x PhoneArena is hiring! Reviewer in the USA

Sony Ericsson's last quarterly results before it becomes just Sony aren't pretty

Posted: , posted by Daniel P.

Tags :

Sony Ericsson's last quarterly results before it becomes just Sony aren't pretty
Sony Ericsson just published its Q4 and FY2011 earnings, and the issues that seemingly plagued HTC and, basically everyone but Samsung and Apple, like "intense competition and price erosion", have made it swing to a $317 million loss in Q4. Before that, in Q3, the company even eked out a profit, but now it tacks on "restructuring charges", and "Thailand flooding" to the list of reasons for its significant loss for the last quarter.

Sony Ericsson pegged its share of Android handsets globally at 10% in volume and 7% in value during Q4, and 10% in volume and 10% in value for the full year 2011, which confirms the dip in its average selling price for last quarter.  

This will be the last earning report of Sony Ericsson before the end of the joint venture is final in financial aspect as well, and without the money it doled out for commencing the restructuring, the Q4 loss rang at $198 million. Here is the full breakdown of financials for the last two quarters, and fiscal years 2010 and 2011.



Q4 2010

Q3 2011

Q4 2011

FY 2010

FY 2011

Number of units shipped (million)
Average selling price (Euro)

11.2
136

9.5
166

9.0
143

43.1
146

34.4
152

Sales (Euro m.)

1,528

1,586

1,288

6,294

5,212

Gross margin (%)

30%

27%

24%

29%

28%

Operating income (Euro m.) 

39

38

-227

159

-206

Operating margin (%)

3%

2%

-18%

3%

-4%

Restructuring charges (Euro m.)

-3

       -

-93

-42

-93

Operating income excl. restructuring charges (Euro m.)

43

38

-134

202

-113

Operating margin excl. restructuring charges (%)

3%

   2%

  -10%

3%

-2%

Income before taxes (IBT) (Euro m.)

35

31

-247

147

-243

IBT excl. restructuring charges (Euro m.)

39

31

-154

189

-150

Net income (Euro m.)

8

0

-207

90

-247


Let's not forget also that Sony Ericsson was mostly cruising in Q4, paying more attention to the restructuring after the breakup with Ericsson, rather than outing new handsets for the holiday season, so that's a big reason its shipped units diminished significantly from Q3 to Q4, as well as its ASP numbers. Bert Nordberg, President and CEO of Sony Ericsson, had the following comments on the last financial results coming from the joint venture as it was:


Q1 could be more of the same, but when Sony's first dual-core phones with HD screens and LTE, like the Xperia S and Xperia ion launch in March-April, then Q2 might paint the very different picture of a resurging Sony, with its upcoming "four-screen" Dot Switch platform in tow.

source: SE

+- Press Release

11 Comments
  • Options
    Close





Want to comment? Please login or register.

Latest stories