Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Click for more information, or
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
GET RECOGNIZED.
Let an ISACA® certification
elevate your career.

Register today and save
Tech Trends
See data differently
Average Rating:
Rate this article:  
CEO: Sony Needed To Act Sooner, But Will Reform
CEO: Sony Needed To Act Sooner, But Will Reform

By Yuri Kageyama
May 23, 2014 9:32AM

    Bookmark and Share
Speaking at a press briefing, Sony's CEO Kazuo Hirai promised a return to profit for the beleaguered company, blaming the company's losses on a slow response to changing market conditions and technology trends. Hirai's vision of Sony's turnaround centers on key technologies such as image sensors, cloud-based services and wearable devices.
 



Sony Corp. Chief Executive Kazuo Hirai said Thursday the company accumulated huge losses because it didn't respond quickly enough to changing market conditions, but promised a return to profit next year.

Last week, Sony reported a 128.4 billion yen ($1.3 billion) loss for the fiscal year ended March. It is forecasting a 50 billion yen ($490 million) loss for the current fiscal year. Sony has repeatedly disappointed investors by not achieving its profit forecasts.

"We must acknowledge that out steps to take action had come much too slowly," he told reporters at the Japanese entertainment and electronics giant's Tokyo headquarters. "We are going to fully complete our structural reforms."

Hirai's vision of Sony's turnaround centers on key technologies such as image sensors, cloud-based services and wearable devices.

He stressed that although Sony's electronics business was ailing, it was doing well in other areas such as finance, which includes a bank and insurance services, and entertainment, which boasts a successful "Spider-Man" film franchise and the PlayStation 4 video game machine.

He denied the company will sell or pull the plug on its money-losing TV business. Once a leader in TVs, Sony has lost out to competitors such as South Korea's Samsung Electronics Co. which led in the shift to flat panels.

Sony's TV operations have been struggling for a decade, fueling speculation Sony might exit the business entirely.

Hirai, however, said he was banking on 4K TVs, which deliver better image quality than current high-definition digital TVs.

Still, scaling back on areas where a company is suffering is often part of its turnaround plan.

Earlier this year, Sony said it was selling its Vaio personal computer business. Restructuring charges, dealing with inventory and other costs related to that sale is weighing on Sony's results this fiscal year.

Hirai said no more major job cuts or other sales were in the pipeline this fiscal year. What remains to be done is seeing through with the plans calling for a leaner Sony, instead of backpedaling as it had done in the past, he said.

When asked whether he will resign to take responsibility for the red ink, Hirai said he sees his main job as getting the reforms done, so that Sony doesn't have another year of losses.

"My challenge is to see this through, and that's the best way to respond to everyone's expectations," he said.

One change for Sony will be that it will stop reaching for market share and will instead focus on solid profitability, said Hirai.

Hirai became the head of Sony two years ago, when it was in even deeper trouble, racking up the worst losses in the company's history.

Hirai and other Sony executives reminded the crowd that Sony's past success rested on its strong engineering to deliver innovative products that helped define a consumer lifestyle.

"That Sony spirit remains part of our unchanging DNA," Hirai said. "But we must not be afraid to change what needs to be changed."
 


© 2014 Associated Press under contract with NewsEdge. All rights reserved.
 

Tell Us What You Think
Comment:

Name:





 Tech Trends
1.   Earnings, Excitement Grow for Apple
2.   Internet of Things Comes to DIYers
3.   Avaya Pressing Hard on Cloud-Based UC
4.   Design Central to Microsoft Future
5.   Why You Need To Hire a CCO


advertisement
Avaya Pressing Hard on Cloud-Based UC
Provides easier, faster provisioning.
Average Rating:
Earnings, Excitement Grow for Apple
Momentum mounts as rumors swirl.
Average Rating:
Design Central to Microsoft Future
New ethos a break from functional past.
Average Rating:


advertisement


 Random Bytes
Earnings, Excitement Grow for Apple Avaya Pressing Hard on Cloud-Based UC
Design Central to Microsoft Future Bitcoin 'Mining Pool' To Stay Small
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Researchers Working To Fix Tor Security Exploit
Developers for the Tor privacy browser are scrambling to fix a bug revealed Monday that researchers say could allow hackers, or government surveillance agencies, to track users online.
 
Wall Street Journal Hacked Again
Hacked again. That’s the story at the Wall Street Journal this week as the newspaper reports that the computer systems housing some of its news graphics were breached. Customers not affected -- yet.
 
Dropbox for Business Beefs Up Security
Dropbox is upping its game for business users. The cloud-based storage and sharing company has rolled out new security, search and other features to boost its appeal for businesses.
 

Enterprise Hardware Spotlight
Watson Gets His First Customer Service Gig
Since appearing on Jeopardy, IBM's Watson supercomputer has been making a living using his super-intelligent knowledge base for business verticals. Now, Watson's been hired for his first customer service job.
 
Tablet Giants Apple and Samsung Feel the Heat
When a company saturates its home market with a once-hot product, expect it to pump up efforts elsewhere. Apple, for its part, is now pushing iPads to big corporations and the enterprise market.
 
Microsoft Makes Design Central to Its Future
Over the last four years, Microsoft has doubled the number of designers it employs, putting a priority on fashioning devices that work around people's lives -- and that are attractive and cool.
 

Mobile Technology Spotlight
T-Mobile Calls 'BS' on AT&T's New Promotion
While Verizon Wireless is moving to throttle bandwidth hogs, a scrappy T-Mobile is taking on the giants with a limited-time promotion it hopes will drive up the churn rates of its wireless rivals.
 
Microsoft Update to Windows Phone 8.1 Already Coming
An update to Windows Phone 8.1 is on the way just weeks after the release of the product itself. Microsoft has begun detailing some of the update features to phone manufacturers.
 
Stanford Researchers Report Battery Breakthrough
Stanford researchers have found a way to use lithium in a battery's anode, a breakthrough that could triple capacity and has been described as the "holy grail of battery science."
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | CRM Systems | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.