Renesas to record huge losses in coming quarters

LONDON, UK: Renesas Electronics has forecasted a net loss of 150 billion yen ($1.91 billion) for the financial year ending March 31, 2013. The company has incurred a lot of restructuring costs and has reported sales down 11 per cent sequentially for the first fiscal quarter ended June 30.

The Renesas results and forecasts taken together indicate that an exceptionally large net loss of 81.7 billion yen (about $1.04 billion) will be endured albeit on increasing sales in the current quarter — Renesas' second fiscal quarter, reports Peter Clarke of EETimes. The loss is related to very large restructuring costs.

The company has been trying to workout on a rescue plan that includes lay off of Renesas personnel by closing more than half of its domestic manufacturing sites. It has also been trying to raise about $1.3 billion for implementing its rescue plan.

Renesas reported a net loss of 20.8 billion yen ($265 million) on sales revenue of 186.6 billion yen ($2.38 billion) in the first fiscal quarter. Sales revenue is down sequentially by 11.0 per cent from 209.7 billion yen (about $2.68 billion) while the loss increased from one of 18.2 billion yen.

Renesas would put up bad financials for the forthcoming quarters. For the first six months of the fiscal year Renesas said the net loss would be sharply up at 102.5 billion yen (about $1.31 billion) on sales revenue of 406 billion yen (about $5.18 billion). For the full fiscal year ending March 31, 2013, Renesas forecasts a net loss of150 billion yen (about $1.91 billion) on sales revenue of 883.1 billion yen (about $11.3 billion).