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Forums - Sony Discussion - Sony warns of massive $3.1 billion FY2011 loss (PSN outtage $171 million)

spaceguy on 23 May 2011

HOLY CHULUPA!



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easyrider on 23 May 2011

WOW! so Sony can't catch a break. What a bad gen for them. Always looking to make out only to be but slammed by some random Sh-t.



Aprisaiden on 23 May 2011

kinda sucks for SONY, the $4.4 billion is becuase they might not hit the $1 operating profit estimate next year -- though that will largely be because the $1.8 billion bill repair damage from the japan earthquake/tsunami. It also kinda puts the PSN breach in perspective when SONY is only estimating it to cost $170 million.



NoCtiS_NoX on 23 May 2011
ethomaz said:
Grooski said:

For the common folk who don't have a clue what the hell this means.

Sony gets tax credits for making a loss in previous years, reducing their taxable income this year. Under US law (remembering Sony is an international company) this credit is only applied if Sony can show reasonable probability that they will return to net profit in three years. This is their third year and they are still in a rolling loss.

Sony have indicated that they will create a $1billion operating profit next year, but the uncertain costs of the earthquake/tsunami mean they cannot be sure. As a precaution, and because of these US regulations, they have included a valuation of 360 billion yen on the asset (ie written off the asset). This is just an accounting write-off

It doesn't affect anything to do with how Sony is travelling this year, in fact, Sony made a $700million operating profit. They don't have to pay more taxes now, but if they don't return to profits in the next 1-2 years, this write off will become an actual write-off hitting their bottom line.

So true...  I even posted the document links from Sony explaining everything right but I guess no one looked .


Don't sweat about it. People ignore this stuff and will still post doom and gloom post. 



Kasz216 on 24 May 2011

Well there was that giant earthquake... and the whole hacking thing and everything.  I wouldn't call it shocking.



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Kasz216 on 24 May 2011
Mordred11 said:

A negative Sony thread?Made by Legend11?Well I'll be damned...

 

OT : This was expected,really,considering what happened in Japan.

Hey, someone had to post it.  I read that yesterday though this article is new.

It's a fun experiment... it seems like negative Sony news gets posted by the same posters MOSTLY because otherwise the negative Sony news doesn't get posted.



ethomaz on 24 May 2011
Kasz216 said:

Well there was that giant earthquake... and the whole hacking thing and everything.  I wouldn't call it shocking.

The earthquake was $270 million... the PSN thing is for the next quarter.

That's just tax credits under US law (which I don't understand very well).



Kasz216 on 24 May 2011
ethomaz said:
Kasz216 said:

Well there was that giant earthquake... and the whole hacking thing and everything.  I wouldn't call it shocking.

The earthquake was $270 million... the PSN thing is for the next quarter.

That's just tax credits under US law (which I don't understand very well).


You mean Japanese law?



ethomaz on 24 May 2011
Kasz216 said:
ethomaz said:
Kasz216 said:

Well there was that giant earthquake... and the whole hacking thing and everything.  I wouldn't call it shocking.

The earthquake was $270 million... the PSN thing is for the next quarter.

That's just tax credits under US law (which I don't understand very well).


You mean Japanese law?

No US law... Sony is a international company.

Here explain better: http://gamrconnect.vgchartz.com/post.php?id=4063288



Kasz216 on 24 May 2011
ethomaz said:
Kasz216 said:
ethomaz said:
Kasz216 said:

Well there was that giant earthquake... and the whole hacking thing and everything.  I wouldn't call it shocking.

The earthquake was $270 million... the PSN thing is for the next quarter.

That's just tax credits under US law (which I don't understand very well).


You mean Japanese law?

No US law... Sony is a international company.

Here explain better: http://gamrconnect.vgchartz.com/post.php?id=4063288

That's.... not right though.

The writedown is in relation to japanese tax credits.

http://newsfeedresearcher.com/data/articles_b22/sony-billion-year.html

 


Sony Corporation (NYSE: SNE) revised its FY 2010 consolidated results forecast on May 23, 2011. According to the new forecast the company expects a loss of $3.2 billion (260 billion yen) for the fiscal year ended March 2011, reversing its earlier projection of a return to profit because of the impact of the March 11, 2011 Japanese earthquake and tsunami. [9] The losses can be written down against future profits, but with the damage to the supply chain and other factors resulting from the earthquake and tsunami expected to cost Sony 150 billion yen ($1.83 billion), the company said it has decided to take a "non-cash charge of approximately 360 billion yen related to Japanese tax credits."

 

it decided to not write it down vs future profits because it was worried about the damage to the supply chain... and to be used against future deffered taxes in japan.