Bad News Notes about Sharp for the past two weeks included:
"Japan's leading maker of liquid crystal displays had a 500 billion yen ($5.1 billion) net loss for the year, worse than the 450 billion yen deficit it forecast in November, the sources said on condition that they not be identified."
"In addition to the write-offs, the company is also taking a charge to put aside cash for possible fines from a display price-fixing investigation in Europe, the sources said."
"The write-off of excess capacity, however, highlights softer demand from Apple, which has seen its profit growth slow dramatically from more than 60 percent over the past five years to a projected rate of less than 5 percent for the next decade."
"but more fundamental problems remain. Sharp likely earned an operating profit in the second half of fiscal 2012 as requested by its main banks. Still, the impairment losses on LCD production facilities and other factors probably widened consolidated losses for the fiscal year beyond the projected Y450 billion."
"Sharp is in desperate need of cash, prompting it to accept a lifeline from rival Samsung. In March, Sharp raised Y10 billion from a new share issuance to Samsung, giving it about a 3% stake in Sharp. Sharp said in a statement the report wasn't based on anything it had announced."
"Sharp, which at the start of the year was forced to curtail production of 9.7-inch screens for Apple's iPad, began limited panel fabrication for Apple's next iPhone, with mass production slated to start in June, the sources said."
Good News Notes about Sharp for the past two weeks included:
"Its operating profit for the second half of its business year was 20 billion yen, compared with the company's forecast for 13.8 billion yen, the sources added."
"In addition, the two lenders have decided to give Sharp an extension on a total of Y360 billion in lending that matures in June. With the new facility, credit extended to Sharp by the two main banks, which stood at about Y200 billion as of March 31 last year, is expected to rise to around Y800 billion."
"Sharp Corp. aims to expand its business tie-up with Samsung Electronics Co. beyond liquid crystal displays, and is considering seeking an additional capital injection from the South Korean electronics conglomerate, the Yomiuri Shimbun reported in its Thursday morning edition.
"Under a three-year business plan scheduled to be released May 14, Sharp will likely include plan to expand its ties in areas such as copiers."
"Samsung sees the copier business as having the potential to succeed its mainstay smartphone business, which could slow down amid fierce global competition".