Sharp Corp today warned it might not be able to survive on its own and is thinking about alliances with other companies.
For a few months now, Sharp has been in talks with Hon Hai Precision Industry Co Ltd about becoming its biggest shareholder.
Sharp CEO Takashi Okuda told reporters:
This is a real shame to hear. Hopefully they can make it work.
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In a statement, the company said it booked massive second-quarter losses and is seeing "serious negative operating cash flow." "This raises serious doubts about (our ability) to continue as a going concern," it said, adding it was taking steps, from pay cuts and asset sales to voluntary redundancies, to generate cash flow.
For a few months now, Sharp has been in talks with Hon Hai Precision Industry Co Ltd about becoming its biggest shareholder.
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"Perhaps it will not fail within this year, but I don't think Sharp has a viable business in the next 3-5 years," said Tetsuro Ii, CEO of Commons Asset Management in Tokyo. "The company hasn't got much time left and they need to cut off businesses that they can, conserve cash and ... produce something that's really competitive."
Sharp CEO Takashi Okuda told reporters:
Quote:
"We have lots of great technology and we want to tap that asset to revive and make money, but I can't say we are now a company with that vitality."
This is a real shame to hear. Hopefully they can make it work.

















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