Sony to Modify Business Strategies

Sony

has released the financial results for the first quarter (Q1) of FY 2020. The consolidated sales have increased by 2% as compared to the first quarter of previous year, resulting in a total of JPY 1968.9 bn while the consolidated operating income has decreased by 1% ( y-o-y), resulting in a total of JPY 228.4 bn. Under its Imaging and Sensing Solutions segment, the net sales for FY20 Q1 has decreased by 11% ( yoy) to JPY 206.2 bn while its operating income has decreased by JPY 24.1 bn resulting to a total of JPY 25.4 bn profit.

The company attributes the decrease in its sales and profits to the ongoing pandemic, causing a decrease in enduser product sales, a deceleration of the smartphone market and a shift to midrange and moderately priced models in that market. The forecast for FY 2020 under this segment suggest an overall decrease of 7% (70.6 bn) in sales and a decrease of 105.6 bn in profits. Under it consolidated forecast for FY 2020, Sony expects to incur JPY 25 billion in restructuring costs across all its business divisions. The company has also revealed its plan to issue an interim dividend of JPY 25 per share for this fiscal year, compared to JPY 20 per share in the previous fiscal year.

The company says that it is yet to determine the annual dividend amount for the current fiscal year. The company has also stated that in order to respond quickly to the changing market, they will modify their strategies in the areas of investment, R&D and customer base. The company also plans to expand the applications for image sensors and the overall market by introducing edge sensing products with AI processing functionality. By modifying and enhancing their business model to adapt to the recent changes in the market, Sony expects to return the business to the path of growth and profit by the second half of FY 2021.