAR (strong sell) from 3 STARS (hold)

Sony posted a March-quarter loss of 56 cents per share, vs. a 39-cent loss, wider than our estimate of a 37-cent loss on weaker operating margin in the electronics segment than we expected. Looking ahead, we expect continued price pressure in digital consumer products to continue to squeeze margins in the electronics segment, which we believe will likely outweigh additional restructuring savings of about $680 million expected in fiscal 2006 (ending March). We are slightly decreasing our fiscal 2006 earnings per share estimate to 64 cents. Based on blended discounted-cash-flow and relative valuation, we are lowering our target price by $6 to $33.