Japanese company Sony Corp on Wednesday said that its net annual loss is expected to be smaller in comparison to the previous estimates after the cost cuts as well as the outstanding sales of its PlayStation video game consoles and image sensors assisted the third-quarter profit exceed the estimates.
The consumer electronics company said the initial results have showed that its operating profit had doubled to USD 1.52 billion (178.3 billion yen) during the October-December quarter, and the sales increased six percent to 2.56 trillion yen.
The figures have exceeded the estimates of the analysts as they were well ahead of 96.6 billion yen of the operating profit on sales of 2.38 trillion yen.
The Japanese tech firm has also made forecast of a preliminary full-year net loss of 170 billion yen, which is lower than its forecast made for last October, estimating a net loss of 230 billion yen for the year. The current financial year will close on March 31.
As the company struggles to recover from last year’s massive cyber hacking at its Entertainment network division over a controversial flick, called ‘The Interview’, the company said that it will be delaying the announcement of the official results for the third quarter.
After losing ground to competitors like Samsung Electronics Co Ltd and Apple Inc in the mobile phone segment, Sony seems to be banking more on its businesses related to gaming and devices.
Instead of the smartphones, Sony’s image sensors (that are installed in smartphone cameras) have turned out to be the company’s one of the best performing product lines in recent quarters.
Due to the stronger sensors demand, the tech firm has lifted its forecast to 100 billion yen for its annual operating profit for the devices operations from a prior forecast of 67 billion.
According to Sony, the slowing sales of smartphone in Asian market indicated that the mobile division was expected to post a full-year operating loss of 215 billion yen, steeper in comparison to the 204 billion yen loss expected by the company in October.
The company is also planning 2,100 jobs cut in the unit towards the end of the next fiscal through March 2016. This includes nearly 1,000 job cuts that have been already announced.