Sony sells 9.6M smartphones, turns small profit in Q1

Sony ended its fiscal 2012 year on a good note and it's starting off 2013 in the black too. The fiscal Q1 (April-June) saw an increase in sales and operating revenue by 13% year on year and a net profit of $35 million (it doesn’t sound like much, but in Q1 2012 the company posted a net loss $248 million).

The increase in revenues improved due to favorable currency exchange and a strong performance of the Mobile Products & Communications (MP&C) division responsible for the company's Android phones.

On a constant currency basis, the revenues decreased 3%. Sony points to lack of sales of its chemical division and weak performance of compact and video cameras. Operating profit is up thanks to strong sales of Android phones and higher operating income from Sony's Financial services.

The MP&C division's sold 9.6 million smartphones, which compares favorably to the 8.1 million shipped over the previous quarter and the 7.4 million for the same period of last year.

Revenue increased 36.2% year on year (14% up on a constant currency basis) to $3.92 billion due to the significant increase in smartphone sales and a higher average selling price. The division also scored $71 million due to patent royalties. Operating income was $60 million compared to an operating loss of $285.8 million in the same quarter last year.

Sales of $1.19 billion for the Game division were flat with positive currency exchange rates offsetting lower PS3, PS2 and PSP sales. The division recorded an operating loss of 149 million due to higher R&D costs associated with the upcoming PlayStation 4.

Imaging Products & Solutions saw a 10.4% decrease in sales to $1.75 billion and saw an operating profit of 82 million. The shrinking digital and video camera market resulted in a significant decrease of sales of Sony's products in this category.

The Home Entertainment & Sound scored higher sales and an operating profit of 34 million thanks to an 18.2% increase in sales of Sony TVs. Last year the company lost money on TVs, but a better mix in LCD TVs and reduced costs offset a significant decrease in unit sales.

Sony Pictures and Sony Music scored $38 million and $109 million operating income respectively. Operating income includes a sale of Sony Pictures Entertainment's music publishing catalog for $106 million. After Earth underperformed and hurt Sony Pictures' sales.

You can read more about Sony's financial performance in Q1 this year here (PDF) and its forecast for the fiscal year ending in March 2014. The company has divisions we didn’t cover (including the Sony Life insurance company, which was one of the best performing divisions).

Source (PDF)

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