Japanese electronics maker Sharp Corporation has reduced its quarterly losses but its outlook remains challenging.

The Osaka-based maker of Aquos televisions left its forecast for the full year ending March unchanged Friday at a 450 billion yen loss ($5 billion).

Its flat-panel business for TVs and mobile devices continues to get hammered by plunging prices and intense competition.

Sharp reported a 36.7 billion yen ($399m) net loss for the three months from October to December period, a smaller flow of red ink than its 173.6 billion yen loss a year earlier.

It also posted an operating profit for the three month period, the first time in five quarters. The operating result excludes one-time gains and losses to provide a clearer picture of financial performance.

Quarterly sales rose 15% to 678.2 billion yen ($7.4 billion).