Andre Yoskowitz
4 Nov 2012 13:41
Long-struggling Japanese electronics maker Sharp has warned this week that they may not make it barring a large turnaround or alliances with other companies.
The company posted a full-year net loss forecast of $5.6 billion, almost double what they expected months ago.
With a press statement, the company noted they are seeing "serious negative operating cash flow. This raises serious doubts about (our ability) to continue as a going concern." A going concern notice is usually the kiss of death for a company unless they can find some sort of funding.
Hon Hai Precision has been in talks to become the biggest shareholder for Sharp for months, but a deal is not expected until March.
Sharp, just like other Japanese TV makers, has seen its fortunes turn in recent years as other Asian companies, like Samsung, use lower costs and lower margins to squeeze them out of the industry. Sony, Panasonic and Sharp have lost $20 billion combined over the last two years, and been forced to fire 60,000 employees.