Sony has reported smaller losses for its fiscal second quarter on a sales recovery and restructuring efforts.
The Japanese electronics and entertainment company also stuck to its full year forecast for a return to profit from its worst loss in company history the previous year.
Sony recorded a 15.5 billion yen ($193m) loss for the three months from July to September.
This was much better than the 27 billion yen loss racked up the same time last year. Quarterly sales improved 1.9% to 1.6 trillion yen.
The Tokyo-based maker of Bravia TVs and the PlayStation 3 game machine remains in deep trouble as does much of the Japanese electronics industry - slammed by cheaper competition in flat-panel TVs, and by Apple and South Korea's Samsung in mobile devices.
Sony, which reported a record annual loss of 457 billion yen ($5.7 billion) for the fiscal year ended March, its fourth year of losses in a row, stuck to its forecast to eke out a 20 billion yen ($250 million) profit for the current fiscal year.
Separately, Japanese electronics maker Sharp reported its losses for the fiscal first half jumped nearly 10-fold from the previous year to a 388 billion yen ($4.9 billion) loss.
Osaka-based Sharp did not break down quarterly results. It said it expects a 450 billion yen ($5.6 billion) loss for the full fiscal year to the end of March 2013. That would follow massive losses it racked up the previous fiscal year.
Panasonic yesterday also reported massive losses and forecast a 765 billion yen ($9.6 billion) loss for the fiscal year. That would mark the second fiscal year of massive losses in a row for the maker of the Viera TVs and Lumix digital cameras.
It would also be worse than the record loss of 772.2 billion yen ($9.6 billion) that Panasonic plummeted into for the fiscal year to the end of March - already among the biggest in Japan's manufacturing history.
The plight of Japanese electronics makers underlines their failure to be nimble with innovation at a time when cheaper rivals are able to come out with similar products very quickly. Panasonic tried to shift its operations to catering to other businesses such as solar panels and batteries, but even those sectors have been battered by price falls and are not proving as profitable as initially hoped.
Sony has promised to reshape its sprawling business, which includes video games, movies and music, to focus more on certain sectors such as mobile devices, game machines and medical equipment.
Sony is becoming the top shareholder in Japanese medical equipment maker Olympus. Olympus holds the top global market share in endoscopes, which are special devices that enter the body to look inside organs for checkups and surgery. Olympus is mired in scandal after its British chief executive Michael Woodford became a whistleblower, and the company later acknowledged its involvement in a massive cover-up of investment losses spanning decades.
Sony said it had carried out cost cuts in its flat-panel TV operations and sales improved in its mobile phone segment, but sales faltered in its digital cameras because of the popularity of smartphones, according to the company. It continues to lose money in its TV business, now in its ninth straight year of losses.
Its game unit also suffered as the drop in hardware and software sales of the PlayStation 3 home console was not offset by the sales of the new PS Vita hand-held machine.
Sony's troubles were exacerbated last year by factory and supplier damage in northeastern Japan from the March earthquake and tsunami. But it is aiming for a comeback under Kazuo Hirai, appointed president in April, who headed the company's game division and built his career in the US
For the latest quarter, Sony Pictures Entertainment got a perk from the strong performance of "The Amazing Spider-Man," offset by the less successful "Total Recall." In music, strong-sellers included P!nk's "The Truth about Love" and Michael Jackson's "Bad - 25th Anniversary," it said.
As part of its turnaround efforts, Sony recently sold its chemical products business. It also acquired US-based Gaikai to set up a new cloud service, which delivers massive virtual storage, to expand interactive entertainment offerings.
Sony also plans to start selling a super TV next month called "4K" that has an 84-inch display delivering superior image quality. The company said it is hoping to take advantage of its digital imaging and sensor technology for security and medical markets. But analysts say it is unclear when the payoff for such forays will materialise.
