Sony saw a continued profit boost following the restructuring of its mobile business, with its components unit also benefiting from “a significant increase” in sales of image sensors for mobile phones.
The company reported an operating income of JPY3.6 billion ($32.6 million) for its fiscal Q1 2017 (calendar Q2), up sharply from JPY0.4 billion in the same period of 2016, aided by reduced costs and R&D expenses, although partially offset by an increase in the price of key components. There was also a JPY1.4 billion gain from forex fluctuations.
Sales of JPY181.2 billion were down 2.5 per cent, mainly due to a change in product mix, although this was partially offset by an increase in unit sales. The company shifted 3.4 million smartphones, up from 3.1 million in the prior-year period.
In the semiconductor unit, sales increased 41.4 per cent year-on-year to JPY204.3 billion, due to sales of image sensors for mobile products. The comparison was also flattered by the impact of an earthquake in the prior-year period, partially offset by the downsizing of the camera module business.
On a group level, the company reported a profit of JPY80.9 billion in Q2 2017, up from JPY21.2 billion in the 2016 period, on revenue of JPY1.86 trillion, up 15.2 per cent. Positive impacts on profitability from Semiconductors and Imaging Products and Solutions were partially offset by a decrease in Game & Network Services.
The Game & Network Services profitability comparison was impacted by the launch of a “highly profitable” software title in the 2016 quarter, and a price reduction in PS4 hardware.
The comparison was flattered by an impairment charge related to its camera module business in Q2 2016, and the impact of the earthquake – additional expenses last year, and insurance recoveries this time around.