Sony Says They’ll Lose $3.1 Billion, Hack Cost $170 Million
Posted by Christophor Rick (TheSuperGuido), May 23, 2011 15:19
Dire times at big black as Sony has announced the Playstation Network, Qriocity, Sony Online hack will cost them at least $170 million dollars. But that’s nothing compared to the $3.1 billion they’re set to lose for the year. OUCH!
That’s enough to put CEO Howard Stringer in the hot seat with the directors I’m sure.
The major loss comes from the combination of the hack, the tragic Japanese earthquake and tsunami and what Sony say is a write off of deferred tax assets.
But a loss of $3.1 Billion is a long way to go from $170 million and, originally estimated in Feb., a $857 million profit. The earthquake and tsunami are blamed for around $2 billion in losses through the end of the fiscal year (March 31st, 2012).
Sony stated the tax asset write off is around $4.4 billion. "Until the quake hit, we had been counting on a considerable recovery in earnings (in the current fiscal year through March 2012)," said Sony Chief Financial Office Mamoru Kato.
This is the third straight year that the company will lose money and is an especially hard hit considering they were looking at a profitable quarter.
Even with the quake, revenue is still strong and they have re-opened nine of the ten plants in Japan near the quake and tsunami impact areas. They also stated they expect inventories to recover and it sounds like there will be no shortage of Playstation consoles or accessories any time soon.
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