Sony spending dollars (Almost a billion of them)

[MoHasanie]

joeorc said:

MoHasanie said:

Yeah but how profitable is it? Sony has no trouble making money but they do find it hard to be profitable.  

OK, there seems to be some Questions about Sony not being able to generate profit at this point mainly because the recent 1.9 billion write down, was not really a Loss it was a Good will write down. They did this because they were restructuring to boot.

The loss was mainly Sony purchased @1 year before the other half of SE stock, they paid 1.6 billion for it. The evaluation for it was too high, so instead of taking a "percieved" limited Profit that would be based on market sales, Sony decided to after the year to write it off @ zero and restructure because Sony did not value that section to be worth 1.6 billion. The other part of the loss was "projectedSales forcast and not meeting it" they missed it by about 6 million they were too high in projected number's for sales though the numers were good they were not good enough for the valuation of the cost's paid. If they did not take this write down they would have had 800 million in profits generated, but loose more over stock decline's and further restructurring paid costs from other sections of the company. Sony instead took the loss as a good will write down in order to fix a broken section they just aquired.

This increase in cmos sensors by many companies other than just Sony mainly by the market leaders that sell many times over will set to offset this restructuring costs and move sony toward profit that much faster of a rate.

Its putting the Money toward offsetting loss until the restructuring its not about over night its about doing what needs to be done with in the limitations that they have to work in to fix the problems over in japan and company wide.

Ok, well hopefully their plans work out for them. Every year there has been some excuse for the loss. Sometimes they blamed pc's, then gaming, and then TV's, and now the mobile unit. So who knows if next year they announce a loss and blame some other division?