Cash deficit Japan display has expressed its doubt of gaining profit this year also. The reason behind the continuous loss is supposed to be due to the fall in the sale of smartphones and it’s displayed. The company has also confirmed of quarterly loss. In the year 2019, the company has lost 98.6 billion yen till March end. Last year it had lost 147billion in nine quarterly losses. The company is also combating the ill effects of late shifting to organic LED displays. The discouraging sale of iPhone XR has also become a headache for the company. As a remedy Japan display has taken a decision to cut down its workforce by 1000 workers or by one-tenth of the total workforce.
CEO Yoshiyuki Tsukizaki has given a statement that “We took some restructuring measures before, but they turned out to be not enough to offset a worse-than-expected drop in demand for smartphone (screens).” Adding to this he said “The tough environment in the smartphone segment is likely to continue through the first half.”
All these actions and consequences are getting thoroughly observed and analyzed by its Chinese-Taiwanese suitors. These people also take the responsibility of delaying up to an 80-billion-yen investment just to reassess the company’s prospect.
The bailout deal will replace the 49.8% stake of INCJ fund who get it’s back from the government the buyers who have Taiwanese company TPK Holding and Chinese investment firm, Harvest group. A much long delay in this deal will become a threat to existence.
CFO Takanobu Oshima is continuously doing talks with the buyers’ group. However, it is worth noting down that Japan display has 100 million yen pending to get paid from its clients.
