Japanese tech giant Sony has reported a 90 per cent decrease in operating income for the last financial year, highlighting the losses made by the company as a result of its imminent exit from the PC market.
HumanIPO reported in February the company was reforming its business and cutting 5,000 jobs worldwide, while it announced the sale of PC business Viao.
However the extent of the losses made by the company as a result of its PC business are highlighted in its year-end financials.
The company’s operating income decreased from US$227 million to US$27 million during the last financial year.
Reasons for the drastic decline include “a recording of JP¥91.7 billion (US$890 million) in losses related to the PC business, including restructuring charges, compared to JP¥38.6 billion (US$378 million) in PC business-related losses recorded in the previous fiscal year”.
Despite the decline in operating income, the company reported a 14 per cent increase in sales and operating revenue.
It said its mobile, gaming, imaging, home entertainment, music and picture businesses all showed revenue and sales growth.
The company saw 39 per cent revenue growth in its gaming business, however the division also reported an operating loss of US$8.1 million, compared to operating profit of US$1.7 this time last year.
The gaming division attributed the growth in sales the launch of the PlayStation 4 (PS4) while the operating losses were incurred as a result of “costs related to the launch of the PS4 as well as the recording of a JP¥6.2 billion (US$60 million) write-off of certain PC game software titles sold by Sony Online Entertainment”.
